Genco Shipping & Trading Limited, the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, has agreed to acquire a 2016-built 180,000 dwt high-specification Capesize vessel for a purchase price of $47.5 million, according to the company's release.
Genco expects to take delivery of the vessel, to be named the Genco Intrepid, within the next 30 days, and intends to fund the acquisition with cash on hand and a drawdown from its revolving credit facility.
John C. Wobensmith, Chief Executive Officer, commented, “We are pleased to continue to advance our growth strategy with the acquisition of this modern, fuel-efficient Capesize vessel. The purchase is consistent with our stated objective of reinvesting proceeds from the sale of older, less fuel-efficient vessels into high-quality Capesize vessels to increase our earnings power and further modernize our fleet. Since implementing our value strategy in 2021, Genco has invested approximately $285 million in fleet expansion and modernization, including this latest acquisition. Moving ahead, we believe Genco’s significant financial strength, highlighted by $328 million of undrawn revolver capacity at the end of Q2, will enable us to continue to capitalize on growth opportunities. At the same time, we remain focused on delivering sizable dividends to shareholders, following our recent decision to enhance our dividend formula to increase the amount of cash available for distributions to shareholders.”
Genco Shipping & Trading Limited is a U.S. based drybulk ship owning company focused on the seaborne transportation of commodities globally. The company's fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk), enabling us to carry a wide range of cargoes. Genco’s fleet is expected to consist of 42 vessels, including 16 Capesize, 15 Ultramax and 11 Supramax vessels with an aggregate capacity of approximately 4,446,000 dwt and an average age of 11.8 years, after agreed upon vessel sales and the delivery of the Genco Intrepid.