Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2017 Earnings Presentation
27 slides from Genco Shipping & Trading's earnings presentation, Aug 8, 2017
Slide 1: Genco Shipping & Trading Limited Q2 2017 Earnings Call
Genco Shipping & Trading Limited Q2 2017 Earnings Call August 8th, 2017
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 2017 and Year to Date Highlights Financial Overview Industry Overview 3
Slide 4: Second Quarter 2017 and Year to Date Highlights
Second Quarter 2017 and Year to Date Highlights
Slide 5: Second Quarter 2017 and Year to Date Highlights
Second Quarter 2017 and Year to Date Highlights Increased cash position to $181.0 million as of June 30, 2017 Net loss of $14.5 million for the second quarter of 2017 ― Basic and diluted loss per share of $0.42 ― Adjusted basic and diluted loss of $12.5 million or $0.36 per share, excluding $1.3
Slide 6: Leading Market Position
Leading Market Position Genco has significantly improved its leading market position focusing on enhancing its commercial strategy and leading low-cost operations Strong Balance Sheet & Genco TCE vs. DVOE Straightforward Capital $9,000 Structure $8,439 Strong Liquidity Position Large Scale Fleet Cov
Slide 7: Genco Fleet List
Genco Fleet List* Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Capesize Supramax Handysize Genco Augustus 2007 180,151 Genco Warrior 2005 55,435 Genco Explorer 1999 29,952 13 Genco Tiberius 2007 175,874 Genco Hunter 2007 58,729 Genco Progress 1999 29,952
Slide 8: Genco's Fleet Strongly Aligns With Global Trade Dynamics
Genco’s Fleet Strongly Aligns With Global Trade Dynamics Genco’s fleet of major and minor bulk vessels largely mirrors global trade flows, enabling the Company to capitalize on key trade routes Commodity Percentage of Trade – 2016(e) Primary Vessel Type Genco Fleet Distribution (dwt) Genco Cargoes C
Slide 9: Optimizing Commercial Strategy – Major Bulk
Optimizing Commercial Strategy – Major Bulk Major Bulk Commercial Strategy Diversifying and expanding the customer base Staggering expiration dates of charters Implementing a portfolio approach In the process of establishing a Singapore presence to focus on Capesize vessels as well as backha
Slide 10: Optimizing Commercial Strategy – Minor Bulks
Optimizing Commercial Strategy – Minor Bulks Minor Bulk Commercial Strategy Reallocated freight exposure through a more balanced Atlantic vs. Pacific split ― Able to fix more vessels with top tier cargo owners and provide full-service logistics solution ― Repositioned select geared vessels during
Slide 11: Financial Overview
Financial Overview
Slide 12: Second Quarter Earnings
Second Quarter Earnings Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATE
Slide 13: June 30, 2017 Balance Sheet
June 30, 2017 Balance Sheet June 30, 2017 December 31, 2016 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 180,995 $ 169,068 Current assets 184,354 172,605 Total assets 1,541,719 1,568,960 Current liabilities (excluding current portion of long-term debt) 22
Slide 14: Second Quarter Highlights
Second Quarter Highlights Three Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 60 69 60 69 Average number of vessels (1) 60.5 69.5 61.7 69.8 Total ownership days for fleet (2) 5,505 6,
Slide 15: Improved Estimated Cash Breakeven Rates
Improved Estimated Cash Breakeven Rates(1) Fleet Breakeven Rates Estimated Q3 2017 (Detailed Q3 2017 Estimated B/E Rates in Appendix) $8,000 $142 $7,000 $1,040 $580 $ per vessel per day $6,000 $339 $704 $5,000 $4,000 $7,245 $3,000 $4,440 $2,000 $1,000 $0 DVOE G&A Mgmt Fees Drydocking Interest Expens
Slide 16: Industry Overview
Industry Overview
Slide 17: Market Update and Industry Overview
Market Update and Industry Overview Baltic Dry Index (BDI Points) 1,400 1,200 1,000 800 600 400 200 0 2015 2016 2017 Source: Clarkson Research Services Limited 2017 17
Slide 18: Recent Market Developments
Recent Market Developments Recent Developments Freight rates continued to rise during the beginning of Key Iron Ore Expansion Plans(3) Q2 2017 after a strong end to the first quarter primarily 70.0 Significant Brazilian iron ore volume driven by: expected over the next two years BHP ― Heightened C
Slide 19: Major Bulks
Major Bulks Coal Power Plant Stockpiles(2) (1) Global Steel Production (million tons) 120 45 6 Mos 2017 6 Mos 2016 % Variance China India 40 100 China 419.7 401.2 4.6% 35 China Stockpiles (MT) India Stockpiles (MT) European Union 86.1 82.7 4.1% 80 30 Japan 52.3 52.0 0.5% 25 India 49.5 47.0 5.3% 60 S
Slide 20: Minor Bulks
Minor Bulks Clarksons Global Grain Trade Estimates Seaborne Wheat/Course Grain Trade (MT) Exporter 2016 (e) 2017 (f) Variance Argentina 39 36 -9% 400 +5% Australia 23 35 51% 2016 2017F Canada 25 23 -6% 350 EU 44 43 -2% US 87 92 5% 300 Others 125 133 6% Total 344 362 5% 250 Seaborne Soybean Trade (MT
Slide 21: Supply Side Fundamentals
Supply Side Fundamentals Current Drybulk Vessel Orderbook by Type Drybulk Vessel Deliveries vs. Scrapping (mdwt) Capesize Panamax Handymax Handysize (mdwt) Deliveries Scrapping Net Additions 14 10 Jan 2017 1.4% ▪ Newbuilding orderbook as a percentage of 12 8 the fleet is currently 7.5% 10 ▪ This is
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: Genco Fleet Details
Genco Fleet Details Cash Daily Rate (1) Vessel Name Year Built Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (2) 37 17 3 2 1 0 Expiring Contracts (Total Fleet) : Capesize Genco Augustus 2007 Swissmarine, 106% of BCI 13 Genco Tiberius 2007 Cargill, $10,500 Genco London(3) 2007 Swissmarine, 98% of B
Slide 25: Genco Fleet Details
Genco Fleet Details* Cash Daily Rate (1) Vessel Name Year Built Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Expiring Contracts (Total Fleet)(2): 37 17 3 2 1 0 Supramax Genco Brittany(20) 2010 Clipper, $3,500 (21) 21 Genco Languedoc 2010 Oldendorff, $7,900 (16) Genco Normandy 2007 Bulkhandling, S
Slide 26: Footnotes to Genco Fleet Table
Footnotes to Genco Fleet Table (1) Time charter rates presented are the gross daily charterhire rates before third-party brokerage commission 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 and ca
Slide 27: Q3 2017 Genco Estimated Breakeven Rates
Q3 2017 Genco Estimated Breakeven Rates (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,440 $4,440 General and Administrative 704 965 Expenses(4) Technical Management Fees(5) 339 339 Drydocking(6) 580 - Interest Expense(7) 1,040 1,427 Fixed Debt Repayments(8
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