Castor Maritime Inc. Announces Delivery of the M/V Magic Celeste

Rhea-AI Summary

Castor Maritime Inc. (NASDAQ: CTRM) has announced the delivery of the M/V Magic Celeste, a 2015-built Ultramax dry bulk carrier, on August 16, 2024. The acquisition, previously announced on July 25, 2024, was fully financed with cash on hand. The vessel has been fixed on a time charter contract at a gross daily rate of 111% of the average Baltic Supramax Index 10 TC routes, set to commence around August 20, 2024, with a minimum duration of nine months.

Castor Maritime now owns a fleet of 11 vessels with a total capacity of 0.8 million dwt, including three Kamsarmax, five Panamax, one Ultramax dry bulk vessels, and two 2,700 TEU containerships. This delivery aligns with Castor's strategy as a diversified global shipping company.

Positive

• Acquisition of a relatively new vessel (2015-built Ultramax dry bulk carrier)
• Fully financed with cash on hand, indicating strong liquidity
• Immediate charter contract secured at 111% of Baltic Supramax Index 10 TC routes
• Minimum nine-month charter duration, providing stable income
• Expansion of fleet to 11 vessels, increasing total capacity to 0.8 million dwt

Negative

• None.

Insights

Financial Analyst

The delivery of M/V Magic Celeste, a 2015-built Ultramax dry bulk carrier, marks a strategic expansion of Castor Maritime's fleet. This acquisition, financed entirely with cash on hand, demonstrates the company's strong liquidity position and commitment to growth. The immediate charter agreement at 111% of the Baltic Supramax Index indicates robust demand and potential for above-market returns.

With this addition, Castor's fleet now consists of 11 vessels with a total capacity of 0.8 million dwt, diversified across Kamsarmax, Panamax, Ultramax and containership segments. This diversification strategy may help mitigate risks associated with specific vessel classes or market segments. The nine-month minimum charter duration provides short-term revenue visibility, which is important in the volatile shipping industry.

Market Research Analyst

The acquisition of M/V Magic Celeste reflects Castor Maritime's bullish outlook on the dry bulk market. The decision to expand in the Ultramax segment suggests confidence in the demand for versatile, medium-sized vessels. The charter rate, pegged at 111% of the Baltic Supramax Index, indicates a favorable short-term market condition for this vessel class.

However, investors should note the cyclical nature of the shipping industry. While the current charter rates are attractive, they may not be sustainable in the long term. The company's strategy of maintaining a diverse fleet across various vessel sizes and types could provide some insulation against market volatility, but it also requires careful management of different market dynamics.

Shipping Industry Expert

Castor Maritime's acquisition of the M/V Magic Celeste is a well-timed move in the current shipping market. The 2015-built vessel is relatively young, which should translate to lower operational costs and higher efficiency. The Ultramax class offers versatility, capable of calling at a wide range of ports and handling various cargo types.

The immediate charter at a premium to the Baltic Supramax Index is particularly noteworthy. It suggests that Castor has strong commercial relationships and can secure favorable terms. However, the short-term nature of the charter (minimum nine months) exposes the company to potential market downturns after this period. Castor's ability to consistently secure such favorable charters across its growing fleet will be important for long-term success in this competitive industry.

LIMASSOL, Cyprus, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a diversified global shipping company, announces that on August 16, 2024, it took delivery of the M/V Magic Celeste, the 2015-built Ultramax dry bulk carrier it had agreed to acquire as previously announced on July 25, 2024. The vessel acquisition was financed in its entirety with cash on hand.

The M/V Magic Celeste has been fixed on a time charter contract at a gross daily charter rate equal to 111% of the average of the Baltic Supramax Index 10 TC routes. The charter is expected to commence around August 20, 2024, and has a minimum duration of nine months after delivery.

About Castor Maritime Inc.

Castor Maritime Inc. is an international provider of shipping transportation services through its ownership of oceangoing cargo vessels.

Castor owns a fleet of 11 vessels, with an aggregate capacity of 0.8 million dwt, consisting of three Kamsarmax dry bulk vessels, five Panamax dry bulk vessels, one Ultramax dry bulk vessel and two 2,700 TEU containership vessels.

For more information, please visit the Company’s website at www.castormaritime.com. Information on our website does not constitute a part of this press release.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. We are including this cautionary statement in connection with this safe harbor legislation. The words “believe”, “anticipate”, “intend”, “estimate”, “forecast”, “project”, “plan”, “potential”, “will”, “may”, “should”, “expect”, “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of current or historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these forward-looking statements, including these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward‐looking statements include generally: the effects of the spin-off of our tanker business, our business strategy, expected capital spending and other plans and objectives for future operations, dry bulk and containership market conditions and trends, including volatility in charter rates (particularly for vessels employed in short-term time charters or index linked period time charters), factors affecting supply and demand, fluctuating vessel values, opportunities for the profitable operations of dry bulk and container vessels and the strength of world economies, changes in the size and composition of our fleet, our ability to realize the expected benefits from our past or future vessel acquisitions, our ability to realize the expected benefits of vessel acquisitions, increased transactions costs and other adverse effects (such as lost profit) due to any failure to consummate any sale of our vessels, our relationships with our current and future service providers and customers, including the ongoing performance of their obligations, dependence on their expertise, compliance with applicable laws, and any impacts on our reputation due to our association with them, our ability to borrow under existing or future debt agreements or to refinance our debt on favorable terms and our ability to comply with the covenants contained therein, in particular due to economic, financial or operational reasons, our continued ability to enter into time or voyage charters with existing and new customers and to re-charter our vessels upon the expiry of the existing charters, changes in our operating and capitalized expenses, including bunker prices, dry-docking, insurance costs, costs associated with regulatory compliance, and costs associated with climate change, our ability to fund future capital expenditures and investments in the acquisition and refurbishment of our vessels (including the amount and nature thereof and the timing of completion thereof, the delivery and commencement of operations dates, expected downtime and lost revenue), instances of off-hire, due to vessel upgrades and repairs, fluctuations in interest rates and currencies, including the value of the U.S. dollar relative to other currencies, any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach, existing or future disputes, proceedings or litigation, future sales of our securities in the public market and our ability to maintain compliance with applicable listing standards, volatility in our share price, including due to high volume transactions in our shares by retail investors, potential conflicts of interest involving affiliated entities and/or members of our board of directors, senior management and certain of our service providers that are related parties, general domestic and international political conditions or events, including armed conflicts such as the war in Ukraine and the conflict in the Middle East, acts of piracy or maritime aggression, such as recent maritime incidents involving vessels in and around the Red Sea, sanctions, “trade wars”, global public health threats and major outbreaks of disease, changes in seaborne and other transportation, including due to the maritime incidents in and around the Red Sea, fluctuating demand for dry bulk and container vessels and/or disruption of shipping routes due to accidents, political events, international sanctions, international hostilities and instability, piracy or acts of terrorism, changes in governmental rules and regulations or actions taken by regulatory authorities, including changes to environmental regulations applicable to the shipping industry, accidents, the impact of adverse weather and natural disasters and any other factors described in our filings with the SEC. The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication, except to the extent required by applicable law. New factors emerge from time to time, and it is not possible for us to predict all or any of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these foregoing and other risks and uncertainties. These factors and the other risk factors described in this press release are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Given these uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements.

CONTACT DETAILS

For further information please contact:

Petros Panagiotidis
Castor Maritime Inc.
Email: ir@castormaritime.com

Media Contact:
Kevin Karlis
Capital Link
Email: castormaritime@capitallink.com

FAQ

When did Castor Maritime (CTRM) take delivery of the M/V Magic Celeste?

Castor Maritime (CTRM) took delivery of the M/V Magic Celeste on August 16, 2024.

How did Castor Maritime (CTRM) finance the acquisition of M/V Magic Celeste?

Castor Maritime (CTRM) financed the acquisition of M/V Magic Celeste entirely with cash on hand.

What is the charter rate for the M/V Magic Celeste acquired by Castor Maritime (CTRM)?

The M/V Magic Celeste has been fixed on a time charter contract at a gross daily rate of 111% of the average Baltic Supramax Index 10 TC routes.

How long is the initial charter duration for M/V Magic Celeste acquired by Castor Maritime (CTRM)?

The initial charter for M/V Magic Celeste has a minimum duration of nine months after delivery.

What is the total fleet size of Castor Maritime (CTRM) after the acquisition of M/V Magic Celeste?

After the acquisition of M/V Magic Celeste, Castor Maritime (CTRM) owns a fleet of 11 vessels with an aggregate capacity of 0.8 million dwt.