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 ended March 31, 2023.
The following financial review discusses the
results for the three months ended March 31, 2023 and March 31,
2022.
First Quarter 2023 and Year-to-Date
Highlights
- Declared a $0.15
per share dividend for the first quarter of 2023
- Q1 2023 dividend
marks the Company’s 15th consecutive quarterly payout, reflecting
cumulative dividends totaling $4.445 per share or approximately 31%
of the closing share price on May 2, 2023
- Q1 2023 dividend
is payable on or about May 23, 2023 to all shareholders of record
as of May 16, 2023
- Prepaid $8.75
million of debt on a voluntary basis during Q1 2023, reducing our
debt to $162.3 million at March 31, 2023
- Net
loan-to-value of 11%1 as of May 3, 2023
- Since the start
of 2021, we have paid down $287.0 million or 64% of our debt
- Recorded net
income of $2.6 million for the first quarter of 2023
- Basic and
diluted earnings per share of $0.06
- Voyage revenues
totaled $94.4 million and net revenue2 (voyage revenues minus
voyage expenses, charter hire expenses and realized gains or losses
on fuel hedges) totaled $53.4 million during Q1 2023
- Our average
daily fleet-wide time charter equivalent, or TCE,2 for Q1 2023 was
$13,947
- We estimate our
TCE to date for Q2 2023 to be $16,679 for 68% of our owned fleet
available days, based on both period and current spot fixtures,
which is 20% higher than Q1 2023 TCE2
- Genco has a
light drydocking schedule for the balance of 2023 as the Company
looks to maximize fleet-wide utilization during this improving
drybulk market
- Recorded
adjusted EBITDA of $19.9 million for Q1 20232
- Our liquidity
position was $260.4 million as of March 31, 2023, consisting of:
- $50.4 million of
cash on the balance sheet
- $210.0 million
of revolver availability
John C. Wobensmith, Chief Executive Officer,
commented, “Following a year during which we generated sizeable
earnings and returned significant capital to shareholders, we
continued to execute our value strategy in the first quarter of
2023 for the benefit of shareholders. Since implementing our
differentiated value strategy in 2021, we have declared $3.39 in
dividends, while continuing to pay down debt. Our first quarter
dividend of $0.15 per share is our 15th consecutive dividend and
reflects our commitment to shareholder returns despite quarterly
rate volatility. We believe our balance sheet strength, available
liquidity, and improving market expectations provide support to
achieve our goal of continued and sizeable dividend payouts.”
Mr. Wobensmith continued, “Regarding the drybulk
earnings environment, we have seen a significant uplift in freight
rates beginning in March and carrying over into Q2 to date. This is
reflected in our estimate of Q2 TCE to date of $16,679, which
represents a 20% increase over Q1 2023 TCE. We anticipate improved
commodity demand led by China’s reopening to coincide with the
seasonal uplift in drybulk cargo volumes as the year progresses.
Combined with a historically low orderbook, we believe these
positive demand drivers bode well for increasing rates in the near
term. We remain well positioned to draw on our sizeable and leading
drybulk platform to capitalize on a strengthening market and create
enduring shareholder value.”
1 Represents the principal amount of our credit
facility debt outstanding less our cash and cash equivalents as of
March 31, 2023 divided by estimates of the market value of our
fleet as of May 3, 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 further
reconciliation. Regarding Q2 2023 TCE, actual results will vary
from current estimates.
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
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, 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 May
3, 2023
- Strong liquidity position of $260.4
million consisting of cash and our undrawn revolver as of March 31,
2023
- High operating leverage with our
scalable fleet across the major and minor bulk sectors
Our debt outstanding as of March 31, 2023 was
$162.3 million. In Q1 2023, 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 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 first quarter of 2023, Genco declared a
cash dividend of $0.15 per share. While our stated formula, with a
quarterly reserve of $10.75 million, did not produce a dividend for
the quarter, the Board of Directors elected on management’s
recommendation to utilize $8.56 million of this reserve to declare
the $0.15 per share dividend, resulting in a quarterly reserve of
$2.19 million. A central component of Genco’s value strategy is
maintaining a quarterly reserve, as well as the optionality for the
use of the reserve as Genco seeks to pay sizeable dividends in
diverse market environments. During the first quarter, the drybulk
shipping markets experienced seasonal volatility in freight rates;
however, Genco continued to voluntarily pay down debt. The drybulk
market realized a significant rebound since March, and our positive
outlook for the balance of the year, together with Genco’s industry
low cash flow breakeven rate and low financial leverage, gave the
Company confidence to utilize part of the quarterly reserve to
declare a meaningful quarterly dividend. This represents our sixth
dividend payment under our value strategy with cumulative dividends
declared to date of $3.39 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 Q1 2023
dividend and estimated amounts for the calculation of the dividend
for Q2 2023:
|
|
|
|
|
|
Dividend calculation |
Q1 2023
actual |
Q2 2023
estimates |
|
|
Net revenue |
$ |
53.40 |
|
Fixtures + market |
|
|
Operating expenses |
|
(32.19 |
) |
(33.57 |
) |
|
|
Operating cash flow |
$ |
21.21 |
|
|
|
|
Less: debt repayments |
|
(8.75 |
) |
(8.75 |
) |
|
|
Less: capex for dydocking/BWTS/ESDs |
|
(3.81 |
) |
(3.93 |
) |
|
|
Less: reserve* |
|
(2.19 |
) |
(10.75 |
) |
|
|
Cash flow distributable as dividends |
$ |
6.47 |
|
Sum of the above |
|
|
Number of shares to be paid dividends |
|
43.1 |
|
43.1 |
|
|
|
Dividend per share |
$ |
0.15 |
|
|
|
|
Numbers in
millions except per share amounts |
|
|
|
|
'*Q1 2023 reserve reduced from $10.75m to $2.19m |
|
|
|
|
|
|
|
The quarterly reserve for the second 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 second 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 Q1 2023 dividend items:
during the first quarter of 2023, 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 first quarter dividend payment. Drydocking,
ballast water treatment system and energy saving device costs
related to one vessel that drydocked during the first quarter
compared to four vessels that drydocked during the previous
quarter. Furthermore, our reserve for Q1 2023 was $2.19 million as
noted above. 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.
Q2 2023 reserve: The quarterly
reserve for the second 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 Q2 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 second quarter of 2023 on a load-to-discharge
basis is presented below.
|
|
|
|
|
Estimated
net TCE - Q2 2023 to Date |
|
Vessel Type |
Fleet-wide |
% Fixed |
|
Capesize |
$ |
19,673 |
75 |
% |
|
Ultra/Supra |
$ |
14,434 |
64 |
% |
|
Total |
$ |
16,679 |
68 |
% |
|
|
|
|
A full breakdown of the longer term fixed rate
time charters is listed below for reference. Actual rates for the
second 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.
|
|
|
|
|
|
|
|
|
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 |
|
|
Baltic Hornet |
Ultramax |
63,574 |
2014 |
$ |
24,000 |
20-23 months |
May-23 |
|
|
Baltic Wasp |
Ultramax |
63,389 |
2015 |
$ |
25,500 |
23-25 months |
Jun-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 |
|
|
Genco Defender |
Capesize |
180,021 |
2016 |
125% of BCI + scrubber premium |
11-14 months |
Apr-24 |
|
|
|
|
|
|
|
|
|
|
|
Financial Review: 2023 First
Quarter
The Company recorded net income for the first
quarter of 2023 of $2.6 million, or $0.06 basic and diluted
earnings per share, respectively. Comparatively, for the three
months ended March 31, 2022, the Company recorded net income of
$41.7 million, or $0.99 and $0.97 basic and diluted earnings per
share, respectively.
The Company’s revenues decreased to $94.4
million for the three months ended March 31, 2023, as compared to
$136.2 million recorded for the three months ended March 31, 2022,
primarily due to lower rates earned by our major and minor bulk
vessels. The average daily time charter equivalent, or TCE, rates
obtained by the Company’s fleet was $13,947 per day for the three
months ended March 31, 2023 as compared to $24,093 per day for the
three months ended March 31, 2022. In the first quarter of 2023,
spot freight rates softened due to various seasonal factors
including the timing of the Chinese New Year, timing of frontloaded
newbuilding deliveries, as well as a decline in cargo volumes due
to maintenance and poor weather conditions in various export
regions. Towards the end of the first quarter of 2023, the freight
market began to strengthen driven by the subsiding of a portion of
these factors as well as China’s continued economic reopening.
Voyage expenses were $37.4 million for the three
months ended March 31, 2023 compared to $38.5 million during the
prior year period. Vessel operating expenses decreased to $24.4
million for the three months ended March 31, 2023 from $27.0
million for the three months ended March 31, 2022. The decrease is
explained in the DVOE section of the below paragraph. General and
administrative expenses increased to $7.8 million for the first
quarter of 2023 compared to $6.0 million for the first quarter of
2022, 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 $15.9 million
for the three months ended March 31, 2023 from $14.1 million for
the three months ended March 31, 2022, primarily due to an increase
in drydocking amortization expense for the major bulk vessels that
completed their respective drydockings during the second quarter of
2022 through the first quarter of 2023.
Daily vessel operating expenses, or DVOE,
amounted to $6,160 per vessel per day for the first quarter of 2023
compared to $6,839 per vessel per day for the first quarter of
2022. The decrease was primarily due to lower COVID-19 related
expenses in 2023 over the same period last year, as well as reduced
repair and maintenance costs. We experienced those higher costs
last year as we completed the transition of vessels to our new
technical management joint venture through the first half of 2022.
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 Q2 2023 is $6,250 per
vessel per day on a fleet-wide basis including an estimate for
COVID-19 related expenses. The potential impacts of the war in
Ukraine and COVID-19 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 the first quarter, we demonstrated our
commitment to further reducing debt levels and delivering on our
strategy to pay meaningful quarterly dividends. Specifically, we
continued to voluntarily pay down debt in Q1, bringing our cash
flow breakeven rate down to industry lows, a core differentiator
for Genco. Moving forward, we maintain significant flexibility and
financial strength to continue delivering under the three pillars
of our comprehensive value strategy focused on dividends,
deleveraging and growth.”
Liquidity and Capital
Resources
Cash Flow
Net cash provided by operating activities for
the three months ended March 31, 2023 and 2022 was $19.6 million
and $52.6 million, respectively. This decrease in cash provided by
operating activities was primarily due to lower rates earned by our
major and minor bulk vessels and changes in working capital.
Additionally, there was an increase in drydocking costs incurred
during the three months ended March 31, 2023 as compared to the
three months ended March 31, 2022.
Net cash used in investing activities for the
three months ended March 31, 2023 and 2022 was $2.9 million and
$47.0 million, respectively. This decrease was primarily due to a
$43.5 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.
Net cash used in financing activities during the
three months ended March 31, 2023 and 2022 was $30.4 million and
$77.1 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 $6.6 million decrease in the payment of
dividends during the three months ended March 31, 2023 as compared
to March 31, 2022.
Capital Expenditures
As of May 3, 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 11.2 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 the balance of 2023 to
be:
|
Q2 2023 |
Q3 2023 |
Q4 2023 |
Estimated Drydock Costs (1) |
$2.6 million |
$2.6 million |
- |
Estimated BWTS Costs (2) |
$0.2 million |
- |
- |
Estimated Fuel Efficiency Upgrade
Costs (3) |
$1.1 million |
$2.3 million |
- |
Total Estimated Costs |
$3.9 million |
$5.0 million |
- |
Estimated Offhire Days (4) |
69 |
70 |
- |
|
|
|
|
(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 Q2 2023 consists of 69 days for two
Supramax vessels.
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 March 31, 2023 |
|
Three Months Ended March 31, 2022 |
|
|
|
|
|
|
|
(Dollars in thousands, except share and per share data) |
|
|
|
|
|
|
|
(unaudited) |
|
|
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
Voyage revenues |
$ |
94,391 |
|
|
$ |
136,227 |
|
|
|
|
|
|
Total revenues |
|
94,391 |
|
|
|
136,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Voyage expenses |
|
37,435 |
|
|
|
38,464 |
|
|
|
|
|
Vessel operating expenses |
|
24,393 |
|
|
|
27,013 |
|
|
|
|
|
Charter hire expenses |
|
3,664 |
|
|
|
7,638 |
|
|
|
|
|
General and administrative expenses (inclusive of nonvested stock
amortization |
|
7,750 |
|
|
|
6,043 |
|
|
|
|
|
expense of $1.6 million and $0.7 million, respectively) |
|
|
|
|
|
|
|
Technical management fees |
|
762 |
|
|
|
917 |
|
|
|
|
|
Depreciation and amortization |
|
15,944 |
|
|
|
14,059 |
|
|
|
|
|
|
Total operating expenses |
|
89,948 |
|
|
|
94,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
4,443 |
|
|
|
42,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
Other (expense) income |
|
(324 |
) |
|
|
1,997 |
|
|
|
|
|
Interest income |
|
770 |
|
|
|
17 |
|
|
|
|
|
Interest expense |
|
(2,029 |
) |
|
|
(2,242 |
) |
|
|
|
|
|
Other expense, net |
|
(1,583 |
) |
|
|
(228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
2,860 |
|
|
$ |
41,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest |
|
226 |
|
|
|
176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Genco Shipping & Trading
Limited |
$ |
2,634 |
|
|
$ |
41,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
$ |
0.06 |
|
|
$ |
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
$ |
0.06 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
42,632,059 |
|
|
|
42,166,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted |
|
43,097,362 |
|
|
|
42,867,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
BALANCE SHEET DATA (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
44,439 |
|
|
$ |
58,142 |
|
|
|
|
Restricted cash |
|
|
|
5,643 |
|
|
|
5,643 |
|
|
|
|
Due from charterers, net |
|
|
|
16,692 |
|
|
|
25,333 |
|
|
|
|
Prepaid expenses and other current assets |
|
|
|
10,393 |
|
|
|
8,399 |
|
|
|
|
Inventories |
|
|
|
25,029 |
|
|
|
21,601 |
|
|
|
|
Fair value of derivative instruments |
|
|
|
5,048 |
|
|
|
6,312 |
|
|
|
Total current assets |
|
|
|
107,244 |
|
|
|
125,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
Vessels, net of accumulated depreciation of $315,639 and $303,098,
respectively |
|
|
|
990,643 |
|
|
|
1,002,810 |
|
|
|
|
Deferred drydock, net |
|
|
|
33,608 |
|
|
|
32,254 |
|
|
|
|
Fixed assets, net |
|
|
|
8,372 |
|
|
|
8,556 |
|
|
|
|
Operating lease right-of-use assets |
|
|
|
3,718 |
|
|
|
4,078 |
|
|
|
|
Restricted cash |
|
|
|
315 |
|
|
|
315 |
|
|
|
|
Fair value of derivative instruments |
|
|
|
- |
|
|
|
423 |
|
|
|
Total noncurrent assets |
|
|
|
1,036,656 |
|
|
|
1,048,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
1,143,900 |
|
|
$ |
1,173,866 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
$ |
26,975 |
|
|
$ |
29,475 |
|
|
|
|
Deferred revenue |
|
|
|
5,029 |
|
|
|
4,958 |
|
|
|
|
Current operating lease liabilities |
|
|
|
2,190 |
|
|
|
2,107 |
|
|
|
Total current liabilities |
|
|
|
34,194 |
|
|
|
36,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent liabilities |
|
|
|
|
|
|
|
|
Long-term operating lease liabilities |
|
|
|
3,533 |
|
|
|
4,096 |
|
|
|
|
Long-term debt, net of deferred financing costs of $5,661 and
$6,079, respectively |
|
|
|
156,589 |
|
|
|
164,921 |
|
|
|
Total noncurrent liabilities |
|
|
|
160,122 |
|
|
|
169,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
194,316 |
|
|
|
205,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
|
425 |
|
|
|
423 |
|
|
|
|
Additional paid-in capital |
|
|
|
1,568,818 |
|
|
|
1,588,777 |
|
|
|
|
Accumulated other comprehensive income |
|
|
|
4,852 |
|
|
|
6,480 |
|
|
|
|
Accumulated deficit |
|
|
|
(625,613 |
) |
|
|
(628,247 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Genco Shipping & Trading Limited shareholders'
equity |
|
|
|
948,482 |
|
|
|
967,433 |
|
|
|
|
Noncontrolling interest |
|
|
|
1,102 |
|
|
|
876 |
|
|
|
Total equity |
|
|
|
949,584 |
|
|
|
968,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
$ |
1,143,900 |
|
|
$ |
1,173,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
|
Three Months Ended March 31 2022 |
|
STATEMENT OF CASH FLOWS (Dollars in
thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income |
|
|
$ |
2,860 |
|
|
$ |
41,865 |
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
15,944 |
|
|
|
14,059 |
|
|
|
|
Amortization of deferred financing costs |
|
|
|
418 |
|
|
|
418 |
|
|
|
|
Right-of-use asset amortization |
|
|
|
360 |
|
|
|
351 |
|
|
|
|
Amortization of nonvested stock compensation expense |
|
|
|
1,559 |
|
|
|
690 |
|
|
|
|
Amortization of premium on derivative |
|
|
|
59 |
|
|
|
43 |
|
|
|
|
Insurance proceeds for protection and indemnity claims |
|
|
|
34 |
|
|
|
99 |
|
|
|
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Decrease in
due from charterers |
|
|
|
8,641 |
|
|
|
77 |
|
|
|
|
|
Increase in
prepaid expenses and other current assets |
|
|
|
(2,263 |
) |
|
|
(1,350 |
) |
|
|
|
|
(Increase)
decrease in inventories |
|
|
|
(3,428 |
) |
|
|
1,226 |
|
|
|
|
|
Decrease in
accounts payable and accrued expenses |
|
|
|
(97 |
) |
|
|
(2,834 |
) |
|
|
|
|
Increase in
deferred revenue |
|
|
|
71 |
|
|
|
52 |
|
|
|
|
|
Decrease in
operating lease liabilities |
|
|
|
(480 |
) |
|
|
(456 |
) |
|
|
|
|
Deferred
drydock costs incurred |
|
|
|
(4,112 |
) |
|
|
(1,685 |
) |
|
|
|
Net cash provided by operating activities |
|
|
|
19,566 |
|
|
|
52,555 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchase of vessels and ballast water treatment systems, including
deposits |
|
|
|
(2,003 |
) |
|
|
(45,482 |
) |
|
|
|
Purchase of other fixed assets |
|
|
|
(1,085 |
) |
|
|
(1,483 |
) |
|
|
|
Insurance proceeds for hull and machinery claims |
|
|
|
235 |
|
|
|
- |
|
|
|
|
Net cash used in investing activities |
|
|
|
(2,853 |
) |
|
|
(46,965 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Repayments on the $450 Million Credit Facility |
|
|
|
(8,750 |
) |
|
|
(48,750 |
) |
|
|
|
Cash dividends paid |
|
|
|
(21,666 |
) |
|
|
(28,289 |
) |
|
|
|
Payment of deferred financing costs |
|
|
|
- |
|
|
|
(11 |
) |
|
|
|
Net cash used in financing activities |
|
|
|
(30,416 |
) |
|
|
(77,050 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
|
(13,703 |
) |
|
|
(71,460 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
|
|
64,100 |
|
|
|
120,531 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
|
$ |
50,397 |
|
|
$ |
49,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
|
|
|
|
|
Net Income Reconciliation |
(unaudited) |
|
|
|
|
|
Net income attributable to Genco Shipping & Trading
Limited |
$ |
2,634 |
|
|
|
|
|
|
|
+ |
Unrealized
loss on fuel hedges |
|
42 |
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
2,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share - basic |
$ |
0.06 |
|
|
|
|
|
|
|
|
|
Earnings per
share - diluted |
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic |
|
42,632,059 |
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted |
|
43,097,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic as per financial
statements |
|
42,632,059 |
|
|
|
|
|
|
|
|
|
Dilutive
effect of stock options |
|
214,611 |
|
|
|
|
|
|
|
|
|
Dilutive
effect of restricted stock units |
|
250,692 |
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted as adjusted |
|
43,097,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
|
Three Months Ended March 31, 2022 |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
EBITDA Reconciliation: |
(unaudited) |
|
|
|
|
Net income attributable to Genco Shipping & Trading
Limited |
$ |
2,634 |
|
|
$ |
41,689 |
|
|
|
|
|
+ |
Net interest
expense |
|
1,259 |
|
|
|
2,225 |
|
|
|
|
|
+ |
Depreciation
and amortization |
|
15,944 |
|
|
|
14,059 |
|
|
|
|
|
|
|
EBITDA(1) |
$ |
19,837 |
|
|
$ |
57,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+ |
Unrealized
loss (gain) on fuel hedges |
|
42 |
|
|
|
(1,439 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
19,879 |
|
|
$ |
56,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
FLEET DATA: |
(unaudited) |
|
|
|
Total number of vessels at end of period |
|
44 |
|
|
|
44 |
|
|
|
|
Average number of vessels (2) |
|
44.0 |
|
|
|
43.9 |
|
|
|
|
Total ownership days for fleet (3) |
|
3,960 |
|
|
|
3,950 |
|
|
|
|
Total chartered-in days (4) |
|
236 |
|
|
|
311 |
|
|
|
|
Total available days for fleet (5) |
|
4,064 |
|
|
|
4,078 |
|
|
|
|
Total available days for owned fleet (6) |
|
3,829 |
|
|
|
3,767 |
|
|
|
|
Total operating days for fleet (7) |
|
3,979 |
|
|
|
3,964 |
|
|
|
|
Fleet utilization (8) |
|
96.6 |
% |
|
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY RESULTS: |
|
|
|
|
|
|
Time charter equivalent (9) |
$ |
13,947 |
|
|
$ |
24,093 |
|
|
|
|
Daily vessel operating expenses per vessel (10) |
|
6,160 |
|
|
|
6,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
FLEET DATA: |
(unaudited) |
|
|
|
Ownership days |
|
|
|
|
|
|
Capesize |
|
1,530.0 |
|
|
|
1,530.0 |
|
|
|
|
Ultramax |
|
1,350.0 |
|
|
|
1,339.9 |
|
|
|
|
Supramax |
|
1,080.0 |
|
|
|
1,080.0 |
|
|
|
|
Total |
|
3,960.0 |
|
|
|
3,949.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered-in days |
|
|
|
|
|
|
Capesize |
|
- |
|
|
|
- |
|
|
|
|
Ultramax |
|
189.5 |
|
|
|
190.3 |
|
|
|
|
Supramax |
|
46.2 |
|
|
|
120.7 |
|
|
|
|
Total |
|
235.7 |
|
|
|
311.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days (owned & chartered-in fleet) |
|
|
|
|
|
|
Capesize |
|
1,440.7 |
|
|
|
1,502.0 |
|
|
|
|
Ultramax |
|
1,534.5 |
|
|
|
1,452.0 |
|
|
|
|
Supramax |
|
1,089.1 |
|
|
|
1,123.8 |
|
|
|
|
Total |
|
4,064.3 |
|
|
|
4,077.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days (owned fleet) |
|
|
|
|
|
|
Capesize |
|
1,440.7 |
|
|
|
1,502.0 |
|
|
|
|
Ultramax |
|
1,345.0 |
|
|
|
1,261.7 |
|
|
|
|
Supramax |
|
1,042.9 |
|
|
|
1,003.2 |
|
|
|
|
Total |
|
3,828.6 |
|
|
|
3,766.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days |
|
|
|
|
|
|
Capesize |
|
1,434.1 |
|
|
|
1,458.3 |
|
|
|
|
Ultramax |
|
1,473.2 |
|
|
|
1,433.8 |
|
|
|
|
Supramax |
|
1,072.0 |
|
|
|
1,071.6 |
|
|
|
|
Total |
|
3,979.3 |
|
|
|
3,963.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet utilization |
|
|
|
|
|
|
Capesize |
|
98.6 |
% |
|
|
96.5 |
% |
|
|
|
Ultramax |
|
95.7 |
% |
|
|
95.0 |
% |
|
|
|
Supramax |
|
95.4 |
% |
|
|
90.8 |
% |
|
|
|
Fleet average |
|
96.6 |
% |
|
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Results: |
|
|
|
|
|
|
Time Charter Equivalent |
|
|
|
|
|
|
Capesize |
$ |
15,929 |
|
|
$ |
24,627 |
|
|
|
|
Ultramax |
|
14,890 |
|
|
|
25,449 |
|
|
|
|
Supramax |
|
10,010 |
|
|
|
21,577 |
|
|
|
|
Fleet average |
|
13,947 |
|
|
|
24,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily vessel operating expenses |
|
|
|
|
|
|
Capesize |
$ |
6,571 |
|
|
$ |
6,616 |
|
|
|
|
Ultramax |
|
5,559 |
|
|
|
6,115 |
|
|
|
|
Supramax |
|
6,329 |
|
|
|
8,028 |
|
|
|
|
Fleet average |
|
6,160 |
|
|
|
6,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 second 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
second 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 March 31, 2023 |
|
Three Months Ended March 31, 2022 |
|
|
|
Total Fleet |
(unaudited) |
|
|
|
Voyage revenues (in thousands) |
$ |
94,391 |
|
|
$ |
136,227 |
|
|
|
|
Voyage expenses (in thousands) |
|
37,435 |
|
|
|
38,464 |
|
|
|
|
Charter hire expenses (in thousands) |
|
3,664 |
|
|
|
7,638 |
|
|
|
|
Realized gain on fuel hedges (in thousands) |
|
108 |
|
|
|
629 |
|
|
|
|
|
|
|
|
|
53,400 |
|
|
|
90,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available days for owned fleet |
|
3,829 |
|
|
|
3,767 |
|
|
|
|
Total TCE rate |
$ |
13,947 |
|
|
$ |
24,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 May 3, 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 11.2 years.
The following table reflects Genco’s fleet list
as of May 3, 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, May 4, 2023 at 8:30 a.m. Eastern Time
to discuss its 2023 first 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 35959617. 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 959617. 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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