Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2024 Earnings Presentation
38 slides from Genco Shipping & Trading's earnings presentation, Feb 20, 2025
Slide 1: Q4 2024 Earnings Presentation
GENCO SHIPPING & TRADING LIMITED Q4 2024 Earnings Presentation February 20th, 2025
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: Agenda
Agenda Q4 2024 + YTD Highlights Financial Overview Industry Overview 3
Slide 4: Fourth Quarter 2024 and Year-to-Date Highlights
Fourth Quarter 2024 and Year-to-Date Highlights 4
Slide 5: Q4 2024 highlights + financial performance
Q4 2024 highlights + financial performance Value Strategy Financial Performance Q4 2024 dividend: $0.30/sh, 22nd consecutive quarterly dividend Dividends Cumulative dividends totaling 45% of our current share price $12.7m Q4 2024 net income or $0.29/sh (as of Feb 18, 2025) Deleveraging 5% net loan-t
Slide 6: Strong 2024 for Genco
Strong 2024 for Genco… Adjusted EBITDA increased by ~50% YOY… …led by a firm drybulk market… Adjusted EBITDA Fleet-wide TCE $151.2 $19.1 $14.8 $101.5 2023 2024 2023 2024 …resulting in higher dividends… …and further deleveraging Debt outstanding Div/sh declared $1.46 $200 $0.86 $90 2023 2024 2023 202
Slide 7: Compelling quarterly dividends over the last 5+ years
Compelling quarterly dividends over the last 5+ years Significant increase in dividend amounts since value strategy inception Sustained dividends across diverse market environments 13 22 22 Consecutive quarterly quarters dividends since Q3 2019 $5.560 # of quarters $6.615 $6.615/ Dividends in aggreg
Slide 8: Financial flexibility in various freight market conditions
Financial flexibility in various freight market conditions $80 Significant Capesize 5-year asset value operating leverage $70 Ultramax 5-year asset value $60 Flexibility to $50 capture growth opportunities $40 $30 Countercyclical $20 opportunities to buy vessels from a $10 position of strength $0 Ja
Slide 9: Financial Overview
Financial Overview 9
Slide 10: Fourth quarter earnings
Fourth quarter earnings Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (u
Slide 11: December 31, 2024 balance sheet
December 31, 2024 balance sheet December 31, 2024 December 31, 2023 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 44,005 $ 46,857 Current assets 97,990 157,272 Total assets 1,056,602 1,141,902 Current liabilities (excluding current portion of long-term deb
Slide 12: Fourth quarter highlights
Fourth quarter highlights Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 42 46 42 46 Average number of vessels (1) 41.8 44.8 43.1 44.2 Total ownership days for
Slide 13: Debt outstanding per quarter ($ in m)
Continued voluntary debt repayments with opportunistic revolver drawdowns $500 Debt outstanding Draw down $400 Debt outstanding per quarter ($ in m) $300 Draw for 2 x Cape acquisitions $449 $200 $401 $367 $65 Draw for 1 x $305 Cape acquisition $246 $100 $197 $189 $200 $180 $171 $170 $162 $154 $20 $1
Slide 14: Genco's strong balance sheet and growth capacity
Genco’s strong balance sheet and growth capacity Cash Debt Revolver availability LTV $44m $90m $337m ~5% Recently tapped $20m Balance as of Dec 31, 80% reduction since the under the revolver to Low financial leverage with 2024 beginning of 2021 opportunistically purchase a capacity to grow modern Ca
Slide 15: Transparent dividend policy
Transparent dividend policy Dividend calculation (numbers in millions Q4 2024 actual Q1 2025 estimates except per share amounts) Net revenue $ 66.09 Fixtures to date + market $12,366 Q1 2025 to date estimate based on 75% of owned available days fixed Operating cash flow Q1 2025 est cash flow breakev
Slide 16: Industry Overview
Industry Overview 16
Slide 17: Drybulk freight market
Drybulk freight market $40,000 Baltic Capesize Index Baltic Supramax 58 Index 2023 Cape Avg 2024 Cape Avg 2023 Supra avg 2024 Supra avg $35,000 Spot: $7,187 YTD 2025: $8,807 $30,000 2024: $22,593 2023: $16,389 $25,000 $20,000 $15,000 $10,000 Spot: $8,572 YTD 2025: $7,206 $5,000 2024: $13,601 2023: $
Slide 18: The return of seasonality in Q1 2025
The return of seasonality in Q1 2025 Brazilian iron ore exports have declined vs 2H 2024 levels…. …while Capesize port congestion has eased Capesize Panamax Capesize Average Panamax Average 38 125 115 33 105 MDWT MT 28 95 ~8mt lower than 85 23 July or ~46 less Capes 75 18 65 ◼ Capesize port congesti
Slide 19: China's steel complex
China’s steel complex Strong imports over the past two years in part to replenish stockpiles… 160 2.50 150 +5% 2024 China iron ore import growth 140 2.00 130 120 1.50 Iron ore stockpiles are currently 19% +19% Ratio MT 110 higher than this time last year 100 1.00 90 80 0.50 Months worth of imports t
Slide 20: Global iron ore growth projects
Global iron ore growth projects Key iron ore and bauxite expansion ramps up… …add long-haul ton mile demand to absorb Cape supply ~167MT 2025-2027 annualized iron ore and bauxite growth potential 15 32 Iron Ore 167 Bauxite 120 3x >200 Key iron ore and bauxite expansion # of Capes absorbed by key hav
Slide 21: Global bauxite trade has grown significantly
Global bauxite trade has grown significantly 2025e global bauxite shipments are expected to be more than double the levels seen a decade ago Global seaborne bauxite trade (mt) 250 Rest of World Guinea Guinea accounts for ~70% of the global seaborne Major global Capesize trade routes bauxite trade –
Slide 22: Tariffs and trade protectionism
Tariffs and trade protectionism US drybulk exports to China: 54MT 2024 Mexico and Canada 30 ◼ The 25% tariffs announced by the Trump administration have been postponed until March 4th 25 66% or 35MT US to China ◼ Blanket 25% tariff on all goods, except for Canadian energy agricultural 20 shipments i
Slide 23: Grain trade impacted by macro environment
Grain trade impacted by macro environment Transitioning from North to South American grain season Wheat 2024/25p 2023/24e Variance % Variance World 208.99 221.22 (12.23) -6% US 23.13 19.24 3.89 20% -17MT Russia 45.50 55.50 (10.00) -18% Ukraine 15.50 18.58 (3.08) -17% -11MT Aust 25.00 19.84 5.16 26%
Slide 24: Panama Canal transits normalizing while Suez Canal transits remain low
Panama Canal transits normalizing while Suez Canal transits remain low Panama Canal transits are approaching normalized levels… …while Suez remains low Monthly Panama Canal transits Avg Monthly Suez Canal transits Avg 350 800 700 300 600 250 500 200 400 150 +222% 300 -60% 100 vs Dec 2023 high vs Feb
Slide 25: Aging global drybulk fleet profile
Aging global drybulk fleet profile Global drybulk fleet age profile vs newbuilding orderbook 450 ~30% In 2030, ~30% of the current 400 drybulk fleet will be 20 years or older or ~4,200 ships 350 300 10% Fleet size (mdwt) 10% of the fleet is currently 20 250 years or older 200 19.6% 150 11.7% Yard ca
Slide 26: Q&A
Q&A 26
Slide 27: Thank You
Thank You
Slide 28: Appendix
Appendix 28
Slide 29: Genco's fleet list
Genco’s fleet list Major Bulk Minor Bulk Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Ultramax Supramax Genco Reliance Genco Resolute 2016 2015 181,146 181,060 Genco Freedom Baltic Hornet 2015 2014 63,671 63,574 Genco Hunter Genco Auvergne 2007 2009 58,72
Slide 30: Longer term time charter activity
Longer term time charter activity Vessel Type Rate Duration Min Expiry Genco Liberty Capesize $ 35,000 11-14 months Mar-25 Genco Ranger Capesize 128% of BCI + scrubber 11-14 months Apr-25 ◼ We continue to utilize a fleet-wide portfolio approach to fixture activity Genco Resolute Capesize 123% of BCI
Slide 31: Significant fleet-wide operating leverage
Significant fleet-wide operating leverage Highlights the improved risk / reward profile of our value strategy $350 $300 $15m Every $1,000 increase in TCE is ~$15m of incremental annualized EBITDA on our 42-vessel fleet $29m For our 16 Capesizes specifically, every $5,000 $250 increase in TCE is ~$29
Slide 32: EBITDA reconciliation
EBITDA reconciliation(1) Adjusted EBITDA Q1 2023-Q4 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net income $ 2,634 $ 11,562 $ (32,004) $ 4,937 $ 18,798 $ 23,467 $ 21,459 $ 12,681 Net interest expense 1,259 1,611 1,411 1,832 3,216 2,731 2,221 2,151 Income tax expense - - - -
Slide 33: Time charter equivalent reconciliation
Time charter equivalent reconciliation(1) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (unaudited) (unaudited) Total Fleet Voyage revenues (in thousands) $ 99,203 $ 115,516 $ 423,016 $ 383,825 Voyage expenses (in thousands) 31,256 42,
Slide 34: Net income reconciliation
Net income reconciliation Three Months Ended December 31, 2024 Net Income Reconciliation (unaudited) Net income attributable to Genco Shipping & Trading Limited $ 12,681 + Gain on sale of vessels 224 + Unrealized gain on fuel hedges (76) Adjusted net income $ 12,829 Adjusted earnings per share - bas
Slide 35: Portfolio approach to scrubber installation
Portfolio approach to scrubber installation Genco continues to capture wide fuel spreads through scrubbers installed on 15 Capesize vessels ◼ Portfolio approach: installed on Capesize vessels + Singapore Fuel Spread Developments consuming very low sulfur fuel oil (VLSFO) on our minor bulk vessels $1
Slide 36: Q1 2025 estimated fleet-wide expenses
Q1 2025 estimated fleet-wide expenses(1) Daily Expenses by Category Net Income Free Cash Flow(2) Vessel Operating Expenses(3) $6,375 $6,375 Est Ownership / Owned Available Days – Q1 2025 G&A Expenses(4) 1,978 1,629 Vessel Type Own. Days Drydock Days Owned Avail Days Technical Management 333 333 Caps
Slide 37: Footnotes to Q1 2025 estimated fleet-wide expenses & operating expense reconciliation
Footnotes to Q1 2025 estimated fleet-wide expenses & operating expense reconciliation (1) Estimated expenses are presented for illustrative purposes. The amounts shown will vary based on actual results. Q1 2025 operating expense reconciliation (2) Free Cash Flow is defined as net income plus depreci
Slide 38: Volatility and cyclicality of drybulk shipping highlights importance of low financial leverage
Volatility and cyclicality of drybulk shipping highlights the importance of low financial leverage + low breakeven rate $100,000 Significant operating leverage Illustrative fleet-wide time charter rate $15m Every $1,000 increase in TCE is ~$15m of incremental annualized EBITDA on our 42-vessel fleet
Genco Shipping & Trading — Q4 2024 Earnings Presentation on 6ix