Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q3 2011 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, Nov 2, 2011
Slide 1: Genco Shipping & Trading Limited Q3 2011 Earnings Call
Genco Shipping & Trading Limited Q3 2011 Earnings Call November 2, 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: Agenda
Agenda Third Quarter and Year to Date 2011 Highlights Financial Overview Industry Overview 11/02/11 3
Slide 4: Third Quarter 2011 and Year to Date Highlights
Third Quarter 2011 and Year to Date Highlights
Slide 5: Third Quarter 2011 and Year to Date Highlights
Third Quarter 2011 and Year to Date Highlights Net Income attributable to Genco Shipping & Trading Limited of $1.6 million for the third quarter of ’11 ― Basic and diluted earnings per share of $0.04 Cash position of $301.5 million on a consolidated basis ― Genco Shipping & Trading Limited: $296.2 m
Slide 6: 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 7: Financial Overview
Financial Overview
Slide 8: Third Quarter Earnings - Consolidated
Third Quarter Earnings - Consolidated Three Months Ended Nine Months Ended September 30, 2011 September 30, 2010 September 30, 2011 September 30, 2010 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEM
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended September 30, 2011 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues: Voyage revenues $ 82,587 $ 10,897 $ - $ - $ 93,484 Service revenues 1,588 - (7
Slide 10: September 30, 2011 Balance Sheet - Consolidated
September 30, 2011 Balance Sheet - Consolidated September 30, 2011 December 31, 2010 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 301,535 $ 279,877 Current assets, including cash 318,934 293,681 Total assets 3,179,373 3,182,708 Current liabilities (includ
Slide 11: Third Quarter Highlights - Consolidated
Third Quarter Highlights - Consolidated Three Months Ended Nine Months Ended September 30, 2011 September 30, 2010 September 30, 2011 September 30, 2010 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 61 56 61 56 Average number of vessels (1) 60.8 47.4 59.5 40.2 Total ow
Slide 12: Pro Forma Balance Sheet (Excluding Baltic Trading Limited)
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 9/30/11 (Dollars in thousands) Balance Sheet Cash(1) $266,971 Debt(2) $1,654,570 Shareholders’ Equity(3) $1,145,931 Capitalization $2,800,501 Debt/Capitalization 59% See the Appendix for a reconciliation of pro
Slide 13: Q4 2011 Estimated Daily Expenses
Q4 2011 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Genco Standalone Consolidated Direct Vessel Operating(3) 5,000 5,000 General, Administrative and 1,257 1,520 Management Fees(4) Dry Docking (5) 403 - Interest Expense (6) 3,909 3,852 Depreciation(7) - 6,142
Slide 14: Industry Overview
Industry Overview
Slide 15: 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 11/02/11 15
Slide 16: Recent Drybulk Market Developments
Recent Drybulk Market Developments Australian coal and iron ore volumes fully recovered from Q1 weather disruptions Limited iron ore availability from India leads to increased fixtures from Brazil and Australia, extending ton mile demand ― Combined iron ore exports from Australia and Brazil 24% high
Slide 17: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts Possible further pickup in Japanese imports Chinese Coal Imports(1) as rebuilding efforts commence early next (million tons) year 20 18 ― Higher imports expected for the following 16 commodities: iron ore, coal, forestry 14 products and cement 12 10 Additional
Slide 18: Demand Side Fundamentals
Demand Side Fundamentals China’s CPI increased 6.1% in September, down from a peak increase of 6.5%(1) Chinese steel production increased 10.7% YOY through September 2011(2) China’s fixed-asset investment rose 24.9% YOY through September 2011(3) Chinese infrastructure development expected to continu
Slide 19: Increasing Iron Ore and Coal Production are Major Factors
Increasing Iron Ore and Coal Production are Major Factors Key iron ore expansion plans equal an increased capacity of 501 Mt per annum(1) ― 501 Mt represents 50.5% of total 2010 Key Expansion Plans(1) seaborne iron ore trade (million tons) Vale’s iron ore production plans are to reach annual product
Slide 20: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital continues ― European lenders are further reducing funding availability Depressed vessel values imply higher equity installments required from illiquid owners 16% of the fleet is greater than 25 years old(1) 22% of the fleet is greater than 20 years old(1) 5.7
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 9/30/11
Pro Forma Reconciliation 9/30/11 (Dollars in thousands) 9/30/11 Actual Adjustment 9/30/11 Pro Forma Cash(1) $301,535 (34,564) $266,971 Debt(2) $1,755,163 (100,593) $1,654,570 Shareholders’ Equity(3) $1,145,931 - $1,145,931 Capitalization $2,901,094 (100,593) $2,800,501 (1) September 30, 2011 pro for
Slide 24: Q4 2011 Estimated Daily Expenses Reconciliation
Q4 2011 Estimated Daily Expenses Reconciliation(1) Consolidated Income Statement Less Baltic Trading(2) Elimination(3) Genco Cash/Non-Cash Adj.(4) Free Cash Flow (5) Quarterly Expenses by Category Direct Vessel Operating Expenses(6) $ 28,320,000 $ (4,140,000) $ - $ - $ 24,180,000 General, Administra
Slide 25: 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 26: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Augustus 2007 Cargill International S.A. 100% of BCI December, 2011 Genco Tiberius 2007 Cargill International S.A. 100% of BCI(3) August, 2012 Genco London 2007 Cargill International S.A. 1
Slide 27: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) 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 Prosperity 1997 Pacific Basin Charteri
Slide 28: 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
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