Genco Shipping & Trading Limited · NYSE:GNK

Genco Shipping & Trading — Q4 2008 Earnings Presentation

23 slides from Genco Shipping & Trading's earnings presentation, Feb 26, 2009

  1. Slide 1: Genco Shipping & Trading Limited Q4 2008 Earnings Call

    Genco Shipping & Trading Limited Q4 2008 Earnings Call February 26, 2009

  2. 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. These forward looking statements ar

  3. Slide 3: Agenda

    Agenda „ Fourth Quarter 2008 and Year to Date Highlights „ Financial Overview „ Industry Overview 02/26/09 3

  4. Slide 4: Fourth Quarter 2008 and Year to Date Highlights

    Fourth Quarter 2008 and Year to Date Highlights

  5. Slide 5: Fourth Quarter 2008 and Year to Date Highlights

    Fourth Quarter 2008 and Year to Date Highlights „ Net Income of $48.4 million for the fourth quarter of ’08, excluding $159.7 million loss from unusual events ― Basic and diluted earnings per share of $1.55 „ Net Loss of $111.3 million for the fourth quarter of ’08 ― Basic and diluted loss per share

  6. Slide 6: Current Fleet

    Current Fleet * Cash Daily Net Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Daily Rate (2) Genco Augustus 2007 Cargill International S.A. 45,263 62,750 December, 2009 Genco Tiberius 2007 Cargill International S.A. 45,263 62,750 January, 2010 Capesize Genco Lon

  7. Slide 7: Footnotes to Fleet Table (previous page)

    Footnotes to Fleet Table (previous page) (1) Time charter rates presented are the gross daily charterhire rates before the payments of brokerage commissions ranging from 1.25% to 6.25% to third parties, except as indicated for the Genco Leader in note 6 below. In a time charter, the charterer is res

  8. Slide 8: Financial Overview

    Financial Overview

  9. Slide 9: Year to Date Earnings

    Year to Date Earnings Three Months Ended Twelve Months Ended December 31, 2008 December 31, 2007 December 31, 2008 December 31, 2007 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues

  10. Slide 10: December 31, 2008 Balance Sheet

    December 31, 2008 Balance Sheet December 31, 2008 December 31, 2007 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 124,956 $ 71,496 Current assets, including cash 140,748 267,594 Total assets 1,990,006 1,653,272 Current liabilities, including current portion of long-term debt 30,192 7

  11. Slide 11: 4th Quarter Highlights

    4th Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2008 December 31, 2007 December 31, 2008 December 31, 2007 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 32 27 32 27 Average number of vessels (1) 31.0 23.0 29.3 20.4 Total ownership days for fl

  12. Slide 12: Q4 2008 Unusual Events

    Q4 2008 Unusual Events (Dollars in millions) Income Statement Event Description Effect Charge to other Impairment on Jinhui investment ($103.9) expense Cancellation of six-vessel acquisition Charge to operating ($53.8) expenses (Forfeiture of 10% deposit) Cancellation of $320 million facility Charge

  13. Slide 13: Credit Facility Amendment

    Credit Facility Amendment Amended AmendedRevolving RevolvingFacility Facility Highlights Highlights „ Collateral maintenance covenant waived until compliance achieved Amount Up to $1.4 billion „ Dividend and share buyback Term 10 Years programs suspended until Quarterly $12.5 million starting compli

  14. Slide 14: Balance Sheet Selected Financial Information Updated Pro Forma 12/31/08

    Balance Sheet Selected Financial Information Updated Pro Forma 12/31/08 (Dollars in thousands) Balance Sheet Liquidity Position Cash(1) $121,513 Revolving Credit Facility $1,377,000 Drawn Portion (1,173,300) Debt $1,173,300 Shareholders’ Equity $696,478 Undrawn Portion $203,700 Capitalization $1,869

  15. Slide 15: Acquisition Vessel Payment Schedule

    Acquisition Vessel Payment Schedule (Dollars in thousands) Expected Deposit as % of Deposit Payment on Vessel Name Delivery (1) Purchase Price Payment (2) Delivery Metrostar Acquisition Vessels Genco Commodus Q2 2009 20% 24,200 96,800 Genco Maximus Q2 2009 20% 24,000 96,000 Genco Claudius Q3 2009 20

  16. Slide 16: 2009 Estimated Break-Even Levels

    2009 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,350 5,350 General & Administrative(4) 956 1,304 Management Fees(5) 293 293 Dry Docking (6) 425 - Interest Expense (7) 6,241 6,090 Depreciation(8) - 7,397 Daily Break-Even(9) 13,26

  17. Slide 17: Industry Overview

    Industry Overview

  18. Slide 18: BDI Review & Key Events

    BDI Review & Key Events Baltic Dry Index (BDI Points) „ BHP concludes price negotiations with China „ Olympics „ Vale Re-Negotiations 12,000 „ Paralympics „ Global Credit Crisis 10,000 „ Lack of Trade Credit 8,000 „ Steel Mills Cut Production 15 – 30% 6,000 „ Decreasing Iron Ore Stock Piles „ Increa

  19. Slide 19: Demand Side Fundamentals

    Demand Side Fundamentals „ World steel production decrease of 24% as opposed to an increase of 2.4% for Chinese steel production for the first month of 2009 „ Increased capesize vessel activity from Brazil and Australia into China „ Declining iron ore inventories ― Latest data point at approximately

  20. Slide 20: Supply Side Fundamentals

    Supply Side Fundamentals „ Credit crunch poses threat to new as well as existing yards „ Newer yards are unable to obtain refund guarantees and working capital „ Over 30% of the fleet is greater than 20 years old and will need renewal(1) „ Estimated 230 vessel cancellations so far, plus delays „ Vas

  21. Slide 21: Chinese Stimulus Plan

    Chinese Stimulus Plan „ $586 billion stimulus plan towards housing and transportation infrastructure(2) ― 1/3rd expected to reach project level by the end of Q1 ― Includes $244 billion for reconstruction of earthquake-stricken provinces „ $292 billion investment on railway network expansion(2) ― 186

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Pro Forma Reconciliation 12/31/08

    Pro Forma Reconciliation 12/31/08 (Dollars in thousands) 12/31/08 Actual Adjustment 12/31/08 Pro Forma Cash(1) $124,956 ($3,443) $121,513 Debt $1,173,300 - $1,173,300 Shareholders’ Equity $696,478 - $696,478 Capitalization $1,869,778 - $1,896,778 (1) December 31, 2008 pro forma cash takes into effec

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