Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — 2012 Global Shipping Conference
35 slides from Genco Shipping & Trading's conference presentation, Sep 5, 2012
Slide 1: Genco Shipping & Trading / Baltic Trading Limited 2012 Global Shipping Conference
Genco Shipping & Trading Baltic Trading Limited 2012 Global Shipping Conference September 5, 2012
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 Shipping & Trading Limited Company Overview
Genco Shipping & Trading Limited Company Overview
Slide 4: Management
Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer Over 25 years of Over 40 years of 18 years of experience in experience in the shipping experience in the shipping the shipping industry industry industry CFO since inception Chairman
Slide 5: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 High quality modern fleet of 53 vessels with an average age of 7.3 years versus an industry average of approximately 11 years Consistent operating strategy since inception ― Focus on all sectors of drybulk to maximize ROC ― Ma
Slide 6: High Quality Operations
High Quality Operations Extensive relationships with Selected Customer Relationships established drybulk charterers These relationships help us to: ― Minimize counterparty risk ― Maximize fleet utilization We utilize three leading technical Technical Managers managers ― Allows access to saving
Slide 7: 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 8: Financial Overview
Financial Overview
Slide 9: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 06/30/12 (Dollars in thousands) Balance Sheet Cash(1) $99,638 Debt(2) $1,420,757 Shareholders’ Equity(3) $1,150,580 Capitalization $2,571,337 Debt/Capitalization 55% See the Appendix for a reconciliation of pro
Slide 10: Credit Facility Amendment Structure
Credit Facility Amendment Structure Prepaid $99.9 million across all three facilities ― Eliminated amortization on all facilities through and including Q4 2013 (next scheduled amortization payment due first quarter of 2014) Extended existing waivers on maximum leverage ratio covenant and interes
Slide 11: Baltic Trading Limited Company Overview
Baltic Trading Limited Company Overview
Slide 12: Management Team
Management Team Peter C. Georgiopoulos John C. Wobensmith, CFA Chairman President & CFO Over 25 years of experience in the 18 years of experience in the shipping shipping industry industry Chairman and founder of Baltic Trading CFO of Genco Shipping & Trading Limited Limited since its incept
Slide 13: Baltic Trading Overview
Baltic Trading Overview Baltic Trading Limited (Baltic Trading) is a drybulk, spot market focused company Fleet consists of nine vessels with an average age of 2.7 years Targeting quarterly dividend payout Baltic Trading intends to return a significant portion of cash flow to shareholders Design
Slide 14: Fleet Overview
Fleet Overview Employment Vessel Type Vessel Name Year Built Charterer Charter Expiration (1) Structure Baltic Bear 2010 Swissmarine Services S.A. May 2013 101.5% of BCI (2) Capesize Baltic Wolf 2010 Cargill International S.A. September 2012 100% of BCI (3) Resource Marine PTE Ltd. Baltic Leopard 20
Slide 15: Dividend Declaration & Policy
Dividend Declaration & Policy Paid a dividend of $0.05 per share on August 22nd, 2012 to all shareholders of record on August 15th, 2012 Dividend policy established as follows: − Net income less cash expenditures for capital items related to fleet, such as drydocking and special surveys, other t
Slide 16: Industry Overview
Industry Overview
Slide 17: Drybulk Index
Drybulk Index Baltic Dry Index (BDI Points) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2010 2011 2012 Source: Clarkson Research Services Limited 2012 09/05/2012 17
Slide 18: Recent Drybulk Market Developments
Recent Drybulk Market Developments Chinese iron ore imports increased 9.6% through the first seven months of 2012 although a substantial decrease in iron ore prices has been observed(1) Scrapping increased 12% YOY during the first seven months of 2012 on a tonnage basis(1) ― 17 of the 44 Capesiz
Slide 19: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts The Chinese government has lowered bank reserve requirements by 50 bps three times since November 2011 to fuel lending and stimulate growth(1) Chinese Coal Imports(2) ― Additionally, benchmark loan and deposit rates have been cut twice since June 2012 (millio
Slide 20: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 2.1% YOY through the first seven months of 2012(1) Japanese steel production grew 3.5% in Q2 2012 from the previous quarter and was the strongest since Q1 2011(2) Total seaborne iron ore and coal trade are projected to grow 6% and 5%
Slide 21: Increasing Iron Ore and Coal Production are Major Factors
Increasing Iron Ore and Coal Production are Major Factors Key iron ore expansion plans equal increased capacity of 441 Mt by 2016(1) ― 441 Mt represents 41.9% of total 2011 seaborne iron ore trade Key Expansion Plans(1) Iron ore production from the world’s top four miners Vale, Rio Tinto, BHP an
Slide 22: Supply Side Fundamentals
Supply Side Fundamentals Newbuilding orders through the first seven months of 2012 have decreased 54% compared to the same period last year(1) ― One Capesize newbuilding vessel has been contracted since March 2012 ― Declining newbuilding activity and prices have put pressure on shipyard margins(2)
Slide 23: Appendix
Appendix 1
Slide 24: Pro Forma Reconciliation
Pro Forma Reconciliation 06/30/12 (Dollars in thousands) 6/30/12 Actual Adjustment 6/30/12 Pro Forma Cash(1) $255,768 (156,130) $99,638 Debt(2) $1,670,084 (249,327) $1,420,757 Shareholders’ Equity(3) $1,150,580 - $1,150,580 Capitalization $2,820,664 (249,327) $2,571,337 (1) June 30, 2012 pro forma c
Slide 25: Second Quarter Earnings - Consolidated
Second Quarter Earnings - Consolidated Three Months Ended Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 (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 26: Consolidating Income Statement
Consolidating Income Statement Three Months Ended June 30, 2012 (Dollars in thousands, except share and per share data) (unaudited) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues: Voyage revenues $ 54,509 $ 7,603 $ - $ - $ 62,112 Service revenues 1,53
Slide 27: June 30, 2012 Balance Sheet - Consolidated
June 30, 2012 Balance Sheet - Consolidated June 30, 2012 December 31, 2011 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 255,768 $ 237,718 Current assets 274,292 259,365 Total assets 3,074,139 3,119,277 Current liabilities (including current portion of lon
Slide 28: Second Quarter Highlights - Consolidated
Second Quarter Highlights - Consolidated Three Months Ended Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 62 60 62 60 Average number of vessels (1) 62.0 59.6 62.0 58.8 Total ownership days for fle
Slide 29: 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. 100% of BCI October, 2012 Genco Tiberius 2007 Cargill International S.A. 100% of BCI(3) August, 2013 Genco London 2007 Cargill International S.A. 10
Slide 30: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Success 1997 ED & F MAN Shipping Ltd. 91.5% of BSI April, 2013 Handymax Genco Carrier 1998 Klaveness Chartering 91% of BSI June, 2013 Genco Prosperity 1997 SK Shipping Co. Ltd. $8,000 Octob
Slide 31: 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
Slide 32: Appendix
Appendix 2
Slide 33: Year to Date Earnings
Year to Date Earnings Three Months Ended Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues $ 7,603 $ 9,914 $
Slide 34: June 30, 2012 Balance Sheet
June 30, 2012 Balance Sheet June 30, 2012 December 31, 2011 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 4,423 $ 8,300 Current assets 9,061 12,420 Total assets 374,001 384,955 Current liabilities 2,381 2,102 Total long-term debt 101,250 101,250 Shareholders' equity 270,370 281,603 T
Slide 35: 2nd Quarter Highlights
2nd Quarter Highlights Three Months Ended Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 9 9 9 9 Average number of vessels (1) 9.0 9.0 9.0 9.0 Total ownership days for fleet (2) 819 819 1,638 1,629
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