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May 20, 2021

Genco to purchase two fuel-saving Ultramax ships

Genco has signed an agreement to acquire a pair of 2022-built 61,000dwt Ultramax ships.

Dry bulk cargo shipping services provider Genco Shipping and Trading has agreed to purchase two 2022-built 61,000dwt Ultramax vessels.

The new vessels will be constructed at Dalian Cosco KHI Ship Engineering (DACKS) in China. Genco expects to receive the vessels in January next year.

The acquisition will be funded using cash on the balance sheet on a low leverage basis.

The new acquisitions will be Genco’s fifth and sixth fuel-efficient Ultramax vessels.

The company has also decided to commission two ships on period time charters for the purpose of securing cash flows.

The 2010-built Capesize vessel, Baltic Bear, will be commissioned at $32,000 per day for 10 to 14 months, and the 2015-built Ultramax vessel, Genco Vigilant, will be commissioned at $17,750 per day for 11 to 13 months, starting from October.

Genco CEO John C Wobensmith said: “This latest acquisition continues the expansion of our fleet at an attractive point in the drybulk cycle as asset values continue to trail the strong freight rate environment leading to attractive returns on capital.

“Built at a first-class shipyard, we expect these two Ultramaxes will seamlessly integrate into our in-house commercial platform while reducing our carbon footprint as they replace older, less fuel-efficient vessels. These vessels continue our growth trajectory within the key Ultramax sector while improving the age profile of our asset base.”

Last month, Genco agreed to acquire a 2016-built 64,000dwt Ultramax vessel, built at Zhejiang Yangfan shipyard in China.

Currently, Genco’s fleet includes 17 Capesize, 14 Supramax and nine Ultramax vessels, with a combined capacity of nearly 4,368,000dwt.

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