Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Investor Day (May 2010)
28 slides from Genco Shipping & Trading's investor day presentation, May 19, 2010
Slide 1: Genco Shipping & Trading Limited Investor Day
Genco Shipping & Trading Limited Investor Day May 19, 2010
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 05/19/2010
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 16 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 charters Flexibility for future growth U.S. - based quality management team with transparent operations 6 05/19/2010
Slide 7: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 Own a high quality, modern fleet of 35 vessels ― Average age of 7 years compared to the average age of the world fleet of approximately 15 years Established new subsidiary, Baltic Trading Limited ― Will operate a fleet of six
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 Genco London 2007 2007 175,874 177,833 ― 9 Capesize Genco Titus Genco Constantine 2007 2008 177,729 180,183 ― 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 two leading technical Te
Slide 10: Financial Overview
Financial Overview
Slide 11: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 3/31/10 (Dollars in thousands) Balance Sheet Cash(1) $161,268 Debt(2) $1,302,000 Shareholders’ Equity(3) $961,387 Capitalization $2,263,387 Debt/Capitalization 58% See the Appendix for a reconciliation of pro f
Slide 12: Q2 2010 Estimated Daily Expenses
Q2 2010 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,350 5,350 General, Administrative and 1,374 1,994 Management Fees(4) Dry Docking (5) 408 - Interest Expense (6) 5,508 5,244 Depreciation(7) - 7,616 Debt Amortization/Principal(8)
Slide 13: 2010 Estimated Drydocking Schedule
2010 Estimated Drydocking Schedule Vessel Name DD Month Proposed Budget(1) Genco Charger April 2010 $550,000 Genco Tiberius June 2010 $750,000 Genco London August 2010 $600,000 Genco Surprise August 2010 $550,000 Genco Titus September 2010 $600,000 Genco Champion November 2010 $550,000 Total 2010 Bu
Slide 14: Industry Overview
Industry Overview
Slide 15: Global Seaborne Trade – 2009E
Global Seaborne Trade – 2009E Total Seaborne Trade Drybulk Seaborne Trade General Drybulk Other Bulk Steam Coal 10% 20% Container 38% 32% 15% Coking 7% Coal 11% 30% 37% Liquid Grain (Oil / Gases / Iron Ore Chemical) 7.8 billion tons 3.0 billion tons Source: Clarkson’s Research Services; 2009 Estimat
Slide 16: Major Drybulk Trade Routes
Major Drybulk Trade Routes Iron Ore Coal Source: Drewry Grains 16 05/19/2010
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 22.8% YOY through April of 2010 Iron ore inventories at lowest point since 2008 as compared to steel production(1) Iron ore inventories at Chinese ports currently stand at 71.2 mt(2) Chinese urban fixed asset investment increased by
Slide 18: Increasing Iron Ore Production is a Major Factor
Increasing Iron Ore Production is a Major Factor Key Expansion Plans(1) BHP Fortescue Rio Tinto Vale MMX 180 The World Steel Association projects the 160 Global apparent steel use excluding China 140 to increase 14% in 2010 120 100 ― Chinese apparent steel use to 80 increase 7.0% in 2010(2) 60 40
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Lack of financing as well as out of the money options overstate orderbook Estimated 40% slippage of the scheduled orderbook through the first 3 months 27% of the fleet is greater than 20 years old and will need renewal(1) 1.3mdwt scrapped for the first three months o
Slide 20: Conclusions
Conclusions
Slide 21: 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 21 05/19/2010
Slide 22: Appendix
Appendix
Slide 23: 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. 39,000 December, 2010 Genco Tiberius 2007 Cargill International S.A. 38,000 May, 2010 Genco London 2007 SK Shipping Co., L
Slide 24: 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 generally ranging from 1.25% to 5.00% to third parties. In a time charter, the charterer is responsible for voyage expenses such as bunkers, po
Slide 25: Year to Date Earnings - Consolidated
Year to Date Earnings - Consolidated Three Months Ended March 31, 2010 March 31, 2009 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Revenues $ 94,681 $ 96,650 Operating expenses: Voyage expenses 737 1,579 Vessel operating expenses 14,887 14,202 General, a
Slide 26: Consolidating Income Statement
Consolidating Income Statement Three Months Ended March 31, 2010 (Dollars in thousands, except share and per share data - unaudited) INCOME STATEMENT DATA: Genco Baltic Trading Elimination Total Revenues $ 94,681 $ - $ - $ 94,681 Operating expenses: Voyage expenses 737 - - 737 Vessel operating expen
Slide 27: March 31, 2010 Balance Sheet - Consolidated
March 31, 2010 Balance Sheet - Consolidated March 31, 2010 December 31, 2009 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash & cash equivalents (including restricted cash) $ 422,983 $ 205,767 Current assets, including cash 437,055 218,068 Total assets 2,570,279 2,336,802 Current liabilit
Slide 28: First Quarter Highlights
First Quarter Highlights Three Months Ended March 31, 2010 March 31, 2009 (unaudited) FLEET DATA: (excluding Baltic Trading) Total number of vessels at end of period 35 32 Average number of vessels (1) 35.0 32.0 Total ownership days for fleet (2) 3,150 2,880 Total available days for fleet (3) 3,106