Jinhui Shipping & Transportation has bought two ultramax bulk carriers from Nisshin Shipping.
On Friday, the Oslo-listed Chinese shipowner said it had agreed to purchase the 63,518-dwt Western Santos and the 63,469-dwt Hanton Trader I (both built 2014) for $25.4m each in cash from Panama-registered Ratu Shipping.
The geared vessels were both built at China’s Jiangsu Hantong Ship Heavy Industry shipyard to the SDARI Dolphin 64 design. Both have been fitted with ballast water treatment systems.
Japanese owner Nisshin Shipping ordered the vessels and has managed them since their delivery from the shipyard, according to shipping databases.
The vessels are expected to be delivered to Jinhui by the end of the year, which will bring the owner’s fleet up to 26 owned ships, comprising two modern post-panamaxes and 24 modern grab-fitted supramax and ultramax bulk carriers.
Last year, Jinhui bought the vessels’ sister ship — the 63,800-dwt ultramax Hanton Trader II (built 2014) — from Nisshin for $25.5m. The ship has since been renamed Jin Ping.
Jinhui has been an active buyer and seller of vessels over the past couple of years and bought eight supramaxes last year alone.
It has also succeeded in flipping ships for profit and booked a $6m gain during the first quarter of this year, generated by the sale of two ageing supramaxes.
As well as making long-term investments in tonnage, this year has seen Jinhui take a panamax newbuilding on a seven-year charter.
The 84,100-dwt Taho Circular was delivered from Japan’s Oshima Shipbuilding in June and will be chartered to Jinhui for 81 to 87 months.
The time-charter rate will be based on the Baltic Exchange’s panamax index plus 20%, with the minimum amount set at $11,500 per day, but a ceiling of $14,500 per day.
Jinhui reported consolidated net profit of $20.3m for the second quarter of 2022 and $0.186 in basic earnings per share. It also declared an interim dividend of three cents per share.
This compares to $85.5m profit during the second quarter last year, but this result included a $65.5m reversal of an impairment loss on owned vessels.
