Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Deutsche Bank Global Industrials & Basic Materials Conference 2011
31 slides from Genco Shipping & Trading's conference presentation, Jun 16, 2011
Slide 1: Genco Shipping & Trading Limited
Genco Shipping & Trading Limited Deutsche Bank Global Industrials & Basic Materials Conference June 16, 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 06/16/11 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 H
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
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
Slide 9: Financial Overview
Financial Overview
Slide 10: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 3/31/11 (Dollars in thousands) Balance Sheet Cash(1) $254,082 Debt(2) $1,650,948 Shareholders’ Equity(3) $1,155,515 Capitalization $2,806,463 Debt/Capitalization 59% See the Appendix for a reconciliation of pro
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 Mare July 2011 10% 3,325 20,000 9,925 33,250 Genco Spirit Nov 2011 10% 3,325 20
Slide 12: Industry Overview
Industry Overview
Slide 13: Global Seaborne Trade
Global Seaborne Trade – 2010E Total Seaborne Trade Drybulk Seaborne Trade General Drybulk Other Bulk Steam Coal 9% 20% Container 39% 32% 16% Coking 8% Coal 10% 36% 30% Liquid Grain (Oil / Gases / Iron Ore Chemical) 8.4 billion tons 3.3 billion tons Source: Clarkson’s Research Services; 2010 Estimate
Slide 14: Major Drybulk Trade Routes
Major Drybulk Trade Routes Iron Ore Coal Source: Drewry Grains 06/16/11 14
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 06/16/11 15
Slide 16: Current Market Conditions
Current Market Conditions Main drivers behind suppressed rate environment Effects of flooding in Australia longer lasting than expected(1) ― Dalrymple Bay and Hay Point Coal Terminals in Queensland operating at around 80% in May 2011(2) ― Coal production could be further affected by possible BHP w
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 8.7% YOY through the first five months of 2011 Iron ore inventories at Chinese ports currently stand at 86.2Mt(1) China is expected to build as many as 36 million housing units within the next 5 years(2) ― 10 million units slated to s
Slide 18: 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 536 Mt per annum(1) ― 536 Mt represents 52.4% of total 2010 Key Expansion Plans(1) seaborne iron ore trade Vale’s iron ore production plans are to reach (million tons) annual pro
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital Depressed vessel values imply higher equity installments required from illiquid owners Estimated 40% slippage of the scheduled orderbook through the year ended 2010(1) ― Similar levels estimated through March 2011(1) 19% of fleet that is greater than 2
Slide 20: Conclusions
Conclusions
Slide 21: 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 06/16/11 21
Slide 22: Appendix
Appendix
Slide 23: First Quarter Earnings - Consolidated
First Quarter Earnings - Consolidated Three Months Ended March 31, 2011 March 31, 2010 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Voyage revenues $ 100,619 $ 94,681 Service revenue 810 - Total revenues: 101,429 94,681 Operating expenses: Voyage expense
Slide 24: Consolidating Income Statement
Consolidating Income Statement Three Months Ended March 31, 2011 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Voyage revenues $ 91,076 $ 9,543 $ - $ - $ 100,619 Service revenue 1,539 - (729) - 810 Total
Slide 25: March 31, 2011 Balance Sheet - Consolidated
March 31, 2011 Balance Sheet - Consolidated March 31, 2011 December 31, 2010 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 285,216 $ 279,877 Current assets 299,535 293,681 Total assets 3,190,707 3,182,708 Current liabilities (including current portion of l
Slide 26: First Quarter Highlights - Consolidated
First Quarter Highlights - Consolidated Three Months Ended March 31, 2011 March 31, 2010 (unaudited) FLEET DATA: Total number of vessels at end of period 59 35 Average number of vessels (1) 58.0 35.0 Total ownership days for fleet (2) 5,223 3,150 Total available days for fleet (3) 5,202 3,106 Total
Slide 27: Pro Forma Reconciliation 3/31/11
Pro Forma Reconciliation 3/31/11 (Dollars in thousands) 3/31/11 Actual Adjustment 3/31/11 Pro Forma Cash(1) $285,216 (31,134) $254,082 Debt(2) $1,750,754 (99,806) $1,650,948 Shareholders’ Equity(3) $1,155,515 - $1,155,515 Capitalization $2,906,269 (99,806) $2,806,463 (1) March 31, 2011 pro forma cas
Slide 28: 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 29: 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 (18) January, 2012 Genco Carrier 1998 ED & F MAN Shipping Ltd. 92.5% of BSI (19) February, 2012 Handymax Genco
Slide 30: 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 31: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) (14) We have reached an agreement with Klaveness Chartering on a spot market-related time charter based on 102% of the BSI, as reflected in daily reports. Hire is paid every 15 days in arrears less a 5.00% third party brokerage commission. Genco maintain
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