Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2020 Earnings Presentation
33 slides from Genco Shipping & Trading's earnings presentation, May 6, 2020
Slide 1: Genco Shipping & Trading Limited Q1 2020 Earnings Presentation
Genco Shipping & Trading Limited Q1 2020 Earnings Presentation May 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 First 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 plans as a response to COVID-19
Business continuity plans as a response to COVID-19 As our main focus is on the health and safety of our crew members and our team onshore, we have taken various proactive measures centered around business continuity, crew protection and headquarters operations during this challenging time Crew me
Slide 6: First Quarter 2020 and Year-to-Date Highlights
First Quarter 2020 and Year-to-Date Highlights
Slide 7: First Quarter 2020 and YTD Update
First Quarter 2020 and YTD Update Q1 2020 financial performance We maintain a strong financial positions with $149.5 million of cash, including $15.2 million of restricted cash, as of March 31, 2020 Net loss: $120.4 million, basic and diluted loss per share of $2.87 Adjusted net loss: $7.1 mil
Slide 8: Strong Q1 TCE performance driven by our Capesizes
Strong Q1 TCE performance driven by our Capesizes Our fleet deployment strategy remains weighted towards short-term fixtures which provides us with optionality on our sizeable fleet $20 Major Bulk Minor Bulk Fleet-Wide $18.4 $16.7 $16.3 $15 $12.6 TCE ($ in 000s) $12.1 $11.7 $10.3 $10.5 $9.8 $10 $9.2
Slide 9: Financial Overview
Financial Overview
Slide 10: First Quarter Earnings
First Quarter Earnings Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Revenues: Voyage revenues $ 98,336 $ 93,464 Total revenues 98,336 93,464 Operating expenses: Voyage expenses 48,368 43
Slide 11: March 31, 2020 Balance Sheet
March 31, 2020 Balance Sheet March 31, 2020 December 31, 2019 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 149,508 $ 162,249 Current assets 227,533 223,195 Total assets 1,380,966 1,528,892 Current liabilities (excluding current portion of long-term debt)
Slide 12: First Quarter Highlights
First Quarter Highlights Three Months Ended March 31, 2020 March 31, 2019 (unaudited) FLEET DATA: Total number of vessels at end of period 53 58 Average number of vessels (1) 54.3 58.3 Total ownership days for fleet (2) 4,942 5,247 Total chartered-in days (3) 422 293 Total available days (4) 5,229 5
Slide 13: Genco's industry leading balance sheet
Genco’s industry leading balance sheet Key balance sheet items as of March 31, 2020 Cash1 Debt2 Net Debt $149.5 million $488.8 million $339.3 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 Q2 2020 Cash Breakeven Rates
Estimated Q2 2020 Cash Breakeven Rates(1) Fleet breakeven rates – estimated Q2 2020 $14,000 (Detailed Q2 2020 estimated b/e rates in appendix) $12,000 $ per vessel per day $10,000 $3,833 $8,000 $922 $357 $1,161 $6,000 $11,940 $1,078 $4,000 $2,000 $4,590 $0 DVOE G&A Mgmt Fees Drydocking Interest Fixe
Slide 15: Industry Overview
Industry Overview
Slide 16: Tracking global cargo flows amid COVID-19
Tracking global cargo flows amid COVID-19 Canada Rio’s IOC (17mpta of iron ore) curtailed operations in the short-term Europe Champion Iron Ore had slowed operations Arcelor Mittal reducing steel output (7mtpa) but is now ramping up again along with other European producers Japan Steel production US
Slide 17: March data points highlight improvement in China
March data points highlight improvement in China China’s Q1 2020 GDP contracted by 6.8% YOY During the quarter, the steepest period of decline was seen in February Despite the March improvement, data is still soft on a YOY basis NPC meeting in China scheduled for May 22nd Expecting more clarit
Slide 18: Brazilian iron ore exports fell to 7-year low in Q1 2020
Brazilian iron ore exports fell to 7-year low in Q1 2020… …as heavy rains and operational challenges disrupted production and shipments Q1 2020 Brazilian iron ore exports declined by 16% YOY to the lowest level since Q1 2013 ― March shipments were 21.7MT, the lowest since April 2019 (peak Vale dis
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 since the China’s steel inventory has 30 start of 2020 but is now being drawn down historically increased during the first quarter, however, this year’s build has 25 reached record levels as a result
Slide 20: Cape seasonality – Q1 rates have declined vs Q4
Cape seasonality – Q1 rates have declined vs Q4 for 11 straight years… …while Q2 rates have rebounded from Q1 levels in 8 of the last 10 years $40,000 Cape trends in recent years point to 2H strength… $35,000 2017 2018 2019 2020 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Jan Feb Mar Apr May J
Slide 21: Historical data highlights 2H Capesize strength
Historical data highlights 2H Capesize strength Cape rate quarterly highs have occurred in the second half of the year in 8 of the last 10 years, including each of the last 5 years, due to… …increased iron ore cargo volumes… …met by reduced newbuilding deliveries Aust + Brazil iron ore exports have
Slide 22: While iron ore and grain trades are improving…
While iron ore and grain trades are improving… …coal together with certain minor bulk trades have declined recently 2,500 Historical trade growth across major / minor bulks Grain trade has remained firm in recent weeks Iron ore Coal Grain Minor bulk 2,000 South American grain season 1,500 commen
Slide 23: 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 8% - lowest since 2002 8 20 Jan 2020 Jan 201
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Shipping plays an essential role in global development
Shipping plays an essential role in global development Shipping is a fundamental pillar of the global economy Transportation by sea is a cost-effective and fuel-efficient way to move goods and raw materials in large scale around the world Maritime activity plays a key role in alleviating extre
Slide 27: Shipping is a highly efficient mode of freight transport
Shipping is a highly efficient mode of freight transport of global trade is carried by the international shipping industry ~90% but shipping only accounts for… 2.3% …of global CO2 emissions (down from 2.7% in 2008) Global fuel consumption of the world shipping fleet has declined by 18% -18% from 200
Slide 28: As one of the largest drybulk shipping companies in the world…
As one of the largest drybulk shipping companies in the world… …Genco recognizes the need to run a safe and responsible business built for the long-term Over the last several years, we have invested in our fleet by… Purchasing modern, fuel-efficient vessels Divesting older, less fuel-efficient t
Slide 29: 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 30: Time Charter Equivalent Reconciliation
Time Charter Equivalent Reconciliation(1) Three Months Ended March 31, 2020 March 31, 2019 (unaudited) Total Fleet Voyage revenues (in thousands) $ 98,336 $ 93,464 Voyage expenses (in thousands) 48,368 43,022 Charter hire expenses (in thousands) 3,075 2,419 46,893 48,023 Total available days for own
Slide 31: Adjusted Net Loss Reconciliation
Adjusted Net Loss Reconciliation Three Months Ended March 31, 2020 Adjusted Net Loss Reconciliation (unaudited) Net loss $ (120,350) + Impairment of vessel assets 112,814 + Loss on sale of vessels 486 Adjusted net loss $ (7,050) Adjusted net loss per share - basic $ (0.17) Adjusted net loss per shar
Slide 32: Q2 2020 Genco Estimated Breakeven Rates
Q2 2020 Genco Estimated Breakeven Rates(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,590 $4,590 General and Administrative 1,078 1,170 Expenses(4) Technical Management Fees(5) 357 357 Drydocking(6) 1,161 - Interest Expense(7) 922 1,121 Fixed Debt Repayment
Slide 33: Thank you
Thank you <<
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