Genco Shipping & Trading Limited Implements Comprehensive Fleet Plan Ahead of IMO 2020 Regulations
NEW YORK, Oct. 09, 2018 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE: GNK) (“Genco” or the “Company”) today announced that it plans to install exhaust gas cleaning systems (“scrubbers”) on its 17 Capesize vessels with options for installation on an additional 15 minor bulk vessels. The balance of the fleet is expected to consume compliant, low sulphur fuel beginning in 2020, when new environmental regulations come into effect capping sulphur emissions at 0.5%, down from 3.5% currently. Genco will also continue to execute its previously announced fleet renewal program aimed at selling older, less fuel-efficient vessels and redeploying the capital towards high specification, fuel-efficient vessels to further reduce emissions. The Company anticipates scrubber installation to be completed in 2019, ahead of the January 1, 2020 deadline.
Genco estimates that the cost of each scrubber, including installation, will be approximately $2 million. The Company is currently in discussions with various lenders in regards to scrubber financing. For further details of Genco’s plan for compliance with IMO 2020, please see the presentation posted on Genco’s website at www.gencoshipping.com under “Investor Relations—Events and Presentations.”
John C. Wobensmith, Chief Executive Officer, commented, “Following the recent addition of six modern, high specification drybulk vessels to our fleet, and during a time when we continue to execute our fleet renewal strategy, we are pleased to announce Genco’s comprehensive plan for IMO 2020. Our portfolio approach is aimed at improving our environmental footprint, maximizing shareholder returns and reducing fuel costs in an evolving marine fuel environment. Based on extensive evaluation and analysis, we plan to fit our Capesize vessels with scrubbers given their trading patterns and higher fuel consumption, which we expect to result in a very attractive payback period. Options to install scrubbers on 15 minor bulk vessels will also provide the Company with the flexibility to react to market conditions as they develop.”
About Genco Shipping & Trading LimitedGenco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. As of October 9, 2018, Genco Shipping & Trading Limited’s fleet consists of 17 Capesize, five Panamax, six Ultramax, 21 Supramax, one Handymax and 14 Handysize vessels with an aggregate capacity of approximately 5,430,000 dwt.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward looking statements are based on management’s current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the terms of definitive documentation for the purchase and installation of scrubbers and our ability to have scrubbers installed within the price range and time frame anticipated, our ability to obtain financing for scrubbers on acceptable terms, the relative cost and availability of low sulphur and high sulphur fuel, worldwide compliance with IMO 2020 regulations, our dispositions of vessels, completion of documentation for vessel transactions and the performance of the terms thereof by buyers of vessels and us, the rates our vessels may be able to earn, and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and its subsequent reports on Form 10-Q and Form 8-K. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT:Apostolos ZafoliasChief Financial OfficerGenco Shipping & Trading Limited(646) 443-8550