Taiwanese bulker owner Franbo Lines is looking to buy more vessels after signing a memorandum of understanding for a handymax ship, according to a company spokesman.
In a filing to the Taiwan Stock Exchange, the company said it would pay $4.8m to acquire a 42,584-dwt dwt bulker from Monica Shipping.
“This is to increase our fleet size and profitability,” said the filing, adding that the vessel is due to be delivered in April.
The filing did not disclose further details. When contacted by TradeWinds, a Franbo spokesman said the ship will be chartered out later and remain in trading but cannot identify the ship.
According to VesselsValue, Monica Shipping is a single ship-owning entity controlled by Hubei Qin Tai Shipping, with the Lauren Ocean (built 1996) under its name.
The vessel, constructed by Croatian yard Brodosplit, is valued at $4.05m.
Franbo is looking at more tonnage acquisitions and the company does not any preferences over vessel size and age, according to the spokesman. “It very much depends on market conditions and whether we can get good return on investment,“ he added.
Before the latest purchase, Franbo owns 12 handymax bulkers or smaller, according to its website.
The company posted net profits of TWD 91.9m ($2.97m) on revenues of TWD 795m in 2018, its best net results in six years. In 2017, Franbo recorded net losses of TWD 492m on revenues of TWD 740m.
While bulker earnings have weakened significantly this year, Franbo believes the segments of small ships--where it operates--will outperform capesizes, according to the spokesman.
