Pangaea Sells Bulker Duo for USD 11 Mn

U.S.-based shipping company Pangaea Logistics Solutions has reached agreements to sell two of its vessels for a total price of USD 11 million.

Namely, in October 2019, the company signed separate contracts to dispose of the 2001-built vessel Bulk Juliana and the 1996-built vessel Bulk Patriot.

Under the deals, the units would be purchased for a sale price of USD 6.5 million and USD 4.5 million, respectively.

The 52,500 dwt Supramax Bulk Juliana is scheduled for delivery in November, while the 70,200 dwt Panamax Bulk Patriot is set to join its new owners in December 2019.

“The sale of these two debt free vessels will generate cash flow of approximately USD 11 million, and will result in a book loss on sale of approximately USD 8.6 million in the fourth quarter,” Pangaea Logistics Solutions said.

The company revealed the developments as part of its third quarter of 2019 financial report.

For the period ended September 30, 2019, the company’s net income was at USD 8.3 million, in line with the same period last year.

Total revenue increased to USD 118.9 million for the third quarter, from USD 95.3 million reported in the same period a year earlier.

Pangaea’s TCE rates of USD 15,915 for the quarter were USD 2,187 or 16% over comparable market index averages, the report shows.

“The third quarter has historically been a strong quarter for us, and this year was no different,” Ed Coll, Chief Executive Officer of Pangaea Logistics Solutions, said.

“We again pioneered a voyage from the Arctic Circle, completing a breakthrough project in Greenland on one of our ice class ships. Further, through a newly formed joint venture with Hudson Structured Capital Management Ltd., we expanded our ice class capabilities by exercising our options for two additional post-panamax ice class vessels bringing our total newbuilding order to four ships.”

“IMO 2020 impacts on the market remain somewhat concerning, but we believe we are in good shape without having committed to significant outlays for scrubber technology,” Coll noted.