Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Stephens Fall Investment Conference 2009
21 slides from Genco Shipping & Trading's conference presentation, Nov 18, 2009
Slide 1: Genco Shipping & Trading Limited – Stephens Fall Investment Conference
Genco Shipping & Trading Limited Stephens Fall Investment Conference November 18, 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: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 High quality, modern fleet of 34 vessels ― Average age of 6.8 years compared to the average age of the world fleet of approximately 15 years ― Expected delivery of one additional vessel during the fourth quarter of 2009 Operat
Slide 4: 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 5: 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 6: Diversified and Modern Fleet
Diversified and Modern Fleet Vessel Name Year Built Dwt A Portfolio Approach to Maximize ROC Genco Augustus 2007 180,151 Genco Tiberius 2007 175,874 Modern, diversified fleet Capesize Genco London 2007 177,833 ― 8 Capesize Genco Titus 2007 177,729 Genco Constantine 2008 180,183 ― 8 Panamax Genco H
Slide 7: Pro Forma Balance Sheet
Pro Forma Balance Sheet Selected Financial Information 09/30/09 (Dollars in thousands) Balance Sheet Cash(1) $248,257 Debt(2) $1,327,000 Shareholders’ Equity $862,060 Capitalization $2,189,060 Debt/Capitalization 61% See the Appendix for a reconciliation of pro forma to actual figures. (1) September
Slide 8: 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 Claudius Q4 2009 20% 24,000 96,000 Total: $24,000 $96,000 The Company intends to use available cas
Slide 9: Q4 2009 Estimated Break-Even Levels
Q4 2009 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,300 5,300 General & Administrative(4) 962 1,250 Management Fees(5) 291 291 Dry Docking (6) 210 - Interest Expense (7) 5,696 5,730 Depreciation(8) - 7,662 Daily Break-Even(9) 12
Slide 10: Credit Facility Amendment
Credit Facility Amendment Amended AmendedRevolving RevolvingFacility Facility Highlights Highlights Collateral maintenance covenant Amount Up to $1.34 billion waived until compliance achieved Maturity July, 2017 Dividend and share buyback Quarterly programs suspended until $12.5 million Amortiza
Slide 11: Industry Overview
Industry Overview
Slide 12: Drybulk Indices
11/18/09 Source: Clarkson’s W ee k 0 5,000 10,000 15,000 20,000 25,000 W 1 W ee ee k 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 k W 3 W 1 ee ee k W k3 W 5 ee Drybulk Indices ee k k W 5 W 7 ee ee W k7 W k9 e ee k W ek ee 9 W 11 k ee W 11 k 2005 ee W 13 ee W k1 k ee 3 W 15 k ee W 15 ee k W 17 W k1
Slide 13: Demand Side Fundamentals
Demand Side Fundamentals Iron ore imports increased 36.8% YOY through October of 2009 Chinese steel production increased 10.4% YOY through October of 2009 52% of steel consumption in China towards construction projects(1) China a net importer of coal ― Due to pressures to shut down unsafe co
Slide 14: China Continues to be a Major Factor
China Continues to be a Major Factor Iron ore imports: ― China increased approximately 37% YOY(1) ― Japan decreased approximately 31% YOY Coal Imports: ― China increased approximately 166% YOY(1) ― Japan decreased approximately 19% YOY Japan records 4.8% GDP growth for the third quarter(2) A
Slide 15: Supply Side Fundamentals
Supply Side Fundamentals Approximately 40% of the orderbook at Expansion or Greenfield yards Lack of financing as well as out of the money options overstate orderbook Estimated 450 vessel cancellations so far, plus large scale delays Estimated 45% slippage of the scheduled 2009 orderbook(1)
Slide 16: Global Stimulus Plan
Global Stimulus Plan Chinese GDP growth of 8.9% through the third quarter of 2009(1) PMI at 55.0 in September, continuing in expansionary territory(2) Urban fixed asset investment increased 33% YOY through October of 2009(2) Industrial production rose 16% YOY through October of 2009(2) Ove
Slide 17: Genco's Strategy
Genco’s Strategy Maintain Focus on Drybulk Sector with ROC Approach Opportunistic Time Charter Strategy Modern High-Quality Fleet Cost Efficient Operations Transparent Operations 11/18/09 17
Slide 18: Appendix
Appendix
Slide 19: Pro Forma Reconciliation 09/30/09
Pro Forma Reconciliation 09/30/09 (Dollars in thousands) 09/30/09 Actual Adjustment 09/30/09 Pro Forma Cash(1) $260,757 (12,500) $248,257 Debt(2) $1,339,500 (12,500) $1,327,000 Shareholders’ Equity $862,060 - $862,060 Capitalization $2,201,560 (12,500) $2,189,060 (1) September 30, 2009 pro forma cas
Slide 20: 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 Genco London 2007
Slide 21: 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 ranging from 1.25% to 6.25% to third parties, except as indicated for the Genco Leader, Predator and Thunder. In a time charter, the charterer
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