Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2009 Earnings Presentation
22 slides from Genco Shipping & Trading's earnings presentation, Apr 30, 2009
Slide 1: Genco Shipping & Trading Limited Q1 2009 Earnings Call
Genco Shipping & Trading Limited Q1 2009 Earnings Call April 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 First Quarter 2009 and Year to Date Highlights Financial Overview Industry Overview 04/30/09 3
Slide 4: First Quarter 2009 and Year to Date Highlights
First Quarter 2009 and Year to Date Highlights
Slide 5: First Quarter 2009 and Year to Date Highlights
First Quarter 2009 and Year to Date Highlights Net Income of $41.2 million for the first quarter of ’09 ― Basic and diluted earnings per share of $1.32 Restructured the $1.4 billion revolving credit facility waiving the loan to value covenant Increased cash position to $175.8 million 04/30/09
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 March 31, 2009 March 31, 2008 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Revenues $ 96,650 $ 91,669 Operating expenses: Voyage expenses 1,579 744 Vessel operating expenses 14,202 10,919 General and administrativ
Slide 10: March 31, 2009 Balance Sheet
March 31, 2009 Balance Sheet March 31, 2009 December 31, 2008 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 175,785 $ 124,956 Current assets, including cash 193,839 140,748 Total assets 2,033,885 1,990,006 Current liabilities 29,052 30,192 Total long-term debt 1,173,300 1,173,300 Sha
Slide 11: 1st Quarter Highlights
1st Quarter Highlights Three Months Ended March 31, 2009 March 31, 2008 (unaudited) FLEET DATA: Total number of vessels at end of period 32 28 Average number of vessels (1) 32.0 28.0 Total ownership days for fleet (2) 2,880 2,552 Total available days for fleet (3) 2,863 2,533 Total operating days fo
Slide 12: Credit Facility Amendment
Credit Facility Amendment Amended AmendedRevolving RevolvingFacility Facility Highlights Highlights Collateral maintenance covenant Amount Up to $1.4 billion waived until compliance achieved Term 10 Years Dividend and share buyback Quarterly $12.5 million starting programs suspended until Reduct
Slide 13: Balance Sheet Selected Financial Information
Balance Sheet Selected Financial Information 03/31/09 (Dollars in thousands) Balance Sheet Liquidity Position Cash $175,785 Revolving Credit Facility $1,364,500 Drawn Portion (1,173,300) Debt $1,173,300 Shareholders’ Equity $749,495 Undrawn Portion $191,200 Capitalization $1,922,795 Cash $175,785 De
Slide 14: 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 Commodus Q2 2009 20% 24,200 96,800 Genco Maximus Q3 2009 20% 24,000 96,000 Genco Claudius Q3 2009 20
Slide 15: Q2 2009 Estimated Break-Even Levels
Q2 2009 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,350 5,350 General & Administrative(4) 967 1,342 Management Fees(5) 293 293 Dry Docking (6) 1,116 - Interest Expense (7) 5,854 5,716 Depreciation(8) - 7,244 Daily Break-Even(9)
Slide 16: Industry Overview
Industry Overview
Slide 17: Market Update and Industry Overview
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Slide 18: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 2.1% YOY for the first quarter of 2009 Record iron ore imports of 46.7mt for February and 52.1mt for March of 2009 Iron ore negotiations in progress ― Expected 20-40% cut in 2009 contract prices Iron ore inventories at approximately
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Credit crunch poses threat to new as well as existing yards Newer yards are unable to obtain refund guarantees and working capital Estimated 260 vessel cancellations so far, plus delays An estimated 33 vessels reported laid up, down from 100 in December of 2008(3)
Slide 20: Chinese Stimulus Plan
Chinese Stimulus Plan $586 billion stimulus plan towards housing and transportation infrastructure(1) ― Includes $244 billion for reconstruction of earthquake-stricken provinces $292 billion investment on railway network expansion(1) ― 186,000 miles of rural roads to be paved or repaved this yea
Slide 21: Latest Developments
Latest Developments Turnaround TurnaroundCatalysts Catalysts Developments Developments Proposed $250bn trade Normalized Trade Credit finance package by G20 $477bn of the $585bn Chinese Infrastructure Chinese Stimulus plan for Investment 2009 – 2010(1) Record $277 billion in new Credit Markets loans
Slide 22: Q&A
Q&A
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