Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q3 2009 Earnings Presentation
23 slides from Genco Shipping & Trading's earnings presentation, Oct 29, 2009
Slide 1: Genco Shipping & Trading Limited Q3 2009 Earnings Call
Genco Shipping & Trading Limited Q3 2009 Earnings Call October 29, 2009
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 Third Quarter 2009 and Year to Date Highlights Financial Overview Industry Overview 10/29/09 3
Slide 4: Third Quarter 2009 and Year to Date Highlights
Third Quarter 2009 and Year to Date Highlights
Slide 5: Third Quarter 2009 and Year to Date Highlights
Third Quarter 2009 and Year to Date Highlights Net Income of $34.3 million for the third quarter of ’09 ― Basic earnings per share of $1.10 and diluted $1.09 Increased cash position to $260.8 million Took delivery of the Genco Commodus on July 22, 2009 ― Delivered it to its time charter with M
Slide 6: Current Fleet
Current Fleet * 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. 45,263 62,750 December, 2009 Genco Tiberius 2007 Cargill International S.A. 45,263 62,750 January, 2010 Genco London 2007
Slide 7: Footnotes to Fleet Table (previous page)
Footnotes to Fleet Table (previous page) (1) Time charter rates presented are the gross daily charterhire rates before the payments of brokerage commissions ranging from 1.25% to 6.25% to third parties, except as indicated for the Genco Leader, Predator and Thunder. In a time charter, the charterer
Slide 8: Financial Overview
Financial Overview
Slide 9: Year to Date Earnings
Year to Date Earnings Three Months Ended Nine Months Ended September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenu
Slide 10: September 30, 2009 Balance Sheet
September 30, 2009 Balance Sheet September 30, 2009 December 31, 2008 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash & cash equivalents (Including restricted cash) $ 260,757 $ 124,956 Current assets, including cash 275,125 140,748 Total assets 2,296,140 1,990,006 Current liabilities (in
Slide 11: 3rd Quarter Highlights
3rd Quarter Highlights Three Months Ended Nine Months Ended September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 34 31 34 31 Average number of vessels (1) 32.9 29.9 32.3 28.7 Total ownership days for
Slide 12: Pro Forma Balance Sheet
Pro Forma Balance Sheet Selected Financial Information 09/30/09 (Dollars in thousands) Balance Sheet Cash(1) $248,257 Debt(2) $1,327,000 Shareholders’ Equity $862,060 Capitalization $2,189,060 Debt/Capitalization 61% See the Appendix for a reconciliation of pro forma to actual figures. (1) September
Slide 13: Acquisition Vessel Payment Schedule
Acquisition Vessel Payment Schedule (Dollars in thousands) Expected Deposit as % of Deposit Payment on Vessel Name Delivery (1) Purchase Price Payment (2) Delivery Metrostar Acquisition Vessels Genco Claudius Q4 2009 20% 24,000 96,000 Total: $24,000 $96,000 The Company intends to use available cas
Slide 14: Q4 2009 Estimated Break-Even Levels
Q4 2009 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,300 5,300 General & Administrative(4) 962 1,250 Management Fees(5) 291 291 Dry Docking (6) 210 - Interest Expense (7) 5,696 5,730 Depreciation(8) - 7,662 Daily Break-Even(9) 12
Slide 15: Industry Overview
Industry Overview
Slide 16: Drybulk Indices
10/29/09 Source: Clarkson’s W ee k 0 5,000 10,000 15,000 20,000 25,000 W 1 W ee ee k 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 k W 3 W 1 ee ee k W k3 W 5 ee Drybulk Indices ee k k W 5 W 7 ee ee W k7 W k9 e ee k W ek ee 9 W 11 k ee W 11 k 2005 ee W 13 ee W k1 k ee 3 W 15 k ee W 15 ee k W 17 W k1
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Iron ore imports increased 35.7% YOY through September of 2009 Chinese steel production increased 7.3% YOY through September of 2009 52% of steel consumption in China towards construction projects(1) China a net importer of coal ― Due to pressures to shut down unsafe
Slide 18: China Continues to be a Major Factor
China Continues to be a Major Factor Iron ore imports: ― China increased approximately 36% YOY(1) ― EU, Japan and South Korea combined decreased approximately 45% YOY Coal imports: ― Chinese imports increased approximately 157% YOY(1) ― EU, Japan and South Korea combined decreased approximately
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Approximately 40% of the orderbook at Expansion or Greenfield yards Estimated 450 vessel cancellations so far, plus large scale delays Estimated 40% slippage of the scheduled 2009 orderbook(1) 27% of the fleet is greater than 20 years old and will need renewal(1) 9
Slide 20: Global Stimulus Plan
Global Stimulus Plan Chinese GDP growth of 8.9% through the third quarter of 2009(1) PMI at 55.0 in September, continuing in expansionary territory(2) Urban fixed asset investment increased 33% YOY through September of 2009(2) Industrial production rose 14% YOY through September of 2009(2)
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 09/30/09
Pro Forma Reconciliation 09/30/09 (Dollars in thousands) 09/30/09 Actual Adjustment 09/30/09 Pro Forma Cash(1) $260,757 (12,500) $248,257 Debt(2) $1,339,500 (12,500) $1,327,000 Shareholders’ Equity $862,060 - $862,060 Capitalization $2,201,560 (12,500) $2,189,060 (1) September 30, 2009 pro forma cas
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