Genco Shipping & Trading Limited Enhances Dividend Policy to Increase Cash Distributable to Shareholders
Genco Shipping & Trading (NYSE:GNK) has enhanced its dividend policy by removing the drydocking capex line item from its dividend calculation formula. This change, effective from Q3 2024, will increase cash available for distribution to shareholders. The new formula includes net revenue, operating expenses, and a voluntary quarterly reserve, currently set at $19.50 million for Q3 2024. Genco's CEO, John C. Wobensmith, stated that this enhancement reflects the company's belief that low leverage will support larger dividends. He highlighted Genco's progress in executing its value strategy, including distributing 20 consecutive quarterly dividends totaling $5.915 per share, modernizing its fleet, and reducing debt by nearly 80% since 2021.
Genco Shipping & Trading (NYSE:GNK) ha migliorato la sua politica sui dividendi rimuovendo la voce di capex per il drydocking dalla sua formula di calcolo dei dividendi. Questa modifica, che entrerà in vigore dal terzo trimestre del 2024, aumenterà il denaro disponibile per la distribuzione agli azionisti. La nuova formula include i ricavi netti, le spese operative e un risparmio trimestrale volontario, attualmente fissato a 19,50 milioni di dollari per il terzo trimestre del 2024. Il CEO di Genco, John C. Wobensmith, ha dichiarato che questo miglioramento riflette la convinzione dell'azienda che un basso indebitamento sosterrà dividendi più elevati. Ha sottolineato i progressi di Genco nell'esecuzione della sua strategia di valore, inclusa la distribuzione di 20 dividendi trimestrali consecutivi per un totale di 5,915 dollari per azione, la modernizzazione della flotta e la riduzione del debito di quasi l'80% dal 2021.
Genco Shipping & Trading (NYSE:GNK) ha mejorado su política de dividendos al eliminar la partida de capex de dique seco de su fórmula de cálculo de dividendos. Este cambio, que entrará en vigor a partir del tercer trimestre de 2024, aumentará el efectivo disponible para la distribución a los accionistas. La nueva fórmula incluye ingresos netos, gastos operativos y una reserva trimestral voluntaria, actualmente fijada en 19,50 millones de dólares para el tercer trimestre de 2024. El CEO de Genco, John C. Wobensmith, declaró que esta mejora refleja la creencia de la empresa de que un bajo apalancamiento apoyará dividendos más grandes. Destacó el progreso de Genco en la ejecución de su estrategia de valor, incluida la distribución de 20 dividendos trimestrales consecutivos que totalizan 5,915 dólares por acción, la modernización de su flota y la reducción de la deuda en casi el 80% desde 2021.
겐코 셰핑 앤 트레이딩 (NYSE:GNK)은 배당금 정책을 개선했습니다 드라이독(선박 수리) 자본 지출 항목을 배당금 계산식에서 제거함으로써 이루어졌습니다. 이 변경은 2024년 3분기부터 시행되며, 주주에게 배분할 수 있는 현금을 증가시킬 것입니다. 새로운 공식에는 순수익, 운영비용, 자발적인 분기별 적립금이 포함되어 있으며, 현재 2024년 3분기에는 1,950만 달러로 설정되어 있습니다. 겐코의 CEO인 존 C. 웨벤스미스는 이 개선이 낮은 레버리지가 더 큰 배당금을 지원할 것이라는 회사의 신념을 반영한다고 말했습니다. 그는 겐코가 가치 전략을 실행하는 과정에서의 진전을 강조하며, 20회 연속 분기 배당금 지급으로 총 5.915달러를 주당 지급했으며, 함대를 현대화하고 2021년 이후 거의 80%의 부채를 줄였다고 언급했습니다.
Genco Shipping & Trading (NYSE:GNK) a amélioré sa politique de dividendes en supprimant la ligne de capex pour la mise à sec de son calcul de dividendes. Ce changement, qui prendra effet à partir du troisième trimestre 2024, augmentera les liquidités disponibles pour la distribution aux actionnaires. La nouvelle formule inclut les revenus nets, les frais d'exploitation et une réserve trimestrielle volontaire, actuellement fixée à 19,50 millions de dollars pour le troisième trimestre 2024. Le PDG de Genco, John C. Wobensmith, a déclaré que cette amélioration reflète la conviction de la société que l'endettement faible soutiendra des dividendes plus élevés. Il a souligné les progrès de Genco dans l'exécution de sa stratégie de valeur, y compris la distribution de 20 dividendes trimestriels consécutifs totalisant 5,915 dollars par action, la modernisation de sa flotte et la réduction de la dette de près de 80 % depuis 2021.
Genco Shipping & Trading (NYSE:GNK) hat seine Dividendenpolitik verbessert, indem es die Position für Investitionen in Dockarbeiten aus der Berechnungsformel für Dividenden entfernt hat. Diese Änderung, die ab dem dritten Quartal 2024 wirksam wird, erhöht den verfügbaren Cashflow für die Ausschüttung an die Aktionäre. Die neue Formel umfasst Nettoumsatz, Betriebskosten und eine freiwillige vierteljährliche Rücklage, die derzeit auf 19,50 Millionen Dollar für das dritte Quartal 2024 festgelegt ist. Der CEO von Genco, John C. Wobensmith, erklärte, dass diese Verbesserung die Überzeugung des Unternehmens widerspiegelt, dass eine niedrige Verschuldung größere Dividenden unterstützen wird. Er hob die Fortschritte von Genco bei der Umsetzung seiner Wertstrategie hervor, einschließlich der Ausschüttung von 20 aufeinanderfolgenden vierteljährlichen Dividenden, die insgesamt 5,915 Dollar pro Aktie betragen, der Modernisierung seiner Flotte und der Reduzierung der Schulden um fast 80 % seit 2021.
- Removal of drydocking capex from dividend calculation increases cash available for shareholders
- 20 consecutive quarterly dividends distributed, totaling $5.915 per share (~35% of share price)
- Debt reduced by nearly 80% since 2021, lowering net loan to value and cash flow breakeven
- Fleet modernization and improved earnings power
- Estimated drydocking capex of $18 million for Q3-Q4 2024 and $41 million for FY 2025 may impact cash reserves
Removes Drydocking Capex Line Item from Dividend Calculation
NEW YORK, Sept. 10, 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 announced the removal of the drydocking capex line item from its formula used to calculate its quarterly dividend. This will increase the amount of cash available for distribution to shareholders beginning in the third quarter of 2024.
The amount available for quarterly dividends is to be calculated based on the following updated formula, commencing in Q3 2024:
| Dividend calculation | ||
| Net revenue | ||
| Less: operating expenses | ||
| Operating cash flow | ||
| Less: voluntary quarterly reserve | ||
| Cash flow distributable as dividends | ||
The voluntary quarterly reserve for the third quarter of 2024 under the Company’s dividend formula is
For the balance of 2024 and 2025, drydocking capex is estimated to be as follows:
- Q3 2024:
$11 million or$0.25 per share - Q4 2024:
$7 million or$0.16 per share - FY 2025:
$41 million or$0.95 per share
Actual drydocking capex will vary based on various factors, including where the drydockings are actually performed.
John C. Wobensmith, Chief Executive Officer, commented, “Based on Genco’s notable achievements in executing its capital allocation strategy, we have enhanced our quarterly dividend formula by eliminating the drydocking capex line item within our calculation. As we approach our goal of net debt zero, we are pleased to take another important step to reward shareholders aimed at further strengthening shareholder returns. This enhancement to our dividend formula reflects our belief that our low leverage will support larger dividends to shareholders. At the same time, we continue to maintain significant financial strength to grow and renew our fleet and further improve our earnings power.”
Mr. Wobensmith continued, “Since implementing our comprehensive value strategy three years ago, we have made demonstrable progress executing on all three core pillars. Notably, Genco has distributed 20 consecutive quarterly dividends to shareholders, returning a total of
Note: 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.
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 is expected to consist of 41 vessels, including 15 Capesize, 15 Ultramax and 11 Supramax vessels with an aggregate capacity of approximately 4,266,000 dwt and an average age of 11.9 years, after agreed upon vessel sales.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains certain forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “expect,” “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 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) the financial results we achieve for each quarter that apply to the formula under our 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 comprehensive value strategy; (ii) 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 and (iii) other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, the Company’s Annual Report on form 10-K for the year ended December 31, 2023 and the Company's reports on Form 10-Q and Form 8-K subsequently filed with the SEC. 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. 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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