Genco Shipping has advanced its fleet renewal strategy

Genco also announced that it has agreed to sell the Genco Commodus, a 2009-built 169 098 DWT capesize vessel, for US$19.5 million. This anticipated sale will result in drydocking savings in 2024 due to the vessel’s upcoming third special survey. The vessel is expected to deliver to buyers in January 2024.

Genco intended to fund the acquisitions through a combination of cash on hand, a drawdown on its revolving credit facility and proceeds from the sale of the Genco Commodus. Assuming this drawdown on its revolver and the closing of its previously announced US$500 million credit facility, it expected to have an outstanding debt of approximately US$210 million and undrawn revolver availability of approximately US$290 million.

John C. Wobensmith, CEO of Genco, commented, “We are pleased to have taken important steps to advance our fleet renewal strategy. Leveraging our significant financial strength, we opportunistically acquired two modern, fuel-efficient capesize vessels, while divesting older, non-core tonnage. We expect these two new capes will seamlessly integrate into our global commercial platform, as sister ships to existing Genco vessels. Importantly, we’ve enhanced the average age of our asset base and improved our earnings capacity to take advantage of favourable long-term industry fundamentals.”

Mr Wobensmith concluded, “Given that the acquired capesizes are high-specification vessels, we viewed these fleet additions as highly attractive, positioning Genco well for the longer term while also improving the efficiency of our fleet to further reduce our carbon footprint. Going forward, we intend to continue to assess additional sale and purchase transactions in the market and at the same time remain focused on delivering sizeable dividends to shareholders, deleveraging, and further growth.”

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