Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2012 Earnings Presentation
29 slides from Genco Shipping & Trading's earnings presentation, Aug 2, 2012
Slide 1: Genco Shipping & Trading Limited Q2 2012 Earnings Call
Genco Shipping & Trading Limited Q2 2012 Earnings Call August 2, 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 Second Quarter and Year to Date 2012 Highlights Financial Overview Industry Overview 08/02/2012 3
Slide 4: Second Quarter 2012 and Year to Date Highlights
Second Quarter 2012 and Year to Date Highlights
Slide 5: Second Quarter 2012 and Year to Date Highlights
Second Quarter 2012 and Year to Date Highlights Net loss attributable to Genco Shipping & Trading Limited of $27.7 million for the second quarter of 2012 ― Basic and diluted loss per share of $0.65 Cash position of $255.8 million on a consolidated basis ― Genco Shipping & Trading Limited: $251.4
Slide 6: Genco Fleet List
Genco Fleet List Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Handymax Genco Augustus 2007 180,151 Genco Muse 2001 48,913 Genco Tiberius 2007 175,874 Genco Marine 1996 45,222 Genco London 2007 177,833 Genco Wisdom 1997 47,180 Genco Titus 2007 177,729 Genco Carrier 1998 47,180 Genco
Slide 7: Financial Overview
Financial Overview
Slide 8: Second Quarter Earnings - Consolidated
Second Quarter Earnings - Consolidated Three Months Ended Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues:
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended June 30, 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 $ 54,509 $ 7,603 $ - $ - $ 62,112 Service revenues 1,53
Slide 10: June 30, 2012 Balance Sheet - Consolidated
June 30, 2012 Balance Sheet - Consolidated June 30, 2012 December 31, 2011 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 255,768 $ 237,718 Current assets 274,292 259,365 Total assets 3,074,139 3,119,277 Current liabilities (including current portion of lon
Slide 11: Second Quarter Highlights - Consolidated
Second Quarter Highlights - Consolidated Three Months Ended Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 62 60 62 60 Average number of vessels (1) 62.0 59.6 62.0 58.8 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 06/30/12 (Dollars in thousands) Balance Sheet Cash(1) $99,638 Debt(2) $1,420,757 Shareholders’ Equity(3) $1,150,580 Capitalization $2,571,337 Debt/Capitalization 55% See the Appendix for a reconciliation of pro
Slide 13: Credit Facility Amendment Structure
Credit Facility Amendment Structure Prepaid $99.9 million across all three facilities ― Eliminated amortization on all facilities through and including Q4 2013 (next scheduled amortization payment due first quarter of 2014) ― $57.9 million prepaid under the 2007 Credit Facility ― $30.5 million pre
Slide 14: Q3 2012 Estimated Daily Expenses
Q3 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 1,204 1,426 Management Fees(4) Dry Docking(5) 625 - Interest Expense(6) 3,757 3,868 Depreciation(7) - 6,108 De
Slide 15: Industry Overview
Industry Overview
Slide 16: 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 08/02/2012 16
Slide 17: Recent Drybulk Market Developments
Recent Drybulk Market Developments Scrapping increased 12% YOY during the first half of 2012 on a tonnage basis(1) ― 24 Capesize vessels were scrapped in Q2 2012, twice the amount scrapped in Q1 ― 16 of the 42 Capesize vessels scrapped YTD in 2012 were built in the 1990s, Capesize vessels built pr
Slide 18: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts The Chinese government has lowered bank reserve requirements by 50 bps three times since November 2011 to fuel lending and stimulate growth(1) Chinese Coal Imports(2) ― Additionally, benchmark loan and deposit rates have been cut twice since June 2012 (millio
Slide 19: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 1.8% YOY through the first six months of 2012(1) Japanese crude steel output grew 3.5% in Q2 2012 from the previous quarter and was the strongest since Q1 2011(2) Total seaborne iron ore trade is projected to grow 6% YOY in 2012(3)
Slide 20: 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 481 Mt by 2016(1) ― 481 Mt represents 45.7% of total 2011 seaborne iron ore trade Key Expansion Plans(1) Iron ore production from the world’s top four miners Vale, Rio (million tons
Slide 21: Supply Side Fundamentals
Supply Side Fundamentals Newbuilding orders through the first half of 2012 have decreased 52% compared to the same period last year(1) ― No Capesize newbuilding vessels were contracted during the second quarter of 2012 ― Declining newbuilding activity and prices coupled with stronger steel prices
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: Pro Forma Reconciliation 06/30/12
Pro Forma Reconciliation 06/30/12 (Dollars in thousands) 6/30/12 Actual Adjustment 6/30/12 Pro Forma Cash(1) $255,768 (156,130) $99,638 Debt(2) $1,670,084 (249,327) $1,420,757 Shareholders’ Equity(3) $1,150,580 - $1,150,580 Capitalization $2,820,664 (249,327) $2,571,337 (1) June 30, 2012 pro forma c
Slide 25: Q3 2012 Estimated Daily Expenses Reconciliation
Q3 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) $ 29,743,600 $ (4,388,400) $ - $ - $ 25,355,200 General, Administra
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 October, 2012 Genco Tiberius 2007 Cargill International S.A. 100% of BCI September, 2012 Genco London 2007 Cargill International S.A. 10
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 ED & F MAN Shipping Ltd. 91.5% of BSI April, 2013 Handymax Genco Carrier 1998 Klaveness Chartering 91% of BSI(14) June, 2013 Genco Prosperity 1997 SK Shipping Co. Ltd. $8,000(1
Slide 28: 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 29: Footnotes to Fleet Table (continued)
Footnotes to Fleet Table (continued) 15) We have reached an agreement with SK Shipping Co. Ltd. on a time charter for 3.5 to 6 months at a rate of $8,000 per day less a 5.00% third party brokerage commission. Hire is paid every 15 days in advance. The vessel delivered to charterers on June 20, 2012.
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