Pioneer Marine rejigs orderbook amid falling bulker prices

Pioneer Marine rejigs orderbook amid falling bulker prices

Arguably Singapore’s fastest growing shipowner Pioneer Marine has made big changes to its orderbook to make the most of opportunities presented by the continued drop in newbuild bulker prices. The company has canned three newbuild contracts and delayed another five from 2016 to 2017.

Pioneer Marine’s CEO, Pankaj Khanna, commented in a release: “Our newbuilding program continues to represent a strategic partnership between Pioneer and Yangzhou Guoyu Shipyard.  We are grateful for their support through the current unprecedented downturn in the dry bulk market. We are being proactive in creating a long runway for the company and the reduction in our capital expenditure commitments strengthens our balance sheet significantly. The cancellation frees up $34m of equity commitments and the delay in deliveries, now spread over the next two years, pushes out the capex over an extended period. We have now delayed our newbuilding deliveries by a total of 96 months and also proactively raised $25m of equity in August.”

Khanna revealed to Splash that the funds freed up may be made available for acquisitions should the right opportunity be found.

Founded in September 2013, Pioneer Marine owns 13 handysize and one handymax drybulk carriers.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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