Ramlösa Shipping AB, a prominent player in the shipping investment sector, has recently announced its strategic investment of 1.95% in Atlantica Star AS. This newly established project company has acquired the Kamsarmax dry bulk vessel, MV 'JAG AARATI', built in 2011 in South Korea. This move signifies Ramlösa Shipping's ongoing commitment to disciplined growth and long-term value creation within the dry bulk segment.

In collaboration with esteemed partners Atlantica Shipping and A.M. Nomikos, Ramlösa Shipping aims to leverage the high-quality asset's market exposure. The vessel, with a deadweight tonnage of 80,300 and built at the renowned STX shipyard, promises significant operational efficiency. It will undergo a 15-year special survey shortly after delivery, minimizing expected investment and maintenance costs over the next five years. This positions the vessel favorably for both spot and period chartering.

Acquired at an agreed purchase price of USD 15.0 million, the vessel represents an estimated 15% discount compared to newbuild parity, offering an attractive entry into a modern and liquid segment of the dry bulk market. Financially, the project boasts a break-even point of approximately USD 9,850 per day, while current one-year time charter rates hover around USD 16,800 per day. Historically, the 20-year average stands at USD 18,900 per day, highlighting the potential for profitable returns.

The project targets an average annual dividend yield of 17-24%, with a base internal rate of return (IRR) ranging from 8-22% per year and an estimated equity multiple of about 1.46x, contingent on market developments. CEO Stefan Norrsell expressed confidence in the investment, citing strong medium to long-term fundamentals in the dry bulk market and a well-balanced risk-reward profile.

Considering the robust financial metrics and strategic partnerships, investors may find this a compelling opportunity. However, given the inherent market risks and the current economic climate, a cautious approach is advisable. Therefore, the recommendation would be to hold the investment and monitor market conditions closely.