EMEA News
Greek Owner Inks Scrubber Deal with Installation Before 2020
Greek dry-bulk owner Seanergy Maritime Holdings Corp. [NASDAQ: SHIP] has inked a deal with Korean scrubber manufacturer Hyundai Materials to install exhaust gas cleaning systems (EGCS)s on on five of its capesize bulk carriers.
The agreement is expected to exceed $12.5 million including equipment and installation costs, and the total investment cost will be covered by the charterers fo the vessels.
The units will be fitted in time for the January 1, 2020 start date for the new IMO 2020 global 0.50% sulfur cap on marine fuel and the installation will take place at a dry-dock facility in China - a point of note presumably for those who amid surging orders for scrubbers in recent months have questioned whether there is enough capacity to install units for all those who wanted them.
Goldman Sachs recently suggested China would be able to accommodate the uptick in dry-dock demand.
Chairman & Chief Executive Officer, Stamatis Tsantanis, said the move "represents a balanced and comprehensive approach" towards the new IMO 2020 environmental regulations.
"This significant investment by our charterers, in combination with innovative charter agreements, is expected to increase the market value of the subject vessels without our Company incurring additional debt or diluting our shareholders," Tsantanis added.
"It is important to further note that the underlying time-charters are index linked, maximizing Seanergy's exposure to the positive fundamentals and outlook of the Capesize market. Moreover, through profit sharing agreements calculated on the spread between high and low sulfur fuel, we believe we will be able to capitalize on short-term distortions in the bunker market."
The five vessels in question are M/V Partnership, M/V Lordship, M/V Premiership, M/V Squireship, and M/V Championship.
