Vessels

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Vessel and Vessel Improvements

As of September 30, 2020, the Company’s owned operating fleet consisted of 49 drybulk vessels.

On July 9, 2020, the Company signed a memorandum of agreement to sell the vessel Goldeneye for net proceeds of $4.6 million after brokerage commission and associated selling expenses. The vessel was delivered to the buyers on August 7, 2020. The Company recorded a loss of approximately $0.1 million in the third quarter of 2020 in connection with the sale of this vessel. The proceeds were recorded as Restricted cash - current in the Condensed Consolidated Balance Sheet as of September 30, 2020. A portion of the proceeds was used towards partial financing of scrubbers.

On September 2, 2020, the Company signed a memorandum of agreement to sell the vessel Skua for net proceeds of $5.1 million after brokerage commissions and associated selling expenses. The vessel is expected to be delivered to the buyer in the fourth quarter of 2020. The Company recorded a loss of $0.3 million in its Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 in connection with the sale of this vessel. The Company recorded the carrying amount of the vessel as Vessel held for sale in its Condensed Consolidated Balance Sheet as of September 30, 2020.

During the third quarter of 2018, the Company entered into a series of agreements to purchase up to 37 scrubbers, which were fitted on the Company's vessels. The actual costs, including installation, were approximately $2.4 million per scrubber. During the second quarter of 2020, the Company completed and commissioned all 37 scrubbers and recorded $88.4 million in Vessels and vessel improvements in the Condensed Consolidated Balance Sheet as of September 30, 2020.

During the third quarter of 2018, the Company entered into a contract for the installation of ballast water treatment systems ("BWTS") on 39 of our owned vessels. The projected costs, including installation, are approximately $0.5 million per BWTS. The Company intends to complete the installations during scheduled drydockings. The Company completed installation of BWTS on 15 vessels and recorded $6.8 million in Vessels and vessel improvements in the Condensed Consolidated Balance Sheet as of September 30, 2020. Additionally, the Company recorded $2.8 million as advances paid towards installation of BWTS on the remaining vessels as a noncurrent asset in its Condensed Consolidated Balance Sheet as of September 30, 2020. During the second quarter of 2020, the Company applied for and received extensions from the United States Coast Guard of up to one year for BWTS installation on 18 of our vessels. Additionally, the Company cancelled the BWTS installation orders on three of its vessels.

The Vessels and vessel improvements activity for the nine months ended September 30, 2020 is below:


Vessels and vessel improvements, at December 31, 2019	$	835,959,084
Purchase of vessel improvements	605,660
Sale of vessel	(4,552,628)
Vessel held for sale	(5,475,370)
Scrubbers and BWTS	38,884,772
Depreciation expense	(31,850,808)
Vessels and vessel improvements, at September 30, 2020	$	833,570,710