Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2011 Earnings Presentation
27 slides from Genco Shipping & Trading's earnings presentation, Jul 27, 2011
Slide 1: Genco Shipping & Trading Limited Q2 2011 Earnings Call
Genco Shipping & Trading Limited Q2 2011 Earnings Call July 27, 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 Second Quarter and Year to Date 2011 Highlights Financial Overview Industry Overview 07/27/11 3
Slide 4: Second Quarter 2011 and Year to Date Highlights
Second Quarter 2011 and Year to Date Highlights
Slide 5: Second Quarter 2011 and Year to Date Highlights
Second Quarter 2011 and Year to Date Highlights Net Income attributable to Genco Shipping & Trading Limited of $10.1 million for the second quarter of ’11 ― Basic and diluted earnings per share of $0.29 Cash position of $296.0 million on a consolidated basis ― Genco Shipping & Trading Limited: $
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: Second Quarter Earnings - Consolidated
Second Quarter Earnings - 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: Revenues $
Slide 9: Consolidating Income Statement
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 revenue:
Slide 10: June 30, 2011 Balance Sheet - Consolidated
June 30, 2011 Balance Sheet - 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 curren
Slide 11: Second Quarter Highlights - Consolidated
Second Quarter Highlights - 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 for fle
Slide 12: Pro Forma Balance Sheet (Excluding Baltic Trading Limited)
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 13: Q3 2011 Estimated Daily Expenses
Q3 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 1,262 1,584 Management Fees(4) Dry Docking (5) 147 - Interest Expense (6) 4,066 3,979 Depreciation(7) - 6,225
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 07/27/11 15
Slide 16: Current Market Conditions
Current Market Conditions Recent Market Developments Australian coal and iron ore infrastructure coming back online ― Australian coal exports from Queensland ports for June 2011 still 18% down month on month(1) Strong Chinese iron ore fixtures push domestic iron ore inventories at new highs of 9
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 9.2% YOY through the first half of 2011 ― CISA raised expectations for 2011 crude steel output to 700 Mt from their previous forecast of 660 Mt(1) ― Average daily crude steel output exceeded 2 Mt at the end of June for the first time Ch
Slide 18: 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 Vale’s iron ore production plans are to reach annual (million tons) pro
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital continues Depressed vessel values imply higher equity installments required from illiquid owners 18% 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 13.5 million DWT
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Pro Forma Reconciliation 6/30/11
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 23: 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 24: 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 25: 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 26: Footnotes to Fleet Table (previous two pages)
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 27: Footnotes to Fleet Table (previous two pages)
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
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