Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2007 Earnings Presentation
23 slides from Genco Shipping & Trading's earnings presentation, Feb 14, 2008
Slide 1: Genco Shipping & Trading Limited Q4 2007 Earnings Call
Genco Shipping & Trading Limited Q4 2007 Earnings Call February 14, 2008
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
Slide 3: Agenda
Agenda Fourth Quarter 2007 and Year to Date Highlights Financial Overview Industry Overview 02/14/08 3
Slide 4: Fourth Quarter 2007 and Year to Date Highlights
Fourth Quarter 2007 and Year to Date Highlights
Slide 5: Fourth Quarter 2007 and Year to Date Highlights
Fourth Quarter 2007 and Year to Date Highlights Net Income of $33.5 million for the fourth quarter of ’07, excluding the gain on the sale of the Genco Commander ― Basic earnings per share of $1.17 and diluted of $1.16 Net Income of $56.9 million for the fourth quarter of ‘07 ― Basic earnings per
Slide 6: Fleet Employment
Fleet Employment* Daily Cash Daily Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Rate (2) Genco Augustus 2007 Cargill International S.A. 45,263 62,750 December, 2009 Capesize Genco Tiberius 2007 Cargill International S.A. 45,263 62,750 January, 2010 4 Genco Lon
Slide 7: Footnotes to Fleet Employment table (previous page)
Footnotes to Fleet Employment 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 Trader and the Genco Leader in note 6 below. In a ti
Slide 8: Acquisition Vessels to be Delivered
Acquisition Vessels to be Delivered Year Duration/ Daily Cash Vessel Type Vessel Name DWT Yard Delivery(1) Charterer Built(1) Expiration Rate (2) Genco Constantine 179,500 Imabari Feb. 22, 2008 2008 Cargill 54 to 62 Mos 52,750(3) Capesize Genco Hadrian 170,500 Sungdong Q4 2008 2008 Genco Commodus 17
Slide 9: Financial Overview
Financial Overview
Slide 10: Year to Date Earnings
Year to Date Earnings Three Months Ended Twelve Months Ended December 31, 2007 December 31, 2006 December 31, 2007 December 31, 2006 (Dollars in thousands, except share and per share (Dollars in thousands, except share and per share data) data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues
Slide 11: December 31, 2007 Balance Sheet
December 31, 2007 Balance Sheet December 31, 2007 December 31, 2006 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 71,496 $ 73,554 Current assets, including cash 267,594 Dwt 88,118 Total assets 1,653,272 578,262 Current liabilities, including current portion of long-term debt 70,364 1
Slide 12: 4th Quarter Highlights
4th Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2007 December 31, 2006 December 31, 2007 December 31, 2006 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 27 20 27 20 Average number of vessels (1) 23.0 18.7 20.4 17.4 Total ownership days for fl
Slide 13: Balance Sheet Selected Financial Information Updated Pro Forma 12/31/07
Balance Sheet Selected Financial Information Updated Pro Forma 12/31/07 (Dollars in thousands) Balance Sheet Liquidity Position Cash(1) $46,779 Revolving Credit Facility $1,377,000 Debt(2) $1,044,500 Drawn Portion(2) (1,044,500) Shareholders’ Equity(3) 623,468 Undrawn Portion $332,500 Capitalization
Slide 14: Acquisition Vessel Payment Schedule
Acquisition Vessel Payment Schedule (Dollars in thousands) Deposit as % Expected Deposit Payment on Total Vessel Name of Purchase Delivery (1) Payment (2) Delivery Price Price Genco Constantine Feb 22, 2008 15% 19,350 109,650 129,000 Genco Hadrian Q4 2008 20% 24,200 96,800 121,000 Genco Commodus Q2
Slide 15: 2008 Estimated Break-Even Levels
2008 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $ 4,700 $ 4,700 General & Administrative(4) 1,050 1,581 Management Fees(5) 245 245 Dry Docking (6) 446 - Interest Expense (7) 5,368 4,986 Depreciation(8) - 6,544 Daily Break-Even(9)
Slide 16: Dividend Declaration & Policy
Dividend Declaration & Policy Period Declared Dividend Declared a Q4 2007 dividend of $0.85 per share payable on or Q3 2005 $0.60 about March 7th, 2008 to all Q4 2005 $0.60 shareholders of record as of February 29th, 2008 Q1 2006 $0.60 Q2 2006 $0.60 Cash reserves are determined by our Board of D
Slide 17: Industry Overview
Industry Overview
Slide 18: Drybulk Indices
W ee 02/14/08 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 k W 1 ee k W 3 ee k W 5 ee k W 7 ee W k9 ee (BCI Points) k W 11 ee k W 13 ee k W 15 ee k W 17 ee k W 19 ee k W 21 ee k W 23 ee k W W 25 ee k 0 2,000 4,000 6,000 8,000 10,000 12,000 ee k W 1 W 27 ee ee k k W 3 W 29 Drybulk Ind
Slide 19: Chinese Steel Production Drives the Market
Chinese Steel Production Drives the Market Continued demand resulted in YOY growth for Chinese steel production at 15% and iron ore imports at 18% through the end of 2007 Temporary softness due to Brazilian port shutdown, Australian flooding and delayed iron ore negotiations Increased steel pr
Slide 20: Strong Drybulk Vessel Demand Fundamentals
Strong Drybulk Vessel Demand Fundamentals Major Drybulk Importers(5) Chinese GDP grew by 11.2% (million tons per year) YOY for Q4 2007, and 600 estimated to have grown by 500 11.4% for 2007.(1) Indian GDP is forecasted to 400 grow by 8.7% YOY for the year 300 to March 31,2008 (2) 200 World GDP
Slide 21: What will drive the market?
What will drive the market? Vale’s Itaquai terminal scheduled to return to operation in the middle of February Increased ton-mile demand from Brazil is anticipated Anticipated conclusion of iron ore price negotiations Accelerated Chinese fixed asset investment at the end of 2007 Ongoing As
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 12/31/07
Pro Forma Reconciliation 12/31/07 (Dollars in thousands) 12/31/07 Actual Adjustment 12/31/07 Pro Forma Cash(1) $71,496 ($24,717) $46,779 Debt(2) $936,000 108,500 $1,044,500 Shareholders’ Equity(3) 622,185 1,283 623,468 Capitalization $1,558,185 - $1,667,968 (1) December 31, 2007 pro forma cash takes
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