Toro Corp. Announces the Completion of the Sale of the M/T Wonder Vega

Rhea-AI Summary

Toro Corp. (NASDAQ: TORO) completed the sale of the M/T Wonder Vega, a 2005-built Aframax tanker, at a price of $31.5 million, expecting to record a net gain of approximately $17.7 million, excluding any transaction-related costs during the fourth quarter of 2023.

Insights

Financial Analyst

The recent transaction involving Toro Corp. and the sale of the M/T Wonder Vega tanker represents a significant capital event for the company. The disposal of a major asset such as an Aframax tanker, which fetched a sale price of $31.5 million, is indicative of Toro's asset management strategy and capital allocation decisions. The reported net gain of $17.7 million is a substantial figure that will likely influence the company's financial statements for the fourth quarter of 2023.

From a financial perspective, stakeholders will assess the impact of this transaction on Toro's balance sheet and liquidity position. The capital infusion from the sale could be channeled towards debt reduction, investment in new assets, or returned to shareholders in the form of dividends or share buybacks. The company's decision on the use of proceeds will be closely watched, as it could signal management's confidence in the company's operational performance and strategic direction.

It is also worth considering the age of the vessel sold; a 2005-built tanker may have been nearing the end of its economically viable life, potentially increasing maintenance costs and decreasing operational efficiency. The sale might, therefore, be part of a fleet modernization strategy, which could improve operational performance and reduce environmental impact in the long run.

Industry Analyst

The sale of the Aframax tanker by Toro Corp. is a transaction that reflects broader trends in the energy transportation sector. Aframax tankers are typically used for the transportation of crude oil and have a deadweight tonnage (DWT) between 80,000 and 120,000. The sale price and the resulting net gain suggest a favorable market for sellers, which could be due to current market demand for shipping capacity or scarcity of available vessels.

Industry stakeholders will be interested in the implications of this sale on the supply-demand dynamics within the tanker market. If this sale is part of a trend of older vessels being phased out, it might indicate a period of fleet renewal industry-wide, which could affect charter rates and the availability of shipping services. The environmental and regulatory landscape, including the International Maritime Organization's (IMO) emissions regulations, may also be a driving factor behind the disposal of older vessels.

Analyzing the transaction in the context of industry benchmarks and recent sales of similar assets could provide insights into Toro's strategic positioning within the market and its asset valuation acumen.

Economist

The net gain from the sale of the M/T Wonder Vega tanker by Toro Corp. has broader economic implications. In the short-term, the infusion of $31.5 million from the asset sale and the net gain of $17.7 million could positively affect the company's economic footprint, potentially leading to increased capital expenditure or influencing the company's approach to investment and growth.

Long-term economic considerations include the potential impact on employment, both within the company and in the shipbuilding industry, if Toro decides to reinvest in new vessels. Additionally, the transaction might influence Toro's competitive position in the energy transportation market, which can have downstream effects on trade flows and energy prices.

Furthermore, the transaction may reflect underlying economic conditions, such as commodity prices and global trade dynamics, that affect the valuation and demand for shipping assets. Understanding the economic context of this sale can provide a holistic view of its impact on Toro Corp. and the energy transportation industry.

LIMASSOL, Cyprus, Dec. 21, 2023 (GLOBE NEWSWIRE) -- Toro Corp. (NASDAQ: TORO) (“Toro”, or the “Company”), an international energy transportation services company, announces that on December 21, 2023, the Company completed the previously announced sale of the M/T Wonder Vega, a 2005-built Aframax tanker, at a price of $31.5 million, by delivering the vessel to its new owner. The Company expects to record a net gain on the above-mentioned sale of approximately $17.7 million, excluding any transaction-related costs during the fourth quarter of 2023.

About Toro Corp.

Toro Corp. is an international energy transportation services company with a fleet of tankers and LPG carriers that carry crude oil, petroleum products and petrochemical gases worldwide. Toro Corp. currently owns a fleet of six vessels with an aggregate capacity of 0.2 million dwt, which consists of one Aframax/LR2 tanker, one Handysize tanker and four 5,000 cbm LPG carriers.

Toro is incorporated under the laws of the Republic of the Marshall Islands. The Company's common shares trade on the Nasdaq Capital Market under the symbol “TORO”.

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

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements give the Company’s current expectations and projections about future events, including business strategy, goals, and future financial condition and performance, and so actual results may differ materially from what is expressed or implied by the statements. These statements sometimes use words such as “believe”, “anticipate”, “intend”, “estimate”, “forecast”, “project”, “plan”, “potential”, “will”, “may”, “should”, “expect”, “pending”, “indicates” and other words of similar meaning (or the negative thereof) and include all matters that are not historical or current facts.

Forward-looking statements are subject to risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future and/or are beyond our control or precise estimate. Such risks, uncertainties and other factors include, but are not limited to, the occurrence of any event, change or other circumstance that could cause us to record a different net gain than expected on the sale of the M/T Wonder Vega, as well as those factors discussed under “Risk Factors” in our Annual Report for the year ended December 31, 2022 and/or our other filings with the SEC, which can be obtained free of charge on the SEC’s website at http://www.sec.gov. Except to the extent required by applicable law, we disclaim any intention or obligation to update publicly or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

CONTACT DETAILS

For further information please contact:

Petros Panagiotidis
Toro Corp.
Email: info@torocorp.com

FAQ

What did Toro Corp. (NASDAQ: TORO) announce on December 21, 2023?

Toro Corp. (NASDAQ: TORO) announced the completion of the sale of the M/T Wonder Vega, a 2005-built Aframax tanker, at a price of $31.5 million.

What is the expected net gain from the sale for Toro Corp. (NASDAQ: TORO)?

Toro Corp. (NASDAQ: TORO) expects to record a net gain of approximately $17.7 million, excluding any transaction-related costs during the fourth quarter of 2023.