Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Corporate Update (April 2021)
12 slides from Genco Shipping & Trading's corporate update, Apr 20, 2021
Slide 1: Genco's new comprehensive value strategy
Genco Shipping & Trading Limited Genco’s new comprehensive value strategy April 20th, 2021
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. Such forward-looking statements use
Slide 3: Genco's new comprehensive value strategy
Genco’s new comprehensive value strategy We have formulated this new corporate strategy utilizing Genco’s strong balance sheet and our already low leverage position together with positive drybulk market fundamentals ◼ Transform Genco into a low leverage, attractive dividend yield company Objective ◼
Slide 4: Our new corporate strategy
Our new corporate strategy… …is a holistic three-pronged approach including returning cash to shareholders, further de-levering of the balance sheet and continuing to renew and grow the fleet Dividends De-levering Growth Use shares as a Scheduled debt currency to grow Cash flow repayments generation
Slide 5: Our roadmap to year-end and implementation
Our roadmap to year-end and implementation… Where we currently stand – March 31, 2021 balances $164m Cash balance, including restricted cash $237m Net debt $401m Debt outstanding 28% Net LTV Year-end targets Target a net loan-to-value of ~20% by Differentiator for Genco: we 20% year-end believe achi
Slide 6: Genco's quarterly dividend framework / calculation
Genco’s quarterly dividend framework / calculation Targeting a quarterly dividend based on cash flow after debt service less a reserve Genco's quarterly dividend to be paid based on the following formula: Operating cash flow Quarterly reserve is targeted to be based on quarterly debt Less: Debt repa
Slide 7: Illustrative cash flow sensitivity
Illustrative cash flow sensitivity ($ in m, except TCE and per share data) Plan to pay down debt to achieve a Cash, including restricted $164m cash, as of March 31, 2021 $75m cash balance of ~$75m to reduce our cash flow breakeven rate 2022 illustrative analysis based on cash flow sensitivity Fleet-
Slide 8: Genco's low net leverage position is a clear differentiator
Genco’s low net leverage position is a clear differentiator Our strong balance sheet uniquely positions Genco relative to the peer group to effectively deliver on the low leverage, attractive dividend yield strategy Genco has the lowest net loan-to-value position across its drybulk peer group 60% (n
Slide 9: Breakeven rate prior to debt service is covered
Breakeven rate prior to debt service is covered… …in nearly every rate environment over the last two decades, highlighting the importance of the quarter dividend reserve to be targeted off debt and interest payments – a prudent approach to protect the balance sheet during volatile market periods $50
Slide 10: Now is an opportune time to execute this strategy
Now is an opportune time to execute this strategy… …due to Genco’s strong financial position and platform + positive market fundamentals Genco’s differentiated position Drybulk market outlook ◼ Best in class company in the peer group to ◼ Record low orderbook as a percentage of the execute a low lev
Slide 11: Appendix
Appendix
Slide 12: Assumptions to illustrative cash flow sensitivity
Assumptions to illustrative cash flow sensitivity ◼ Fleet size: Based on a fleet of 39 vessels pro forma for the agreed upon sale of two 53,000 dwt Supramaxes. ◼ Illustrative rates used to calculate net revenue: Net revenue is defined as voyage revenues less voyage expenses less charter hire expense
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