Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — J.P. Morgan Aviation, Transportation & Defense Conference 2011
29 slides from Genco Shipping & Trading's conference presentation, Mar 22, 2011
Slide 1: Genco Shipping & Trading Limited J.P. Morgan Aviation & Transportation Conference
Genco Shipping & Trading Limited J.P. Morgan Aviation & Transportation Conference March 22, 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 Company Overview Financial Overview Industry Overview Conclusions 03/22/11 3
Slide 4: Company Overview
Company Overview
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 Handy
Slide 6: 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 and found
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: 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 Techni
Slide 9: Financial Overview
Financial Overview
Slide 10: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 12/31/10 (Dollars in thousands) Balance Sheet Cash(1) $245,490 Debt(2) $1,627,038 Shareholders’ Equity(3) $1,132,949 Capitalization $2,759,987 Debt/Capitalization 59% See the Appendix for a reconciliation of pr
Slide 11: 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 Avra May 2011 10% 3,325 20,000 9,925 33,250 Genco Mare June 2011 10% 3,325 20,0
Slide 12: Industry Overview
Industry Overview
Slide 13: Drybulk Index
03/22/11 W ee 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 k W 1 ee k Services Limited 2011 W 3 Source: Clarkson’s Research ee k W 5 ee k W 7 e W ek ee 9 k Drybulk Index W 11 ee k W 13 ee k W 15 ee W k1 ee 7 k W 19 ee k W 21 ee k W 23 ee W k2 ee 5 k W 27 ee Baltic Dry Index k W 29 ee
Slide 14: Current Market Conditions
Current Market Conditions Main drivers behind suppressed rate environment Weather related disruptions reduced iron ore and coal volumes in Australia(1) ― 5% reduction of global iron ore and coal trade in January due to weather interruptions in Australia ― Intermittent service at iron ore loading por
Slide 15: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 9.3% YOY for the twelve months ended 2010 Iron ore inventories at Chinese ports currently stand at 79.6Mt(1) China’s economic growth accelerated from 9.6% in Q3 2010 to 9.8% in Q4 2010(2) China is expected to build as many as 50 million hou
Slide 16: Increasing Iron Ore Production is a Major Factor
Increasing Iron Ore Production is a Major Factor Key iron ore expansion plans equal an increased capacity of 427 Mt per annum(1) ― 427 Mt represents 41.9% of total 2010 Key Expansion Plans(1) seaborne iron ore trade Vale’s iron ore production plans are to reach (million tons) annual production of 52
Slide 17: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital ― Banks lending only to select clients Depressed vessel values imply higher equity installments required from illiquid owners Estimated 40% slippage of the scheduled orderbook through the year ended 2010(1) 20% of fleet that is greater than 25 years old(2) 27%
Slide 18: Conclusions
Conclusions
Slide 19: Genco's Strategy
Genco’s Strategy Maintain Focus on Drybulk Sector with ROC Approach Time Charter Strategy Modern High-Quality Fleet Cost Efficient Operations Transparent Operations 03/22/11 19
Slide 20: Appendix
Appendix
Slide 21: Year to Date Earnings - Consolidated
Year to Date Earnings - Consolidated Three Months Ended Twelve Months Ended December 31, 2010 December 31, 2009 December 31, 2010 December 31, 2009 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT
Slide 22: Consolidating Income Statement
Consolidating Income Statement Three Months Ended December 31, 2010 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Voyage Revenues $ 114,701 $ 15,161 $ - $ - $ 129,862 Service Revenue 2,627 - (1,840) - 78
Slide 23: December 31, 2010 Balance Sheet - Consolidated
December 31, 2010 Balance Sheet - Consolidated December 31, 2010 December 31, 2009 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 279,877 $ 205,767 Current assets 293,681 218,068 Total assets 3,182,708 2,336,802 Current liabilities (including current portio
Slide 24: Fourth Quarter Highlights - Consolidated
Fourth Quarter Highlights - Consolidated Three Months Ended Twelve Months Ended December 31, 2010 December 31, 2009 December 31, 2010 December 31, 2009 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 58 35 58 35 Average number of vessels (1) 57.7 34.0 44.6 32.7 Total own
Slide 25: Pro Forma Reconciliation 12/31/10
Pro Forma Reconciliation 12/31/10 (Dollars in thousands) 12/31/10 Actual Adjustment 12/31/10 Pro Forma Cash(1) $279,877 (34,387) $245,490 Debt(2) $1,746,248 (119,210) $1,627,038 Shareholders’ Equity(3) $1,348,153 (215,204) $1,132,949 Capitalization $3,094,401 (334,414) $2,759,987 (1) December 31, 20
Slide 26: 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 (4) December, 2011 Genco Tiberius 2007 Cargill International S.A. 31,000 September, 2011 Genco London 2007
Slide 27: 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 (16) January, 2012 Genco Carrier 1998 ED & F MAN Shipping Ltd. 92.5% of BSI (17) February, 2012 Handymax Genco
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
Slide 29: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) (12) The rate for the spot market-related time charter will be based on 102% of the average of the daily rates of the Baltic Supramax Index, or BSI, as reflected in daily reports. Hire will be paid every 15 days in arrears net of a 5.00% third party brok
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