Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2010 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, Feb 24, 2011
Slide 1: Q4 2010 Earnings Call
Genco Shipping & Trading Limited Q4 2010 Earnings Call February 24th, 2011
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 and Year to Date 2010 Highlights Financial Overview Industry Overview 2/24/11 3
Slide 4: Fourth Quarter 2010 and Year to Date Highlights
Fourth Quarter 2010 and Year to Date Highlights
Slide 5: Fourth Quarter 2010 and Year to Date Highlights
Fourth Quarter 2010 and Year to Date Highlights Net Income attributable to Genco Shipping & Trading Limited of $34.8 million for the fourth quarter of ’10 ― Basic and diluted earnings per share of $0.99 and $0.90 respectively Cash position of $279.9 million on a consolidated basis ― Genco Shippi
Slide 6: Pro Forma Fleet
Pro Forma Fleet Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Bourbon Acquisition Genco Augustus 2007 180,151 Supramax Vessels Genco Tiberius 2007 175,874 Genco Aquitaine 2009 57,981 Genco London 2007 177,833 Genco Ardennes 2009 57,981 Genco Titus 2007 177,729 Genco Auvergne 2009 57
Slide 7: Financial Overview
Financial Overview
Slide 8: Year to Date Earnings - Consolidated
Year to Date Earnings - Consolidated Three Months Ended Twelve Months Ended December 31, 2010 December 31, 2009 December 31, 2010 December 31, 2009 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended December 31, 2010 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Voyage Revenues $ 114,701 $ 15,161 $ - $ - $ 129,862 Service Revenue 2,627 - (1,840) - 78
Slide 10: December 31, 2010 Balance Sheet - Consolidated
December 31, 2010 Balance Sheet - Consolidated December 31, 2010 December 31, 2009 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 279,877 $ 205,767 Current assets 293,681 218,068 Total assets 3,182,708 2,336,802 Current liabilities (including current portio
Slide 11: Fourth Quarter Highlights - Consolidated
Fourth Quarter Highlights - Consolidated Three Months Ended Twelve Months Ended December 31, 2010 December 31, 2009 December 31, 2010 December 31, 2009 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 58 35 58 35 Average number of vessels (1) 57.7 34.0 44.6 32.7 Total own
Slide 12: Pro Forma Balance Sheet (Excluding Baltic Trading Limited)
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 12/31/10 (Dollars in thousands) Balance Sheet Cash(1) $245,490 Debt(2) $1,627,038 Shareholders’ Equity(3) $1,132,949 Capitalization $2,759,987 Debt/Capitalization 59% See the Appendix for a reconciliation of pr
Slide 13: 2011 Estimated Daily Expenses
2011 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Genco Standalone Consolidated Direct Vessel Operating(3) 5,200 5,200 General, Administrative and 1,240 1,585 Management Fees(4) Dry Docking (5) 418 - Interest Expense (6) 4,125 3,954 Depreciation(7) - 6,376 Deb
Slide 14: Convertible Debt Accounting Guidance
Convertible Debt Accounting Guidance (Dollars in Thousands) Balance Sheet Items ― Notes payable equals the present value of remaining coupon payments and principal repayment, based on the estimated yield to maturity of 10% which represents similar notes absent the conversion feature. ― The differe
Slide 15: Industry Overview
Industry Overview
Slide 16: Drybulk Index
2/24/11 W ee 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 k W 1 ee k W 3 Services Limited 2011 ee Source: Clarkson’s Research k W 5 ee k W 7 e W ek ee 9 k Drybulk Index W 11 ee k W 13 ee k W 15 ee W k1 ee 7 k W 19 ee k W 21 ee k W 23 ee W k2 ee 5 16 k W 27 ee Baltic Dry Index k W 29 e
Slide 17: Current Market Conditions
Current Market Conditions Main drivers behind suppressed rate environment Weather related disruptions reduced iron ore and coal volumes in Australia(1) ― 5% reduction of global iron ore and coal trade in January due to weather interruptions in Australia ― Intermittent service at iron ore loading p
Slide 18: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 9.3% YOY for the twelve months ended 2010 Iron ore inventories at Chinese ports currently stand at 78.1Mt(1) China’s economic growth accelerated from 9.6% in Q3 2010 to 9.8% in Q4 2010(2) China is expected to build as many as 50 mil
Slide 19: Increasing Iron Ore Production is a Major Factor
Increasing Iron Ore Production is a Major Factor Key iron ore expansion plans equal an increased capacity of 427 Mt per annum(1) Key Expansion Plans(1) ― 427 Mt represents 41.9% of total 2010 seaborne iron ore trade (million tons) Vale’s iron ore production plans are to reach BHP Fortescue Rio T
Slide 20: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital ― Banks lending only to select clients Depressed vessel values imply higher equity installments required from illiquid owners Estimated 40% slippage of the scheduled orderbook through the year ended 2010(1) 21% of fleet that is greater than 25 years ol
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 12/31/10
Pro Forma Reconciliation 12/31/10 (Dollars in thousands) 12/31/10 Actual Adjustment 12/31/10 Pro Forma Cash(1) $279,877 (34,387) $245,490 Debt(2) $1,746,248 (119,210) $1,627,038 Shareholders’ Equity(3) $1,348,153 (215,204) $1,132,949 Capitalization $3,094,401 (334,414) $2,759,987 (1) December 31, 20
Slide 24: Remaining Vessel CAPEX
Remaining Vessel CAPEX (Dollars in thousands) Deposit as % Debt Equity Expected Deposit Vessel Name of Purchase Financing Payment on Total Price Delivery (1) Payment Price on Delivery Delivery Metrostar Acquisition Genco Avra May 2011 10% 3,325 20,000 9,925 33,250 Genco Mare June 2011 10% 3,325 20,0
Slide 25: GNK Fleet Details
GNK Fleet Details* 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. 100% of BCI (4) December, 2011 Genco Tiberius 2007 Cargill International S.A. 31,000 September, 2011 Genco London 2007
Slide 26: GNK Fleet Details
GNK Fleet Details Cash Daily Net Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Daily Rate (2) Genco Success 1997 Swissmarine Services S.A. 90% of BSI (16) January, 2012 Genco Carrier 1998 Louis Dreyfus Corporation 37,000 March, 2011 Handymax Genco Prosperity 19
Slide 27: Footnotes to Fleet Table (previous two pages)
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
Slide 28: Footnotes to Fleet Table (previous two pages)
Footnotes to Fleet Table (previous two pages) (12) The rate for the spot-market related time charter is based on 102% of the average of the daily rates of the Baltic Supramax Index, or BSI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 5.00% third party brokerage comm
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