Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2020 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, Aug 6, 2020
Slide 1: Genco Shipping & Trading Limited Q2 2020 Earnings Presentation
Genco Shipping & Trading Limited Q2 2020 Earnings Presentation August 6th, 2020
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 ◼ Update on Business Continuity Plans + Protocols ◼ Second Quarter 2020 and Year-to-Date Highlights ◼ Financial Overview ◼ Industry Overview 3
Slide 4: Update on Business Continuity Plans + Protocols
Update on Business Continuity Plans + Protocols
Slide 5: Business continuity during the COVID-19 pandemic
Business continuity during the COVID-19 pandemic As our priority is the health and safety of our crew members, we have been focused on completing crew rotations in a safe and timely fashion utilizing industry leading protocols ◼ Industry leading protocols regarding crew rotations include… ― PCR test
Slide 6: Second Quarter 2020 and Year-to-Date Highlights
Second Quarter 2020 and Year-to-Date Highlights
Slide 7: Second Quarter 2020 and YTD Update
Second Quarter 2020 and YTD Update Q2 2020 financial performance ◼ Cash position: $142.9 million, including $14.9 million of restricted cash related to vessel sales ◼ EBITDA: $2.9 million ◼ Net loss: $18.2 million, basic and diluted loss per share: $0.43 Commercial operating platform ◼ Q2 TCE: $6,69
Slide 8: Q3 to date TCE estimates led by our Capesize fleet
Q3 to date TCE estimates led by our Capesize fleet Our vessel deployment strategy remains weighted towards short-term fixtures which provides us with optionality on our sizeable fleet $20 Major Bulk $18.4 TCE: +74% $17.8 Q3 to date vs Q2 $16.7 Minor Bulk $16.3 $15 Fleet-Wide $12.6 TCE ($ in 000s) $1
Slide 9: Financial Overview
Financial Overview
Slide 10: Second Quarter Earnings
Second Quarter Earnings Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATE
Slide 11: June 30, 2020 Balance Sheet
June 30, 2020 Balance Sheet June 30, 2020 December 31, 2019 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 142,892 $ 162,249 Current assets 210,938 223,195 Total assets 1,354,566 1,528,892 Current liabilities (excluding current portion of long-term debt) 30
Slide 12: Second Quarter Highlights
Second Quarter Highlights Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 53 58 53 58 Average number of vessels (1) 53.0 58.0 53.7 58.2 Total ownership days for fleet (2) 4,823 5,
Slide 13: Genco's industry leading balance sheet
Genco’s industry leading balance sheet Key balance sheet items as of June 30, 2020 Cash1 Debt2 Net Debt3 $142.9 million $494.5 million $351.6 million ◼ Strong financial position: Genco continues to maintain one of the highest liquidity positions and lowest leverage profiles among our drybulk peer gr
Slide 14: Estimated Q3 2020 Cash Breakeven Rates
Estimated Q3 2020 Cash Breakeven Rates(1) Fleet breakeven rates – estimated Q3 2020 $14,000 (Detailed Q3 2020 estimated b/e rates in appendix) $12,000 $ per vessel per day $10,000 $4,072 $8,000 $871 $353 $470 $6,000 $11,763 $1,097 $4,000 $2,000 $4,900 $0 DVOE G&A Mgmt Fees Drydocking Interest Fixed
Slide 15: Industry Overview
Industry Overview
Slide 16: Freight rate developments in the YTD
Freight rate developments in the YTD The below highlights spot market rates as published by the Baltic Exchange for Capesize, Supramax and Handysize vessels – 2020 YTD rates are compared to the trajectory of 2019 BCI - 2020 $40,000 Primary drivers of recent rate increase BSI - 2020 include… BHSI - 2
Slide 17: Brazilian iron ore exports have been recovering since May
Brazilian iron ore exports have been recovering since May Heavy rains and operational challenges disrupted production and shipments during most of 1H ◼ Brazilian iron ore exports declined by 9% YOY through July ― July shipments increased by 13% vs June, and marked first consecutive months of over 30
Slide 18: Data highlights continued improvement in China
Data highlights continued improvement in China …while economic activity in India, Japan, EU and the US is beginning to gradually recover China’s Q2 2020 GDP growth rebounded to +3.2% YOY vs. -6.8% in Q1 ◼ Strong recovery in Q2 as China’s economy has already exceeded the pre-COVID-19 level ◼ Highly a
Slide 19: Inventory levels of major bulk drivers steel + iron ore
Inventory levels of major bulk drivers steel + iron ore China’s steel inventory more than tripled early in ◼ In June, China’s steel exports 30 the year but has been significantly drawn down reached an 8-year low while imports reached a 10-year high 25 20 ― Together with record production 15 and decl
Slide 20: Strong grain trade + improvement in other minor bulk trades
Strong grain trade + improvement in other minor bulk trades Seaborne Wheat / Course Grain Trade (MT) Clarksons Global Grain Trade Estimates Exporter 2019 (e) 2020 (f) 2021 (f) Argentina 51 53 54 400 2019E Australia 13 15 17 350 +3% +3% 2020F Canada 25 24 25 EU+UK 39 47 45 300 US 57 74 79 2021F Other
Slide 21: Supply side fundamentals
Supply side fundamentals Current Drybulk Vessel Orderbook by Type Drybulk Vessel Deliveries vs. Scrapping Capesize Panamax Handymax Handysize Deliveries Scrapping Net Additions 25 10 Newbuilding orderbook as a percentage of Jan 2017 the fleet is currently 7% 8 20 Jan 2020 Jan 2018 mdwt 6 mdwt 15 1.4
Slide 22: Freight rate catalysts for 2H 2020
Freight rate catalysts for 2H 2020 We expect a stronger freight rate environment in 2H 2020 relative to what was experienced earlier in the year, due to the following factors… 1 Gradual recommencement of global economic activity 2 Continued recovery in Brazilian iron ore exports 3 Improvement in min
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Genco Fleet List
Genco Fleet List Major Bulk Minor Bulk Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Ultramax Genco Provence 2004 55,317 Genco Resolute 2015 181,060 Baltic Hornet 2014 63,574 Genco Picardy 2005 55,257 Genco Endeavour 2015 181,060 Baltic Mantis 2015 63,470
Slide 26: Time Charter Equivalent Reconciliation
Time Charter Equivalent Reconciliation(1) Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (unaudited) (unaudited) Total Fleet Voyage revenues (in thousands) $ 74,206 $ 83,550 $ 172,542 $ 177,014 Voyage expenses (in thousands) 41,695 41,800 90,063 84,822 Ch
Slide 27: Q3 2020 Genco Estimated Breakeven Rates
Q3 2020 Genco Estimated Breakeven Rates(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,900 $4,900 General and Administrative 1,097 1,192 Expenses(4) Technical Management Fees(5) 353 353 Drydocking(6) 470 - Interest Expense(7) 871 1,084 Fixed Debt Repayments(
Slide 28: Thank you
Thank you
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