Genco Shipping & Trading Limited Announces Q3 2024 Financial Results
Genco Shipping & Trading reported Q3 2024 financial results with net income of $21.5 million, or $0.49 diluted EPS. The company declared a $0.40 per share dividend, marking its 21st consecutive quarterly dividend. Voyage revenues totaled $99.3 million, with average daily fleet-wide TCE of $19,260. The company enhanced its dividend policy by excluding drydocking capex from calculations, resulting in an 18% increase over the previous quarter. Genco acquired the Genco Intrepid, a 2016-built Capesize vessel, while selling two older vessels. The company maintains strong liquidity of $380.0 million and has reduced debt by 82% since 2021.
Genco Shipping & Trading ha riportato i risultati finanziari del terzo trimestre del 2024 con un utile netto di 21,5 milioni di dollari, corrispondente a un utile per azione diluito di $0,49. L'azienda ha dichiarato un dividendo di 0,40 dollari per azione, segnando il 21° dividendo trimestrale consecutivo. I ricavi da viaggio hanno totalizzato 99,3 milioni di dollari, con un TCE medio giornaliero della flotta di $19.260. L'azienda ha migliorato la sua politica sui dividendi escludendo i capex per il drydocking dai calcoli, portando a un aumento del 18% rispetto al trimestre precedente. Genco ha acquisito la Genco Intrepid, una nave Capesize costruita nel 2016, mentre ha venduto due navi più vecchie. L'azienda mantiene una forte liquidità di 380,0 milioni di dollari e ha ridotto il debito dell'82% dal 2021.
Genco Shipping & Trading reportó los resultados financieros del tercer trimestre de 2024 con un ingreso neto de 21.5 millones de dólares, o un EPS diluido de $0.49. La compañía declaró un dividendo de $0.40 por acción, marcando su 21° dividendo trimestral consecutivo. Los ingresos por viaje totalizaron 99.3 millones de dólares, con un TCE promedio diario de la flota de $19,260. La empresa mejoró su política de dividendos excluyendo el capex por drydocking de los cálculos, resultando en un aumento del 18% con respecto al trimestre anterior. Genco adquirió el Genco Intrepid, un buque Capesize construido en 2016, mientras vendió dos buques más antiguos. La compañía mantiene una sólida liquidez de 380.0 millones de dólares y ha reducido su deuda en un 82% desde 2021.
젠코 쉬핑 & 트레이딩은 2024년 3분기 재무 결과를 보고하며 순이익이 2,150만 달러, 또는 희석 주당순이익(EPS) 0.49달러를 기록했습니다. 회사는 주당 0.40달러 배당금을 선언했으며, 이는 21회 연속 분기 배당을 의미합니다. 항해 수익은 총 9,930만 달러였으며, 평균 일일 전체 함대 TCE는 19,260달러였습니다. 회사는 건조 도크 자본 지출을 계산에서 제외함으로써 배당 정책을 강화하였으며, 이로 인해 전 분기 대비 18% 증가했습니다. 젠코는 2016년에 건조된 Capesize 선박인 Genco Intrepid를 인수하고 두 대의 구형 선박을 판매했습니다. 회사는 3억 8천만 달러의 강력한 유동성을 유지하며 2021년 이후로 부채를 82% 줄였습니다.
Genco Shipping & Trading a annoncé ses résultats financiers du troisième trimestre 2024 avec un revenu net de 21,5 millions de dollars, soit un BPA dilué de 0,49 $. La société a déclaré un dividende de 0,40 $ par action, marquant son 21e dividende trimestriel consécutif. Les revenus des voyages ont totalisé 99,3 millions de dollars, avec un TCE moyen quotidien de la flotte de 19 260 $. L'entreprise a amélioré sa politique de dividende en excluant les dépenses en capex de sèche-dock des calculs, entraînant une augmentation de 18 % par rapport au trimestre précédent. Genco a acquis le Genco Intrepid, un navire Capesize construit en 2016, tout en vendant deux navires plus anciens. L'entreprise maintient une solide liquidité de 380,0 millions de dollars et a réduit sa dette de 82 % depuis 2021.
Genco Shipping & Trading berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit einem Nettoeinkommen von 21,5 Millionen US-Dollar, was einem verwässerten EPS von 0,49 US-Dollar entspricht. Das Unternehmen erklärte eine Dividende von 0,40 US-Dollar pro Aktie, was die 21. Quartalsdividende in Folge markiert. Die Voyage-Einnahmen beliefen sich auf insgesamt 99,3 Millionen US-Dollar, mit einem durchschnittlichen täglichen TCE der Flotte von 19.260 US-Dollar. Das Unternehmen verbesserte seine Dividendenpolitik, indem es die Investitionen für das Trockendocken von den Berechnungen ausschloss, was zu einem Anstieg von 18 % im Vergleich zum vorherigen Quartal führte. Genco erwarb die Genco Intrepid, ein 2016 gebautes Capesize-Schiff, und verkaufte zwei ältere Schiffe. Das Unternehmen hält eine starke Liquidität von 380,0 Millionen US-Dollar und hat seine Schulden seit 2021 um 82 % reduziert.
- Net income of $21.5 million in Q3 2024
- Voyage revenues of $99.3 million
- 59% year-over-year TCE increase
- 82% debt reduction since 2021
- Strong liquidity position of $380.0 million
- Enhanced dividend policy leading to 18% quarterly increase
- Vessel operating expenses increased to $24.8 million from $24.7 million YoY
- Daily vessel operating expenses rose to $6,423 per vessel per day from $6,113 YoY
Insights
Genco Shipping delivered a strong Q3 2024 performance with
- TCE rates increased
59% year-over-year to$19,260 per day - Dividend increased
18% quarter-over-quarter to$0.40 per share by removing drydocking costs from calculation - Strong balance sheet with only
5% net loan-to-value and$380 million in liquidity - Strategic fleet renewal with acquisition of modern Capesize vessel and sale of older vessels
The company's barbell approach to fleet composition and focus on both major/minor bulks positions it well for current market conditions. With
The drybulk market fundamentals remain favorable heading into Q4 2024, with Genco well-positioned to capitalize through its significant operating leverage. The company's Q4 TCE bookings of
The enhanced dividend policy removing drydocking costs demonstrates management's commitment to shareholder returns, having now paid
Declares Dividend of
NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months and nine months ended September 30, 2024.
Third Quarter 2024 and Year-to-Date Highlights
- Dividend: Declared a
$0.40 per share dividend for Q3 2024- 21st consecutive quarterly dividend
- Cumulative dividends of
$6.31 5 per share or approximately40% of our share price1 - Q3 2024 dividend is payable on or about November 25, 2024 to all shareholders of record as of November 18, 2024
- Genco enhanced its dividend policy to exclude the drydocking capex line item from the dividend calculation beginning in Q3 2024
- This resulted in incremental dividends of
$0.27 per share in Q3 2024
- This resulted in incremental dividends of
- Growth: Acquired the Genco Intrepid, a high specification 2016-built 180,000 dwt Capesize vessel that delivered to the Company in October
- Financial performance: Net income of
$21.5 million for Q3 2024, or basic and diluted earnings per share of$0.50 and$0.49 , respectively- Adjusted net income of
$18.1 million or basic and diluted earnings per share of$0.42 and$0.41 , respectively, excluding a gain on sale of vessels of$4.5 million , non-cash vessel impairment charges of$1.0 million and unrealized fuel losses of$0.1 million - Adjusted EBITDA of
$36.9 million for Q3 20242
- Adjusted net income of
- Voyage revenues: Totaled
$99.3 million in Q3 2024- Net revenue2 was
$69.8 million during Q3 2024 - Average daily fleet-wide TCE2 was
$19,260 for Q3 2024
- Net revenue2 was
- Estimated TCE to date for Q4 2024:
$18,786 for65% of our owned fleet available days, based on both period and current spot fixtures2
John C. Wobensmith, Chief Executive Officer, commented, “Execution of our value strategy was once again strong. We enhanced our dividend policy to increase cash distributions to shareholders, resulting in an
Mr. Wobensmith continued, “Drawing on our leading commercial platform, we increased TCE
1 Genco share price as of November 5, 2024.
2 We believe the non-GAAP measure presented provides investors with a means of better evaluating and understanding the Company’s operating performance. Please see Summary Consolidated Financial and Other Data below for further reconciliation. Regarding Q4 2024 TCE, actual results will vary from current estimates. Net revenue is defined as voyage revenues minus voyage expenses, charter hire expenses and realized gains or losses on fuel hedges.
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 repayments to maintain low financial leverage, and
- Growth: opportunistically growing and renewing the Company’s asset base
This strategy is a key differentiator for Genco, which we believe creates a compelling risk-reward balance to drive shareholder value over the long-term. The Company intends to pay a sizeable quarterly dividend across the cyclicality of the drybulk market while maintaining significant flexibility to grow the fleet through accretive vessel acquisitions.
Key characteristics of our unique platform include:
- Industry low cash flow breakeven rate
- Net loan-to-value of
5% 3 - Strong liquidity position of
$380.0 million at September 30, 2024, which consists of:$47.0 million of cash on the balance sheet$333.0 million of revolver availability
- High operating leverage with our scalable fleet across the major and minor bulk sectors
3 Represents the principal amount of our credit facility debt outstanding less our cash and cash equivalents as of September 30, 2024 divided by estimates of the market value of our fleet as of November 5, 2024 from VesselsValue.com. These figures are pro forma for vessel transactions that were consummated in Q4 2024. The actual market value of our vessels may vary.
Financial Deleveraging
- Debt outstanding:
$80.0 million as of September 30, 2024- Paid down
$25.0 million of debt in Q3 as we continue to actively manage our debt outstanding under our$500 million revolver to reduce interest expense and our cash flow breakeven rate - In Q4 2024, Genco drew down
$20.0 million to partially fund the acquisition of the Genco Intrepid
- Paid down
- We plan to continue to voluntarily pay down debt with a goal of zero net debt in order to enhance our ability to pay meaningful dividends and take advantage of strategic opportunities throughout drybulk market cycles
Fleet Renewal
Acquired the Genco Intrepid, a 2016-built 180,000 dwt Capesize vessel, for
Furthermore, we sold the Genco Warrior, a 2005-built 55,000 dwt Supramax vessel, for
Dividend Policy
Genco declared a cash dividend of
Quarterly dividend policy:
Under the quarterly dividend policy adopted by our Board of Directors, the amount available for quarterly dividends is to be calculated based on the formula in the table below. The table includes the calculation of the actual Q3 2024 dividend and estimated amounts for the calculation of the dividend for Q4 2024:
| Dividend calculation | Q3 2024 actual | Q4 2024 estimates | |||
| Net revenue | $ | 69.82 | Fixtures + market | ||
| Operating expenses | (32.89 | ) | (32.95 | ) | |
| Operating cash flow | $ | 36.93 | Sum of the above | ||
| Less: voluntary quarterly reserve | (19.50 | ) | (19.50 | ) | |
| Cash flow distributable as dividends | $ | 17.43 | Sum of the above | ||
| Number of shares to be paid dividends | 43.5 | 43.5 | |||
| Dividend per share | $ | 0.40 | |||
| Numbers in millions except per share amounts | |||||
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 expenses, and interest expense other than non-cash deferred financing costs), for purposes of the foregoing calculation. Estimated expenses for Q4 2024 are estimates and subject to change.
The voluntary quarterly reserve for the fourth quarter of 2024 under the Company’s dividend formula is expected to be
Anticipated uses for the voluntary reserve include, but are not limited to:
- Vessel acquisitions
- Debt repayments, and
- General corporate purposes
The Board expects to reassess the payment of dividends as appropriate from time to time. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facility) and the Board of Directors’ determination that each declaration and payment is at the time in the best interests of the Company and its shareholders after its review of our financial performance.
Peter Allen, Chief Financial Officer, commented, “During the third quarter of 2024, Genco continued to generate strong earnings achieving adjusted EBITDA of
Genco’s Active Commercial Operating Platform and Fleet Deployment Strategy
We utilize a portfolio approach towards revenue generation through a combination of:
- Short-term, spot market employment, and
- Opportunistically booking longer term coverage
Our fleet deployment strategy currently remains weighted towards short-term fixtures, which provide us with optionality on our sizeable fleet.
Our barbell approach towards fleet composition enables Genco to gain exposure to both the major and minor bulk commodities with a fleet whose cargoes carried align with global commodity trade flows. This approach continues to serve us well given the upside potential in major bulk rates together with the relative stability of minor bulk rates.
Based on current fixtures to date, our estimated TCE to date for the fourth quarter of 2024 on a load-to-discharge basis is presented below. Actual rates for the fourth quarter will vary based upon future fixtures. These estimates are based on time charter contracts entered by the Company as well as current spot fixtures on the load-to-discharge method, whereby revenue is recognized ratably over the voyage from the commencement of loading to the completion of discharge. The actual TCE rates to be earned will depend on the number of contracted days and the number of ballast days at the end of the period. According to the load-to-discharge accounting method, the Company does not recognize revenue for any ballast days or uncontracted days at the end of the fourth quarter of 2024. At the same time, expenses for uncontracted days will be recognized.
| Estimated net TCE - Q4 2024 to Date | ||||
| Vessel Type | Fleet-wide | % Fixed | ||
| Capesize | $ | 25,962 | 59 | % |
| Ultra/Supra | $ | 14,851 | 68 | % |
| Total | $ | 18,786 | 65 | % |
Our index-linked and period time charters are listed below:
| Vessel | Type | DWT | Year Built | Rate | Duration | Min Expiration | |
| Genco Reliance | Capesize | 181,146 | 2016 | BCI + | 10-12 months | Jan-25 | |
| Genco Ranger | Capesize | 180,882 | 2016 | BCI + | 11-14 months | Feb-25 | |
| Genco Liberty | Capesize | 180,032 | 2016 | $ | 35,000 | 11-14 months | Feb-25 |
| Genco Resolute | Capesize | 181,060 | 2015 | BCI + | 11-14 months | Apr-25 | |
| Genco Defender | Capesize | 180,021 | 2016 | BCI + | 11-14 months | Apr-25 | |
| Genco Endeavour | Capesize | 181,057 | 2015 | $ | 30,565 | 12-15 months | Oct-25 |
Financial Review: 2024 Third Quarter
The Company recorded net income for the third quarter of 2024 of
Revenue / TCE
The Company’s revenues increased to
Voyage expenses
Voyage expenses decreased to
Vessel operating expenses
Vessel operating expenses increased to
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 current estimates, our DVOE budget for Q4 2024 is
General and administrative expenses
General and administrative expenses increased to
Depreciation and amortization expenses
Depreciation and amortization expenses decreased to
Financial Review: Nine Months 2024
The Company recorded net income of
Revenue / TCE
The Company’s revenues increased to
Voyage expenses
Voyage expenses decreased to
Vessel operating expenses
Vessel operating expenses increased to
General and administrative expenses
General and administrative expenses for the nine months ended September 30, 2024 decreased to
EBITDA
EBITDA for the nine months ended September 30, 2024 amounted to
Liquidity and Capital Resources
Cash Flow
Net cash provided by operating activities for the nine months ended September 30, 2024 and 2023 was
Net cash provided by (used in) investing activities for the nine months ended September 30, 2024 and 2023 was
Net cash used in financing activities during the nine months ended September 30, 2024 and 2023 was
Capital Expenditures
Genco’s fleet consists of 42 vessels with an average age of 11.9 years and an aggregate capacity of approximately 4,446,000 dwt as follows:
- 16 Capesizes
- 15 Ultramaxes
- 11 Supramaxes
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 2024 and 2025 to be:
| Estimated costs ($ in millions) | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | |||||
| Drydock Costs(1) | $ | 6.99 | $ | 19.50 | $ | 11.55 | $ | 6.65 | $ | 3.10 |
| Estimated BWTS Costs(2) | $ | - | $ | 0.53 | $ | 0.53 | $ | - | $ | - |
| Fuel Efficiency Upgrade Costs(3) | $ | 1.77 | $ | 2.57 | $ | 0.68 | $ | 2.41 | $ | 0.14 |
| Total Costs | $ | 8.76 | $ | 22.59 | $ | 12.76 | $ | 9.06 | $ | 3.24 |
| Estimated Offhire Days(4) | 111 | 265 | 165 | 95 | 55 | |||||
(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 Q4 2024 consists of 111 days for one Ultramax and three Supramaxes.
Summary Consolidated Financial and Other Data
The following table summarizes Genco Shipping & Trading Limited’s selected consolidated financial and other data for the periods indicated below.
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||
| (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 | $ | 99,332 | $ | 83,361 | $ | 323,814 | $ | 268,309 | |||||||
| Total revenues | 99,332 | 83,361 | 323,814 | 268,309 | |||||||||||
| Operating expenses: | |||||||||||||||
| Voyage expenses | 28,232 | 34,256 | 95,705 | 100,522 | |||||||||||
| Vessel operating expenses | 24,847 | 24,746 | 77,756 | 71,725 | |||||||||||
| Charter hire expenses | 1,267 | 2,026 | 7,232 | 6,731 | |||||||||||
| General and administrative expenses (inclusive of nonvested stock amortization | 6,831 | 6,585 | 20,815 | 21,267 | |||||||||||
| expense of | |||||||||||||||
| Technical management expenses | 1,005 | 973 | 3,296 | 3,084 | |||||||||||
| Depreciation and amortization | 16,620 | 17,026 | 50,939 | 49,762 | |||||||||||
| Impairment of vessel assets | 961 | 28,102 | 6,595 | 28,102 | |||||||||||
| Gain on sale of vessels | (4,465 | ) | - | (16,693 | ) | - | |||||||||
| Other operating expense | - | - | 5,728 | - | |||||||||||
| Total operating expenses | 75,298 | 113,714 | 251,373 | 281,193 | |||||||||||
| Operating income (loss) | 24,034 | (30,353 | ) | 72,441 | (12,884 | ) | |||||||||
| Other (expense) income: | |||||||||||||||
| Other expense | (239 | ) | (100 | ) | (263 | ) | (298 | ) | |||||||
| Interest income | 749 | 588 | 2,294 | 1,877 | |||||||||||
| Interest expense | (2,970 | ) | (1,999 | ) | (10,462 | ) | (6,158 | ) | |||||||
| Other expense, net | (2,460 | ) | (1,511 | ) | (8,431 | ) | (4,579 | ) | |||||||
| Net income (loss) | $ | 21,574 | $ | (31,864 | ) | $ | 64,010 | $ | (17,463 | ) | |||||
| Less: Net income attributable to noncontrolling interest | 115 | 140 | 286 | $ | 345 | ||||||||||
| Net income (loss) attributable to Genco Shipping & Trading Limited | $ | 21,459 | $ | (32,004 | ) | $ | 63,724 | $ | (17,808 | ) | |||||
| Net earnings (loss) per share - basic | $ | 0.50 | $ | (0.75 | ) | $ | 1.48 | $ | (0.42 | ) | |||||
| Net earnings (loss) per share - diluted | $ | 0.49 | $ | (0.75 | ) | $ | 1.46 | $ | (0.42 | ) | |||||
| Weighted average common shares outstanding - basic | 43,108,844 | 42,816,045 | 43,033,786 | 42,745,681 | |||||||||||
| Weighted average common shares outstanding - diluted | 43,656,385 | 42,816,045 | 43,642,521 | 42,745,681 | |||||||||||
| September 30, 2024 | December 31, 2023 | ||||||||||||||
| BALANCE SHEET DATA (Dollars in thousands): | (unaudited) | ||||||||||||||
| Assets | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 46,665 | $ | 46,542 | |||||||||||
| Due from charterers, net | 20,434 | 17,815 | |||||||||||||
| Prepaid expenses and other current assets | 10,860 | 10,154 | |||||||||||||
| Inventories | 24,918 | 26,749 | |||||||||||||
| Fair value of derivative instruments | - | 572 | |||||||||||||
| Vessels held for sale | 24,594 | 55,440 | |||||||||||||
| Total current assets | 127,471 | 157,272 | |||||||||||||
| Noncurrent assets: | |||||||||||||||
| Vessels, net of accumulated depreciation of | 877,837 | 945,114 | |||||||||||||
| Deferred drydock, net | 30,132 | 29,502 | |||||||||||||
| Fixed assets, net | 7,227 | 7,071 | |||||||||||||
| Operating lease right-of-use assets | 1,516 | 2,628 | |||||||||||||
| Restricted cash | 315 | 315 | |||||||||||||
| Total noncurrent assets | 917,027 | 984,630 | |||||||||||||
| Total assets | $ | 1,044,498 | $ | 1,141,902 | |||||||||||
| Liabilities and Equity | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable and accrued expenses | $ | 32,937 | $ | 24,245 | |||||||||||
| Deferred revenue | 5,886 | 8,746 | |||||||||||||
| Current operating lease liabilities | 2,386 | 2,295 | |||||||||||||
| Total current liabilities | 41,209 | 35,286 | |||||||||||||
| Noncurrent liabilities | |||||||||||||||
| Long-term operating lease liabilities | - | 1,801 | |||||||||||||
| Long-term debt, net of deferred financing costs of | 71,670 | 190,169 | |||||||||||||
| Total noncurrent liabilities | 71,670 | 191,970 | |||||||||||||
| Total liabilities | 112,879 | 227,256 | |||||||||||||
| Commitments and contingencies | |||||||||||||||
| Equity: | |||||||||||||||
| Common stock | 427 | 425 | |||||||||||||
| Additional paid-in capital | 1,506,909 | 1,553,421 | |||||||||||||
| Accumulated other comprehensive income | - | 527 | |||||||||||||
| Accumulated deficit | (577,393 | ) | (641,117 | ) | |||||||||||
| Total Genco Shipping & Trading Limited shareholders' equity | 929,943 | 913,256 | |||||||||||||
| Noncontrolling interest | 1,676 | 1,390 | |||||||||||||
| Total equity | 931,619 | 914,646 | |||||||||||||
| Total liabilities and equity | $ | 1,044,498 | $ | 1,141,902 | |||||||||||
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||||
| STATEMENT OF CASH FLOWS (Dollars in thousands): | (unaudited) | ||||||||||||||
| Cash flows from operating activities | |||||||||||||||
| Net income (loss) | $ | 64,010 | $ | (17,463 | ) | ||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 50,939 | 49,762 | |||||||||||||
| Amortization of deferred financing costs | 1,501 | 1,323 | |||||||||||||
| Right-of-use asset amortization | 1,112 | 1,084 | |||||||||||||
| Amortization of nonvested stock compensation expense | 4,341 | 4,175 | |||||||||||||
| Impairment of vessel assets | 6,595 | 28,102 | |||||||||||||
| Net gain on sale of vessels | (16,693 | ) | - | ||||||||||||
| Amortization of premium on derivatives | 45 | 143 | |||||||||||||
| Insurance proceeds for protection and indemnity claims | 271 | 252 | |||||||||||||
| Insurance proceeds for loss of hire claims | 327 | 506 | |||||||||||||
| Change in assets and liabilities: | |||||||||||||||
| (Increase) decrease in due from charterers | (2,619 | ) | 5,811 | ||||||||||||
| Increase in prepaid expenses and other current assets | (2,301 | ) | (4,882 | ) | |||||||||||
| Decrease (increase) in inventories | 1,831 | (5,966 | ) | ||||||||||||
| Increase in accounts payable and accrued expenses | 7,829 | 24 | |||||||||||||
| (Decrease) increase in deferred revenue | (2,860 | ) | 1,576 | ||||||||||||
| Decrease in operating lease liabilities | (1,710 | ) | (1,551 | ) | |||||||||||
| Deferred drydock costs incurred | (15,763 | ) | (10,730 | ) | |||||||||||
| Net cash provided by operating activities | 96,855 | 52,166 | |||||||||||||
| Cash flows from investing activities | |||||||||||||||
| Purchase of vessels and ballast water treatment systems, including deposits | (3,967 | ) | (3,485 | ) | |||||||||||
| Purchase of other fixed assets | (2,268 | ) | (2,169 | ) | |||||||||||
| Net proceeds from sale of vessels | 79,105 | - | |||||||||||||
| Insurance proceeds for hull and machinery claims | 846 | 2,361 | |||||||||||||
| Net cash provided by (used in) investing activities | 73,716 | (3,293 | ) | ||||||||||||
| Cash flows from financing activities | |||||||||||||||
| Repayments on the | (120,000 | ) | - | ||||||||||||
| Repayments on the | - | (26,250 | ) | ||||||||||||
| Cash dividends paid | (50,410 | ) | (34,506 | ) | |||||||||||
| Payment of deferred financing costs | (38 | ) | - | ||||||||||||
| Net cash used in financing activities | (170,448 | ) | (60,756 | ) | |||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 123 | (11,883 | ) | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 46,857 | 64,100 | |||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 46,980 | $ | 52,217 | |||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||
| Net Income Reconciliation | (unaudited) | ||||||||||||||
| Net income attributable to Genco Shipping & Trading Limited | $ | 21,459 | |||||||||||||
| + Impairment of vessel assets | 961 | ||||||||||||||
| + Gain on sale of vessels | (4,465 | ) | |||||||||||||
| + Unrealized loss on fuel hedges | 123 | ||||||||||||||
| Adjusted net income | $ | 18,078 | |||||||||||||
| Adjusted earnings per share - basic | $ | 0.42 | |||||||||||||
| Adjusted earnings per share - diluted | $ | 0.41 | |||||||||||||
| Weighted average common shares outstanding - basic | 43,108,844 | ||||||||||||||
| Weighted average common shares outstanding - diluted | 43,656,385 | ||||||||||||||
| Weighted average common shares outstanding - basic as per financial statements | 43,108,844 | ||||||||||||||
| Dilutive effect of stock options | 174,392 | ||||||||||||||
| Dilutive effect of performance based restricted stock units | 99,270 | ||||||||||||||
| Dilutive effect of restricted stock units | 273,879 | ||||||||||||||
| Weighted average common shares outstanding - diluted as adjusted | 43,656,385 | ||||||||||||||
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||
| (Dollars in thousands) | (Dollars in thousands) | ||||||||||||||
| EBITDA Reconciliation: | (unaudited) | (unaudited) | |||||||||||||
| Net income (loss) attributable to Genco Shipping & Trading Limited | $ | 21,459 | $ | (32,004 | ) | $ | 63,724 | $ | (17,808 | ) | |||||
| + Net interest expense | 2,221 | 1,411 | 8,168 | 4,281 | |||||||||||
| + Depreciation and amortization | 16,620 | 17,026 | 50,939 | 49,762 | |||||||||||
| EBITDA(1) | $ | 40,300 | $ | (13,567 | ) | $ | 122,831 | $ | 36,235 | ||||||
| + Impairment of vessel assets | 961 | 28,102 | 6,595 | 28,102 | |||||||||||
| + Gain on sale of vessels | (4,465 | ) | - | (16,693 | ) | - | |||||||||
| + Other operating expense | - | - | 5,728 | - | |||||||||||
| + Unrealized loss on fuel hedges | 123 | 15 | 84 | 95 | |||||||||||
| Adjusted EBITDA | $ | 36,919 | $ | 14,550 | $ | 118,545 | $ | 64,432 | |||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| FLEET DATA: | (unaudited) | (unaudited) | |||||||||||||
| Total number of vessels at end of period | 42 | 44 | 42 | 44 | |||||||||||
| Average number of vessels(2) | 42.0 | 44.0 | 43.6 | 44.0 | |||||||||||
| Total ownership days for fleet(3) | 3,868 | 4,048 | 11,936 | 12,012 | |||||||||||
| Total chartered-in days(4) | 71 | 146 | 403 | 452 | |||||||||||
| Total available days for fleet(5) | 3,696 | 4,056 | 11,759 | 12,094 | |||||||||||
| Total available days for owned fleet(6) | 3,625 | 3,910 | 11,356 | 11,642 | |||||||||||
| Total operating days for fleet(7) | 3,673 | 4,006 | 11,612 | 11,899 | |||||||||||
| Fleet utilization(8) | 97.9 | % | 97.7 | % | 96.8 | % | 97.3 | % | |||||||
| AVERAGE DAILY RESULTS: | |||||||||||||||
| Time charter equivalent(9) | $ | 19,260 | $ | 12,082 | $ | 19,458 | $ | 13,855 | |||||||
| Daily vessel operating expenses per vessel(10) | 6,423 | 6,113 | 6,514 | 5,971 | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| FLEET DATA: | (unaudited) | (unaudited) | |||||||||||||
| Ownership days | |||||||||||||||
| Capesize | 1,472.0 | 1,564.0 | 4,626.1 | 4,641.0 | |||||||||||
| Panamax | - | - | - | - | |||||||||||
| Ultramax | 1,380.0 | 1,380.0 | 4,110.0 | 4,095.0 | |||||||||||
| Supramax | 1,016.3 | 1,104.0 | 3,200.3 | 3,276.0 | |||||||||||
| Total | 3,868.3 | 4,048.0 | 11,936.4 | 12,012.0 | |||||||||||
| Chartered-in days | |||||||||||||||
| Capesize | - | - | - | - | |||||||||||
| Panamax | - | - | 66.2 | - | |||||||||||
| Ultramax | 71.0 | 91.1 | 239.4 | 330.8 | |||||||||||
| Supramax | - | 55.0 | 97.1 | 120.9 | |||||||||||
| Total | 71.0 | 146.1 | 402.7 | 451.7 | |||||||||||
| Available days (owned & chartered-in fleet) | |||||||||||||||
| Capesize | 1,366.3 | 1,556.9 | 4,395.9 | 4,542.1 | |||||||||||
| Panamax | - | - | 66.2 | - | |||||||||||
| Ultramax | 1,370.0 | 1,459.2 | 4,139.3 | 4,400.5 | |||||||||||
| Supramax | 959.8 | 1,040.3 | 3,157.7 | 3,151.6 | |||||||||||
| Total | 3,696.1 | 4,056.4 | 11,759.1 | 12,094.2 | |||||||||||
| Available days (owned fleet) | |||||||||||||||
| Capesize | 1,366.3 | 1,556.9 | 4,395.9 | 4,542.1 | |||||||||||
| Panamax | - | - | - | - | |||||||||||
| Ultramax | 1,299.0 | 1,368.1 | 3,899.9 | 4,069.7 | |||||||||||
| Supramax | 959.8 | 985.3 | 3,060.6 | 3,030.6 | |||||||||||
| Total | 3,625.1 | 3,910.2 | 11,356.4 | 11,642.4 | |||||||||||
| Operating days | |||||||||||||||
| Capesize | 1,360.6 | 1,550.1 | 4,330.3 | 4,513.6 | |||||||||||
| Panamax | - | - | 66.2 | - | |||||||||||
| Ultramax | 1,357.7 | 1,426.2 | 4,095.9 | 4,280.4 | |||||||||||
| Supramax | 955.0 | 1,029.2 | 3,119.7 | 3,105.1 | |||||||||||
| Total | 3,673.3 | 4,005.5 | 11,612.1 | 11,899.1 | |||||||||||
| Fleet utilization | |||||||||||||||
| Capesize | 97.2 | % | 99.1 | % | 95.2 | % | 98.9 | % | |||||||
| Panamax | - | - | 100.0 | % | - | ||||||||||
| Ultramax | 98.5 | % | 96.9 | % | 98.3 | % | 96.7 | % | |||||||
| Supramax | 97.9 | % | 96.7 | % | 97.1 | % | 96.0 | % | |||||||
| Fleet average | 97.9 | % | 97.7 | % | 96.8 | % | 97.3 | % | |||||||
| Average Daily Results: | |||||||||||||||
| Time Charter Equivalent | |||||||||||||||
| Capesize | $ | 26,951 | $ | 15,424 | $ | 27,160 | $ | 16,954 | |||||||
| Panamax | - | - | - | - | |||||||||||
| Ultramax | 15,336 | 10,317 | 15,185 | 12,962 | |||||||||||
| Supramax | 13,622 | 9,251 | 13,784 | 10,412 | |||||||||||
| Fleet average | 19,260 | 12,082 | 19,458 | 13,855 | |||||||||||
| Daily vessel operating expenses | |||||||||||||||
| Capesize | $ | 6,783 | $ | 6,236 | $ | 7,017 | $ | 6,243 | |||||||
| Panamax | - | - | - | - | |||||||||||
| Ultramax | 5,845 | 5,576 | 5,917 | 5,437 | |||||||||||
| Supramax | 6,668 | 6,603 | 6,548 | 6,305 | |||||||||||
| Fleet average | 6,423 | 6,113 | 6,514 | 5,971 | |||||||||||
1) EBITDA represents net income (loss) 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 not an item recognized by U.S. GAAP (i.e., it is a non-GAAP measure). However it is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. Our estimated TCE for the fourth quarter of 2024 is based on fixtures booked to date. Actual results may vary based on the actual duration of voyages and other factors. Accordingly, we are unable to provide, without unreasonable efforts, a reconciliation of estimated TCE for the fourth quarter to the most comparable financial measures presented in accordance with GAAP. When we compare our TCE to the Baltic Supramax Index (BSI) in this release, we adjust the BSI for customary commissions.
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||
| Total Fleet | (unaudited) | (unaudited) | |||||||||||||
| Voyage revenues (in thousands) | $ | 99,332 | $ | 83,361 | $ | 323,814 | $ | 268,309 | |||||||
| Voyage expenses (in thousands) | 28,232 | 34,256 | 95,705 | 100,522 | |||||||||||
| Charter hire expenses (in thousands) | 1,267 | 2,026 | 7,232 | 6,731 | |||||||||||
| Realized (loss) gain on fuel hedges (in thousands) | (15 | ) | 164 | 95 | 245 | ||||||||||
| 69,818 | 47,243 | 220,972 | 161,301 | ||||||||||||
| Total available days for owned fleet | 3,625 | 3,910 | 11,356 | 11,642 | |||||||||||
| Total TCE rate | $ | 19,260 | $ | 12,082 | $ | 19,458 | $ | 13,855 | |||||||
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. Genco’s fleet consists of 42 vessels with an average age of 11.9 years and an aggregate capacity of approximately 4,446,000 dwt.
Conference Call Announcement
Genco Shipping & Trading Limited will hold a conference call on Thursday,
November 7, 2024 at 8:30 a.m. Eastern Time to discuss its 2024 third quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company’s website, www.GencoShipping.com. To access the conference call, dial (646) 307-1963 or (800) 715-9871 and enter passcode 6365548. A replay of the conference call can also be accessed for two weeks by dialing (609) 800-9909 or (800) 770-2030 and entering the passcode 6365548. 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 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, the Israel-Hamas war, and attacks on vessels in the Red Sea; (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, 2024 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) outbreaks of disease such as the COVID-19 pandemic; 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, 2023 and subsequent reports on Form 8-K and Form 10-Q. Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance, market developments, and the best interests of the Company and its shareholders. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT:
Peter Allen
Chief Financial Officer
Genco Shipping & Trading Limited
(646) 443-8550
FAQ
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