Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — JPMorgan Aviation & Transportation Conference 2008
25 slides from Genco Shipping & Trading's conference presentation, Mar 19, 2008
Slide 1: Genco Shipping & Trading Limited
Genco Shipping & Trading Limited JPMorgan Aviation & Transportation Conference March 19, 2008
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 03/19/08 3
Slide 4: Company Overview
Company Overview
Slide 5: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 High quality, modern fleet of 28 vessels ― Expected delivery of 4 Capesize vessels through the third quarter of 2009 Ideally positioned to take advantage of a strong market to renew time charters ― Consistent 75% coverage time
Slide 6: Management
Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer Over 20 years of Over 40 years of 14 years of experience in experience in the shipping experience in the shipping the shipping industry industry industry Formerly Senior Vice Chairma
Slide 7: Key Investment Highlights
Key Investment Highlights Modern high-quality fleet U.S. based management team with strong track record Dividend policy supported by time charters Strong growth with dividends to Cost efficient operations shareholders Attractive revolving credit facility Favorable industry fundamentals 03/19/08 7
Slide 8: Execution of Growth Strategy
Execution of Growth Strategy Genco Muse acquisition in Metrostar 9 vessel acquisition in August 2005 July 2007 Franco 3 vessel acquisition in Evalend 6 vessel acquisition in July 2006 August 2007 35 32 31 28 28 29 30 Total Number of Vessels 25 20 19 20 16 17 17 15 10 5 0 1H 2005 2H 2005 1H 2
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 four leading technical T
Slide 10: Fleet Employment
Fleet Employment* Daily Cash Daily Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) 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 Londo
Slide 11: Footnotes to Fleet Employment table (previous page)
Footnotes to Fleet Employment 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 chart
Slide 12: Acquisition Vessels to be Delivered
Acquisition Vessels to be Delivered Year Duration/ Daily Cash Vessel Type Vessel Name DWT Yard Delivery(1) Charterer Built(1) Expiration Rate Capesize Genco Hadrian 170,500 Sungdong Q4 2008 2008 Genco Commodus 170,500 Sungdong Q2 2009 2009 4 Genco Maximus 170,500 Sungdong Q2 2009 2009 Genco Claudius
Slide 13: Consistent Dividend Growth
Consistent Dividend Growth Period Declared Dividend Paid a Q4 2007 dividend of $0.85 per share on March 7th, 2008 to Q3 2005 $0.60 all shareholders of record as of Q4 2005 $0.60 February 29th, 2008 Q1 2006 $0.60 Cash reserves are determined by Q2 2006 $0.60 our Board of Directors ― Fleet mainten
Slide 14: Financial Overview
Financial Overview
Slide 15: Fourth Quarter 2007 and Year to Date Highlights
Fourth Quarter 2007 and Year to Date Highlights Net Income of $33.5 million for the fourth quarter of ’07, excluding the gain on the sale of the Genco Commander ― Basic earnings per share of $1.17 and diluted of $1.16 Net Income of $56.9 million for the fourth quarter of ‘07 ― Basic earnings per
Slide 16: Balance Sheet
Balance Sheet Selected Financial Information Updated Pro Forma 12/31/07 (Dollars in thousands) Balance Sheet Liquidity Position Cash(1) $46,779 Revolving Credit Facility $1,377,000 Debt(2) $1,044,500 Drawn Portion(2) (1,044,500) Shareholders’ Equity(3) 623,468 Undrawn Portion $332,500 Capitalization
Slide 17: Acquisition Vessel Payment Schedule
Acquisition Vessel Payment Schedule (Dollars in thousands) Deposit as % Expected Deposit Payment on Total Vessel Name of Purchase Delivery (1) Payment (2) Delivery Price Price Genco Hadrian Q4 2008 20% 24,200 96,800 121,000 Genco Commodus Q2 2009 20% 24,200 96,800 121,000 Genco Maximus Q2 2009 20% 2
Slide 18: Industry Overview
Industry Overview
Slide 19: Chinese Steel Production Drives the Market
Chinese Steel Production Drives the Market Continued demand resulted in YOY growth for Chinese steel production at 6.5% and iron ore imports at 16% through February of 2008 Vale’s conclusion of iron ore price negotiations at 65% to 71% with Japan and China Australian coal shipment disruptions
Slide 20: Strong Drybulk Vessel Demand Fundamentals
Strong Drybulk Vessel Demand Fundamentals Major Drybulk Importers(5) Chinese GDP estimated to (million tons per year) have grown by 11.4% for 2007, 600 and is forecasted at 10% for 2008.(1) 500 Indian GDP is forecasted to 400 grow by 8.7% YOY for the year to March 31,2008 (2) 300 World GDP gro
Slide 21: Appendices
Appendices
Slide 22: Pro Forma Reconciliation 12/31/07
Pro Forma Reconciliation 12/31/07 (Dollars in thousands) 12/31/07 Actual Adjustment 12/31/07 Pro Forma Cash(1) $71,496 ($24,717) $46,779 Debt(2) $936,000 108,500 $1,044,500 Shareholders’ Equity(3) 622,185 1,283 623,468 Capitalization $1,558,185 - $1,667,968 (1) December 31, 2007 pro forma cash takes
Slide 23: Year to Date Earnings
Year to Date Earnings Three Months Ended Twelve Months Ended December 31, 2007 December 31, 2006 December 31, 2007 December 31, 2006 (Dollars in thousands, except share and per share (Dollars in thousands, except share and per share data) data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues
Slide 24: December 31, 2007 Balance Sheet
December 31, 2007 Balance Sheet December 31, 2007 December 31, 2006 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 71,496 $ 73,554 Current assets, including cash 267,594 Dwt 88,118 Total assets 1,653,272 578,262 Current liabilities, including current portion of long-term debt 70,364 1
Slide 25: 4th Quarter Highlights
4th Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2007 December 31, 2006 December 31, 2007 December 31, 2006 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 27 20 27 20 Average number of vessels (1) 23.0 18.7 20.4 17.4 Total ownership days for fl
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