Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2015 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, Aug 5, 2015
Slide 1: Genco Shipping & Trading Limited Q2 2015 Earnings Call
Genco Shipping & Trading Limited Q2 2015 Earnings Call August 5, 2015
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 2015 Highlights Baltic Trading Merger Overview Financial Overview Industry Overview 3
Slide 4: Second Quarter 2015 and Year to Date Highlights
Second Quarter 2015 and Year to Date Highlights
Slide 5: Second Quarter 2015 and Year to Date Highlights
Second Quarter 2015 and Year to Date Highlights Net loss attributable to Genco Shipping & Trading Limited of $40.3 million for the second quarter of 2015 ― Basic and diluted loss per share of $0.67 Completed its merger with Baltic Trading Limited (“Baltic Trading”) on July 17, 2015 under which Genco
Slide 6: Genco Fleet List
Genco Fleet List* Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Ultramax Genco Augustus 2007 180,151 Baltic Hornet 2014 63,574 Genco Tiberius 2007 175,874 Baltic Wasp 2015 63,389 Genco London 2007 177,833 Baltic Scorpion** 2015 64,000 Genco Titus 2007 177,729 Baltic Mantis** 2015 64
Slide 7: Genco Fleet List (continued)
Genco Fleet List (continued) Vessel Name Year Built Dwt Vessel Name Year Built Dwt Supramax (continued) Handysize (continued) Genco Loire 2009 53,430 Genco Charger 2005 28,398 Genco Lorraine 2009 53,417 Genco Champion 2006 28,445 Genco Normandy 2007 53,596 Genco Challenger 2003 28,428 Genco Picardy
Slide 8: Baltic Trading Merger Overview
Baltic Trading Merger Overview
Slide 9: Baltic Trading Merger Details
Baltic Trading Merger Details Completed the merger with Baltic Trading on July 17, 2015 under which Genco acquired Baltic Trading in a stock-for-stock transaction ― Started trading on the NYSE under symbol GNK on July 20, 2015 In accordance with the terms of the merger agreement, Baltic Trading is n
Slide 10: Merger Agreement Highlights
Merger Agreement Highlights The Special Committees of Genco and Baltic Trading considered a number of factors of the merger which are beneficial to the shareholders of the combined company. The merger is expected to: Create a stronger global competitor in the drybulk shipping market ― Result in larg
Slide 11: Financial Overview
Financial Overview
Slide 12: Second Quarter Earnings - Consolidated
Second Quarter Earnings - Consolidated Successor Predecessor Successor Predecessor Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (
Slide 13: Second Quarter Consolidating Income Statement
Second Quarter Consolidating Income Statement Three Months Ended June 30, 2015 (Dollars in thousands, except share and per share data) (unaudited) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues: Voyage revenues $ 26,959 $ 6,813 $ - $ - $ 33,772 Servic
Slide 14: June 30, 2015 Balance Sheet - Consolidated
June 30, 2015 Balance Sheet - Consolidated June 30, 2015 December 31, 2014 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 71,698 $ 113,109 Current assets 108,470 130,326 Total assets 1,669,600 1,752,913 Current liabilities 79,322 63,938 Total long-term debt
Slide 15: Second Quarter Highlights - Consolidated
Second Quarter Highlights - Consolidated Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 68 66 68 66 Average number of vessels (1) 68.0 66.0 68.0 66.0 Total ownership days for fle
Slide 16: Industry Overview
Industry Overview
Slide 17: Market Update and Industry Overview
Market Update and Industry Overview Baltic Dry Index (BDI Points) 2,500 2,000 1,500 1,000 500 0 2013 2014 2015 Source: Clarkson Research Services Limited 2015 17
Slide 18: Recent Market Developments
Recent Market Developments Iron Ore Imports by Country(1) Recent Developments (Mt) The Baltic Dry Index has risen to its highest level since 100 China EU Japan South Korea December 2014 predominately led by the Capesize sector 90 80 Capesize rates have been propelled by a contraction of the fleet 70
Slide 19: Major Iron Ore Producers Output to Date
Major Iron Ore Producers Output to Date Major Iron Ore Miners Production(1) China’s Sources of Iron Ore(2) FMG RIO BHP VALE Australia S. America Asia 70% S&E Africa N&W Africa Other 90.0 80.0 60% 70.0 50% 60.0 Million Tons 50.0 40% 40.0 30% 30.0 20% 20.0 10.0 10% - 0% In Q2 2015, iron ore output fro
Slide 20: Global Steel Production
Global Steel Production (1) Global Steel Production (million tons) June 2015 June 2014 % Variance 1H 2015 1H 2014 % Variance China 68.9 69.5 -0.8% 410.0 415.4 -1.3% European Union 14.6 14.4 1.7% 88.1 87.7 0.5% Japan 8.6 9.1 -6.2% 52.6 55.2 -4.7% India 7.4 7.4 0.8% 45.0 43.1 4.2% South Korea 5.9 6.1
Slide 21: Coal Demand
Coal Demand China’s coal power plant inventories are 30% or 28.5MT 120 Coal Power Plant Stockpiles lower than the start of 2015 35 China India China Stockpiles (MT) 100 30 India Stockpiles (MT) 25 80 20 60 15 40 India coal power plant stockpiles have 10 increased by 350% since reaching a low of 6.8M
Slide 22: 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 28 16 3.3% Peak 14 24 2.9% Current orderbook is 2.7% 19% of the fleet 12 Jan 2013 20 10 Jan 2015 2.4% Jan 20
Slide 23: Supply Side Fundamentals
Supply Side Fundamentals Vessel Demoliton Vessel Demoliton (mdwt) Average Age (Years) YTD 2015 YTD 2015 FY 2014 2015 YTD 2014 2013 Annualized Capesize 21 24 23 Capesize 11.40 19.81 4.23 Panamax 23 24 25 Panamax 3.61 6.28 3.88 Supramax 27 27 28 Supramax 2.12 3.69 3.93 Handysize 29 29 30 Handysize 3.3
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Genco Fleet Details
Genco Fleet Details Vessel Type Vessel Name Year Built Charterer Charter Expiration(1) Cash Daily Rate(2) Expected Delivery(3) Genco Augustus 2007 Swissmarine Asia Pte. Ltd. March 2016 102% of BCI Genco Tiberius 2007 Cargill International S.A. November 2015 102% of BCI Capesize Genco London 2007 Car
Slide 27: Genco Fleet Details
Genco Fleet Details* Vessel Type Vessel Name Year Built Charterer Charter Expiration(1) Cash Daily Rate(2) Expected Delivery(3) Genco Brittany 2010 Clipper Sapphire Pool February 2016 Spot Pool(16) Genco Languedoc 2010 Clipper Sapphire Pool February 2016 Spot Pool(16) Supramax Genco Normandy 2007 Ch
Slide 28: 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 charters from two to four months in order to complete the v
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