Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the
“Company”), the largest U.S. headquartered drybulk shipowner
focused on the global transportation of commodities, today reported
its financial results for the three months and nine months ended
September 30, 2023.
Third Quarter 2023 and Year-to-Date
Highlights
-
Dividend: Declared a $0.15 per share dividend for
Q3 2023
- 17th consecutive
quarterly payout
- Cumulative
dividends of $4.745 per share or 36% of our share price1
- Q3 2023 dividend
is payable on or about November 30, 2023 to all shareholders of
record as of November 22, 2023.
- Global
refinancing: Commitments received for a $500 million
revolving credit facility providing additional capital allocation
flexibility and improved terms compared to the existing facility
- 100% revolver
structure increases borrowing capacity by $156 million, maturity is
extended by over two years to the end of 2028 and margin is reduced
to a grid of 1.85% to 2.15% from 2.15% to 2.75%
-
Growth: Agreed to purchase a 2016-built
scrubber-fitted Capesize vessel, to be renamed the Genco Ranger,
for $43.1 million, with expected delivery in Q4 2023
-
Financial performance: Net loss of $32.0 million
for Q3 2023, including a non-cash vessel impairment charge of $28.1
million, or basic and diluted loss per share of $0.75
- Adjusted net
loss of $3.9 million or basic and diluted loss per share of $0.09,
excluding the non-cash vessel impairment charge of $28.1
million2
- Adjusted EBITDA
of $14.6 million for Q3 20232
- Voyage
revenues: Totaled $83.4 million in Q3 2023
- Net revenue2 was
$47.2 million during Q3 2023
- Average daily
fleet-wide TCE2 was $12,082 for Q3 2023
-
Estimated TCE to date for Q4 2023: $16,665 for 69%
of our owned fleet available days, based on both period and current
spot fixtures2
- Global
Maritime Forum: Genco became a signatory to the
operational efficiency ambition statement focused on emissions
reductions
John C. Wobensmith, Chief Executive
Officer, commented, “We continued to advance our value
strategy in the third quarter, delivering on our commitments to
dividends, deleveraging, and growth. In addition to declaring our
17th consecutive dividend, we capitalized on an attractive
opportunity to acquire a 2016-built scrubber-fitted Capesize
vessel. The agreed upon acquisition of the Genco Ranger represents
the next step in our fleet renewal plans as we continue to evaluate
potential sale and purchase transactions in the market. We remain
in a strong position to continue providing sizeable dividend
payouts, supported by our balance sheet strength, available
liquidity, and improved drybulk market. At the same time, our
continued debt prepayments have enabled Genco to reduce our
industry-low cash flow breakeven rate, which is a core
differentiator for the Company.”
Mr. Wobensmith continued, “We expect our
refinancing to further enhance Genco’s capital structure and
support both the continued execution of our value strategy and our
ability to take advantage of favorable long-term industry
fundamentals. Beginning in September, we have seen a significant
uplift in drybulk freight rates, led by firm iron ore, coal and
bauxite shipments, which is reflected in our solid Q4 TCE to date.
Moving forward, while we expect volatility to persist, we view
commodity demand growth from China and developing Asia, coupled
with capacity constraints that have resulted in a historically low
orderbook, to be supportive for the drybulk market.”
1 Genco share price as of November 7, 2023.2 We
believe the non-GAAP measure presented provides investors with a
means of better evaluating and understanding the Company’s
operating performance. Please see Summary Consolidated Financial
and Other Data below for further reconciliation. Regarding Q4 2023
TCE, actual results will vary from current estimates. Net revenue
is defined as voyage revenues minus voyage expenses, charter hire
expenses and realized gains or losses on fuel hedges.
Credit Facility Refinancing
In Q4 2023, Genco received commitments for a $500 million
revolving credit facility, which can be utilized to support growth
of the Company’s asset base as well as general corporate
purposes.
Key terms of the amended $500 million revolving credit
facility include:
- Borrowing capacity increases to $500 million
from $344 million currently, an increase of $156 million or
46%
- 100% revolving credit facility structure
provides flexibility for Genco to continue to pay down debt while
maintaining the ability to opportunistically draw down capital
- Competitive pricing: margin grid reduced to
1.85% to 2.15% + SOFR from 2.15% to 2.75% + SOFR
- Credit adjustment spread of approximately 0.11% was also
eliminated
- Margin grid based on the ratio of total net indebtedness to
EBITDA
- 5-year tenor extends maturity by over two
years from August 2026 to November 2028
- Repayment profile of 20 years
- Quarterly revolver commitment reduction of approximately $15
million per quarter
- Genco will have no mandatory debt repayments until 2028, due to
our reduction in debt outstanding
- Sustainability linked feature with interest
rate increased or decreased by a margin of up to 0.05% based on our
performance relative to fleet-wide carbon emissions targets
- Favorable covenant package in line with the
existing facility
- Collateral package includes Genco’s 44-vessel
fleet as well as the Genco Ranger, upon expected delivery in
mid-November 2023
Lenders of the revolving credit facility include
reputable international shipping banks that are both existing and
new lenders to Genco. The amended facility is subject to definitive
documentation and fulfillment of customary conditions precedent.
The amended facility is expected to close in Q4 2023.
Upon closing the amended credit facility and
acquisition, we anticipate pro forma debt outstanding to be $179.8
million and undrawn revolver availability to be $320.3 million.
Given the 100% revolver structure, we plan to actively manage our
debt outstanding to reduce interest expense while also planning to
utilize the revolver a source of funds to opportunistically acquire
tonnage.
Comprehensive Value Strategy
Genco’s comprehensive value strategy is centered
on three pillars:
- Dividends: paying
sizeable quarterly cash dividends to shareholders
- Deleveraging:
through voluntary debt prepayments or repayments to maintain low
financial leverage, and
- Growth:
opportunistically growing and renewing the Company’s asset
base
This strategy is a key differentiator
for Genco, which we believe creates a compelling
risk-reward balance to drive shareholder value over the long-term.
The Company is positioned to pay a sizeable quarterly dividend
across diverse market environments while maintaining significant
flexibility to grow the fleet through accretive vessel
acquisitions.
Key characteristics of our unique
platform include:
- Industry low cash flow breakeven
rate
- Net loan-to-value of 10%3
- Strong liquidity position of $251.0
million at September 30, 2023, which consists of:
- $52.2 million of
cash on the balance sheet
- $198.8 million
of revolver availability
- High operating
leverage with our scalable fleet across the major and minor bulk
sectors
3 Represents the principal amount of our credit
facility debt outstanding less our cash and cash equivalents as of
September 30, 2023 divided by estimates of the market value of our
fleet as of November 7, 2023 from VesselsValue.com. The actual
market value of our vessels may vary.
Financial deleveraging
Genco paid down $304.5 million or 68% of
our debt from Q1 2021 to Q3 2023
- Debt
outstanding: $144.8 million as of September 30, 2023
- Drew down $35.0
million under our revolver in Q4 2023 to partially fund the
acquisition of the Genco Ranger
- We plan to
continue to voluntarily pay down debt
- Medium-term
goal: reducing net debt to zero
- Longer-term
goal: zero debt
Growth
Entered into an agreement to
acquire a 2016-built 181,000 dwt scrubber-fitted Capesize
vessel for $43.1 million constructed at SWS shipyard in China in
October 2023. The vessel, to be renamed Genco Ranger, is expected
to be delivered to Genco in mid-November 2023. We continue to
further evaluate fleet renewal and growth opportunities in the sale
and purchase market.
Dividend Policy
Genco declared a cash dividend of $0.15
per share for the third quarter of 2023. While our stated
formula did not produce a dividend for the quarter, the Board of
Directors elected on management’s recommendation to declare the
$0.15 per share dividend. Genco’s industry low cash flow breakeven
rate and low financial leverage, together with improved freight
rates in Q4 2023 to date gave the Company confidence to declare the
$0.15 per share dividend. This represents our eighth dividend
payment under our value strategy with cumulative dividends declared
to date of $3.69 per share. The Q3 2023 dividend is payable on or
about November 30, 2023 to all shareholders of record as of
November 22, 2023.
Under the quarterly dividend policy adopted by
our Board of Directors, the amount available for quarterly
dividends is to be calculated based on the formula in the table
below. The table includes the calculation of the actual Q3 2023
dividend and estimated amounts for the calculation of the dividend
for Q4 2023:
|
|
|
|
|
|
Dividend calculation |
Q3 2023
actual |
Q4 2023
estimates |
|
|
Net revenue |
$ |
47.24 |
|
Fixtures + market |
|
|
Operating expenses |
|
(31.84 |
) |
(33.07 |
) |
|
|
Less: capex for dydocking/BWTS/ESDs |
|
(4.54 |
) |
(0.40 |
) |
|
|
Operating cash flow less DD capex |
$ |
10.87 |
|
Sum of the above |
|
|
Less: voluntary quarterly reserve* |
|
(4.40 |
) |
(19.50 |
) |
|
|
Cash flow distributable as dividends |
$ |
6.47 |
|
Sum of the above |
|
|
Number of shares to be paid dividends |
|
43.2 |
|
43.2 |
|
|
|
Dividend per share |
$ |
0.15 |
|
|
|
|
Numbers in millions except per share amounts |
|
|
*We have consolidated the previous voluntary quarterly reserve of
$10.75m and voluntary debt repayments of $8.75m (total of $19.5m).
This consolidated Q3 2023 voluntary quarterly reserve was reduced
from $19.5m to $4.4m for the purposes of the dividend
calculation. |
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|
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|
|
|
Operating cash flow is defined
as net revenue (consisting of voyage revenue less voyage expenses,
charter hire expenses, and realized gains or losses on fuel
hedges), less operating expenses (consisting of vessel operating
expenses, general and administrative expenses other than non-cash
restricted stock expenses, technical management fees, and interest
expense other than non-cash deferred financing costs), for purposes
of the foregoing calculation. Estimated expenses, debt repayments,
and capital expenditures for Q4 2023 are estimates presented for
illustrative purposes.
We have consolidated our voluntary quarterly
debt repayments and voluntary quarterly reserve for the purposes of
our dividend calculation as shown in the table above. With our new
100% revolving credit facility structure, we intend to actively
manage our debt outstanding to reduce interest expense while also
planning to opportunistically draw down to partially fund future
acquisitions or for general corporate purposes while remaining
committed to our medium-term goal of net debt zero. Furthermore,
given that both the reserve and debt repayments are fully in our
discretion, we felt it was appropriate to consolidate into one
voluntary quarterly reserve.
The voluntary quarterly reserve for the
third quarter of 2023 under the Company’s dividend policy
was reduced to $4.4 million. A key component of Genco’s value
strategy is maintaining a voluntary quarterly reserve, as well as
the optionality for the use of the reserve as Genco seeks to pay
sizeable dividends in diverse market environments.
The voluntary quarterly reserve for the
fourth quarter of 2023 under the Company’s dividend
formula is expected to be $19.5 million, a portion of which
consists of a voluntary debt repayment under our revolver with the
balance representing our voluntary quarterly reserve. As we
anticipate having no mandatory debt repayments until the maturity
of the new credit facility in 2028, the $19.5 million remains fully
within our discretion. Subject to the development of freight rates
for the remainder of the fourth quarter and our assessment of our
liquidity and forward outlook, we maintain flexibility to reduce
the quarterly reserve to pay dividends or increase the amount of
dividends otherwise payable under our formula. We plan to set the
voluntary reserve on a quarterly basis for the subsequent quarter,
and it is expected to be based on anticipated debt repayments and
interest expense for the relevant and succeeding quarter and
remains subject to our Board of Directors’ discretion.
Anticipated uses for the voluntary
reserve include, but are not limited to:
- Vessel acquisitions
- Debt repayments, and
- General corporate purposes
The Board expects to reassess the payment
of dividends as appropriate from time to time. Our quarterly
dividend policy and declaration and payment of dividends are
subject to legally available funds, compliance with applicable law
and contractual obligations (including our credit facility) and the
Board of Directors’ determination that each declaration and payment
is at the time in the best interests of the Company and its
shareholders after its review of our financial performance.
Peter Allen, Chief Financial Officer,
commented, “Consistent with our focus on further
strengthening our balance sheet, we are pleased to have received
commitments for a $500 million revolving credit facility, which we
anticipate closing before year-end. The global refinancing and full
revolving credit facility structure aligns well with Genco’s value
strategy, providing the flexibility to continue on our debt paydown
trajectory while maintaining the optionality to strategically
access capital when attractive opportunities materialize.
Furthermore, we increased our borrowing capacity by nearly 50%, or
over $150 million, while lowering pricing and extending maturity.
This key initiative enhances Genco’s industry-leading balance sheet
and low financial leverage position, highlighted by a net
loan-to-value ratio of approximately 10%. We appreciate the
continued support of our high quality bank group.”
Genco’s Active Commercial Operating
Platform and Fleet Deployment Strategy
We utilize a portfolio approach
towards revenue generation through a combination of:
- Short-term, spot market employment,
and
- Opportunistically booking longer
term coverage
Our fleet deployment strategy currently remains
weighted towards short-term fixtures, which provide us with
optionality on our sizeable fleet.
Our barbell approach towards fleet
composition enables Genco to gain exposure to both the
major and minor bulk commodities with a fleet whose cargoes carried
align with global commodity trade flows. This approach continues to
serve us well given the upside potential in major bulk rates
together with the relative stability of minor bulk rates.
Based on current fixtures to date, our estimated
TCE to date for the fourth quarter of 2023 on a load-to-discharge
basis is presented below. Actual rates for the fourth quarter will
vary based upon future fixtures. These estimates are based on time
charter contracts entered by the Company as well as current spot
fixtures on the load-to-discharge method, whereby revenue is
recognized ratably over the voyage from the commencement of loading
to the completion of discharge. The actual TCE rates to be earned
will depend on the number of contracted days and the number of
ballast days at the end of the period. According to the
load-to-discharge accounting method, the Company does not recognize
revenue for any ballast days or uncontracted days at the end of the
fourth quarter of 2023. At the same time, expenses for uncontracted
days will be recognized.
Estimated
net TCE - Q4 2023 to Date |
|
|
|
Vessel Type |
Fleet-wide |
% Fixed |
Capesize |
$ |
20,831 |
58 |
% |
Ultra/Supra |
$ |
14,634 |
77 |
% |
Total |
$ |
16,665 |
69 |
% |
|
|
|
Our index-linked and short-period time charters
are listed below.
Vessel |
Type |
DWT |
Year Built |
Rate |
Duration |
Min Expiration |
Genco Endeavour |
Capesize |
181,060 |
2015 |
127% of BCI + scrubber premium |
11-14 months |
Jan-24 |
Genco Resolute |
Capesize |
181,060 |
2015 |
127% of BCI +
scrubber premium |
11-14 months |
Feb-24 |
Genco Defender |
Capesize |
180,021 |
2016 |
125% of BCI + scrubber premium |
11-14 months |
Apr-24 |
|
|
|
|
|
|
|
Genco Madeleine |
Ultramax |
63,166 |
2014 |
$ |
16,000 |
5-7 months |
Mar-24 |
Genco Constellation |
Ultramax |
63,310 |
2017 |
$ |
16,000 |
5-7 months |
Mar-24 |
Genco Bourgogne |
Supramax |
58,018 |
2010 |
$ |
15,000 |
4-6 months |
Mar-24 |
|
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|
|
|
|
|
Financial Review: 2023 Third
Quarter
The Company recorded net loss for the third
quarter of 2023 of $32.0 million, or $0.75 basic and diluted loss
per share. Adjusted net loss is $3.9 million or $0.09 basic and
diluted loss per share excluding a non-cash vessel impairment
charge of $28.1 million. This non-cash vessel impairment charge was
recorded as the estimated future undiscounted cash flows for three
of our 170,000 dwt Capesize vessels, that we are evaluating
divesting as part of fleet renewal with third special surveys
scheduled in 2024, did not exceed their net book values, and we
therefore adjusted their values to fair market value during the
third quarter of 2023. Comparatively, for the three months ended
September 30, 2022, the Company recorded net income of $40.8
million, or $0.96 and $0.95 basic and diluted earnings per share,
respectively.
Revenue / TCEThe Company’s
revenues decreased to $83.4 million for the three months ended
September 30, 2023, as compared to $136.0 million recorded for the
three months ended September 30, 2022, primarily due to lower rates
earned by our minor and major bulk vessels. The average daily time
charter equivalent, or TCE, rates obtained by the Company’s fleet
was $12,082 per day for the three months ended September 30, 2023
as compared to $23,624 per day for the three months ended September
30, 2022.
Voyage expensesVoyage expenses
were $34.3 million for the three months ended September 30, 2023
compared to $39.5 million during the prior year period, primarily
due to lower bunker consumption for our minor bulk vessels and
third-party chartered-in vessels, as well as decreased fuel prices
during the third quarter of 2023 as compared to the same period
during 2022.
Vessel operating expensesVessel
operating expenses increased to $24.7 million for the three months
ended September 30, 2023 from $22.1 million for the three months
ended September 30, 2022. Daily vessel operating expenses, or DVOE,
amounted to $6,113 per vessel per day for the third quarter of 2023
compared to $5,457 per vessel per day for the third quarter of
2022. The increase was primarily due to the timing of the purchase
of stores and spare parts, higher insurance costs and higher crew
costs due to the timing of crew changes. These increases were
partially offset by the absence of COVID-19 related expenses in Q3
2023.
We believe daily vessel operating expenses are
best measured for comparative purposes over a 12-month period in
order to take into account all of the expenses that each vessel in
our fleet will incur over a full year of operation. Based on
estimates provided by our technical manager, our DVOE budget for Q4
2023 is $6,000 per vessel per day on a fleet-wide basis.
General and administrative
expensesGeneral and administrative expenses increased to
$6.6 million for the third quarter of 2023 compared to $5.9 million
for the third quarter of 2022, primarily due to an increase in
non-cash stock amortization expenses.
Depreciation and amortization
expensesDepreciation and amortization expenses increased
to $17.0 million for the three months ended September 30, 2023 from
$15.6 million for the three months ended September 30, 2022,
primarily due to an increase in drydocking amortization expense for
certain vessels that completed their respective drydockings during
the third quarter of 2022 through the second quarter of
2023.
Drybulk market updateDuring the
first two months of the third quarter, spot freight rates came
under pressure primarily due to an unwinding in port congestion
which offset firm iron ore and coal volumes into China. During
September and into Q4 2023 to date, freight rates have improved
meaningfully due to:
- Strong iron ore and coal shipments
into China
- Robust Brazilian iron ore
volumes
- Ex-China steel production
growth
- An increase in port congestion from
Q3 lows
Financial Review: Nine Months
2023
The Company recorded net loss of $17.8 million
or $0.42 basic and diluted loss per share for the nine months ended
September 30, 2023. Adjusted net income is $10.3 million or $0.24
basic and diluted earnings per share excluding a non-cash vessel
impairment charge of $28.1 million. This compares to net income of
$129.9 million or $3.07 and $3.03 basic and diluted earnings per
share, respectively, for the nine months ended September 30,
2022.
Revenue / TCE
The Company’s revenues decreased to $268.3
million for the nine months ended September 30, 2023 compared to
$410.0 million for the nine months ended September 30, 2022,
primarily due to lower rates achieved by our minor and major bulk
vessels. TCE rates obtained by the Company decreased to $13,855 per
day for the nine months ended September 30, 2023 from $25,425 per
day for the nine months ended September 30, 2022.
Voyage expensesVoyage expenses
decreased to $100.5 million for the nine months ended September 30,
2023 from $110.4 million for the same period in 2022, primarily due
to lower bunker consumption for our minor bulk vessels and
third-party chartered-in vessels, as well as decreased fuel prices
during the nine months ended September 30, 2023 as compared to the
same period during 2022.
Vessel operating expensesVessel
operating expenses decreased to $71.7 million for the nine months
ended September 30, 2023 from $78.6 million for the nine months
ended September 30, 2022. DVOE was $5,971 for the year-to-date
period in 2023 versus $6,545 in 2022. The decrease was primarily
due to the absence of COVID-19 related expenses in 2023 over the
same period last year, a decrease in the purchase of stores and
spare parts, as well as reduced repair and maintenance costs. These
decreases were partially offset by higher crew costs due to the
timing of crew changes.
General and administrative
expensesGeneral and administrative expenses for the nine
months ended September 30, 2023 increased to $21.3 million as
compared to $18.3 million in the same period of 2022 primarily due
to an increase in non-cash stock amortization expense as well as
higher legal and professional fees.
EBITDAEBITDA for the nine
months ended September 30, 2023 amounted to $36.2 million compared
to $180.6 million during the prior period. During the nine months
of 2023 and 2022, EBITDA included non-cash impairment charges as
well as losses on fuel hedges. Excluding these items, our adjusted
EBITDA would have amounted to $64.4 million and $180.7 million, for
the respective periods.
Liquidity and Capital
Resources
Cash Flow
Net cash provided by operating
activities for the nine months ended September 30, 2023
and 2022 was $52.2 million and $153.4 million, respectively. This
decrease in cash provided by operating activities was primarily due
to lower rates earned by our minor and major bulk vessels and
changes in working capital. These decreases were partially
offset by a decrease in drydocking costs incurred during the nine
months ended September 30, 2023 as compared to the nine months
ended September 30, 2022.
Net cash used in investing
activities for the nine months ended September 30, 2023
and 2022 was $3.3 million and $53.5 million, respectively. This
decrease was primarily due to a $47.4 million decrease in the
purchase of vessels primarily as a result of the purchase of two
Ultramax vessels that delivered during the first quarter of 2022.
There was also a $2.1 million increase in insurance proceeds for
hull and machinery claims for our vessels.
Net cash used in financing
activities during the nine months ended September 30, 2023
and 2022 was $60.8 million and $149.0 million, respectively.
The decrease is primarily due to the additional $40.0 million debt
repayment made under the $450 Million Credit Facility during the
first quarter of 2022. Additionally, there was a $48.2
million decrease in the payment of dividends during the nine months
ended September 30, 2023 as compared to the same period during
2022.
Capital Expenditures
Genco’s fleet of 44 vessels as of November 8,
2023, consists of:
- 17 Capesizes
- 15 Ultramaxes
- 12 Supramaxes
The fleet’s average age is 11.7 years and has an
aggregate capacity of approximately 4,635,000 dwt. We plan to take
delivery of the Genco Ranger, a 181,000 dwt scrubber-fitted
Capesize vessel in mid-November 2023.
In addition to acquisitions that we may
undertake, we will incur additional capital expenditures due to
special surveys and drydockings. Furthermore, we plan to upgrade a
portion of our fleet with energy saving devices and apply high
performance paint systems to our vessels in order to reduce fuel
consumption and emissions.
We estimate our capital expenditures related to
drydocking, including capitalized costs incurred during drydocking
related to vessel assets and vessel equipment, ballast water
treatment system costs, fuel efficiency upgrades and scheduled
off-hire days for our fleet for the balance of 2023 and 2024 to
be:
|
|
|
|
|
|
Estimated costs ($ in millions) |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 |
Drydock Costs (1) |
$ |
- |
$ |
2.50 |
$ |
5.65 |
$ |
6.45 |
$ |
7.20 |
Estimated BWTS Costs (2) |
$ |
- |
$ |
0.53 |
$ |
- |
$ |
- |
$ |
- |
Fuel Efficiency Upgrade Costs (3) |
$ |
0.40 |
$ |
0.27 |
$ |
1.37 |
$ |
1.09 |
$ |
1.23 |
Total Costs |
$ |
0.40 |
$ |
3.30 |
$ |
7.02 |
$ |
7.54 |
$ |
8.43 |
Estimated Offhire Days (4) |
|
- |
|
55 |
|
95 |
|
115 |
|
125 |
|
|
|
|
|
|
(1) Estimates are based on our budgeted cost of
drydocking our vessels in China. Actual costs will vary based on
various factors, including where the drydockings are actually
performed. We expect to fund these costs with cash on hand. These
costs do not include drydock expense items that are reflected in
vessel operating expenses.
(2) Estimated costs associated with the
installation of ballast water treatment systems are expected to be
funded with cash on hand.
(3) Estimated costs associated with the
installation of fuel efficiency upgrades are expected to be funded
with cash on hand.
(4) Actual length will vary based on the condition of the
vessel, yard schedules and other factors.
Summary Consolidated Financial and Other
Data
The following table summarizes Genco Shipping
& Trading Limited’s selected consolidated financial and other
data for the periods indicated below.
|
|
|
|
Three Months Ended September 30, 2023 |
|
Three Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
|
|
|
|
(Dollars in thousands, except share and per share data) |
|
(Dollars in thousands, except share and per share data) |
|
|
|
|
|
(unaudited) |
|
(unaudited) |
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
83,361 |
|
|
$ |
135,970 |
|
|
$ |
268,309 |
|
|
$ |
409,961 |
|
|
|
|
Total revenues |
|
83,361 |
|
|
|
135,970 |
|
|
|
268,309 |
|
|
|
409,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
34,256 |
|
|
|
39,496 |
|
|
|
100,522 |
|
|
|
110,420 |
|
|
|
Vessel operating expenses |
|
24,746 |
|
|
|
22,090 |
|
|
|
71,725 |
|
|
|
78,567 |
|
|
|
Charter hire expenses |
|
2,026 |
|
|
|
6,952 |
|
|
|
6,731 |
|
|
|
19,633 |
|
|
|
General and administrative expenses (inclusive of nonvested stock
amortization |
|
6,585 |
|
|
|
5,911 |
|
|
|
21,267 |
|
|
|
18,334 |
|
|
|
expense of $1.4 million, $0.8 million, $4.2 million and $2.4
million, respectively) |
|
|
|
|
|
|
|
|
|
Technical management fees |
|
973 |
|
|
|
761 |
|
|
|
3,084 |
|
|
|
2,378 |
|
|
|
Depreciation and amortization |
|
17,026 |
|
|
|
15,582 |
|
|
|
49,762 |
|
|
|
44,162 |
|
|
|
Impairment of vessel assets |
|
28,102 |
|
|
|
- |
|
|
|
28,102 |
|
|
|
- |
|
|
|
|
Total operating expenses |
|
113,714 |
|
|
|
90,792 |
|
|
|
281,193 |
|
|
|
273,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
(30,353 |
) |
|
|
45,178 |
|
|
|
(12,884 |
) |
|
|
136,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
Other (expense) income |
|
(100 |
) |
|
|
(2,146 |
) |
|
|
(298 |
) |
|
|
617 |
|
|
|
Interest income |
|
588 |
|
|
|
292 |
|
|
|
1,877 |
|
|
|
377 |
|
|
|
Interest expense |
|
(1,999 |
) |
|
|
(2,276 |
) |
|
|
(6,158 |
) |
|
|
(6,923 |
) |
|
|
|
Other expense, net |
|
(1,511 |
) |
|
|
(4,130 |
) |
|
|
(4,579 |
) |
|
|
(5,929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(31,864 |
) |
|
$ |
41,048 |
|
|
$ |
(17,463 |
) |
|
$ |
130,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest |
|
140 |
|
|
|
220 |
|
|
|
345 |
|
|
$ |
639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Genco Shipping & Trading
Limited |
$ |
(32,004 |
) |
|
$ |
40,828 |
|
|
$ |
(17,808 |
) |
|
$ |
129,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings per share - basic |
$ |
(0.75 |
) |
|
$ |
0.96 |
|
|
$ |
(0.42 |
) |
|
$ |
3.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings per share - diluted |
$ |
(0.75 |
) |
|
$ |
0.95 |
|
|
$ |
(0.42 |
) |
|
$ |
3.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
42,816,045 |
|
|
|
42,529,865 |
|
|
|
42,745,681 |
|
|
|
42,361,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted |
|
42,816,045 |
|
|
|
42,881,541 |
|
|
|
42,745,681 |
|
|
|
42,915,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
December 31, 2022 |
|
BALANCE SHEET DATA (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
46,259 |
|
|
$ |
58,142 |
|
|
|
|
Restricted cash |
|
|
|
5,643 |
|
|
|
5,643 |
|
|
|
|
Due from charterers, net |
|
|
|
19,522 |
|
|
|
25,333 |
|
|
|
|
Prepaid expenses and other current assets |
|
|
|
10,162 |
|
|
|
8,399 |
|
|
|
|
Inventories |
|
|
|
27,567 |
|
|
|
21,601 |
|
|
|
|
Fair value of derivative instruments |
|
|
|
2,369 |
|
|
|
6,312 |
|
|
|
Total current assets |
|
|
|
111,522 |
|
|
|
125,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
Vessels, net of accumulated depreciation of $284,693 and $303,098,
respectively |
|
|
|
939,749 |
|
|
|
1,002,810 |
|
|
|
|
Deferred drydock, net |
|
|
|
32,982 |
|
|
|
32,254 |
|
|
|
|
Fixed assets, net |
|
|
|
7,435 |
|
|
|
8,556 |
|
|
|
|
Operating lease right-of-use assets |
|
|
|
2,994 |
|
|
|
4,078 |
|
|
|
|
Restricted cash |
|
|
|
315 |
|
|
|
315 |
|
|
|
|
Fair value of derivative instruments |
|
|
|
- |
|
|
|
423 |
|
|
|
Total noncurrent assets |
|
|
|
983,475 |
|
|
|
1,048,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
1,094,997 |
|
|
$ |
1,173,866 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
$ |
27,428 |
|
|
$ |
29,475 |
|
|
|
|
Deferred revenue |
|
|
|
6,534 |
|
|
|
4,958 |
|
|
|
|
Current operating lease liabilities |
|
|
|
2,266 |
|
|
|
2,107 |
|
|
|
Total current liabilities |
|
|
|
36,228 |
|
|
|
36,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent liabilities |
|
|
|
|
|
|
|
|
Long-term operating lease liabilities |
|
|
|
2,386 |
|
|
|
4,096 |
|
|
|
|
Long-term debt, net of deferred financing costs of $4,756 and
$6,079, respectively |
|
|
|
139,994 |
|
|
|
164,921 |
|
|
|
Total noncurrent liabilities |
|
|
|
142,380 |
|
|
|
169,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
178,608 |
|
|
|
205,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
|
425 |
|
|
|
423 |
|
|
|
|
Additional paid-in capital |
|
|
|
1,558,541 |
|
|
|
1,588,777 |
|
|
|
|
Accumulated other comprehensive income |
|
|
|
2,257 |
|
|
|
6,480 |
|
|
|
|
Accumulated deficit |
|
|
|
(646,055 |
) |
|
|
(628,247 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Genco Shipping & Trading Limited shareholders'
equity |
|
|
|
915,168 |
|
|
|
967,433 |
|
|
|
|
Noncontrolling interest |
|
|
|
1,221 |
|
|
|
876 |
|
|
|
Total equity |
|
|
|
916,389 |
|
|
|
968,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
$ |
1,094,997 |
|
|
$ |
1,173,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
STATEMENT OF CASH FLOWS (Dollars in
thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
$ |
(17,463 |
) |
|
$ |
130,538 |
|
|
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
49,762 |
|
|
|
44,162 |
|
|
|
|
Amortization of deferred financing costs |
|
|
|
1,323 |
|
|
|
1,268 |
|
|
|
|
Right-of-use asset amortization |
|
|
|
1,084 |
|
|
|
1,060 |
|
|
|
|
Amortization of nonvested stock compensation expense |
|
|
|
4,175 |
|
|
|
2,356 |
|
|
|
|
Impairment of vessel assets |
|
|
|
28,102 |
|
|
|
- |
|
|
|
|
Amortization of premium on derivatives |
|
|
|
143 |
|
|
|
63 |
|
|
|
|
Insurance proceeds for protection and indemnity claims |
|
|
|
252 |
|
|
|
709 |
|
|
|
|
Insurance proceeds for loss of hire claims |
|
|
|
506 |
|
|
|
- |
|
|
|
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Decrease (increase) in due from charterers |
|
|
|
5,811 |
|
|
|
(5,750 |
) |
|
|
|
|
Increase in prepaid expenses and other current assets |
|
|
|
(4,882 |
) |
|
|
(1,421 |
) |
|
|
|
|
Increase in inventories |
|
|
|
(5,966 |
) |
|
|
(7,618 |
) |
|
|
|
|
Increase in accounts payable and accrued expenses |
|
|
|
24 |
|
|
|
7,344 |
|
|
|
|
|
Increase in deferred revenue |
|
|
|
1,576 |
|
|
|
4,383 |
|
|
|
|
|
Decrease in operating lease liabilities |
|
|
|
(1,551 |
) |
|
|
(1,384 |
) |
|
|
|
|
Deferred drydock costs incurred |
|
|
|
(10,730 |
) |
|
|
(22,262 |
) |
|
|
|
Net cash provided by operating activities |
|
|
|
52,166 |
|
|
|
153,448 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchase of vessels and ballast water treatment systems, including
deposits |
|
|
|
(3,485 |
) |
|
|
(50,879 |
) |
|
|
|
Purchase of other fixed assets |
|
|
|
(2,169 |
) |
|
|
(2,929 |
) |
|
|
|
Insurance proceeds for hull and machinery claims |
|
|
|
2,361 |
|
|
|
293 |
|
|
|
|
Net cash used in investing activities |
|
|
|
(3,293 |
) |
|
|
(53,515 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Repayments on the $450 Million Credit Facility |
|
|
|
(26,250 |
) |
|
|
(66,250 |
) |
|
|
|
Cash dividends paid |
|
|
|
(34,506 |
) |
|
|
(82,713 |
) |
|
|
|
Payment of deferred financing costs |
|
|
|
- |
|
|
|
(11 |
) |
|
|
|
Net cash used in financing activities |
|
|
|
(60,756 |
) |
|
|
(148,974 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
|
(11,883 |
) |
|
|
(49,041 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
|
|
64,100 |
|
|
|
120,531 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
|
$ |
52,217 |
|
|
$ |
71,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
|
Net Loss Reconciliation |
(unaudited) |
|
Net loss attributable to Genco Shipping & Trading Limited |
$ |
(32,004 |
) |
|
|
+ |
Impairment of vessel assets |
|
28,102 |
|
|
|
+ |
Unrealized loss on fuel hedges |
|
15 |
|
|
|
|
|
Adjusted net loss |
$ |
(3,887 |
) |
|
|
|
|
|
|
|
|
|
|
Adjusted loss per share - basic |
$ |
(0.09 |
) |
|
|
|
|
Adjusted loss per share - diluted |
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
42,816,045 |
|
|
|
|
|
Weighted average common shares outstanding - diluted |
|
42,816,045 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic as per financial
statements |
|
42,816,045 |
|
|
|
|
|
Dilutive effect of stock options |
|
- |
|
|
|
|
|
Dilutive effect of performance based restricted stock units |
|
- |
|
|
|
|
|
Dilutive effect of restricted stock units |
|
- |
|
|
|
|
|
Weighted average common shares outstanding - diluted as
adjusted |
|
42,816,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
|
Three Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
|
|
|
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
|
|
EBITDA Reconciliation: |
(unaudited) |
|
(unaudited) |
|
|
|
Net (loss) income attributable to Genco Shipping &
Trading Limited |
$ |
(32,004 |
) |
|
$ |
40,828 |
|
|
$ |
(17,808 |
) |
|
$ |
129,899 |
|
|
|
|
+ |
Net interest expense |
|
1,411 |
|
|
|
1,984 |
|
|
|
4,281 |
|
|
|
6,546 |
|
|
|
|
+ |
Depreciation and amortization |
|
17,026 |
|
|
|
15,582 |
|
|
|
49,762 |
|
|
|
44,162 |
|
|
|
|
|
|
EBITDA(1) |
$ |
(13,567 |
) |
|
$ |
58,394 |
|
|
$ |
36,235 |
|
|
$ |
180,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+ |
Impairment of vessel assets |
|
28,102 |
|
|
|
- |
|
|
|
28,102 |
|
|
|
- |
|
|
|
|
+ |
Unrealized loss on fuel hedges |
|
15 |
|
|
|
1,871 |
|
|
|
95 |
|
|
|
112 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
14,550 |
|
|
$ |
60,265 |
|
|
$ |
64,432 |
|
|
$ |
180,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
|
FLEET DATA: |
(unaudited) |
|
(unaudited) |
|
|
Total number of vessels at end of period |
|
44 |
|
|
|
44 |
|
|
|
44 |
|
|
|
44 |
|
|
|
Average number of vessels (2) |
|
44.0 |
|
|
|
44.0 |
|
|
|
44.0 |
|
|
|
44.0 |
|
|
|
Total ownership days for fleet (3) |
|
4,048 |
|
|
|
4,048 |
|
|
|
12,012 |
|
|
|
12,002 |
|
|
|
Total chartered-in days (4) |
|
146 |
|
|
|
302 |
|
|
|
452 |
|
|
|
759 |
|
|
|
Total available days for fleet (5) |
|
4,056 |
|
|
|
4,106 |
|
|
|
12,094 |
|
|
|
11,832 |
|
|
|
Total available days for owned fleet (6) |
|
3,910 |
|
|
|
3,803 |
|
|
|
11,642 |
|
|
|
11,073 |
|
|
|
Total operating days for fleet (7) |
|
4,006 |
|
|
|
4,048 |
|
|
|
11,899 |
|
|
|
11,608 |
|
|
|
Fleet utilization (8) |
|
97.7 |
% |
|
|
97.6 |
% |
|
|
97.3 |
% |
|
|
96.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY RESULTS: |
|
|
|
|
|
|
|
|
|
Time charter equivalent (9) |
$ |
12,082 |
|
|
$ |
23,624 |
|
|
$ |
13,855 |
|
|
$ |
25,425 |
|
|
|
Daily vessel operating expenses per vessel (10) |
|
6,113 |
|
|
|
5,457 |
|
|
|
5,971 |
|
|
|
6,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
|
FLEET DATA: |
(unaudited) |
|
(unaudited) |
|
|
Ownership days |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,564.0 |
|
|
|
1,564.0 |
|
|
|
4,641.0 |
|
|
|
4,641.0 |
|
|
|
Ultramax |
|
1,380.0 |
|
|
|
1,380.0 |
|
|
|
4,095.0 |
|
|
|
4,084.9 |
|
|
|
Supramax |
|
1,104.0 |
|
|
|
1,104.0 |
|
|
|
3,276.0 |
|
|
|
3,276.0 |
|
|
|
Total |
|
4,048.0 |
|
|
|
4,048.0 |
|
|
|
12,012.0 |
|
|
|
12,001.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered-in days |
|
|
|
|
|
|
|
|
|
Capesize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Ultramax |
|
91.1 |
|
|
|
114.3 |
|
|
|
330.8 |
|
|
|
304.5 |
|
|
|
Supramax |
|
55.0 |
|
|
|
187.9 |
|
|
|
120.9 |
|
|
|
454.2 |
|
|
|
Total |
|
146.1 |
|
|
|
302.2 |
|
|
|
451.7 |
|
|
|
758.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days (owned & chartered-in fleet) |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,556.9 |
|
|
|
1,354.7 |
|
|
|
4,542.1 |
|
|
|
3,965.1 |
|
|
|
Ultramax |
|
1,459.2 |
|
|
|
1,480.1 |
|
|
|
4,400.5 |
|
|
|
4,272.5 |
|
|
|
Supramax |
|
1,040.3 |
|
|
|
1,270.8 |
|
|
|
3,151.6 |
|
|
|
3,594.3 |
|
|
|
Total |
|
4,056.4 |
|
|
|
4,105.6 |
|
|
|
12,094.2 |
|
|
|
11,831.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days (owned fleet) |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,556.9 |
|
|
|
1,354.7 |
|
|
|
4,542.1 |
|
|
|
3,965.1 |
|
|
|
Ultramax |
|
1,368.1 |
|
|
|
1,365.8 |
|
|
|
4,069.7 |
|
|
|
3,968.0 |
|
|
|
Supramax |
|
985.3 |
|
|
|
1,082.9 |
|
|
|
3,030.6 |
|
|
|
3,140.1 |
|
|
|
Total |
|
3,910.3 |
|
|
|
3,803.4 |
|
|
|
11,642.4 |
|
|
|
11,073.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,550.1 |
|
|
|
1,334.9 |
|
|
|
4,513.6 |
|
|
|
3,886.4 |
|
|
|
Ultramax |
|
1,426.2 |
|
|
|
1,465.8 |
|
|
|
4,280.3 |
|
|
|
4,227.1 |
|
|
|
Supramax |
|
1,029.2 |
|
|
|
1,247.0 |
|
|
|
3,105.1 |
|
|
|
3,494.9 |
|
|
|
Total |
|
4,005.5 |
|
|
|
4,047.7 |
|
|
|
11,899.1 |
|
|
|
11,608.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet utilization |
|
|
|
|
|
|
|
|
|
Capesize |
|
99.1 |
% |
|
|
97.4 |
% |
|
|
98.9 |
% |
|
|
97.0 |
% |
|
|
Ultramax |
|
96.9 |
% |
|
|
98.8 |
% |
|
|
96.7 |
% |
|
|
97.4 |
% |
|
|
Supramax |
|
96.7 |
% |
|
|
96.5 |
% |
|
|
96.0 |
% |
|
|
94.2 |
% |
|
|
Fleet average |
|
97.7 |
% |
|
|
97.6 |
% |
|
|
97.3 |
% |
|
|
96.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Results: |
|
|
|
|
|
|
|
|
|
Time Charter Equivalent |
|
|
|
|
|
|
|
|
|
Capesize |
$ |
15,424 |
|
|
$ |
19,233 |
|
|
$ |
16,954 |
|
|
$ |
23,457 |
|
|
|
Ultramax |
|
10,317 |
|
|
|
27,295 |
|
|
|
12,962 |
|
|
|
27,308 |
|
|
|
Supramax |
|
9,251 |
|
|
|
24,486 |
|
|
|
10,412 |
|
|
|
25,526 |
|
|
|
Fleet average |
|
12,082 |
|
|
|
23,624 |
|
|
|
13,855 |
|
|
|
25,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily vessel operating expenses |
|
|
|
|
|
|
|
|
|
Capesize |
$ |
6,236 |
|
|
$ |
5,329 |
|
|
$ |
6,243 |
|
|
$ |
6,249 |
|
|
|
Ultramax |
|
5,576 |
|
|
|
5,294 |
|
|
|
5,437 |
|
|
|
5,707 |
|
|
|
Supramax |
|
6,603 |
|
|
|
5,887 |
|
|
|
6,305 |
|
|
|
8,017 |
|
|
|
Fleet average |
|
6,113 |
|
|
|
5,457 |
|
|
|
5,971 |
|
|
|
6,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) EBITDA represents net (loss)
income attributable to Genco Shipping & Trading Limited plus
net interest expense, taxes, and depreciation and amortization.
EBITDA is included because it is used by management and certain
investors as a measure of operating performance. EBITDA is used by
analysts in the shipping industry as a common performance measure
to compare results across peers. Our management uses EBITDA as a
performance measure in consolidating internal financial statements
and it is presented for review at our board meetings. We believe
that EBITDA is useful to investors as the shipping industry is
capital intensive which often results in significant depreciation
and cost of financing. EBITDA presents investors with a measure in
addition to net income to evaluate our performance prior to these
costs. EBITDA is not an item recognized by U.S. GAAP (i.e. non-GAAP
measure) and should not be considered as an alternative to net
income, operating income or any other indicator of a company's
operating performance required by U.S. GAAP. EBITDA is not a
measure of liquidity or cash flows as shown in our consolidated
statement of cash flows. The definition of EBITDA used here may not
be comparable to that used by other companies.
2) Average number of vessels is the number of
vessels that constituted our fleet for the relevant period, as
measured by the sum of the number of days each vessel was part of
our fleet during the period divided by the number of calendar days
in that period.3) We define ownership days as the
aggregate number of days in a period during which each vessel in
our fleet has been owned by us. Ownership days are an indicator of
the size of our fleet over a period and affect both the amount of
revenues and the amount of expenses that we record during a
period.4) We define chartered-in days as the
aggregate number of days in a period during which we chartered-in
third-party vessels. 5) We define available days
as the number of our ownership days and chartered-in days less the
aggregate number of days that our vessels are off-hire due to
familiarization upon acquisition, repairs or repairs under
guarantee, vessel upgrades or special surveys. Companies in the
shipping industry generally use available days to measure the
number of days in a period during which vessels should be capable
of generating revenues. 6) We define available
days for the owned fleet as available days less chartered-in
days.7) We define operating days as the number of
our total available days in a period less the aggregate number of
days that the vessels are off-hire due to unforeseen circumstances.
The shipping industry uses operating days to measure the aggregate
number of days in a period during which vessels actually generate
revenues. 8) We calculate fleet utilization as the
number of our operating days during a period divided by the number
of ownership days plus chartered-in days less drydocking days.
9) We define TCE rates as our voyage revenues less
voyage expenses, charter hire expenses, and realized gain or losses
on fuel hedges, divided by the number of the available days of our
owned fleet during the period. TCE rate is a
common shipping industry performance measure used primarily to
compare daily earnings generated by vessels on time charters with
daily earnings generated by vessels on voyage charters, because
charterhire rates for vessels on voyage charters are generally not
expressed in per-day amounts while charterhire rates for vessels on
time charters generally are expressed in such amounts. Our
estimated TCE for the fourth quarter of 2023 is based on fixtures
booked to date. Actual results may vary based on the actual
duration of voyages and other factors. Accordingly, we are unable
to provide, without unreasonable efforts, a reconciliation of
estimated TCE for the fourth quarter to the most comparable
financial measures presented in accordance with GAAP. When we
compare our TCE to the Baltic Supramax Index (BSI) in this release,
we adjust the BSI for customary commissions.
|
|
|
|
Three Months Ended September 30, 2023 |
|
Three Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
Total Fleet |
(unaudited) |
|
(unaudited) |
|
Voyage revenues (in thousands) |
$ |
83,361 |
|
$ |
135,970 |
|
$ |
268,309 |
|
$ |
409,961 |
|
Voyage expenses (in thousands) |
|
34,256 |
|
|
39,496 |
|
|
100,522 |
|
|
110,420 |
|
Charter hire expenses (in thousands) |
|
2,026 |
|
|
6,952 |
|
|
6,731 |
|
|
19,633 |
|
Realized gain on fuel hedges (in thousands) |
|
164 |
|
|
326 |
|
|
245 |
|
|
1,622 |
|
|
|
|
|
|
47,243 |
|
|
89,848 |
|
|
161,301 |
|
|
281,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available days for owned fleet |
|
3,910 |
|
|
3,803 |
|
|
11,642 |
|
|
11,073 |
|
Total TCE rate |
$ |
12,082 |
|
$ |
23,624 |
|
$ |
13,855 |
|
$ |
25,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10) We define daily vessel operating expenses
to include crew wages and related costs, the cost of insurance
expenses relating to repairs and maintenance (excluding
drydocking), the costs of spares and consumable stores, tonnage
taxes and other miscellaneous expenses. Daily vessel operating
expenses are calculated by dividing vessel operating expenses by
ownership days for the relevant period.
About Genco Shipping & Trading
Limited
Genco Shipping & Trading Limited is a U.S.
based drybulk ship owning company focused on the seaborne
transportation of commodities globally. We provide a full-service
logistics solution to our customers utilizing our in-house
commercial operating platform, as we transport key cargoes such as
iron ore, grain, steel products, bauxite, cement, nickel ore among
other commodities along worldwide shipping routes. Our wholly owned
high quality, modern fleet of dry cargo vessels consists of the
larger Capesize (major bulk) and the medium-sized Ultramax and
Supramax vessels (minor bulk) enabling us to carry a wide range of
cargoes. We make capital expenditures from time to time in
connection with vessel acquisitions. As of November 8, 2023, Genco
Shipping & Trading Limited’s fleet consists of 17 Capesize, 15
Ultramax and 12 Supramax vessels with an aggregate capacity of
approximately 4,635,000 dwt and an average age of 11.7 years.
Conference Call Announcement
Genco Shipping & Trading Limited will hold a
conference call on Thursday, November 9, 2023 at 8:30 a.m. Eastern
Time to discuss its 2023 third quarter financial results. The
conference call and a presentation will be simultaneously webcast
and will be available on the Company’s website,
www.GencoShipping.com. To access the conference call, dial (416)
764-8624 or (888) 259-6580 and enter passcode 329256. A replay of
the conference call can also be accessed for two weeks by dialing
(416) 764-8692 or (877) 674-7070 and entering the passcode 329256.
The Company intends to place additional materials related to the
earnings announcement, including a slide presentation, on its
website prior to the conference call.
Website Information
We intend to use our website,
www.GencoShipping.com, as a means of disclosing material non-public
information and for complying with our disclosure obligations under
Regulation FD. Such disclosures will be included in our website’s
Investor Relations section. Accordingly, investors should monitor
the Investor Relations portion of our website, in addition to
following our press releases, SEC filings, public conference calls,
and webcasts. To subscribe to our e-mail alert service, please
click the “Receive E-mail Alerts” link in the Investor Relations
section of our website and submit your email address. The
information contained in, or that may be accessed through, our
website is not incorporated by reference into or a part of this
document or any other report or document we file with or furnish to
the SEC, and any references to our website are intended to be
inactive textual references only.
"Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995
This release contains forward-looking statements
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such
forward-looking statements use words such as “anticipate,”
“budget,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe,” and other words and terms of similar meaning in
connection with a discussion of potential future events,
circumstances or future operating or financial performance.
These forward-looking statements are based on our management’s
current expectations and observations. Included among the
factors that, in our view, could cause actual results to differ
materially from the forward looking statements contained in this
release are the following: (i) declines or sustained weakness
in demand in the drybulk shipping industry; (ii) weakness or
declines in drybulk shipping rates; (iii) changes in the
supply of or demand for drybulk products, generally or in
particular regions; (iv) changes in the supply of drybulk
carriers including newbuilding of vessels or lower than anticipated
scrapping of older vessels; (v) changes in rules and
regulations applicable to the cargo industry, including, without
limitation, legislation adopted by international organizations or
by individual countries and actions taken by regulatory
authorities; (vi) increases in costs and expenses including
but not limited to: crew wages, insurance, provisions, lube oil,
bunkers, repairs, maintenance, general and administrative expenses,
and management fee expenses; (vii) whether our insurance
arrangements are adequate; (viii) changes in general domestic
and international political conditions; (ix) acts of war,
terrorism, or piracy, including without limitation the ongoing war
in Ukraine; (x) changes in the condition of the Company’s
vessels or applicable maintenance or regulatory standards (which
may affect, among other things, our anticipated drydocking or
maintenance and repair costs) and unanticipated drydock
expenditures; (xi) the Company’s acquisition or disposition of
vessels; (xii) the amount of offhire time needed to complete
maintenance, repairs, and installation of equipment to comply with
applicable regulations on vessels and the timing and amount of any
reimbursement by our insurance carriers for insurance claims,
including offhire days; (xiii) the completion of definitive
documentation with respect to charters; (xiv) charterers’
compliance with the terms of their charters in the current market
environment; (xv) the extent to which our operating results
are affected by weakness in market conditions and freight and
charter rates; (xvi) our ability to maintain contracts that
are critical to our operation, to obtain and maintain acceptable
terms with our vendors, customers and service providers and to
retain key executives, managers and employees; (xvii) completion of
documentation for vessel transactions and the performance of the
terms thereof by buyers or sellers of vessels and us; (xviii) the
relative cost and availability of low sulfur and high sulfur fuel,
worldwide compliance with sulfur emissions regulations that took
effect on January 1, 2020 and our ability to realize the economic
benefits or recover the cost of the scrubbers we have installed;
(xix) our financial results for the year ending December 31, 2023
and other factors relating to determination of the tax treatment of
dividends we have declared; (xx) the financial results we achieve
for each quarter that apply to the formula under our new dividend
policy, including without limitation the actual amounts earned by
our vessels and the amounts of various expenses we incur, as a
significant decrease in such earnings or a significant increase in
such expenses may affect our ability to carry out our new value
strategy; (xxi) the exercise of the discretion of our Board
regarding the declaration of dividends, including without
limitation the amount that our Board determines to set aside for
reserves under our dividend policy; (xxii) the duration and impact
of the COVID-19 novel coronavirus epidemic, which may negatively
affect general global and regional economic conditions, our ability
to charter our vessels at all and the rates at which are able to do
so; our ability to call on or depart from ports on a timely basis
or at all; our ability to crew, maintain, and repair our vessels,
including without limitation the impact diversion of our vessels to
perform crew rotations may have on our revenues, expenses, and
ability to consummate vessel sales, expense and disruption to our
operations that may arise from the inability to rotate crews on
schedule, and delay and added expense we may incur in rotating
crews in the current environment; our ability to staff and maintain
our headquarters and administrative operations; sources of cash and
liquidity; our ability to sell vessels in the secondary market,
including without limitation the compliance of purchasers and us
with the terms of vessel sale contracts, and the prices at which
vessels are sold; and other factors relevant to our business
described from time to time in our filings with the Securities and
Exchange Commission; (xxiii) the completion of definitive
documentation for, potential changes in terms to, our entry into,
and fulfillment of conditions precedent under our proposed $500
million credit facility, and (xxiv) other factors listed from
time to time in our filings with the Securities and Exchange
Commission, including, without limitation, our Annual Report on
Form 10-K for the year ended December 31, 2022 and subsequent
reports on Form 8-K and Form 10-Q). Our ability to pay
dividends in any period will depend upon various factors, including
the limitations under any credit agreements to which we may be a
party, applicable provisions of Marshall Islands law and the final
determination by the Board of Directors each quarter after its
review of our financial performance, market developments, and the
best interests of the Company and its shareholders. The timing and
amount of dividends, if any, could also be affected by factors
affecting cash flows, results of operations, required capital
expenditures, or reserves. As a result, the amount of dividends
actually paid may vary. We do not undertake any obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
CONTACT:Peter AllenChief
Financial OfficerGenco Shipping & Trading Limited(646)
443-8550
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