Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2009 Earnings Presentation
23 slides from Genco Shipping & Trading's earnings presentation, Jul 30, 2009
Slide 1: Genco Shipping & Trading Limited Q2 2009 Earnings Call
Genco Shipping & Trading Limited Q2 2009 Earnings Call July 30, 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 Second Quarter 2009 and Year to Date Highlights Financial Overview Industry Overview 07/30/09 3
Slide 4: Second Quarter 2009 and Year to Date Highlights
Second Quarter 2009 and Year to Date Highlights
Slide 5: Second Quarter 2009 and Year to Date Highlights
Second Quarter 2009 and Year to Date Highlights Net Income of $37.6 million for the second quarter of ’09 ― Basic and diluted earnings per share of $1.20 Increased cash position to $228.8 million Took delivery of the Genco Commodus and delivered the vessel to Morgan Stanley Capital Group Inc.
Slide 6: 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 7: Footnotes to Fleet Table (previous page)
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, Predator and Thunder in notes 5, 7 and 8 below. In a ti
Slide 8: Financial Overview
Financial Overview
Slide 9: Year to Date Earnings
Year to Date Earnings Three Months Ended Six Months Ended June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues $ 93,701 $ 104,572
Slide 10: June 30, 2009 Balance Sheet
June 30, 2009 Balance Sheet June 30, 2009 December 31, 2008 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 228,764 $ 124,956 Current assets, including cash 247,232 140,748 Total assets 2,084,260 1,990,006 Current liabilities 28,874 30,192 Total long-term debt 1,173,300 1,173,300 Share
Slide 11: 2nd Quarter Highlights
2nd Quarter Highlights Three Months Ended Six Months Ended June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 32 29 32 29 Average number of vessels (1) 32.0 28.1 32.0 28.1 Total ownership days for fleet (2) 2,912 2,555
Slide 12: Pro-forma Balance Sheet
Pro-forma Balance Sheet Selected Financial Information 06/30/09 (Dollars in thousands) Balance Sheet Liquidity Position Cash $228,764 Revolving Credit Facility(2) $1,352,000 Drawn Portion (1,269,800) Debt(1) $1,269,800 Shareholders’ Equity $818,224 Undrawn Portion $82,200 Capitalization $2,088,024 C
Slide 13: 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 Maximus Q3 2009 20% 24,000 96,000 Genco Claudius Q4 2009 20% 24,000 96,000 Total: $48,200 $192,000
Slide 14: Q3 2009 Estimated Break-Even Levels
Q3 2009 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,150 5,150 General & Administrative(4) 955 1,296 Management Fees(5) 291 291 Dry Docking (6) 464 - Interest Expense (7) 5,923 5,846 Depreciation(8) - 7,360 Daily Break-Even(9) 12
Slide 15: Industry Overview
Industry Overview
Slide 16: Market Update and Industry Overview
07/30/09 Source: Clarkson’s W ee k 0 5,000 10,000 15,000 20,000 25,000 W 1 W ee k ee 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 W 3 k ee W 1 ee k k W 5 W 3 ee ee k k W 7 W 5 ee ee W k9 W k7 ee ee k W k9 W 11 ee ee W k1 k 2005 ee 1 W 13 k ee W 13 k ee W 15 ee W k1 k ee 5 W 17 W k1 ee ee 7 k k W 1
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production flat YOY through June of 2009 Iron ore imports increased 29% YOY reaching 55.3mt for June of 2009 No clear conclusion on iron ore negotiations with Chinese steel mills Increased iron ore imports from Brazil and Australia as opposed to consump
Slide 18: China Driving Growth
China Driving Growth Iron ore imports: ― China increased approximately 29% YOY ― EU, Japan and South Korea combined decreased approximately 48% YOY Coal imports: ― Chinese imports increased approximately 123% YOY ― EU, Japan and South Korea combined decreased approximately 10% YOY Europe and J
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Credit crunch still poses threat to new as well as existing yards Newer yards are unable to obtain refund guarantees and working capital Estimated 300 vessel cancellations so far, plus large scale delays Over 30% of the fleet is greater than 20 years old and will nee
Slide 20: Chinese Stimulus Plan
Chinese Stimulus Plan $586 billion stimulus plan impact much quicker than expected $292 billion investment on railway network expansion(1) ― $24.7 billion spent through the first five months of 2009(2) GDP growth of 7.9% through the second quarter of 2009 $234 billion (double last month’s ba
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 06/30/09
Pro Forma Reconciliation 06/30/09 (Dollars in thousands) 06/30/09 Actual Adjustment 06/30/09 Pro Forma Cash $228,764 - $228,764 Debt(1) $1,173,300 96,500 $1,269,800 Shareholders’ Equity $818,224 - $818,224 Capitalization $1,991,524 - $2,088,029 (1) June 30, 2009 pro forma debt takes into effect the
Genco Shipping & Trading — Q2 2009 Earnings Presentation on 6ix