Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2012 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, May 1, 2012
Slide 1: Genco Shipping & Trading Limited Q1 2012 Earnings Call
Genco Shipping & Trading Limited Q1 2012 Earnings Call May 1, 2012
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. Such forward-looking statements use
Slide 3: Agenda
Agenda First Quarter and Year to Date 2012 Highlights Financial Overview Industry Overview 05/01/2012 3
Slide 4: First Quarter 2012 and Year to Date Highlights
First Quarter 2012 and Year to Date Highlights
Slide 5: First Quarter 2012 and Year to Date Highlights
First Quarter 2012 and Year to Date Highlights Net loss attributable to Genco Shipping & Trading Limited of $33.1 million for the first quarter of 2012 ― Basic and diluted loss per share of $0.87 Cash position of $256.4 million on a consolidated basis ― Genco Shipping & Trading Limited: $251.2 m
Slide 6: Genco Fleet List
Genco Fleet List 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 5
Slide 7: Financial Overview
Financial Overview
Slide 8: First Quarter Earnings - Consolidated
First Quarter Earnings - Consolidated Three Months Ended March 31, 2012 March 31, 2011 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Revenues: Voyage revenues $ 59,025 $ 100,619 Service revenues 819 810 Total revenues: 59,844 101,429 Operating expenses: V
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended March 31, 2012 (Dollars in thousands, except share and per share data) (unaudited) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues: Voyage revenues $ 52,731 $ 6,294 $ - $ - $ 59,025 Service revenues 1,5
Slide 10: March 31, 2012 Balance Sheet - Consolidated
March 31, 2012 Balance Sheet - Consolidated March 31, 2012 December 31, 2011 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 256,433 $ 237,718 Current assets 278,509 259,365 Total assets 3,115,009 3,119,277 Current liabilities (including current portion of l
Slide 11: First Quarter Highlights - Consolidated
First Quarter Highlights - Consolidated Three Months Ended March 31, 2012 March 31, 2011 (unaudited) FLEET DATA: Total number of vessels at end of period 62 59 Average number of vessels (1) 62.0 58.0 Total ownership days for fleet (2) 5,642 5,223 Total available days for fleet (3) 5,497 5,202 Total
Slide 12: Pro Forma Balance Sheet (Excluding Baltic Trading Limited)
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 03/31/12 (Dollars in thousands) Balance Sheet Cash(1) $196,067 Debt(2) $1,519,541 Shareholders’ Equity(3) $1,180,079 Capitalization $2,699,620 Debt/Capitalization 56% See the Appendix for a reconciliation of pr
Slide 13: Q2 2012 Estimated Daily Expenses
Q2 2012 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Genco Standalone Consolidated Direct Vessel Operating(3) 5,200 5,215 General, Administrative and 1,211 1,438 Management Fees(4) Dry Docking (5) 618 - Interest Expense (6) 3,609 3,634 Depreciation(7) - 6,103
Slide 14: Industry Overview
Industry Overview
Slide 15: Drybulk Index
Drybulk Index Baltic Dry Index (BDI Points) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2010 2011 2012 Source: Clarkson Research Services Limited 2012 05/01/2012 15
Slide 16: Recent Drybulk Market Developments
Recent Drybulk Market Developments Iron ore inventories have declined from a record of 101.5 Mt set in the beginning of February of this year ― Currently at 97.1 Mt after decreasing for five of the last seven weeks(1) ― Expect to see further declines as strength in steel prices continues Chinese
Slide 17: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts The Chinese government lowered bank reserve Q1 YOY Scheduled vs. Actual Deliveries(3) requirements by 50 bps in November 2011 and February 2012 to fuel lending and stimulate growth(1) Q1 2012 (mdwt) Q1 2011 (mdwt) Chinese bank loans for March increased 49%
Slide 18: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 2.5% YOY for the first quarter of 2012(1) ― Crude steel output in China is expected to rise 4% in 2012(2) China’s fixed-asset investment rose 20.9% through the first three months of 2012(3) Global steel production set a record in 2011
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 increased capacity of 487 Mt by 2016(1) ― 487 Mt represents 46.3% of total 2011 seaborne iron ore trade Key Expansion Plans(1) Brazilian iron ore exports increased 11% in March 2012 compared to the prior
Slide 20: Supply Side Fundamentals
Supply Side Fundamentals First quarter 2012 newbuild orders decreased 70% YOY(1) ― Declining newbuilding activity and prices coupled with strong steel prices have put pressure on shipyard margins(2) Scarce capital continues ― European lenders are still limiting funding availability 21% of the
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 03/31/12
Pro Forma Reconciliation 03/31/12 (Dollars in thousands) 3/31/12 Actual Adjustment 3/31/12 Pro Forma Cash(1) $256,433 (60,366) $196,067 Debt(2) $1,675,984 (156,443) $1,519,541 Shareholders’ Equity(3) $1,180,079 - $1,180,079 Capitalization $2,856,063 (156,443) $2,699,620 (1) March 31, 2012 pro forma
Slide 24: Q2 2012 Estimated Daily Expenses Reconciliation
Q2 2012 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) $ 29,420,300 $ (4,340,700) $ - $ - $ 25,079,600 General, Administr
Slide 25: 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 October, 2012 Genco Tiberius 2007 Cargill International S.A. 100% of BCI August, 2012 Genco London 2007 Cargill International S.A. 100%
Slide 26: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Success 1997 ED & F MAN Shipping Ltd. 91.5% of BSI(14) April, 2013 Handymax Genco Carrier 1998 STX Pan Ocean Co. Ltd. $7,000 May, 2012 Genco Prosperity 1997 Pacific Basin Chartering Ltd. 92
Slide 27: 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 28: Footnotes to Fleet Table (continued)
Footnotes to Fleet Table (continued) 12) We have reached an agreement with Navig8 Inc. on a spot market-related time charter for 10.5 to 13.5 months based on 100% of the average of the daily rates of the BSI, as reflected in daily reports, except for the initial 30 days in which hire is based on 100
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