Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Noble Capital Markets' 14th Annual Investor Conference (January 2018)
29 slides from Genco Shipping & Trading's conference presentation, January 2018
Slide 1: Genco Shipping & Trading Limited
Genco Shipping & Trading Limited Noble Capital Markets’ 14th Annual Investor Conference January 2018
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: Overview of Genco & Drybulk Market Dynamics
Overview of Genco & Drybulk Market Dynamics
Slide 4: Executive Overview
Executive Overview We believe that drybulk shipping is in the early stages of a market recovery offering attractive upside potential Favorable market fundamentals Commodity demand growth is forecast to outpace vessel supply growth Strengthening global economic landscape Increased demand from emergin
Slide 5: Supply & Demand Development – Last 20 Years
Supply & Demand Development – Last 20 Years Drybulk Supply & Demand Growth (%) Fleet Growth Drybulk Trade Growth 18% Demand outpacing Chinese supply growth 16% Record stimulus fleet growth Recovering market Demand outpaced since 2H 2017 14% supply leading to strong market Financial 12% China joins C
Slide 6: 2018 Drybulk Outlook
2018 Drybulk Outlook Freight rate environment strengthened in 2017 Supply and demand fundamentals are expected to further improve in 2018 Expected 2018 Demand Fundamentals Expected 2018 Supply Fundamentals Projected demand growth: 3%-4% Projected supply growth: 1%-2% Iron ore trade expected to
Slide 7: Key Drybulk Trading Lanes
Key Drybulk Trading Lanes Drybulk shipping is a global business linking trade partners from around the world Iron Ore Coal Grain Source: Braemar 7
Slide 8: Seaborne Drybulk Trade Increasing Further
Seaborne Drybulk Trade Increasing Further Seaborne Drybulk Trade by Commodity – Last 20 Years 1,950 1,800 Iron Ore Coal Grain Forest Products Steel Products Other 1,650 1,500 1,350 1,200 1,050 MT 900 750 600 450 300 150 - 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201
Slide 9: Genco's Fleet Strongly Aligns With Global Trade Dynamics
Genco’s Fleet Strongly Aligns With Global Trade Dynamics Genco’s fleet of major and minor bulk vessels largely mirrors global trade flows, enabling the Company to capitalize on key trade routes Commodity Percentage of Trade – 2017 Primary Vessel Type Genco Fleet Distribution (dwt) Genco Cargoes Carr
Slide 10: Upside Earnings Potential Combined With Steadier Income Stream
Upside Earnings Potential Combined With Steadier Income Stream Capesize exposure provides upside earnings potential while minor bulk fleet provides a steadier income stream Genco’s Fleet Concentrates on the Major and Minor Bulks Shipping 1.9 0.9 0.8 0.4 Market “Beta” Provides upside potential, highl
Slide 11: Genco's Fleet Commercial Strategy – Major & Minor Bulks
Genco’s Fleet Commercial Strategy – Major & Minor Bulks
Slide 12: Genco's Enhanced Commercial Platform Drives Revenue Growth
Genco’s Enhanced Commercial Platform Drives Revenue Growth Focus on increasing margins Active Approach to Concentration on full in-house commercial platform Revenue Growth Providing full logistics solution to major cargo owners Repositioned a portion of the fleet to capture Atlantic premium
Slide 13: Commercial Strategy – Major Bulk
Commercial Strategy – Major Bulk Major Bulk Commercial Strategy Direct exposure to projected ton-mile demand growth highly driven by iron ore and coal ― Positioned the fleet for a stronger 2018 Diversifying and expanding the customer base Staggering expiration dates of charters Utilizing a p
Slide 14: Commercial Strategy – Minor Bulks
Commercial Strategy – Minor Bulks Minor Bulk Commercial Strategy Provide full service logistics solutions to top tier cargo owners ― Reallocated freight exposure through a more balanced Atlantic vs. Pacific split ― Repositioned select geared vessels during 2017 ― Reduction of ballast legs and high
Slide 15: Operational & Capital Structure
Operational & Capital Structure
Slide 16: Operations and Technical Management
Operations and Technical Management In-House Operations and Logistics Group Selected Third-Party Genco’s Daily Technical Vessel Operating Managers Expenses $5,200 ― Post-fixture logistics management of vessels $5,000 ― Enables charterers to efficiently carry cargoes $4,800 DVOE ― Monitors vessel per
Slide 17: Consolidated Capital Structure
Consolidated Capital Structure Genco Shipping & Trading Limited $400 Million Credit Facility $98 Million Hayfin Facility $33 Million ABN/Sinosure Facilities 7 Capesize, 3 Panamax, 2 Ultramax, 19 6 Capesize, 3 Panamax, 2 Supramax, Supramax, 1 Handymax, 13 Handysize 2 Ultramax Vessels 2 Handysize Vess
Slide 18: Market Update & Industry Overview
Market Update & Industry Overview
Slide 19: Market Update and Industry Overview
Based on Preliminary Results which are subject to change Market Update and Industry Overview Baltic Dry Index (BDI Points) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2016 2017 2018 Source: Clarkson Research Services Limited 2018 19
Slide 20: Recent Market Developments
Recent Market Developments Key Iron Ore Expansion Plans(1) Recent Developments Freight rates strengthened to multi-year highs in 70.0 BHP 2H 2017 primarily driven by: Significant Brazilian iron ore volume expected Rio Tinto 60.0 over the next two years ― Record steel production in China leading to
Slide 21: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts (1) Global Steel Production (million tons) 2017 2016 % Variance Iron Ore China 831.7 786.9 5.7% China’s iron ore imports rose by 5% in 2017 due to increased European Union 168.7 162.0 4.1% demand for high quality seaborne iron ore Japan 104.7 104.8 -0.1% Indi
Slide 22: Improving Supply Side Fundamentals Leading to Slower Net Fleet Growth
Improving Supply Side Fundamentals Leading to Slower Net Fleet Growth Current Drybulk Vessel Orderbook by Type Drybulk Vessel Deliveries vs. Scrapping (mdwt) Capesize Panamax Handymax Handysize (mdwt) Deliveries Scrapping Net Additions 12 10 Jan 2017 1.3% Newbuilding orderbook as a percentage 10 o
Slide 23: What's on the Horizon?
What’s on the Horizon? The drybulk market is expected to be propelled by the improving global economic landscape as well as increased demand for raw materials from developing economies 1 2 Strengthening Global One Belt / One Road Economy IMF forecasts global GDP to Initiative covers half of the
Slide 24: Conclusion
Conclusion
Slide 25: Genco is Attractively Positioned To Capture Potential Market Upside
Genco is Attractively Positioned To Capture Potential Market Upside Demand growth is expected to outpace supply growth Genco is well positioned for stronger market 1 2 Iron Ore Trade Growth Steel Production Commercial strategy driving revenue ― Active owner / operator Iron ore capacity Strong st
Slide 26: Thank you
Thank you
Slide 27: Appendix
Appendix
Slide 28: Genco's Major Bulk Fleet
Genco’s Major Bulk Fleet Major Bulk Vessel Name Year Built Dwt Capesize Capesize Genco Augustus 2007 180,151 Genco Tiberius 2007 175,874 Genco London 2007 177,833 13 Genco Titus 2007 177,729 Genco Constantine 2008 180,183 Genco Hadrian 2008 169,025 Genco Commodus 2009 169,098 Genco Maximus 2009 169,
Slide 29: Genco's Minor Bulk Fleet
Genco’s Minor Bulk Fleet Minor Bulk Vessel Name Year Built Dwt Vessel Name Year Built Dwt Ultramax Genco Rhone 2011 58,018 Ultramax / Supramax / Handymax Baltic Hornet 2014 63,574 Baltic Leopard 2009 53,446 Baltic Wasp 2015 63,389 Baltic Panther 2009 53,350 Baltic Scorpion 2015 63,462 Baltic Jaguar