Greek carrier Paragon Shipping Inc, mostly in the drybulk market, has sold one of its newbuilding Kamsarmax contracts and entered into agreements to acquire two 3,400-TEU new containerships from Germany's Howardtwerke-Deutsche Weft at EUR40 million per vessel (US$49 million).
"We have taken advantage of favourable conditions in the sale and purchase markets to sell one of our Kamsarmax newbuilding contracts and also to acquire two 3,400-TEU newbuild container vessels with prompt delivery within July and August 2010," said Paragon CEO Michael Bodouroglou. "We were able to sell the Kamsarmax contract at a one-time cash profit to the company and we believe the acquisition of the container vessels were made at attractive prices at an advantageous point in the container cycle," he said.
"The container market is currently at the early stages of its rebound with asset prices at attractive levels enabling us to maximise investment returns over time as freight rates recover," said Mr Bodouroglou.
"We are seeking employment for these vessels and we shall continue to focus on fixed-rate period charter employment, a strategy that has been profitable for Paragon and its shareholders," he said. "We intend to continue seeking accretive acquisitions in the container and drybulk sectors. Aiming to maximise shareholder value, we will explore all options for our drybulk and container fleet."
"We have taken advantage of favourable conditions in the sale and purchase markets to sell one of our Kamsarmax newbuilding contracts and also to acquire two 3,400-TEU newbuild container vessels with prompt delivery within July and August 2010," said Paragon CEO Michael Bodouroglou. "We were able to sell the Kamsarmax contract at a one-time cash profit to the company and we believe the acquisition of the container vessels were made at attractive prices at an advantageous point in the container cycle," he said.
"The container market is currently at the early stages of its rebound with asset prices at attractive levels enabling us to maximise investment returns over time as freight rates recover," said Mr Bodouroglou.
"We are seeking employment for these vessels and we shall continue to focus on fixed-rate period charter employment, a strategy that has been profitable for Paragon and its shareholders," he said. "We intend to continue seeking accretive acquisitions in the container and drybulk sectors. Aiming to maximise shareholder value, we will explore all options for our drybulk and container fleet."