Vessels

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Vessels and Vessel Improvements

As of September 30, 2022, the Company’s owned operating fleet consisted of 52 drybulk vessels.

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 cost, including installation, is approximately $0.5 million per BWTS. The Company intends to complete the installations during scheduled drydockings. The Company completed installation of BWTS on 32 vessels and recorded $19.8 million in Vessels and vessel improvements in the Condensed Consolidated Balance Sheets as of September 30, 2022. Additionally, the Company recorded $1.9 million as advances paid toward installation of BWTS on the remaining vessels recorded in Advances for ballast water systems and other assets in the Condensed Consolidated Balance Sheets as of September 30, 2022.

On June 8, 2022, the Company signed a memorandum of agreement to sell the vessel Cardinal for a total consideration of $15.8 million. The vessel was delivered to the buyer during the third quarter of 2022. The Company recorded a gain of $9.3 million in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022.

During the third quarter of 2022, the Company entered into a memorandum of agreement to acquire a high-specification 2015-built scrubber-fitted Ultramax bulkcarrier for a total consideration of $27.5 million. The vessel is expected to be delivered to the Company in November 2022.

Activity in Vessels and vessel improvements for the nine months ended September 30, 2022 is below:


(In thousands)
Vessels and vessel improvements, at December 31, 2021	$	908,076
Purchase of vessels and vessel improvements	703
Sale of vessel	(5,592)
Scrubbers and BWTS	8,709
Depreciation expense	(35,349)
Vessels and vessel improvements, at September 30, 2022	$	876,547