Shares of Castor Maritime (CTRM 2.54%) climbed on Thursday after the shipping company said it was expanding its fleet. As of 11:22 a.m. EST, its stock price was up more than 8% after rising as much as 18% earlier in the day.
Castor Maritime struck a deal to acquire a 2010 Kamsarmax dry bulk carrier for $14.8 million. The company expects to take delivery of the ship by the second quarter.
"We are very happy to announce the acquisition of our third Kamsarmax dry bulk vessel and remain committed to our plan of steadily deploying capital and growing our fleet," CEO Petros Panagiotidis said in a press release. "Upon completion of all our recently announced acquisitions, our fleet will consist of 12 vessels, doubling in size since the beginning of 2021."
The COVID-19 crisis has weighed heavily on the dry bulk shipping market. Castor Maritime is using the downturn as an opportunity to ramp up the size of its fleet by buying ships at more economical prices, in hopes of profiting from an eventual recovery.
Investors should expect Castor Maritime to pursue additional acquisitions in the weeks and months ahead. "We are working diligently in identifying and taking advantage of attractive opportunities presented to us across vessel sizes and segments," Panagiotidis said.