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Business Strategy |
We manage our fleet in a manner that allows us to maintain profitability across the shipping cycle and thus to maximise returns for our Shareholders. To accomplish this objective, we have identified the following strategies, which build upon our existing strengths:
We own a modern, high quality fleet of dry bulk carriers focused on the Handymax and Panamax segments. We believe that our Handymax and Panamax vessels enable us to transport a wider variety of cargoes and to pursue a greater number of chartering opportunities than larger vessels would do.
Pursue an optimal balance of short-to-long-term time charters. We employ our vessels primarily on time charters that provide relatively stable cash flows and high utilisation rates. Depending on market conditions we may consider reducing the length of our charters to take advantage of the benefits of shorter-term vessel employment. Period charters also enable us to pursue higher leverage on acquisitions, thereby increasing returns on equity.
Attraction and retention of blue-chip customers. We consider customer relationships to be an important factor in maximising our profitability throughout the market cycles and growing our business. We have developed a network of business relationships with large, established charters of dry bulk carriers, such as Atlas Shipping, COSCO, DS Norden, ED&F Man, STX Pan Ocean and Korea Lines (KLC).
During 2009, we have sold three vessels and have used the cash to reduce our bank debt and strengthen our balance sheet. This will enable us to seek new acquisition opportunities that may arise in the near future to expand the size of the fleet. We intend to acquire additional second-hand modern, high-quality dry bulk carriers ideally less than 10 years old through timely and selective acquisitions in a disciplined manner that is accretive to our cash flow and dependent on our assessment of the shipping cycle.
Initially, we will continue to focus on the Panamax and Handymax dry bulk sectors, but might consider acquisitions of other vessel sizes in other sectors again when conditions warrant. We expect to fund acquisitions of additional vessels using cash reserves set aside for this purpose and new bank borrowings, as required and also subsequent equity offerings if and when we think appropriate.
Maintain low-cost, highly efficient operations with high fleet utilisation. Through our strong, in-house commercial and technical management teams we ensure that our vessels are operated in a cost-efficient and effective manner without compromising either the quality of our fleet or our operations. We actively monitor and control our vessel operating expenses by utilising regular inspection and maintenance programmes and employing and retaining qualified crew members. We believe that such an approach to vessel management will assist us in maintaining a high fleet utilisation rate and securing attractive employment for our vessels.
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