Oceanpal Inc. Announces Time Charter Contract for M/V Baltimore With Richland Bulk and the Sale of M/V Baltimore
OceanPal Inc. has announced a time charter contract with Richland Bulk for its Capesize dry bulk vessel, the m/v Baltimore, at a gross charter rate of US$22,000 per day. The charter is expected to generate US$2.64 million in gross revenue until November 2024. Additionally, OceanPal Inc. will sell the vessel 'Baltimore' to a third party for US$18.25 million by November 20, 2024, expanding its fleet to 4 dry bulk vessels.
Securing a time charter contract for the m/v Baltimore at a higher gross charter rate of US$22,000 per day marks a positive revenue stream for OceanPal Inc.
The sale of the vessel 'Baltimore' for US$18.25 million will provide additional capital for further business expansion and investment opportunities.
The planned fleet expansion to 4 dry bulk vessels signifies growth and diversification within OceanPal Inc.'s shipping operations.
The commission paid to third parties reduces the actual gross revenue from the time charter contract for the m/v Baltimore by 5%, impacting the overall profitability.
The sale of the 2005-built vessel 'Baltimore' could potentially lead to a decrease in the total fleet capacity, affecting the company's operational scale.
The expiration of the time charter contract for the m/v Baltimore by November 2024 poses a risk of revenue decline if a new charter is not secured promptly.
ATHENS, Greece, April 30, 2024 (GLOBE NEWSWIRE) -- OceanPal Inc. (NASDAQ: OP) (the “Company”), a global shipping company specializing in the ownership of vessels, today announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Richland Bulk Pte. Ltd., for its Capesize dry bulk vessel, the m/v Baltimore. The gross charter rate is US
The “Baltimore” is a 177,243 dwt Capesize dry bulk vessel built in 2005.
The employment of “Baltimore” is anticipated to generate approximately US
The Company also announced that it has signed, through the same wholly-owned subsidiary, a Memorandum of Agreement to sell to a third party, the 2005-built vessel “Baltimore”, with delivery to the buyer latest by November 20, 2024, for a sale price of US
Upon completion of the aforementioned sale, OceanPal Inc.’s fleet will consist of 4 dry bulk vessels (1 Capesize and 3 Panamax). A table describing the current OceanPal Inc. fleet can be found on the Company’s website, www.oceanpal.com. Information contained on the Company’s website does not constitute a part of this press release.
About the Company
OceanPal Inc. is a global provider of shipping transportation services through its ownership of vessels. The Company’s vessels currently transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes and it is expected that the Company’s vessels will be primarily employed on short term time and voyage charters following the completion of their current employments.
Forward Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “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, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
<p>What is the gross charter rate for the time charter contract of OceanPal Inc.'s m/v Baltimore with Richland Bulk?</p>
The gross charter rate for the time charter contract is US$22,000 per day minus a 5% commission paid to third parties.
<p>How much revenue is expected to be generated by the employment of the m/v Baltimore during the time charter period?</p>
The employment of the m/v Baltimore is anticipated to generate approximately US$2.64 million of gross revenue for the scheduled period of the time charter.
<p>What is the sale price of the vessel 'Baltimore' announced by OceanPal Inc.?</p>
The sale price of the 2005-built vessel 'Baltimore' is US$18.25 million before commissions, with delivery to the buyer latest by November 20, 2024.
<p>How many dry bulk vessels will be in OceanPal Inc.'s fleet after the sale of the m/v Baltimore?</p>
Upon completion of the sale, OceanPal Inc.'s fleet will consist of 4 dry bulk vessels, including 1 Capesize and 3 Panamax vessels.
