• BIST 98.631
  • Altın 228,021
  • Dolar 5,7865
  • Euro 6,7031
  • İstanbul 17 °C
  • Ankara 13 °C

Paragon Delays Kamsarmax Deliveries

Paragon Delays Kamsarmax Deliveries
Athens-based dry bulk shipping company Paragon Shipping Inc. has decided to postpone the delivery of the three Kamsarmax vessels currently under construction until the first quarter of 2016.

The decision comes as Paragon comes to grips with difficult market plagued by vessel oversupply and record-low charter rates.

The company’s outstanding newbuilding program consists of two Ultramax drybulk carriers, with expected deliveries between the third and fourth quarter of 2015, and three Kamsarmax drybulk carriers with expected deliveries in the first quarter of 2016.

The aggregate cost of the newbuilding program is USD 148.2 million, of which USD 101.7 million is currently outstanding.

With the USD 160 million syndicated secured loan facility led by Nordea Bank Finland Plc, Paragon has secured debt financing of up to USD 78 million for the two Ultramax and two of its Kamsarmax newbuilding drybulk carriers. For the remaining Kamsarmax newbuilding drybulk carrier, the company is in talks to secure debt financing.

The company posted adjusted net loss of USD 8.8 million, or USD 0.35 per common share, in the first quarter of 2015.

Paragon’s recorded net revenue, net of voyage expenses, was USD 6.8 million in the quarter, with reduced average daily adjusted total vessel operating expenses by 23.5% year-over-year.

 “During the first quarter of 2015, charter rates remained at historically low levels. The demand and supply dynamics remain quite adverse and this resulted in lower revenues compared to the prior year. Given the current market environment, it has become even more critical to maintain our liquidity. Thus, we have further intensified our efforts to maintain our cost control efficiency. Within this context, we reported record low adjusted total vessel operating expenses for the first quarter of 2015 of USD 5,907 per vessel per day,” said Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping.

The company has agreed with certain of its lenders to defer a portion of its quarterly installments, which were originally due from the first quarter of 2015 through the second quarter of 2016 and payable from the company’s available cash, of about USD 6.5 million in the aggregate.

“We believe that we are taking steps to the right direction, given this difficult market. We are pleased to note that positive signs have emerged with respect to the supply side, as a significant number of vessels are heading to the scrapyards, while the market participants refrain from ordering new vessels and delay the delivery of the already placed newbuilding orders. Nonetheless, it seems that a healthy equilibrium, by historical standards, is yet to be reached and, consequently, we continue to remain cautious for the near future,” Bodouroglou concluded.

This news is a total 11293 time has been read
  • Comments 0
    UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
    Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
    Bu habere henüz yorum eklenmemiştir.
Other News
  • Service Upgrade From North Europe To West Africa11 August 2015 Tuesday 16:36
  • Second Suez Canal04 August 2015 Tuesday 16:23
  • Matson revises!29 July 2015 Wednesday 14:41
  • Tanker Giant Reborn03 July 2015 Friday 11:08
  • China Allows Valemaxes into Its Ports03 July 2015 Friday 10:49
  • Arctic oil rig departs Seattle-area port despite protest01 July 2015 Wednesday 12:46
  • SE Shipping Takes Sainty Marine to Arbitration30 June 2015 Tuesday 13:27
  • Cement carrier runs aground off Swedish coast30 June 2015 Tuesday 13:03
  • 'Shipping Industry concerned about approach to energy exports in U.S.'30 June 2015 Tuesday 11:48
  • Paragon Delays Kamsarmax Deliveries09 June 2015 Tuesday 15:39
  • All Rights Reserved © 2006 TURKISH MARITIME | İzinsiz ve kaynak gösterilmeden yayınlanamaz.
    Phone : 0090 212 293 75 48 | Fax : 0090 212 293 75 49 |