Genco Buys Eight-year-old Capesize Vessel for $47.5 Million

U.S. drybulk shipowner Genco Shipping & Trading Limited on Monday announced it has agreed to acquire a 2016-built 180,000 dwt Capesize vessel for a purchase price of $47.5 million.

Genco said it expects to take delivery of the vessel, to be named the Genco Intrepid, from an undisclosed seller within the next 30 days. The company added that it intends to fund the acquisition with cash on hand and a drawdown from its revolving credit facility.

John C. Wobensmith, Genco CEO, said, “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.”