Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2019 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, Feb 26, 2020
Slide 1: Q4 2019 Earnings Call
Genco Shipping & Trading Limited Q4 2019 Earnings Call February 26th, 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 Fourth Quarter 2019 and Year-to-Date Highlights Financial Overview Industry Overview 3
Slide 4: Fourth Quarter 2019 and Year-to-Date Highlights
Fourth Quarter 2019 and Year-to-Date Highlights
Slide 5: Fourth Quarter 2019 and YTD Update
Fourth Quarter 2019 and YTD Update Q4 2019 financial performance Cash position as of December 31, 2019: $162 million Net income: $0.9 million ― Basic and diluted earnings per share: $0.02 Adjusted net income: $3.0 million ― Adjusted basic and diluted earnings per share: $0.07 (excluding $1.3 m
Slide 6: Genco's 2019 year-end review
Genco’s 2019 year-end review Utilized our strong balance sheet to return cash to shareholders Executed a capital ― December 31, 2019 cash balance of $162 million allocation strategy ― Over the last two quarters, we have declared cumulative dividends of $0.675 per share Completed 20 x special surveys
Slide 7: 2019 was the busiest drydocking year in Company history
2019 was the busiest drydocking year in Company history… …ahead of a significant shift in the environmental and regulatory landscape 17 Scrubbers installed on our Capesizes Able to capture wide fuel spreads early in the compliance period Remaining fleet consuming VLSFO – tank cleaning successful
Slide 8: Rising TCE rates seen in 2H 2019
Rising TCE rates seen in 2H 2019 TCE increases highlight strong operating leverage Aim to maximize Capesize utilization in 2020 2019 2020 Major Bulk $20 Minor Bulk $18.4 Genco’s Capesize fleet 17 17 Fleet-Wide $16.3 (# of vessels) $15 TCE ($ in 000s) $12.1 $10.3 $10.5 $12.6 $11.7 Special surveys 7 0
Slide 9: Financial Overview
Financial Overview
Slide 10: Fourth Quarter Earnings
Fourth Quarter Earnings Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 (Dollars in thousands, except s hare and per share data) (Dollars in thousands, except share and per s hare data) (unaudited)
Slide 11: December 31, 2019 Balance Sheet
December 31, 2019 Balance Sheet December 31, 2019 December 31, 2018 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 162,249 $ 202,761 Current assets 223,195 270,451 Total assets 1,528,892 1,627,470 Current liabilities (excluding current portion of long-term
Slide 12: Fourth Quarter Highlights
Fourth Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 55 59 55 59 Average number of vessels (1) 56.1 62.1 57.6 61.0 Total ownership days for
Slide 13: Estimated Q1 2020 Cash Breakeven Rates
Estimated Q1 2020 Cash Breakeven Rates(1) Cash as of December 31, 2019: $162 million Fleet breakeven rates – estimated Q1 2020 $14,000 (Detailed Q1 2020 estimated b/e rates in appendix) $12,000 $ per vessel per day $10,000 $3,692 $8,000 $1,236 $6,000 $357 $870 $11,783 $1,038 $4,000 $2,000 $4,590 $0
Slide 14: Industry Overview
Industry Overview
Slide 15: Current drybulk market developments
Current drybulk market developments Rates have come under pressure off of 2019 highs Factors driving the current drybulk market $40,000 Capesize 1) Increased newbuilding deliveries (~7% net fleet $35,000 Panamax growth in Jan 2020) $30,000 Supramax $25,000 Handysize 2) Weather related disruptions im
Slide 16: China's steel production growth remains strong
China’s steel production growth remains strong Coal Power Plant Stockpiles(2) (1) 120 45 Global Steel Production (million tons) China India 40 FY 2019 FY 2018 % Variance 100 China 996.3 920.0 8.3% 35 China Stockpiles (MT) India Stockpiles (MT) European Union 159.4 167.7 -4.9% 80 30 Japan 99.3 104.3
Slide 17: Steady grain trade with seasonal impact
Steady grain trade with seasonal impact Seaborne Wheat / Course Grain Trade (MT) Clarksons Global Grain Trade Estimates Exporter 2019 (e) 2020 (f) % Variance Argentina 47 50 6% 400 +2% Australia 14 14 2% 2019E 2020F Canada 26 26 0% 350 EU 37 40 7% 300 US 60 68 13% Others 148 140 -6% 250 Total 333 33
Slide 18: 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 Jan 2017 Newbuilding orderbook as a percentage of Jan 2020 the fleet is currently 9% 8 20 Jan 2018 mdwt 6 mdwt 15 1.5
Slide 19: Q&A
Q&A
Slide 20: Appendix
Appendix
Slide 21: 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 22: 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 23: Genco transported 32 mdwt of drybulk commodities in 2019
Genco transported 32 mdwt of drybulk commodities in 2019… We employ a diversified asset base consisting of the larger Capesize vessels, medium size Ultramax / Supramax vessels as well as the smaller Handysize vessels enabling us to carry a wide range of cargoes worldwide Commodities carried Iron ore
Slide 24: 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 25: Time Charter Equivalent Reconciliation
Time Charter Equivalent Reconciliation(1) Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 (unaudited) (unaudited) Total Fleet Voyage revenues (in thousands) $ 108,705 $ 112,185 $ 389,496 $ 367,522 Voyage expenses (in thousands) 45,254 36
Slide 26: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Three Months Ended December 31, 2019 Adjusted Net Income Reconciliation (unaudited) Net income $ 882 + Impairment of vessel assets 1,315 + Loss on sale of vessels 779 Adjusted net income $ 2,976 Adjusted net earnings per share - basic $ 0.07 Adjusted net earnings p
Slide 27: Q1 2020 Genco Estimated Breakeven Rates
Q1 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 1,038 1,096 Expenses(4) Technical Management Fees(5) 357 357 Drydocking(6) 870 - Interest Expense(7) 1,236 1,428 Fixed Debt Repayment
Slide 28: Thank you
Thank you <<
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