Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — DnB NOR Markets Offshore & Shipping Management Access Conference 2009
31 slides from Genco Shipping & Trading's conference presentation, Mar 5, 2009
Slide 1: Genco Shipping & Trading Limited – DnB NOR Offshore & Shipping Conference
Genco Shipping & Trading Limited DnB NOR Offshore & Shipping Conference March 5, 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 Company Overview Financial Overview Industry Overview Conclusions 3
Slide 4: Company Overview
Company Overview
Slide 5: Management
Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer Over 20 years of Over 40 years of 15 years of experience in experience in the shipping experience in the shipping the shipping industry industry industry CFO since inception Chairman
Slide 6: Key Investment Highlights
Key Investment Highlights Modern high-quality fleet Significant time charter coverage with reputable charterers Collateral maintenance clause concern resolved Financing in place for Newbuilding program Flexibility for future growth U.S. - based quality management team with transparent op
Slide 7: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 High quality, modern fleet of 32 vessels ― Average age of 6.5 years compared to the average age of the world fleet of approximately 15 years ― Expected delivery of 3 additional vessels through the fourth quarter of 2009 Operat
Slide 8: Diversified and Modern Fleet
Diversified and Modern Fleet Vessel Name Year Built Dwt A Portfolio Approach to Maximize ROC Capesize Genco Augustus 2007 180,151 Modern, diversified fleet Genco Tiberius 2007 175,874 Genco London 2007 177,833 ― 6 Capesize Genco Titus 2007 177,729 Genco Constantine 2008 180,183 ― 8 Panamax Genco H
Slide 9: High Quality Operations
High Quality Operations Extensive relationships with Selected Customer Relationships established drybulk charterers These relationships help us to: ― Stabilize revenue through favorable contract terms ― Minimize counterparty risk ― Maximize fleet utilization We utilize three leading technical
Slide 10: Financial Overview
Financial Overview
Slide 11: Year to Date Earnings
Year to Date Earnings Three Months Ended Twelve Months Ended December 31, 2008 December 31, 2007 December 31, 2008 December 31, 2007 (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 12: December 31, 2008 Balance Sheet
December 31, 2008 Balance Sheet December 31, 2008 December 31, 2007 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 124,956 $ 71,496 Current assets, including cash 140,748 267,594 Total assets 1,990,006 1,653,272 Current liabilities, including current portion of long-term debt 30,192 7
Slide 13: 4th Quarter Highlights
4th Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2008 December 31, 2007 December 31, 2008 December 31, 2007 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 32 27 32 27 Average number of vessels (1) 31.0 23.0 29.3 20.4 Total ownership days for fl
Slide 14: Credit Facility Amendment
Credit Facility Amendment Amended AmendedRevolving RevolvingFacility Facility Highlights Highlights Collateral maintenance covenant waived until compliance achieved Amount Up to $1.4 billion Dividend and share buyback Term 10 Years programs suspended until Quarterly $12.5 million starting compli
Slide 15: Balance Sheet Selected Financial Information Updated Pro Forma 12/31/08
Balance Sheet Selected Financial Information Updated Pro Forma 12/31/08 (Dollars in thousands) Balance Sheet Liquidity Position Cash(1) $121,513 Revolving Credit Facility $1,377,000 Drawn Portion (1,173,300) Debt $1,173,300 Shareholders’ Equity $696,478 Undrawn Portion $203,700 Capitalization $1,869
Slide 16: 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 Commodus Q2 2009 20% 24,200 96,800 Genco Maximus Q3 2009 20% 24,000 96,000 Genco Claudius Q3 2009 20
Slide 17: 2009 Estimated Break-Even Levels
2009 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,350 5,350 General & Administrative(4) 956 1,304 Management Fees(5) 293 293 Dry Docking (6) 425 - Interest Expense (7) 6,241 6,090 Depreciation(8) - 7,397 Daily Break-Even(9) 13,26
Slide 18: Industry Overview
Industry Overview
Slide 19: Global Seaborne Trade – 2008F
Global Seaborne Trade – 2008F Total Seaborne Trade Drybulk Seaborne Trade General Other Bulk Steam Coal Drybulk 9% 19% Container 16% Coking 38% 37% 7% Coal 37% 10% 27% Liquid Iron Ore (Oil / Gases / Grain Chemical) 8.3 billion tons 3.1 billion tons Source: Clarkson’s Research Services; 2008 Forecast
Slide 20: Major Drybulk Trade Routes
Major Drybulk Trade Routes Iron Ore Coal Source: Drewry Grains 20
Slide 21: BDI Review & Key Events
BDI Review & Key Events Baltic Dry Index (BDI Points) BHP concludes price negotiations with China Olympics Vale Re-Negotiations 12,000 Paralympics Global Credit Crisis 10,000 Lack of Trade Credit 8,000 Steel Mills Cut Production 15 – 30% 6,000 Decreasing Iron Ore Stock Piles Increa
Slide 22: Demand Side Fundamentals
Demand Side Fundamentals World steel production decrease of 24% as opposed to an increase of 2.4% for Chinese steel production for the first month of 2009 Increased Capesize vessel activity from Brazil and Australia into China Declining iron ore inventories ― Latest data point at approximately
Slide 23: Supply Side Fundamentals
Supply Side Fundamentals Credit crunch poses threat to new as well as existing yards Newer yards are unable to obtain refund guarantees and working capital Over 30% of the fleet is greater than 20 years old and will need renewal(1) Estimated 230 vessel cancellations so far, plus delays Vas
Slide 24: Chinese Stimulus Plan
Chinese Stimulus Plan $586 billion stimulus plan towards housing and transportation infrastructure(2) ― 1/3rd expected to reach project level by the end of Q1 ― Includes $244 billion for reconstruction of earthquake-stricken provinces $292 billion investment on railway network expansion(2) ― 186
Slide 25: Drybulk Catalysts
Drybulk Catalysts Key KeyFactors Factorsfor forSlowdown Slowdown Turnaround TurnaroundCatalysts Catalysts Financial Crisis Normalized Trade Credit Lack of Trade Credit Chinese Infrastructure Chinese Economic Slowdown Investment Early Conclusion of Iron Ore High Iron Ore Inventories Negotiations - (b
Slide 26: Conclusions
Conclusions
Slide 27: Genco's Strategy
Genco’s Strategy Maintain Focus on Drybulk Sector with ROC Approach Consistent Time Charter Strategy Modern High-Quality Fleet Cost Efficient Operations Transparent Operations 27
Slide 28: Appendix
Appendix
Slide 29: Pro Forma Reconciliation 12/31/08
Pro Forma Reconciliation 12/31/08 (Dollars in thousands) 12/31/08 Actual Adjustment 12/31/08 Pro Forma Cash(1) $124,956 ($3,443) $121,513 Debt $1,173,300 - $1,173,300 Shareholders’ Equity $696,478 - $696,478 Capitalization $1,869,778 - $1,896,778 (1) December 31, 2008 pro forma cash takes into effec
Slide 30: 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 Capesize Genco Lon
Slide 31: Footnotes to Fleet Table
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 in note 6 below. In a time charter, the charterer is res