Shailaja A. Lakshmi
September 9, 2018
Star Bulk Carriers announced that it intends to equip its entire fleet with Exhaust Gas Cleaning Systems (scrubbers) before the January 1, 2020 implementation date of the new IMO sulfur emission cap regulation.
The global shipping company focusing on the transportation of dry bulk cargoes said in a press release that it expects average cost, including installation, to be below $2.0 million per vessel.
Star Bulk has secured debt financing with an average margin of below 3.0% to cover up to approximately 70% of such cost and expects the remaining amount to be covered from operating cash flow and cash on hand, without raising equity for this purpose.
The Company has also secured contracts with leading shipyards for the installation of such systems, while in approximately 35% of the installations, riding teams are being deployed to carry out the retrofitting works onboard the vessels while at sea, reducing off hire time, as a result of those installations, by 50% to 60%. A month ago, Star Bulk successfully completed the first scrubber installation at sea.
On a fully delivered basis, Star Bulk will have a fleet of 111 vessels, with an aggregate capacity of 12.67 million dwt, consisting of 17 Newcastlemax, 20 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 16 Ultramax and 12 Supramax vessels with carrying capacities between 52,055 dwt and 209,537 dwt. The Company holds call options and has sold respective put options on 4 Capesize vessels, with exercise dates in early April 2019.