Genco Secures Additional Financing for Scrubber Installations

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  • Genco Shipping & Trading Limited closed financing for scrubber installations on 17 of its Capesize vessels.
  • Amendment made to its USD 460 million credit facility to provide an added tranche of up to USD 35 million, that can cover up to 90% of the scrubber related expenses.
  • The company recorded a net income of USD 18.3 million in the 4th quarter of 2018, compared to an income of USD 2.5 million seen in the same quarter of 2017.
  • Net revenue totaled USD 75.6 million during the three-month period ended December 31, 2018, increasing by 27% from USD 59.3 million shown a year earlier.
  • Time charter equivalent (TCE) increased to USD 13,237 for the quarter, marking a year-over-year improvement of 23%.

Dry bulk specialists Genco Shipping & Trading Limited has closed financing for scrubber installations on 17 of the company’s Capesize vessels, reports Glory Logistics.

Amendment for compliance expenses

The shipowner said that it entered into an amendment to its USD 460 million credit facility in February 2019 providing an additional tranche of up to USD 35 million to cover up to 90% of the expenses related to the scrubbers acquisition and installation as part of the company’s IMO 2020 strategy.

The company unveiled the development in its fourth quarter of 2018 financial report in which it said it would remain weighted towards short-term fixtures after marking a strong end to 2018.

Net revenue uptick

Genco Shipping & Trading recorded a net income of USD 18.3 million in the fourth quarter of 2018, compared to an income of USD 2.5 million seen in the same quarter of 2017.

Net revenue totaled USD 75.6 million during the three-month period ended December 31, 2018, increasing by 27% from USD 59.3 million reported a year earlier.

Time charter equivalent (TCE) increased to USD 13,237 for the quarter, marking a year-over-year improvement of 23%.

Increased margins anticipated

“So far in 2019, seasonal factors coupled with events such as the Vale dam tragedy have led to volatility in freight rates in the short-term. We believe such short-term volatility highlights the importance of our solid liquidity position as well as our approach of deploying a fleet with direct exposure to the major and minor dry bulk commodities both of which present strong long-term demand prospects underpinned by a backdrop of low net fleet growth,” John C. Wobensmith, Chief Executive Officer, said.

“We believe that our active commercial strategy, together with our efficient cost structure, provides continuing potential for increased margins. Furthermore, our barbell approach to fleet composition provides direct exposure to both major and minor bulk commodities enabling our fleet’s cargo carrying capabilities to closely mirror those of global commodity trade flows.”

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Source: Glory Logistics

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