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 twelve months ended
December 31, 2022.
The following financial review discusses the
results for the three months and twelve months ended December 31,
2022 and December 31, 2021.
Fourth Quarter 2022 and Year-to-Date
Highlights
- Declared a $0.50
per share dividend for the fourth quarter of 2022
- Q4 2022 dividend
represents an annualized yield of 11% on Genco’s closing share
price on February 21, 2023
- Q4 2022 dividend
marks the Company’s 14th consecutive quarterly payout, reflecting
cumulative dividends totaling $4.295 per share or approximately 24%
of the closing share price on February 21, 2023
- Q4 2022 dividend
is payable on or about March 14, 2023 to all shareholders of record
as of March 7, 2023
- Prepaid $8.75
million of debt on a voluntary basis during Q4 2022, to reduce our
debt to $171.0 million
- Net
loan-to-value of 11%1 as of February 21, 2023
- Since the start
of 2021, we have paid down $278 million or 62% of our debt
- Recorded net
income of $28.7 million for the fourth quarter of 2022
- Basic and
diluted earnings per share of $0.67
- Voyage revenues
totaled $127.0 million and net revenue2 (voyage revenues minus
voyage expenses, charter hire expenses and realized gains or losses
on fuel hedges) totaled $76.0 million during Q4 2022
- Our average
daily fleet-wide time charter equivalent, or TCE2, for Q4 2022 was
$19,330
- We estimate our
TCE to date for Q1 2023 to be $14,217 for 84% of our owned fleet
available days, based on both period and current spot fixtures
- For FY 2022, our
fleet-wide TCE was $23,824, which outperformed our
scrubber-adjusted benchmark by nearly $3,000 per vessel per
day3
- Recorded
adjusted EBITDA of $226.8 million during 20222
- Over the last
two years, we have generated $340.6 million of net income and
$479.7 million of adjusted EBITDA
- During that
period, the Company also paid $129.2 million in dividends and
prepaid $278.2 million in debt
- Increased our
liquidity position to $277.0 million as of December 31, 2022,
including:
- $64.1 million of
cash on the balance sheet
- $212.9 million
of revolver availability
- Completed fuel
efficiency upgrades on seven Capesize vessels ahead of requirements
for IMO 2023 environmental regulations
John C. Wobensmith, Chief Executive Officer,
commented, “During 2022, we advanced our strategy of creating a
unique drybulk vehicle with an attractive risk-reward profile,
while generating sizeable earnings and returning significant
capital to shareholders. Dividends under our value strategy have
been robust, highlighted by the $2.57 per share that we declared in
2022. Importantly, we have also stayed true to our value strategy’s
three pillars of dividends, deleveraging, and growth, continuing to
invest in our fleet and paying down debt, which has enabled us to
further lower our cash flow break-even levels and strengthen our
position to pay sizable dividends over the long-term and through
diverse rate environments.”
Mr. Wobensmith continued, “As we look through
what we believe to be temporary seasonal factors currently
impacting drybulk rates, we remain optimistic on the go-forward
outlook based on favorable fundamentals that continue to be in
place. Specifically, we currently see a number of compelling
catalysts, including the reopening of China together with a
historically low orderbook, which bode well for a strengthening
market throughout 2023. We believe Genco is in a strong position to
capitalize on these market dynamics due to our sizeable fleet,
best-in-class commercial platform and barbell approach to fleet
deployment.”
1 Represents the principal amount of our credit
facility debt outstanding less our cash and cash equivalents as of
December 31, 2022 divided by estimates of the market value of our
fleet as of February 21, 2023 from VesselsValue.com. The actual
market value of our vessels may vary.
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 a further
reconciliation.
3 Our benchmark is defined as the weighted
average of the Baltic Supramax Index as published by the Baltic
Exchange and the Platts Scrubber Fitted Capesize Index net of 5%
for commissions, adjusted for our owned-fleet composition as well
as the characteristics of our vessels. We compare our actual TCE
performance against this benchmark to assess TCE performance. We
benchmark our fully scrubber-fitted Capesize fleet of 17 vessels
against the Platts Scrubber Fitted Capesize Index as we view this
as a more relevant benchmark than the Baltic Capesize Index which
represents a non-scrubber fitted vessel.
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 to maintain low financial
leverage, and
- Growth:
opportunistically growing the Company’s asset base
We believe this strategy is a key differentiator
for Genco and will drive shareholder value over the long-term. We
therefore believe Genco has created a compelling risk-reward
balance positioning the Company to pay a sizeable quarterly
dividend across diverse market environments. At the same time, we
also maintain 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 11% as of
February 21, 2023
- Strong liquidity position of $277.0
million consisting of cash and our undrawn revolver as of December
31, 2022
- High operating leverage with our
scalable fleet across the major and minor bulk sectors
In 2022, Genco took the following steps in line
with our corporate strategy:
- Dividends:
declared dividends totaling $2.57 per share for the twelve months
of 2022
- Deleveraging: paid
down $75 million of debt in 2022. Since the beginning of 2021, we
have paid down $278 million or 62% of our debt
- Growth: completed
the acquisition of two high quality, fuel efficient Ultramax
vessels in January 2022
- Securing revenue:
opportunistically fixed various period time charterers to secure
cash flows and de-risk recent acquisitions as shown in the
following table:
Vessel |
Type |
DWT |
Year Built |
Rate |
Duration |
Min Expiration |
Baltic Wolf |
Capesize |
177,752 |
2010 |
$ |
30,250 |
22-28 months |
Jun-23 |
Genco Maximus |
Capesize |
169,025 |
2009 |
$ |
27,500 |
24-30 months |
Sep-23 |
Genco Freedom |
Ultramax |
63,671 |
2015 |
$ |
23,375 |
20-23 months |
Mar-23 |
Baltic Scorpion |
Ultramax |
63,462 |
2015 |
$ |
30,500 |
10-13 months |
Mar-23 |
Baltic Hornet |
Ultramax |
63,574 |
2014 |
$ |
24,000 |
20-23 months |
Apr-23 |
Baltic Wasp |
Ultramax |
63,389 |
2015 |
$ |
25,500 |
23-25 months |
Jun-23 |
|
|
|
|
|
|
|
Genco Claudius |
Capesize |
169,001 |
2010 |
94% of BCI + scrubber premium |
11-14 months |
Mar-23 |
Genco Defender |
Capesize |
180,021 |
2015 |
121% of BCI + scrubber premium |
11-14 months |
Mar-23 |
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 |
|
|
|
|
|
|
|
Our debt outstanding as of December 31, 2022 was
$171.0 million. In Q4 2022, we voluntarily paid down debt totaling
$8.75 million, in line with our run rate quarterly voluntary debt
repayment. Importantly, we have no mandatory debt amortization
payments until 2026 when the facility matures. Regardless of this
favorable mandatory amortization schedule, we plan to continue to
voluntarily pay down our debt with the medium-term objective of
reducing our net debt to zero and a longer-term goal of zero
debt.
Dividend Policy
For the fourth quarter of 2022, Genco declared a
cash dividend of $0.50 per share. This represents the fourth full
quarterly dividend under our comprehensive value strategy utilizing
our run rate voluntary quarterly debt repayment of $8.75 million
and fifth dividend payment under our value strategy overall. The
cumulative dividends declared under our value strategy to date are
$3.24 per share.
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 Q4 2022
dividend and estimated amounts for the calculation of the dividend
for Q1 2023:
Dividend calculation |
Q4 2022 actual |
Q1 2023 estimates |
Net revenue |
$ |
76.01 |
|
Fixtures + market |
Operating expenses |
|
(29.40 |
) |
(33.79 |
) |
Operating cash flow |
$ |
46.62 |
|
|
Less: debt repayments |
|
(8.75 |
) |
(8.75 |
) |
Less: capex for dydocking/BWTS/ESDs |
|
(5.51 |
) |
(3.89 |
) |
Less: reserve |
|
(10.75 |
) |
(10.75 |
) |
Cash flow distributable as dividends |
$ |
21.61 |
|
Sum of the above |
Number of shares to be paid dividends |
|
43.0 |
|
43.0 |
|
Dividend per share |
$ |
0.50 |
|
|
Numbers in millions except per share amounts |
|
|
|
|
|
The quarterly reserve for the first quarter of
2023 under the Company’s dividend formula is expected to be $10.75
million. Subject to the development of freight rates for the
remainder of the first quarter and our assessment of our liquidity
and forward outlook, we maintain flexibility to reduce the
quarterly reserve to pay dividends.
For purposes of the foregoing calculation,
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).
Key Q4 2022 dividend items:
during the fourth quarter of 2022, we paid down $8.75 million of
debt on a voluntary basis, representing our run rate voluntary
quarterly debt repayment. This amount was deducted from operating
cash flow in our fourth quarter dividend payment. Drydocking,
ballast water treatment system and energy saving device costs
related to four vessels that drydocked during the fourth quarter
compared to six vessels that drydocked during the previous quarter.
Furthermore, our reserve for Q4 2022 was $10.75 million as
previously announced in advance. Anticipated uses for the reserve
include, but are not limited to, vessel acquisitions, debt
repayments and general corporate purposes. In order to set aside
funds for these purposes, we plan to set the reserve on a quarterly
basis for the subsequent quarter, and it is anticipated to be based
on future quarterly debt repayments and interest
expense.
Q1 2023 reserve: The quarterly
reserve for the first quarter of 2023 is expected to be $10.75
million. The reserve was determined based on voluntary debt
repayments anticipated to be made as well as estimated cash
interest expense on our debt and remains subject to our Board of
Directors’ discretion. The quarterly debt repayment and
reserve will be reassessed on a quarterly basis in advance by the
Board of Directors and management. Estimated expenses, debt
repayments, and capital expenditures for Q1 2023 are estimates
presented for illustrative purposes. Maintaining a quarterly
reserve as well as optionality for the uses of the reserve are
important factors of our corporate strategy that are intended to
allow Genco to retain liquidity to take advantage of a variety of
market conditions. Anticipated uses for the 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.
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 as well as 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 first quarter of 2023 on a load-to-discharge
basis is presented below.
Estimated net TCE - Q1 2023 to Date |
Vessel Type |
Period |
Spot |
Fleet-wide |
% Fixed |
Capesize |
$ |
26,883 |
$ |
13,205 |
$ |
15,258 |
82% |
Ultramax/Supramax |
$ |
24,020 |
$ |
11,528 |
$ |
13,610 |
85% |
Fleet-wide |
$ |
25,005 |
$ |
12,153 |
$ |
14,217 |
84% |
|
|
|
|
|
|
|
|
Given several of our vessels are on fixed rate
period time charters, we have provided a TCE breakout of the period
time charters as well as the spot trading fixtures in the first
quarter to date. Actual rates for the first quarter will vary based
upon future fixtures. We have approximately eight Capesize vessels
coming open in the coming weeks, a portion of which we plan to
ballast to the Atlantic basin.
Financial Review: 2022 Fourth
Quarter
The Company recorded net income for the fourth
quarter of 2022 of $28.7 million, or $0.67 basic and diluted
earnings per share, respectively. Comparatively, for the three
months ended December 31, 2021, the Company recorded net income of
$90.9 million, or $2.16 and $2.13 basic and diluted earnings per
share, respectively.
The Company’s revenues decreased to $127.0
million for the three months ended December 31, 2022, as compared
to $183.3 million recorded for the three months ended December 31,
2021, primarily due to lower rates achieved by our major and minor
bulk vessels. The average daily time charter equivalent, or TCE,
rates obtained by the Company’s fleet was $19,330 per day for the
three months ended December 31, 2022 as compared to $35,200 per day
for the three months ended December 31, 2021. During the fourth
quarter of 2022, the drybulk freight market was impacted by
COVID-related lockdowns in China, lower Brazilian iron ore export
volumes together with an easing in port congestion. Currently, the
freight market is experiencing various seasonal factors that are
weighing on freight rates, including weather related cargo
disruptions and scheduled maintenance periods in certain main
export origins including for iron ore cargos out of Brazil.
Additionally, the timing of the Chinese New Year and the timing of
newbuilding vessel deliveries frontloaded towards the beginning of
the year have played a role in the current market dynamics.
Voyage expenses were $43.5 million for the three
months ended December 31, 2022 compared to $36.6 million during the
prior year period. This increase was primarily due to higher bunker
expenses for our vessels. Vessel operating expenses decreased to
$20.9 million for the three months ended December 31, 2022 from
$22.5 million for the three months ended December 31, 2021. The
decrease is explained in the DVOE section of the below paragraph.
General and administrative expenses increased to $7.4 million for
the fourth quarter of 2022 compared to $6.8 million for the fourth
quarter of 2021, primarily due to an increase in non-cash stock
amortization expenses, as well as higher legal and professional
fees. Depreciation and amortization expenses increased to $16.0
million for the three months ended December 31, 2022 from $14.8
million for the three months ended December 31, 2021, primarily due
to an increase in drydocking amortization expense for the major
bulk vessels that completed their respective drydockings during the
twelve months ended December 31, 2022.
Daily vessel operating expenses, or DVOE,
amounted to $5,164 per vessel per day for the fourth quarter of
2022 compared to $5,766 per vessel per day for the fourth quarter
of 2022. The decrease was primarily due to lower crew costs,
including COVID-19 related expenses, as we have transitioned our
crews from Chinese to Indian and Filipino crews. In addition, our
spares and stores expenses were lower for the fourth quarter of
2022 as compared to the same period in 2021 and partially offset by
higher repair and maintenance as well as lube costs. Overall,
despite a 22% decline in vessel operating expenses as compared to
Q4 2021, the operating environment with regards to costs remains
challenging given various macroeconomic factors mentioned above
while we continue to invest in our fleet. 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 Q1 2023 is $6,250 per vessel per day on a
fleet-wide basis including an estimate for COVID-19 related
expenses. For the full year of 2023, we expect our budget to be
$5,990 per vessel per day. The higher expense levels anticipated in
Q1 2023 are primarily due to timing of crew changes and purchases
of spares and stores. The potential impacts of COVID-19 and the war
in Ukraine are unpredictable, and the actual amount of our DVOE
could be higher or lower than budgeted as a result.
Apostolos Zafolias, Chief Financial Officer,
commented, “During 2022, we continued to demonstrate our sizeable
earnings power, generating $226.8 million of EBITDA for the year
and commitment to deliver under the value strategy we announced in
the beginning of 2021. We declared $2.57 per share in dividends in
2022 resulting in a 14% yield based on our current stock price. We
continued to voluntarily pay down debt in 2022 and since 2021
reduced our debt position by 62% percent to $171.0 million, while
further improving our leading net loan to value which now stands at
11%. We enter the new year with a stronger balance sheet, and
further improved breakeven levels allowing the Company significant
flexibility regardless of market conditions.”
Financial Review: Twelve Months
2022
The Company recorded net income of $158.6
million or $3.74 and $3.70 basic and diluted earnings per share for
the twelve months ended December 31, 2022, respectively. This
compares to net income of $182.0 million or $4.33 and $4.27 basic
and diluted earnings per share for the twelve months ended December
31, 2021. Revenues decreased to $536.9 million for the twelve
months ended December 31, 2022 compared to $547.1 million for the
twelve months ended December 31, 2021, primarily due to lower
revenue earned by our major bulk vessels primarily as a result of a
decrease in available days due to scheduled drydockings, partially
offset by higher rates achieved by our minor bulk vessels. Voyage
expenses increased to $153.9 million for the twelve months ended
December 31, 2022 from $146.2 million for the same period in 2021,
primarily due to higher bunker expenses partially offset by a
decrease in certain costs incurred related to our spot market
voyages. TCE rates obtained by the Company decreased to $23,824 per
day for the twelve months ended December 31, 2022 from $24,402 per
day for the twelve months ended December 31, 2021. Total operating
expenses for the twelve months ended December 31, 2022 and 2021
were $369.7 million and $346.0 million, respectively. General and
administrative expenses for the twelve months ended December 31,
2022 increased to $25.7 million as compared to the $24.5 million in
the same period of 2021 primarily due to an increase in non-cash
stock amortization expense. DVOE was $6,197 in 2022 versus $5,409
in 2021. The increase in daily vessel operating expenses was
primarily due to higher crew related expenses. Higher repair and
maintenance costs on certain vessels, general inflationary
pressures and an increase in the purchase of stores and spare
parts, also contributed to this increase. EBITDA for the twelve
months ended December 31, 2022 amounted to $226.8 million compared
to $253.4 million during the prior period. During the twelve months
of 2022 and 2021, EBITDA included gains on sale of vessels and debt
extinguishment, as well as gains and losses on unrealized fuel
hedges. Excluding these items, our adjusted EBITDA would have
amounted to $226.8 million and $252.9 million, for the respective
periods.
Liquidity and Capital
Resources
Cash Flow
Net cash provided by operating activities for
the years ended December 31, 2022 and 2021 was $189.3 million and
$231.1 million, respectively. This decrease in cash provided
by operating activities was primarily due to lower revenue earned
by our major bulk vessels partially offset by higher rates achieved
by our minor bulk vessels, changes in working capital, as well as
an increase in drydocking costs incurred. These decreases in
cash provided by operating activities were partially offset by
lower interest expense.
Net cash used in investing activities during the
years ended December 31, 2022 and 2021 was $55.0 million and $67.6
million, respectively. The decrease was primarily due to a
$63.2 million decrease in the purchase of vessels. The
purchase of vessels during 2022 is primarily a result of the
delivery of two Ultramax vessels that delivered during the first
quarter of 2022, as well as fuel efficiency upgrade vessel asset
additions for certain vessels in our fleet. The purchase of
vessels during 2021 primarily included the purchase price of four
Ultramax vessels which delivered during the third quarter of 2021,
as well as deposits made for the two aforementioned Ultramax
vessels that delivered during the first quarter of 2022. This
decrease was partially offset by a $49.5 million decrease in net
proceeds from the sale of vessels as there were no vessels sold
during 2022.
Net cash used in financing activities during the
years ended December 31, 2022 and 2021 was $190.7 million and
$222.7 million, respectively. The decrease was primarily due
to the refinancing of our prior credit facilities with the $450
Million Credit Facility on August 31, 2021. During 2022, the
decrease in total net cash used in financing activities related to
our credit facilities was $128.2 million as compared to 2021.
Additionally, there was a $6.0 million decrease in deferred
financing costs paid in relation to the $450 Million Credit
Facility during 2022 as compared to 2021. These decreases
were partially offset by a $102.3 million increase in the payment
of dividends during 2022 as compared to 2021.
Capital Expenditures
As of February 22, 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 11.0 years.
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 2023 to be:
|
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Estimated Drydock Costs (1) |
$3.2 million |
$5.3 million |
- |
- |
Estimated BWTS Costs (2) |
- |
$0.2 million |
- |
- |
Estimated Fuel Efficiency Upgrade
Costs (3) |
$0.7 million |
$2.8 million |
- |
- |
Total Estimated Costs |
$3.9 million |
$8.3 million |
- |
- |
Estimated Offhire Days (4) |
65 |
139 |
- |
- |
|
|
|
|
|
(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. The estimated offhire
days per sector scheduled for Q1 2023 consists of 65 days for one
Capesize vessel.
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 EndedDecember 31, 2022 |
|
Three Months EndedDecember 31, 2021 |
|
Twelve Months EndedDecember 31, 2022 |
|
Twelve Months EndedDecember 31, 2021 |
|
|
|
|
(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 |
$ |
126,973 |
|
|
$ |
183,277 |
|
|
$ |
536,934 |
|
|
$ |
547,129 |
|
|
|
Total revenues |
|
126,973 |
|
|
|
183,277 |
|
|
|
536,934 |
|
|
|
547,129 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Voyage
expenses |
|
43,470 |
|
|
|
36,610 |
|
|
|
153,889 |
|
|
|
146,182 |
|
|
Vessel operating
expenses |
|
20,902 |
|
|
|
22,467 |
|
|
|
99,469 |
|
|
|
82,089 |
|
|
Charter hire
expenses |
|
7,497 |
|
|
|
13,964 |
|
|
|
27,130 |
|
|
|
36,370 |
|
|
General
and administrative expenses (inclusive of nonvested stock
amortization |
|
7,372 |
|
|
|
6,838 |
|
|
|
25,708 |
|
|
|
24,454 |
|
|
expense
of $0.9 million, $0.6 million, $3.2 million and $2.3 million
respectively) |
|
|
|
|
|
|
|
|
Technical
management fees |
|
932 |
|
|
|
1,213 |
|
|
|
3,310 |
|
|
|
5,612 |
|
|
Depreciation and
amortization |
|
16,028 |
|
|
|
14,822 |
|
|
|
60,190 |
|
|
|
56,231 |
|
|
Gain on sale of
vessels |
|
- |
|
|
|
(5,818 |
) |
|
|
- |
|
|
|
(4,924 |
) |
|
|
Total operating
expenses |
|
96,201 |
|
|
|
90,096 |
|
|
|
369,696 |
|
|
|
346,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
30,772 |
|
|
|
93,181 |
|
|
|
167,238 |
|
|
|
201,115 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income: |
|
|
|
|
|
|
|
|
Other (expense)
income |
|
(439 |
) |
|
|
101 |
|
|
|
178 |
|
|
|
541 |
|
|
Interest
income |
|
666 |
|
|
|
10 |
|
|
|
1,042 |
|
|
|
154 |
|
|
Interest
expense |
|
(2,171 |
) |
|
|
(2,402 |
) |
|
|
(9,094 |
) |
|
|
(15,357 |
) |
|
Loss on debt
extinguishment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,408 |
) |
|
|
Other expense,
net |
|
(1,944 |
) |
|
|
(2,291 |
) |
|
|
(7,874 |
) |
|
|
(19,070 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
28,828 |
|
|
$ |
90,890 |
|
|
$ |
159,364 |
|
|
$ |
182,045 |
|
|
Less: Net income
attributable to noncontrolling interest |
|
149 |
|
|
|
38 |
|
|
|
788 |
|
|
$ |
38 |
|
Net income
attributable to Genco Shipping & Trading Limited |
$ |
28,679 |
|
|
$ |
90,852 |
|
|
$ |
158,576 |
|
|
$ |
182,007 |
|
Earnings per share
- basic |
$ |
0.67 |
|
|
$ |
2.16 |
|
|
$ |
3.74 |
|
|
$ |
4.33 |
|
Earnings per share
- diluted |
$ |
0.67 |
|
|
$ |
2.13 |
|
|
$ |
3.70 |
|
|
$ |
4.27 |
|
Weighted average
common shares outstanding - basic |
|
42,563,836 |
|
|
|
42,102,187 |
|
|
|
42,412,722 |
|
|
|
42,060,996 |
|
Weighted average
common shares outstanding - diluted |
|
42,916,252 |
|
|
|
42,709,594 |
|
|
|
42,915,496 |
|
|
|
42,588,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
December 31, 2021 |
BALANCE SHEET DATA (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
58,142 |
|
|
$ |
114,573 |
|
|
|
Restricted cash |
|
|
|
5,643 |
|
|
|
5,643 |
|
|
|
Due
from charterers, net |
|
|
|
25,333 |
|
|
|
20,116 |
|
|
|
Prepaid expenses and other current assets |
|
|
|
8,399 |
|
|
|
9,935 |
|
|
|
Inventories |
|
|
|
21,601 |
|
|
|
24,563 |
|
|
|
Fair value of derivative instruments |
|
|
|
6,312 |
|
|
|
- |
|
|
Total current assets |
|
|
|
125,430 |
|
|
|
174,830 |
|
|
|
|
|
|
|
|
|
|
|
Noncurrent assets: |
|
|
|
|
|
|
|
Vessels, net of accumulated depreciation of $303,098 and $253,005,
respectively |
|
|
|
1,002,810 |
|
|
|
981,141 |
|
|
|
Deposits on vessels |
|
|
|
- |
|
|
|
18,543 |
|
|
|
Deferred drydock, net |
|
|
|
32,254 |
|
|
|
14,275 |
|
|
|
Fixed assets, net |
|
|
|
8,556 |
|
|
|
7,237 |
|
|
|
Operating lease right-of-use assets |
|
|
|
4,078 |
|
|
|
5,495 |
|
|
|
Restricted cash |
|
|
|
315 |
|
|
|
315 |
|
|
|
Fair value of derivative instruments |
|
|
|
423 |
|
|
|
1,166 |
|
|
Total noncurrent assets |
|
|
|
1,048,436 |
|
|
|
1,028,172 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
1,173,866 |
|
|
$ |
1,203,002 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
$ |
29,475 |
|
|
$ |
29,956 |
|
|
|
Deferred revenue |
|
|
|
4,958 |
|
|
|
10,081 |
|
|
|
Current operating lease liabilities |
|
|
|
2,107 |
|
|
|
1,858 |
|
|
Total current liabilities |
|
|
|
36,540 |
|
|
|
41,895 |
|
|
|
|
|
|
|
|
|
|
|
Noncurrent liabilities |
|
|
|
|
|
|
|
Long-term operating lease liabilities |
|
|
|
4,096 |
|
|
|
6,203 |
|
|
|
Long-term debt, net of deferred financing costs of $6,079 and
$7,771, respectively |
|
|
|
164,921 |
|
|
|
238,229 |
|
|
Total noncurrent liabilities |
|
|
|
169,017 |
|
|
|
244,432 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
205,557 |
|
|
|
286,327 |
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Common stock |
|
|
|
423 |
|
|
|
419 |
|
|
|
Additional paid-in capital |
|
|
|
1,588,777 |
|
|
|
1,702,166 |
|
|
|
Accumulated other comprehensive income |
|
|
|
6,480 |
|
|
|
825 |
|
|
|
Accumulated deficit |
|
|
|
(628,247 |
) |
|
|
(786,823 |
) |
|
|
|
|
|
|
|
|
|
|
Total Genco Shipping & Trading Limited shareholders'
equity |
|
|
|
967,433 |
|
|
|
916,587 |
|
|
|
Noncontrolling interest |
|
|
|
876 |
|
|
|
88 |
|
|
Total equity |
|
|
|
968,309 |
|
|
|
916,675 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
$ |
1,173,866 |
|
|
$ |
1,203,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months EndedDecember 31, 2022 |
|
Twelve Months EndedDecember 31, 2021 |
STATEMENT
OF CASH FLOWS (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
Net income |
|
|
$ |
159,364 |
|
|
$ |
182,045 |
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
|
60,190 |
|
|
|
56,231 |
|
|
|
Amortization of
deferred financing costs |
|
|
|
1,694 |
|
|
|
3,536 |
|
|
|
Amortization of
fair market value of time charters acquired |
|
|
|
- |
|
|
|
(4,263 |
) |
|
|
Right-of-use asset
amortization |
|
|
|
1,417 |
|
|
|
1,387 |
|
|
|
Amortization of
nonvested stock compensation expense |
|
|
|
3,242 |
|
|
|
2,267 |
|
|
|
Gain on sale of
vessels |
|
|
|
- |
|
|
|
(4,924 |
) |
|
|
Loss on debt
extinguishment |
|
|
|
- |
|
|
|
4,408 |
|
|
|
Amortization of
premium on derivative |
|
|
|
86 |
|
|
|
197 |
|
|
|
Interest rate cap
premium payment |
|
|
|
- |
|
|
|
(240 |
) |
|
|
Insurance proceeds
for protection and indemnity claims |
|
|
|
829 |
|
|
|
988 |
|
|
|
Change in assets
and liabilities: |
|
|
|
|
|
|
|
|
Increase in due from charterers |
|
|
|
(5,217 |
) |
|
|
(7,125 |
) |
|
|
|
Increase in prepaid expenses
and other current assets |
|
|
|
(317 |
) |
|
|
(783 |
) |
|
|
|
Decrease (increase) in
inventories |
|
|
|
2,962 |
|
|
|
(2,980 |
) |
|
|
|
(Decrease) increase in
accounts payable and accrued expenses |
|
|
|
(2,134 |
) |
|
|
5,405 |
|
|
|
|
(Decrease) increase in
deferred revenue |
|
|
|
(5,123 |
) |
|
|
1,660 |
|
|
|
|
Decrease in operating lease
liabilities |
|
|
|
(1,858 |
) |
|
|
(1,765 |
) |
|
|
|
Deferred drydock costs
incurred |
|
|
|
(25,812 |
) |
|
|
(4,925 |
) |
|
|
Net cash provided
by operating activities |
|
|
|
189,323 |
|
|
|
231,119 |
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
Purchase of
vessels and ballast water treatment systems, including
deposits |
|
|
|
(52,473 |
) |
|
|
(115,680 |
) |
|
|
Purchase of
scrubbers (capitalized in Vessels) |
|
|
|
- |
|
|
|
(199 |
) |
|
|
Purchase of other
fixed assets |
|
|
|
(3,566 |
) |
|
|
(1,585 |
) |
|
|
Net proceeds from
sale of vessels |
|
|
|
- |
|
|
|
49,473 |
|
|
|
Insurance proceeds
for hull and machinery claims |
|
|
|
1,024 |
|
|
|
418 |
|
|
|
Net cash used in
investing activities |
|
|
|
(55,015 |
) |
|
|
(67,573 |
) |
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
Proceeds from the
$450 Million Credit Facility |
|
|
|
- |
|
|
|
350,000 |
|
|
|
Repayments on the
$450 Million Credit Facility |
|
|
|
(75,000 |
) |
|
|
(104,000 |
) |
|
|
Repayments on the
$133 Million Credit Facility |
|
|
|
- |
|
|
|
(114,940 |
) |
|
|
Repayments on the
$495 Million Credit Facility |
|
|
|
- |
|
|
|
(334,288 |
) |
|
|
Investment by
non-controlling interest |
|
|
|
- |
|
|
|
50 |
|
|
|
Cash dividends
paid |
|
|
|
(115,728 |
) |
|
|
(13,463 |
) |
|
|
Payment of
deferred financing costs |
|
|
|
(11 |
) |
|
|
(6,053 |
) |
|
|
Net cash used in
financing activities |
|
|
|
(190,739 |
) |
|
|
(222,694 |
) |
|
|
|
|
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash |
|
|
|
(56,431 |
) |
|
|
(59,148 |
) |
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period |
|
|
|
120,531 |
|
|
|
179,679 |
|
Cash, cash
equivalents and restricted cash at end of period |
|
|
$ |
64,100 |
|
|
$ |
120,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31, 2022 |
|
|
Net Income
Reconciliation |
(unaudited) |
|
|
Net income
attributable to Genco Shipping & Trading Limited |
$ |
28,679 |
|
|
|
|
+ |
|
Unrealized gain on fuel hedges |
|
(115 |
) |
|
|
|
|
|
Adjusted net
income |
$ |
28,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic |
$ |
0.67 |
|
|
|
|
|
|
Earnings per share -
diluted |
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - basic |
|
42,563,836 |
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted |
|
42,916,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - basic as per financial statements |
|
42,563,836 |
|
|
|
|
|
|
Dilutive effect of stock
options |
|
180,297 |
|
|
|
|
|
|
Dilutive effect of restricted
stock units |
|
172,119 |
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted as adjusted |
|
42,916,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31, 2022 |
|
Three Months EndedDecember 31, 2021 |
|
Twelve Months EndedDecember 31, 2022 |
|
Twelve Months EndedDecember 31, 2021 |
|
|
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
EBITDA
Reconciliation: |
(unaudited) |
|
(unaudited) |
|
Net income
attributable to Genco Shipping & Trading Limited |
$ |
28,679 |
|
|
$ |
90,852 |
|
|
$ |
158,576 |
|
|
$ |
182,007 |
|
|
+ |
|
Net interest expense |
|
1,505 |
|
|
|
2,392 |
|
|
|
8,052 |
|
|
|
15,203 |
|
|
+ |
|
Depreciation and
amortization |
|
16,028 |
|
|
|
14,822 |
|
|
|
60,190 |
|
|
|
56,231 |
|
|
|
|
EBITDA(1) |
$ |
46,212 |
|
|
$ |
108,066 |
|
|
$ |
226,818 |
|
|
$ |
253,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
+ |
|
Gain on sale of vessels |
|
- |
|
|
|
(5,818 |
) |
|
|
- |
|
|
|
(4,924 |
) |
|
+ |
|
Loss on debt
extinguishment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,408 |
|
|
+ |
|
Unrealized (gain) loss on fuel
hedges |
|
(115 |
) |
|
|
47 |
|
|
|
(4 |
) |
|
|
(34 |
) |
|
|
|
Adjusted
EBITDA |
$ |
46,097 |
|
|
$ |
102,295 |
|
|
$ |
226,814 |
|
|
$ |
252,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
December 31, 2022 |
|
December 31, 2021 |
|
December 31, 2022 |
|
December 31, 2021 |
FLEET
DATA: |
(unaudited) |
|
(unaudited) |
Total number of vessels at end of period |
|
44 |
|
|
|
42 |
|
|
|
44 |
|
|
|
42 |
|
Average number of
vessels (2) |
|
44.0 |
|
|
|
42.4 |
|
|
|
44.0 |
|
|
|
41.6 |
|
Total ownership
days for fleet (3) |
|
4,048 |
|
|
|
3,897 |
|
|
|
16,050 |
|
|
|
15,177 |
|
Total chartered-in
days (4) |
|
303 |
|
|
|
352 |
|
|
|
1,062 |
|
|
|
1,472 |
|
Total available
days for fleet (5) |
|
4,235 |
|
|
|
4,122 |
|
|
|
16,070 |
|
|
|
16,412 |
|
Total available
days for owned fleet (6) |
|
3,932 |
|
|
|
3,770 |
|
|
|
15,008 |
|
|
|
14,940 |
|
Total operating
days for fleet (7) |
|
4,139 |
|
|
|
4,060 |
|
|
|
15,741 |
|
|
|
16,165 |
|
Fleet utilization
(8) |
|
97.3 |
% |
|
|
97.4 |
% |
|
|
96.5 |
% |
|
|
97.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
DAILY RESULTS: |
|
|
|
|
|
|
|
Time charter
equivalent (9) |
$ |
19,330 |
|
|
$ |
35,200 |
|
|
$ |
23,824 |
|
|
$ |
24,402 |
|
Daily vessel
operating expenses per vessel (10) |
|
5,164 |
|
|
|
5,766 |
|
|
|
6,197 |
|
|
|
5,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
December 31, 2022 |
|
December 31, 2021 |
|
December 31, 2022 |
|
December 31, 2021 |
FLEET
DATA: |
(unaudited) |
|
(unaudited) |
Ownership
days |
|
|
|
|
|
|
|
Capesize |
|
1,564.0 |
|
|
|
1,564.0 |
|
|
|
6,205.0 |
|
|
|
6,205.0 |
|
Ultramax |
|
1,380.0 |
|
|
|
1,196.0 |
|
|
|
5,464.9 |
|
|
|
3,716.8 |
|
Supramax |
|
1,104.0 |
|
|
|
1,136.7 |
|
|
|
4,380.0 |
|
|
|
5,027.2 |
|
Handysize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
227.5 |
|
Total |
|
4,048.0 |
|
|
|
3,896.7 |
|
|
|
16,049.9 |
|
|
|
15,176.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Chartered-in
days |
|
|
|
|
|
|
|
Capesize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Ultramax |
|
172.3 |
|
|
|
62.6 |
|
|
|
476.8 |
|
|
|
450.1 |
|
Supramax |
|
130.7 |
|
|
|
247.6 |
|
|
|
584.9 |
|
|
|
979.9 |
|
Handysize |
|
- |
|
|
|
42.2 |
|
|
|
- |
|
|
|
42.2 |
|
Total |
|
303.0 |
|
|
|
352.4 |
|
|
|
1,061.7 |
|
|
|
1,472.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Available days
(owned & chartered-in fleet) |
|
|
|
|
|
|
|
Capesize |
|
1,493.3 |
|
|
|
1,535.2 |
|
|
|
5,458.2 |
|
|
|
6,118.6 |
|
Ultramax |
|
1,518.2 |
|
|
|
1,194.5 |
|
|
|
5,793.5 |
|
|
|
4,079.2 |
|
Supramax |
|
1,223.8 |
|
|
|
1,350.4 |
|
|
|
4,817.8 |
|
|
|
5,944.9 |
|
Handysize |
|
- |
|
|
|
42.2 |
|
|
|
- |
|
|
|
269.8 |
|
Total |
|
4,235.4 |
|
|
|
4,122.3 |
|
|
|
16,069.5 |
|
|
|
16,412.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Available days
(owned fleet) |
|
|
|
|
|
|
|
Capesize |
|
1,493.3 |
|
|
|
1,535.2 |
|
|
|
5,458.2 |
|
|
|
6,118.6 |
|
Ultramax |
|
1,346.0 |
|
|
|
1,131.9 |
|
|
|
5,316.7 |
|
|
|
3,629.1 |
|
Supramax |
|
1,093.1 |
|
|
|
1,102.8 |
|
|
|
4,232.9 |
|
|
|
4,965.0 |
|
Handysize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
227.6 |
|
Total |
|
3,932.4 |
|
|
|
3,769.9 |
|
|
|
15,007.8 |
|
|
|
14,940.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
days |
|
|
|
|
|
|
|
Capesize |
|
1,454.2 |
|
|
|
1,530.9 |
|
|
|
5,329.2 |
|
|
|
6,080.1 |
|
Ultramax |
|
1,498.3 |
|
|
|
1,163.4 |
|
|
|
5,730.0 |
|
|
|
4,015.2 |
|
Supramax |
|
1,186.0 |
|
|
|
1,323.4 |
|
|
|
4,681.6 |
|
|
|
5,835.7 |
|
Handysize |
|
- |
|
|
|
42.2 |
|
|
|
- |
|
|
|
233.5 |
|
Total |
|
4,138.5 |
|
|
|
4,060.1 |
|
|
|
15,740.8 |
|
|
|
16,164.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Fleet
utilization |
|
|
|
|
|
|
|
Capesize |
|
97.0 |
% |
|
|
97.9 |
% |
|
|
96.8 |
% |
|
|
98.8 |
% |
Ultramax |
|
98.5 |
% |
|
|
96.6 |
% |
|
|
97.7 |
% |
|
|
97.6 |
% |
Supramax |
|
96.1 |
% |
|
|
97.5 |
% |
|
|
94.7 |
% |
|
|
97.6 |
% |
Handysize |
|
- |
|
|
|
100.0 |
% |
|
|
- |
|
|
|
86.6 |
% |
Fleet average |
|
97.3 |
% |
|
|
97.4 |
% |
|
|
96.5 |
% |
|
|
97.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Average
Daily Results: |
|
|
|
|
|
|
|
Time Charter
Equivalent |
|
|
|
|
|
|
|
Capesize |
$ |
19,928 |
|
|
$ |
40,620 |
|
|
$ |
22,492 |
|
|
$ |
27,293 |
|
Ultramax |
|
21,980 |
|
|
|
30,581 |
|
|
|
25,945 |
|
|
|
22,169 |
|
Supramax |
|
15,245 |
|
|
|
32,455 |
|
|
|
22,873 |
|
|
|
23,235 |
|
Handysize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,116 |
|
Fleet average |
|
19,330 |
|
|
|
35,200 |
|
|
|
23,824 |
|
|
|
24,402 |
|
|
|
|
|
|
|
|
|
|
|
|
Daily vessel
operating expenses |
|
|
|
|
|
|
|
Capesize |
$ |
5,354 |
|
|
$ |
5,519 |
|
|
$ |
6,023 |
|
|
$ |
5,572 |
|
Ultramax |
|
4,682 |
|
|
|
4,783 |
|
|
|
5,450 |
|
|
|
5,062 |
|
Supramax |
|
5,495 |
|
|
|
7,091 |
|
|
|
7,382 |
|
|
|
5,443 |
|
Handysize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,856 |
|
Fleet average |
|
5,164 |
|
|
|
5,766 |
|
|
|
6,197 |
|
|
|
5,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) EBITDA represents net 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
first 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
first 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 EndedDecember 31, 2022 |
|
Three Months EndedDecember 31, 2021 |
|
Twelve Months EndedDecember 31, 2022 |
|
Twelve Months EndedDecember 31, 2021 |
Total
Fleet |
(unaudited) |
|
(unaudited) |
Voyage revenues
(in thousands) |
$ |
126,973 |
|
$ |
183,277 |
|
$ |
536,934 |
|
$ |
547,129 |
Voyage expenses
(in thousands) |
|
43,470 |
|
|
36,610 |
|
|
153,889 |
|
|
146,182 |
Charter hire
expenses (in thousands) |
|
7,497 |
|
|
13,964 |
|
|
27,130 |
|
|
36,370 |
Realized gain on
fuel hedges (in thousands) |
|
9 |
|
|
- |
|
|
1,631 |
|
|
- |
|
|
|
|
|
76,015 |
|
|
132,703 |
|
|
357,546 |
|
|
364,577 |
|
|
|
|
|
|
|
|
|
|
|
Total available
days for owned fleet |
|
3,932 |
|
|
3,770 |
|
|
15,008 |
|
|
14,940 |
Total TCE
rate |
$ |
19,330 |
|
$ |
35,200 |
|
$ |
23,824 |
|
$ |
24,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 February 22, 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 11.0 years.
The following table reflects Genco’s fleet list
as of February 22, 2023:
|
|
Vessel |
DWT |
Year Built |
|
|
Capesize |
|
|
|
|
1 |
Genco Resolute |
181,060 |
2015 |
|
|
2 |
Genco Endeavour |
181,060 |
2015 |
|
|
3 |
Genco Constantine |
180,183 |
2008 |
|
|
4 |
Genco Augustus |
180,151 |
2007 |
|
|
5 |
Genco Liberty |
180,032 |
2016 |
|
|
6 |
Genco Defender |
180,021 |
2016 |
|
|
7 |
Genco Lion |
179,185 |
2012 |
|
|
8 |
Genco Tiger |
179,185 |
2011 |
|
|
9 |
Genco London |
177,833 |
2007 |
|
|
10 |
Baltic Wolf |
177,752 |
2010 |
|
|
11 |
Genco Titus |
177,729 |
2007 |
|
|
12 |
Baltic Bear |
177,717 |
2010 |
|
|
13 |
Genco Tiberius |
175,874 |
2007 |
|
|
14 |
Genco Commodus |
169,098 |
2009 |
|
|
15 |
Genco Hadrian |
169,025 |
2008 |
|
|
16 |
Genco Maximus |
169,025 |
2009 |
|
|
17 |
Genco Claudius |
169,001 |
2010 |
|
|
Ultramax |
|
|
|
|
1 |
Genco Freedom |
63,671 |
2015 |
|
|
2 |
Baltic Hornet |
63,574 |
2014 |
|
|
3 |
Genco Vigilant |
63,498 |
2015 |
|
|
4 |
Genco Enterprise |
63,473 |
2016 |
|
|
5 |
Baltic Mantis |
63,470 |
2015 |
|
|
6 |
Baltic Scorpion |
63,462 |
2015 |
|
|
7 |
Genco Magic |
63,446 |
2014 |
|
|
8 |
Baltic Wasp |
63,389 |
2015 |
|
|
9 |
Genco Constellation |
63,310 |
2017 |
|
|
10 |
Genco Mayflower |
63,304 |
2017 |
|
|
11 |
Genco Madeleine |
63,166 |
2014 |
|
|
12 |
Genco Weatherly |
61,556 |
2014 |
|
|
13 |
Genco Mary |
61,085 |
2022 |
|
|
14 |
Genco Laddey |
61,085 |
2022 |
|
|
15 |
Genco Columbia |
60,294 |
2016 |
|
|
Supramax |
|
|
|
|
1 |
Genco Hunter |
58,729 |
2007 |
|
|
2 |
Genco Auvergne |
58,020 |
2009 |
|
|
3 |
Genco Rhone |
58,018 |
2011 |
|
|
4 |
Genco Ardennes |
58,018 |
2009 |
|
|
5 |
Genco Brittany |
58,018 |
2010 |
|
|
6 |
Genco Languedoc |
58,018 |
2010 |
|
|
7 |
Genco Pyrenees |
58,018 |
2010 |
|
|
8 |
Genco Bourgogne |
58,018 |
2010 |
|
|
9 |
Genco Aquitaine |
57,981 |
2009 |
|
|
10 |
Genco Warrior |
55,435 |
2005 |
|
|
11 |
Genco Predator |
55,407 |
2005 |
|
|
12 |
Genco
Picardy |
55,257 |
2005 |
|
|
|
|
|
|
|
Conference Call Announcement
Genco Shipping & Trading Limited will hold a
conference call on Thursday, February 23, 2023 at 8:30 a.m. Eastern
Time to discuss its 2022 fourth 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 (514)
316-5035 or (888) 886-7786 and enter passcode 32378900. A replay of
the conference call can also be accessed for two weeks by dialing
(877) 674-7070 and entering the passcode 378900. 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; and (xxiii) 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:Apostolos ZafoliasChief
Financial OfficerGenco Shipping & Trading Limited(646)
443-8550
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