Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2016 Earnings Presentation
29 slides from Genco Shipping & Trading's earnings presentation, Mar 2, 2017
Slide 1: Genco Shipping & Trading Limited Q4 2016 Earnings Call
Genco Shipping & Trading Limited Q4 2016 Earnings Call March 2nd, 2017
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 Fourth Quarter 2016 and Year to Date 2017 Highlights Financial Overview Industry Overview 3
Slide 4: Fourth Quarter 2016 and Year to Date 2017 Highlights
Fourth Quarter 2016 and Year to Date 2017 Highlights
Slide 5: Fourth Quarter 2016 and Year to Date 2017 Highlights
Fourth Quarter 2016 and Year to Date 2017 Highlights Closed the $400 million credit facility on November 15, 2016 ― Refinances all of our existing credit facilities with the exception of the $98 Million Credit Facility and the 2014 Term Loan Facilities ― No significant fixed debt repayments until 20
Slide 6: Genco's Position Post Refinancing
Genco’s Position Post Refinancing Genco has significantly improved its market position after the completion of the refinancing Strong Balance Sheet & Simple Capital Structure Strong Liquidity Position Diversified Fleet $169 Million at Dec 31 Genco Shipping Strategic Chartering Growth Potential & Tra
Slide 7: Genco Fleet List
Genco Fleet List* Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Capesize Supramax Handysize Genco Augustus 2007 180,151 Genco Warrior 2005 55,435 Genco Explorer 1999 29,952 13 Genco Tiberius 2007 175,874 Genco Hunter 2007 58,729 Genco Progress 1999 29,952
Slide 8: Financial Overview
Financial Overview
Slide 9: Fourth Quarter Earnings
Fourth Quarter Earnings Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (u
Slide 10: December 31, 2016 Balance Sheet
December 31, 2016 Balance Sheet December 31, 2016 December 31, 2015 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 169,068 $ 140,889 Current assets 172,605 172,529 Total assets 1,568,960 1,714,663 Current liabilities (excluding current portion of long-term
Slide 11: Fourth Quarter Highlights
Fourth Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 65 70 65 70 Average number of vessels (1) 66.7 69.9 68.8 68.6 Total ownership days for
Slide 12: Historical G&A Line Item Analysis – FY 2016 Breakdown
Historical G&A Line Item Analysis – FY 2016 Breakdown ($ in millions) G&A, Nonvested Stock Amortization and Technical Management Fee Breakdown (2016) $55 $50 $45 $16.8 $40 $35 $8.9 $30 $25 $53.5 $20 $20.7 $15 $10 $7.1 $5 $0 Financing & Nonvested Stock Third-Party Technical G&A Total G&A and Mgmt Ref
Slide 13: Vessel Opex Optimization Has Resulted in Significant Savings
Vessel Opex Optimization Has Resulted in Significant Savings Genco’s Daily Vessel Operating Expenses $5,200 -3% -7% -2% $5,000 $4,800 DVOE $4,600 $5,035 $4,400 $4,870 $4,514 $4,200 $4,440 $4,000 (1) 2014 2015 2016 2017F Savings: $4m $9m $2m Genco has been able to consistently reduce costs since 2014
Slide 14: Fixed Quarterly Debt Repayment Schedule (2017-2019)
Fixed Quarterly Debt Repayment Schedule (2017-2019) Significantly reduced fixed debt repayment schedule following the refinancing Year Fixed Debt Repayment 2017 $4.6 million 2018 $13.2 million 2019 $43.2 million Low Fixed Debt Repayments through 2018 Fixed Debt Repayments in 2019 $12 $10.8 $10.8 $10
Slide 15: Improved Estimated Cash Breakeven Rates
Improved Estimated Cash Breakeven Rates(1) (per day) Reduced Fleet Breakeven Rates following Refinancing $10,000 $9,888 / vessel / day 27% Estimated $9,000 Reduction $8,000 $7,189 / vessel / day $7,000 $6,000 (2) Pre-Refinancing - Q4 2016 Post Refinancing and Sales - 60 Vessels (per day) Fleet Break
Slide 16: Industry Overview
Industry Overview
Slide 17: Market Update and Industry Overview
Market Update and Industry Overview Baltic Dry Index (BDI Points) 1,400 1,200 1,000 800 600 400 200 0 2015 2016 2017 Source: Clarkson Research Services Limited 2017 17
Slide 18: Recent Market Developments
Recent Market Developments Iron Ore Imports by Country(1) Recent Developments (Mt) 120 China EU Japan South Korea During Q4 2016, freight rates rose from the lower levels experienced earlier in the year primarily due to: 100 ― Firm iron ore demand due to increased Chinese steel 80 production 60 ― In
Slide 19: Global Steel Production
Global Steel Production (1) Global Steel Production (million tons) January 2017 January 2016 % Variance 2016 2015 % Variance China 67.2 62.6 7.4% 808.4 798.8 1.2% European Union 13.8 13.5 2.4% 162.3 166.2 -2.3% Japan 9.0 8.8 2.7% 104.8 105.1 -0.3% India 8.4 7.5 12.0% 95.6 89.0 7.4% South Korea 5.9 5
Slide 20: Coal Demand
Coal Demand Coal Power Plant Stockpiles(1) 300 120 45 China and India Coal Imports 40 275 (2010-2016)(2) 100 China India 35 250 China China Stockpiles (MT) India Stockpiles (MT) 80 30 India 225 25 MT 60 200 20 175 40 15 10 150 20 5 125 0 0 100 2010 2011 2012 2013 2014 2015 2016 China’s coal imports
Slide 21: Supply Side Fundamentals
Supply Side Fundamentals Current Drybulk Vessel Orderbook by Type Drybulk Vessel Deliveries vs. Scrapping (mdwt) Capesize Panamax Handymax Handysize (mdwt) Deliveries Scrapping Net Additions 18 16 Peak 16 2.0% Newbuilding orderbook as 14 1.9% a percentage of the fleet is 12 Jan 2013 14 currently 9%
Slide 22: Supply Side Fundamentals
Supply Side Fundamentals Vessel Demoliton Vessel Demoliton (mdwt) Average Age (Years) YTD 2017 YTD 2017 FY 2016 2017 YTD 2016 2015 Annualized Capesize 22 20 21 Capesize 2.10 13.22 13.34 Panamax 21 21 22 Panamax 0.53 3.32 7.90 Supramax 21 23 26 Supramax 0.14 0.86 4.69 Handysize 35 28 28 Handysize 0.2
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Genco Fleet Details
Genco Fleet Details Vessel Type Vessel Name Year Built Charterer Charter Expiration(1) Cash Daily Rate (2) Genco Augustus 2007 Swissmarine Services S.A. April 2017 $7,800 Genco Tiberius 2007 Cargill International S.A. July 2017 $10,500 (3) Capesize $3,250 with 50% profit Genco London 2007 Swissmarin
Slide 26: Genco Fleet Details
Genco Fleet Details* Vessel Type Vessel Name Year Built Charterer Charter Expiration(1) Cash Daily Rate(2) Genco Brittany 2010 Clipper Sapphire Pool August 2017 Spot Pool (13) Genco Languedoc 2010 Clipper Sapphire Pool August 2017 Spot Pool (13) Supramax Genco Normandy 2007 Bulkhandling Handymax A/S
Slide 27: Footnotes to Genco Fleet Table
Footnotes to Genco Fleet Table (1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Under the terms of each contract, the charterer is entitled to extend the time charter from two to four months in order to complete the v
Slide 28: Q1 2017 Genco Estimated Breakeven Rates
Q1 2017 Genco Estimated Breakeven Rates (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,440 $4,440 General and Administrative 697 697 Expenses(4) Nonvested Stock Amortization - 85 Technical Management Fees(5) 347 347 Drydocking(6) 1,250 - Interest Expense(7)
Slide 29: 2017 Genco Estimated Breakeven Rates
2017 Genco Estimated Breakeven Rates (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,440 $4,440 General and Administrative 687 687 Expenses(4) Nonvested Stock Amortization - 84 Technical Management Fees(5) 342 342 Drydocking(6) 532 - Interest Expense(7) 979
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