As part of its fleet renewal program, Norway-based shipping company Ugland Shipping AS has decided to acquire two Ultramax resales being built at Asian shipyards.
The company has signed a resale contract with Japanese shipbuilder Sanoyas Shipbuilding for a 60,500 dwt bulk carrier. Slated for delivery in 2020, the vessel will be a sister vessel to Olita and Belita, delivered from the same shipyard earlier this year, according to the company.
Furthermore, Ugland Shipping has also inked a resale deal with Tsuneishi Cebu shipyard in the Philippines for a TESS-64 type bulk carrier. The ship is scheduled for delivery in the second half of 2019.
“With these two resale contracts and the newbuilding from Imabari Shipbuilding due to be delivered in the beginning of 2019, we now have three bulker newbuildings to be delivered in the period 2019-2020,” the company said.
As informed, Ugland Marine Services will be in charge of all management functions for the new vessels.
The company added that it plans to sell one or more of its oldest bulkers before it takes delivery of the newbuildings.
Monaco-based container shipping company Navios Maritime Containers has taken delivery of APL Denver, the first of four 2008-built Panamax boxships it agreed to buy.
As informed, the remaining three vessels are expected to be delivered by mid-December.
APL Denver was previously owned by Germany-based Hanseatic Lloyd KG, VesselsValue’s data shows. Apart from APL Denver, Hanseatic Lloyd’s fleet is comprised of three more identical vessels.
Navios Containers agreed to acquire the four 4,730 TEU containerships for a total purchase price of USD 96.8 million. These vessels are employed on charters with a net daily charter rate of USD 27,156.
The charters expire in 2020 and are expected to generate approximately USD 70 million of EBITDA, assuming expenses approximating current operating costs and 360 revenue days per year, Navios Containers said.
Following the completion of this acquisition, Navios Containers will control a fleet of 20 vessels, totaling 84,520 TEU with a current average fleet age of 9.8 years.
Navios Containers ended its first full quarter of operation with a net income of USD 84,000 as it continued with fleet expansion efforts.
Since its inception on April 28 this year to September 30, 2017, the company recorded a net income of USD 965,000, while its revenue for the period stood at USD 17.8 million.
Norway-based dry bulk shipping company Golden Ocean Group Limited (GOGL) has reached and agreement to purchase two modern Capesize vessels from affiliates of Hemen Holding Limited.
The ships would be bought from the company, indirectely controlled by trusts established by John Fredriksen, at a price of USD 43 million per unit.
"We are pleased to be in the position to acquire high quality, modern Capesize vessels that are expected to generate free cash flow immediately upon delivery. This transaction is consistent with our strategy of focusing our commercial efforts on the vessel segments that we believe will provide the greatest leverage to a recovery in the dry bulk shipping market," Birgitte Ringstad Vartdal, CEO of Golden Ocean Management AS, said.
As settlement of the purchase price for the ships, Golden Ocean will enter into a non-amortizing seller's credit loan with an affiliate of Hemen for 50% of the purchase price, which bears interest at LIBOR + 3.00% per annum and matures three years after delivery of the vessels.
GOGL informed that the remaining part of the purchase price will be settled on delivery of the vessels with an estimated USD 9 million of cash and an estimated USD 34 million of newly-issued common shares of the company at a per-share price equal to the offer price in an expected equity offering.
The Capesizes are expected to be delivered within four months of the date hereof, Golden Ocean said, adding that the completion of the transaction is subject to completion of an equity offering and entry into the seller's credit loan.
Once the acquisition and expected equity offering is finalized, Hemen, together with certain of its affiliates, will maintain its current ownership percentage of around 34.2% of GOGL's issued and outstanding common shares.
Furthermore, as Golden Ocean's financial position has been enhanced over the past 12 months, the company intends to terminate the covenant waivers related to its recourse debt upon completion of the expected equity offering, Ringstad Vartdal informed.
"This will reinstate the normal covenants, which the company is now in compliance with, and remove the company’s restrictions on new acquisitions, new debt and dividend payments. The waiver structure in the non-recourse debt related to the transactions announced in March 2017 will remain," Ringstad Vartdal said.
Norway-based shipping company Songa Bulk ASA is contemplating a tap issue in order to use the net proceeds for the acquisition of additional dry bulk vessels.
The target amount is USD 18 million in the senior secured bond Songa Bulk ASA 17/22 FRN USD C, with a maturity on June 13, 2022.
The current outstanding amount is USD 120 million and the borrowing limit is USD 150 million.
Following a successful tap issue, the company said it will not carry out any additional tap issues.
The company revealed it is also in the process to dispose of one of its Supramax vessels. When concluded, the sales proceeds will be used for further vessel acquisitions, Songa Bulk said.
Songa Bulk has recently bought a number of second-hand vessels, prompted by attractive prices in the dry bulk sector. Earlier this week, Songa Bulk entered into an agreement to acquire a 2012-built Kamsarmax. The latest acquisition brings the company’s fleet to 15 vessels, which resulted in an investment worth USD 279.6 million.
GoodBulk Ltd., a recently formed owner and operator of dry bulk vessels, has entered into an agreement to buy a 2007-built Capesize vessel, bringing the total number of vessels acquired since its formation to twelve.
The 177,000 DWT MV IVS Cabernet was built by Namura shipyard in Japan and is expected to be delivered in September 2017 when it would be renamed Aquahop.
The company's growing fleet includes nine Capesize vessels bought at an average purchase price of USD 16.5 million, one Panamax, and two Supramax dry bulk vessels.
During the first six months of this year, GoodBulk, which started operations in December 2016, took delivery of ten vessels which are currently employed in the spot market and expects to take delivery of an additional two vessels in Q3 2017.
"GoodBulk continues to execute upon its strategy of building a leading owner of dry bulk assets and to acquire high-quality second-hand dry bulk tonnage at historically attractive valuations," the company said announcing results for the second quarter of the year.
With respect to financing, the company said that in August 2017, it secured a USD 50 million credit facility with Credit Suisse in order to partially finance the acquisition of its fleet. Some USD 45 million is still available under the credit facility, the Monaco-based company added.
"GoodBulk expects to use availability under this credit facility, along with cash available on its balance sheet, to fund the announced acquisitions. It is anticipated that when all vessels have been delivered the company will have drawn down USD 65 million of the USD 110 million available under the company's two credit facilities," the shipowner further noted.
For the six-months ended June 30, 2017, the company reported revenues and other income of USD 6.3 million, and net income of USD 0.1 million.
Supported by an improvement in the dry bulk shipping market, Hong Kong-based Jinhui Shipping and Transportation managed to cut its net loss in the first half of 2017.
The company’s net loss for the first half of 2017 shrunk to USD 8.7 million, against a net loss of USD 39.1 million seen a year earlier.
Revenue for the first half of 2017 increased 37% to USD 34.3 million, comparing to USD 25 million reported in the same period in 2016.
During the first half of the year the company entered into five memorandums of agreement to dispose of four Supramaxes and one Handysize at a total consideration of USD 63 million. By using the net sale proceeds arisen from the disposals for the repayment of the vessel mortgage loans, the group’s overall indebtness had been reduced by around USD 52.3 million.
The company’s net loss for the three-month period ended June 30, 2017 stood at USD 784 thousand, compared to a net loss of USD 20.6 million reported in the corresponding period in 2016.
Revenue for the second quarter of 2017 increased 26% to USD 18.9 million from USD 15 million seen in the same quarter a year earlier.
Dry bulk shipping market has been improving since February 2017 on the back of rising dry seaborne trade volumes which were stimulated by both increasing agriculture products and coal trading activities. Despite the softening of freight rates in May and June 2017, the average of Baltic Dry Index of the second quarter of 2017 was 1,006 points, compared to 610 points in the same quarter in 2016.
As of the end of August 2017, the group had twenty three owned vessels which included 2 modern Post- Panamaxes and 21 modern grabs fitted Supramaxes.
Norway-based bulker owner Songa Bulk is continuing with ship acquisitions as it has entered into an agreement to buy another Kamsarmax.
The 81,918 dwt vessel was built at Tsuneishi shipyard in Japan in 2014.
As informed, the bulker will be delivered in September 2017.
The company intends to establish a wholly owned subsidiary to take delivery of the vessel.
The only vessel in Songa Bulk’s fleet that fits the description is the 2014-built Goddess Santosh Devi, according to data provided by VesselsValue. The purchase deal, worth USD 22.75 million, was inked with Japanese United Ocean Group.
Earlier this month, Songa Bulk completed a tap issue of USD 45 million in its Senior Secured Callable Bond Issue, the net proceeds of which have been earmarked for the financing of additional bulker acquisitions. The total nominal amount outstanding in the bond following the tap issue will be USD 120 million.
The newest purchase brings Songa Bulk’s total fleet to 14 vessels, with a total of USD 259.2 million invested so far. The vessels include two Capesizes, nine Kamsarmaxes, one Ultramax and two Supramaxes.
Olso-listed bulker owner Songa Bulk ASA has entered into an agreement to acquire a Kamsarmax bulk carrier built in 2011 at Sanoyas in Japan.
The 83, 494-DWT vessel will be delivered during the fourth quarter of 2017, the company said.
The shipowner plans to establish a wholly owned subsidiary to take delivery of the vessel.
The latest purchase brings Songa Bulk’s total fleet to 13 vessels, which have cost USD 236.4 million so far.
These include 2 Capesizes, 8 Kamsarmaxes and 3 Supramaxes.
Earlier this week, Songa completed a tap issue of USD 45 million in its Senior Secured Callable Bond Issue, the net proceeds of which have been earmarked for the financing of additional bulker acquisitions.
The total nominal amount outstanding in the bond following the tap issue will be USD 120 million.
“The additional USD 45 million from the tap issue will let us continue to grow the fleet in line with our strategy. We still find the risk reward ratio attractive in the dry bulk space and we expect to add additional vessels to our fleet shortly,” Arne Blystad, Chairman of the Board of Directors of Songa, said commenting on the tap issue.
BW Dry Cargo has snapped up its second vessel in a week, pouncing on Japanese-built kamsarmax Key Boundary from Shunzan Kaiun.
The 2010-built vessel has been acquired for US$13.7m according to sources, slightly more than the US$12m BW paid last week for the 2010-built kamsarmax Meteor which was subsequently renamed to BW Acorn and chartered out to Glencore.
Last week's bit of business was the first for BW Dry Cargo, a new affiliate of the BW Group, bringing the Andreas Sohmen-Pao led company back into dry bulk for the first time in a decade.
Greek dry bulk shipping company Seanergy Maritime Holdings Corp. has received one 2010-built Capesize and one 2011-built Supramax.
The 170,057dwt Capesize has been renamed to M/V Geniuship, and the 56,884dwt Supramax has been renamed to M/V Guardianship.
Both the Geniuship, built by Sungdong SB, and the Guardianship, built by CSC Jinling Shipyard, will be employed in the spot market.
The acquisition cost of the pair of bulkers has been funded by senior secured loan agreements with international financial institutions and by a funding arrangement with Seaenergy's sponsor.
The Geniuship and the Guardianship are the third and the fourth of seven secondhand dry bulkers that the company had agreed to acquire back in August for a gross purchase price of approximately US$183m.
Seaenergy expects to receive the remaining three bulkers by the end of November 2015.