THAI-based handysize dry bulk owner Precious Shipping Ltd (PSL) has sold seven of its oldest ships in recent weeks, taking its total fleet down to 47. It has previously announced it intention to dispose of older tonnage and buy new vessels. The latest disposal is the 1980-built, 29,500 dwt Monthira Naree, sold to (built Singapore-based Pacific King for US$6m.

Meanwhile the company’s managing director, Khalid Hashim, has explained the sale of treasury shares. He says that PSL has sold approximately 1m treasury shares (TS) and that “in view of the enquiries we have been receiving from investors and the general public, we wish to let [the press] know the reasoning behind our decision”. : He says: “These shares were bought at a time when the share price was under pressure and there was a ‘negative’ feeling about the dry bulk freight markets at the time and the Company held excess cash which was not required for the business. Apart from being a sound financial management exercise, this move had also helped the stock, at that time, to retain its value and also gave the Company an opportunity to make an investment, through the TS route, at a very good price.”

“Now,” says Mr Hashim, “that the dry bulk freight market has turned positive, which can quite easily be seen from the results that we have been announcing to date as well as the plethora of articles in the shipping press and analyst community praising the durability and the strength of the freight market, we now feel it is an opportune time for the company to sell some of its TS and take profit on the company’s investment. This is what we have done so far. As and when the price is deemed strong enough, we will slowly sell part or all of the TS that we hold but we are under no time or other constraints to complete the sale of these TS quickly.”