June 16, 2008
Genco buys six bulker newbuilds
Genco Shipping & Trading Limited (NYSE: GNK) is to acquire six drybulk newbuildings from Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd., for an aggregate purchase price of $530 million.
The six vessels--three Capesize and three Handysize vessels--are expected to be delivered to Genco from the fourth quarter of 2008 through the fourth quarter of 2009.
The three 170, 500 dwt Capesize vessels are under construction at South Korea's Daehan Shipbuilding and the three 32,000 dwt Handysizes at Jinse.
On completion of the acquisition and including the three drybulk vessels Genco has agreed to acquire from Bocimar International N.V. and Delphis N.V.and four remaining Capesize vessels to be acquired from Metrostar Management Corporation group, Genco's fleet will consist of 41 drybulk vessels with a total carrying capacity of approximately 3,516,000 dwt and an average age of approximately 5.8 years.
Robert Gerald Buchanan, President, commented, "We are pleased to further expand Genco's leadership position in the drybulk industry with the acquisition of six high-quality newbuildings. Building upon our agreement to acquire three drybulk vessels in May, this acquisition is consistent with our portfolio approach to acquire modern vessels that enhance our fleet profile and improve our position to benefit from the strong demand for essential commodities such as iron ore and coal. As we have in the past, we intend to seek opportunities to lock away our newly acquired vessels on attractive time charters prior to their delivery."