Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2013 Earnings Presentation
25 slides from Genco Shipping & Trading's earnings presentation, Aug 1, 2013
Slide 1: Genco Shipping & Trading Limited Q2 2013 Earnings Call
Genco Shipping & Trading Limited Q2 2013 Earnings Call August 1, 2013
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 Second Quarter and Year to Date 2013 Highlights Financial Overview Industry Overview 08/01/2013 3
Slide 4: Second Quarter 2013 and Year to Date Highlights
Second Quarter 2013 and Year to Date Highlights
Slide 5: Second Quarter 2013 and Year to Date Highlights
Second Quarter 2013 and Year to Date Highlights Net loss attributable to Genco Shipping & Trading Limited of $45.4 million for the second quarter of 2013 ― Basic and diluted loss per share of $1.05 Cash position of $79.7 million on a consolidated basis ― Genco Shipping & Trading Limited: $56.0 milli
Slide 6: Genco Fleet List
Genco Fleet List Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Handymax Genco Augustus 2007 180,151 Genco Muse 2001 48,913 Genco Tiberius 2007 175,874 Genco Marine 1996 45,222 Genco London 2007 177,833 Genco Wisdom 1997 47,180 Genco Titus 2007 177,729 Genco Carrier 1998 47,180 Genco
Slide 7: Financial Overview
Financial Overview
Slide 8: Second Quarter Earnings - Consolidated
Second Quarter Earnings - Consolidated Three Months Ended Six Months Ended June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues:
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended June 30, 2013 (Dollars in thousands, except share and per share data) (unaudited) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues: Voyage revenues $ 38,562 $ 6,379 $ - $ - $ 44,941 Service revenues 1,51
Slide 10: June 30, 2013 Balance Sheet - Consolidated
June 30, 2013 Balance Sheet - Consolidated June 30, 2013 December 31, 2012 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 79,705 $ 82,750 Current assets 111,398 102,460 Total assets 2,777,660 2,843,371 Current liabilities 1,477,474 25,680 Total long-term de
Slide 11: Second Quarter Highlights - Consolidated
Second Quarter Highlights - Consolidated Three Months Ended Six Months Ended June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 62 62 62 62 Average number of vessels (1) 62.0 62.0 62.0 62.0 Total ownership days for fle
Slide 12: Q3 2013 Estimated Daily Expenses
Q3 2013 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Genco Standalone Consolidated Direct Vessel Operating(3) $5,250 $5,275 General, Administrative and 1,307 1,419 Management Fees(4) Dry Docking(5) 164 - Interest Expense(6) 3,667 3,831 Depreciation(7) - 6,144
Slide 13: Industry Overview
Industry Overview
Slide 14: Drybulk Index
Drybulk Index Baltic Dry Index (BDI Points) 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 Source: Clarkson Research Services Limited 2013 08/01/2013 14
Slide 15: Recent Drybulk Market Developments
Recent Drybulk Market Developments Vessel deliveries have slowed considerably after peaking in June 2012 with 1H 2013 deliveries 43% lower than 1H 2012(1) Net additions through 1H 2013 were 50% lower than the first six months of last year(1) Capesize rates have been supported by higher iron ore volu
Slide 16: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts Higher Brazil iron ore cargoes possible in 2H 2013 following previous years seasonality(1) Scheduled vs. Actual Drybulk Vessel Deliveries(1) Low iron ore inventories combined with increased steel production could lead to higher ore imports FY 2012 6 Months ‘12
Slide 17: Steel Demand Still Drives the Market
Steel Demand Still Drives the Market Chinese steel production increased by 7.4% through the first half of 2013(1) India’s steel demand is projected to grow by 5.9% in 2013 and 7.0% in 2014(1) ― India produced 6.5 Mt of steel in June 2013 India’s steelmaking capacity is targeted to rise from 80 Mtpa
Slide 18: Increasing Iron Ore and Coal Production
Increasing Iron Ore and Coal Production Key iron ore expansion plans equal increased capacity of 410 Mt by 2017(1) ― 410 Mt represents 37.0% of total 2012 seaborne iron Key Expansion Plans(1) ore trade ― 121 Mt represents 10.9% of total 2012 seaborne iron BHP Fortescue Rio Tinto* Vale MMX Wusteel or
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Banks have tightened lending to Chinese shipyards in order to cut excess capacity(1) Total drybulk fleet has grown approximately 3% during the first six months of 2013(2) 14% of the fleet is 20 years old or greater while 10% of the fleet is 25 years old or greater(2) 33.6 md
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Q3 2013 Estimated Daily Expenses Reconciliation
Q3 2013 Estimated Daily Expenses Reconciliation(1) Consolidated Income Statement Less Baltic Trading(2) Elimination(3) Genco Cash/Non-Cash Adj.(4) Free Cash Flow (5) Annual Expenses by Category Direct Vessel Operating Expenses(6) $ 30,314,400 $ (4,715,400) $ - $ - $ 25,599,000 General, Administrativ
Slide 23: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Augustus 2007 Cargill International S.A. 103% of BCI February, 2014 Genco Tiberius 2007 Cargill International S.A. 100% of BCI September, 2013 Genco London 2007 Cargill International S.A. 1
Slide 24: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Success 1997 Global Maritime Trust PTE Ltd. $8,000(11) August, 2013 Handymax Genco Carrier 1998 Oldendorff GMBH & Co. $8,000(12) August, 2013 Genco Prosperity 1997 ED & F MAN Shipping Ltd.
Slide 25: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) 1) Time charter rates presented are the gross daily charterhire rates before third-party commissions generally ranging from 1.25% to 6.25%. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents’ fees a
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