Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Jefferies & Co. 2011 Global Shipping Conference
38 slides from Genco Shipping & Trading's conference presentation, Sep 7, 2011
Slide 1: 2011 Global Shipping Conference
Genco Shipping & Trading Baltic Trading Limited 2011 Global Shipping Conference September 7, 2011
Slide 2: Forward Looking Statements
Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements ar
Slide 3: Genco Shipping & Trading Limited Company Overview
Genco Shipping & Trading Limited Company Overview
Slide 4: Management
Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer Over 25 years of Over 40 years of 16 years of experience in experience in the shipping experience in the shipping the shipping industry industry industry CFO since inception Chairman
Slide 5: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 Pro forma fleet of 53 vessels with an average age of 6.5 years after all deliveries ― Two substantial acquisitions executed in 2010 ― Agreed to acquire 13 Supramax vessels from affiliates of Bourbon SA ― Agreed to acquire five H
Slide 6: High Quality Operations
High Quality Operations Extensive relationships with Selected Customer Relationships established drybulk charterers These relationships help us to: ― Stabilize revenue through favorable contract terms ― Minimize counterparty risk ― Maximize fleet utilization We utilize three leading technical
Slide 7: Pro Forma Fleet
Pro Forma Fleet Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Bourbon Acquisition Genco Augustus 2007 180,151 Supramax Vessels Genco Tiberius 2007 175,874 Genco Aquitaine 2009 57,981 Genco London 2007 177,833 Genco Ardennes 2009 57,981 Genco Titus 2007 177,729 Genco Auvergne 2009 57
Slide 8: Financial Overview
Financial Overview
Slide 9: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 6/30/11 (Dollars in thousands) Balance Sheet Cash(1) $263,145 Debt(2) $1,652,867 Shareholders’ Equity(3) $1,155,093 Capitalization $2,807,960 Debt/Capitalization 59% See the Appendix for a reconciliation of pro
Slide 10: Remaining Vessel CAPEX
Remaining Vessel CAPEX (Dollars in thousands) Deposit as % Debt Equity Expected Deposit Vessel Name of Purchase Financing Payment on Total Price Delivery (1) Payment Price on Delivery Delivery Metrostar Acquisition Genco Spirit Nov 2011 10% 3,325 20,000 9,925 33,250 Total: $3,325 $20,000 $9,925 $33,
Slide 11: Baltic Trading Limited Company Overview
Baltic Trading Limited Company Overview
Slide 12: Management Team
Management Team Peter C. Georgiopoulos John C. Wobensmith, CFA Chairman President & CFO Over 25 years of experience in the 16 years of experience in the shipping shipping industry industry Chairman and founder of Baltic Trading CFO of Genco Shipping & Trading Limited (NYSE: BALT) Limited (NY
Slide 13: Baltic Trading Overview
Baltic Trading Overview Baltic Trading Limited (Baltic Trading) is a drybulk, spot market focused company Fleet consists of nine vessels with an average age of 1.7 years Targeting quarterly dividend payout Baltic Trading intends to return a significant portion of cash flow to shareholders Primar
Slide 14: Our Business Strategy
Our Business Strategy Focus on the spot market Operate a modern high quality fleet Maintain a strong balance sheet Growth Maintain cost efficient and scalable with operations dividends to shareholders Capitalize on management team’s reputation Strategically expand the size of the fleet 0
Slide 15: Fleet Overview
Fleet Overview Year Charter Employment Vessel Type Vessel Name Charterer Built Expiration (1) Structure Baltic Bear 2010 Swissmarine Services S.A. March 2012 101.5% of BCI (2) Capesize Baltic Wolf 2010 Cargill International S.A. August 2012 100% of BCI (3) Resource Marine PTE Ltd. Baltic Leopard 200
Slide 16: Financial Overview
Financial Overview
Slide 17: Q3 2011 Estimated Break-Even Levels
Q3 2011 Estimated Break-Even Levels (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,000 5,000 G&A, Management Fees(4) 1,660 2,412 Interest Expense (5) 1,263 1,404 Depreciation(6) - 4,503 Daily Break-Even(7) 7,923 13,319 (1) Breakeven levels are based on an av
Slide 18: Dividend Declaration & Policy
Dividend Declaration & Policy Paid dividend of $0.10 per share on August 12th, 2011 to all shareholders of record on August 5th, 2011 Dividend policy established as follows: − Net income less cash expenditures for capital items related to fleet, such as drydocking and special surveys, other than
Slide 19: Industry Overview
Industry Overview
Slide 20: Drybulk Index
Drybulk Index Baltic Dry Index (BDI Points) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Source: Clarkson’s Research 2009 2010 2011 Services Limited 2011 09/07/11 20
Slide 21: Current Market Conditions
Current Market Conditions Recent Market Developments Australian coal and iron ore volumes substantially recovered Limited iron ore availability from India leads to increased fixtures from Brazil and Australia ― Lower prices for imported iron ore versus domestic iron ore also a factor Chinese i
Slide 22: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 9.9% YOY through July 2011(1) China’s fixed-asset investment rose 25.4% YOY through the first seven months of 2011(2) Chinese infrastructure development to continue with plans to: ― Build as many as 36 million housing units within the
Slide 23: Increasing Iron Ore and Coal Production
Increasing Iron Ore and Coal Production are Major Factors Key iron ore expansion plans equal an increased capacity of 501 Mt per annum(1) Key Expansion Plans(1) ― 501 Mt represents 50.5% of total 2010 seaborne iron ore trade (million tons) Vale’s iron ore production plans are to reach annual pro
Slide 24: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital continues Depressed vessel values imply higher equity installments required from illiquid owners 17% of the fleet is greater than 25 years old(1) 24% of the fleet is greater than 20 years old (1) 5.7 million DWT scrapped in 2010 and 17.2 million DWT
Slide 25: Appendix 1
Appendix 1
Slide 26: Pro Forma Reconciliation
Pro Forma Reconciliation 6/30/11 (Dollars in thousands) 6/30/11 Actual Adjustment 6/30/11 Pro Forma Cash(1) $295,980 (32,835) $263,145 Debt(2) $1,753,172 (100,305) $1,652,867 Shareholders’ Equity(3) $1,155,093 - $1,155,093 Capitalization $2,908,265 (100,305) $2,807,960 (1) June 30, 2011 pro forma ca
Slide 27: Second Quarter Earnings - Genco Consolidated
Second Quarter Earnings - Genco Consolidated Three Months Ended Six Months Ended June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010 (Dollars in thousands, except share and per share (Dollars in thousands, except share and per share data) data) (unaudited) (unaudited) INCOME STATEMENT DATA: Reve
Slide 28: Genco Consolidating Income Statement
Genco Consolidating Income Statement Three Months Ended June 30, 2011 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues $ 88,597 $ 9,914 $ - $ - $ 98,511 Service revenue 1,562 - (743) - 819 Total re
Slide 29: June 30, 2011 Balance Sheet - Genco Consolidated
June 30, 2011 Balance Sheet - Genco Consolidated June 30, 2011 December 31, 2010 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 295,980 $ 279,877 Current assets, including cash 311,269 293,681 Total assets 3,187,920 3,182,708 Current liabilities (including
Slide 30: Second Quarter Highlights - Genco Consolidated
Second Quarter Highlights - Genco Consolidated Three Months Ended Six Months Ended June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 60 40 60 40 Average number of vessels (1) 59.6 38.0 58.8 36.5 Total ownership days f
Slide 31: GNK Fleet Details
GNK Fleet Details* Cash Daily Net Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Daily Rate (2) Genco Augustus 2007 Cargill International S.A. 100% of BCI December, 2011 Genco Tiberius 2007 Cargill International S.A. 31,000 September, 2011 Genco London 2007 Carg
Slide 32: GNK Fleet Details
GNK Fleet Details* Cash Daily Net Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Daily Rate (2) Genco Success 1997 Swissmarine Services S.A. 90% of BSI January, 2012 Genco Carrier 1998 ED & F MAN Shipping Ltd. 92.5% of BSI February, 2012 Handymax Genco Prosperit
Slide 33: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) 1) Time charter rates presented are the gross daily charterhire rates before third-party commissions generally ranging from 1.25% to 6.25%. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents’ fees a
Slide 34: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) 13) We have reached an agreement with Trafigura Beheer B.V. on a spot market-related time charter based on 95% of the average of the daily rates of the BSI, as reflected in daily reports. The duration of the charter is 11 to 14.5 months with payment bein
Slide 35: Appendix 2
Appendix 2
Slide 36: Year to Date Earnings - Baltic Trading
Year to Date Earnings - Baltic Trading Three Months Ended Six Months Ended June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues $
Slide 37: June 30, 2011 Balance Sheet - Baltic Trading
June 30, 2011 Balance Sheet - Baltic Trading June 30, 2011 December 31, 2010 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 3,855 $ 5,797 Current assets, including cash 7,701 8,856 Total assets 387,918 396,154 Current liabilities 2,923 5,469 Total long-term debt 101,250 101,250 Shareh
Slide 38: Second Quarter Highlights - Baltic Trading
Second Quarter Highlights - Baltic Trading Three Months Ended Six Months Ended June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 9 5 9 5 Average number of vessels (1) 9.0 3.0 9.0 1.5 Total ownership days for fleet (2)
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