Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q3 2017 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, Nov 2, 2017
Slide 1: Genco Shipping & Trading Limited Q3 2017 Earnings Call
Genco Shipping & Trading Limited Q3 2017 Earnings Call November 2nd, 2017
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 Third Quarter 2017 and Year to Date Highlights Financial Overview Industry Overview 3
Slide 4: Third Quarter 2017 and Year to Date Highlights
Third Quarter 2017 and Year to Date Highlights
Slide 5: Third Quarter 2017 and Year to Date Highlights
Third Quarter 2017 and Year to Date Highlights Increased cash position to $185.1 million as of September 30, 2017 Net loss of $31.2 million for the third quarter of 2017 ― Basic and diluted loss per share of $0.90 ― Adjusted basic and diluted loss of $12.5 million or $0.36 per share, excluding $
Slide 6: Optimization of Industry Leading Platform
Optimization of Industry Leading Platform Strengthen Balance Sheet Execution of strategic initiatives has enhanced Genco’s already industry leading drybulk platform Expense Optimization Transformed commercial platform to an active owner-operator model to increase margins and outperform bench
Slide 7: Leading Market Position
Leading Market Position Significant improvement in margins driven by successful implementation of our commercial platform together with continued cost optimization Genco TCE vs. DVOE Ending Cash Balances TCE (net of voyage expenses & broker commission) (Including Restricted Cash) $12,000 58% of Q4-1
Slide 8: Genco Fleet List
Genco Fleet List* Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Capesize Supramax Handysize Genco Augustus 2007 180,151 Genco Warrior 2005 55,435 Genco Explorer 1999 29,952 13 Genco Tiberius 2007 175,874 Genco Hunter 2007 58,729 Genco Progress 1999 29,952
Slide 9: Optimizing Commercial Strategy – Major Bulks
Optimizing Commercial Strategy – Major Bulks Established a Singapore presence to focus on Capesize vessels as well as backhaul trades on the minor bulk fleet Direct exposure to projected ton-mile demand growth highly driven by iron ore and coal ― Positioned the fleet for a stronger 2H 2017 Major
Slide 10: Optimizing Commercial Strategy – Minor Bulks
Optimizing Commercial Strategy – Minor Bulks Provide full service logistics solutions to top tier cargo owners ― Reallocated freight exposure through a more balanced Atlantic vs. Pacific split Expect to be fully withdrawn from all pools by mid-November ― Continue to reposition select vessels to
Slide 11: Financial Overview
Financial Overview
Slide 12: Third Quarter Earnings
Third Quarter Earnings Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (un
Slide 13: September 30, 2017 Balance Sheet
September 30, 2017 Balance Sheet September 30, 2017 December 31, 2016 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 185,105 $ 169,068 Current assets 194,583 172,605 Total assets 1,516,483 1,568,960 Current liabilities (excluding current portion of long-ter
Slide 14: Third Quarter Highlights
Third Quarter Highlights Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 60 69 60 69 Average number of vessels (1) 60.0 69.0 61.1 69.5 Total ownership days fo
Slide 15: Fixed Quarterly Debt Repayment Schedule
Fixed Quarterly Debt Repayment Schedule (Q4 2017-2020) Favorable fixed debt repayment schedule Year Fixed Debt Repayment Maturity Q4 2017 $2.2 million $0.0 million 2018 $13.2 million $0.0 million 2019 $43.2 million $0.0 million 2020 $38.2 million $68.9 million Low Fixed Debt Repayments through 2018
Slide 16: Improved Estimated Cash Breakeven Rates
Improved Estimated Cash Breakeven Rates(1) Fleet Breakeven Rates Estimated Q4 2017 (Detailed Q4 2017 Estimated B/E Rates in Appendix) $8,000 $401 $7,000 $1,059 $154 $ per vessel per day $6,000 $339 $868 $5,000 $4,000 $7,261 $3,000 $4,440 $2,000 $1,000 $0 DVOE G&A Mgmt Fees Drydocking Interest Expens
Slide 17: Industry Overview
Industry Overview
Slide 18: Market Update and Industry Overview
Market Update and Industry Overview Baltic Dry Index (BDI Points) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2015 2016 2017 Source: Clarkson Research Services Limited 2017 18
Slide 19: Recent Market Developments
Recent Market Developments Recent Developments Key Iron Ore Expansion Plans(3) Freight rates have strengthened since August primarily driven by: 70.0 Significant Brazilian iron ore volume BHP ― Record steel production in China leading to expected over the next two years heightened demand for high
Slide 20: Major Bulks
Major Bulks Coal Power Plant Stockpiles(2) 120 45 Global Steel Production (million tons)(1) China India 40 9 Mos 2017 9 Mos 2016 % Variance 100 China 638.7 601.2 6.3% 35 China Stockpiles (MT) India Stockpiles (MT) European Union 126.4 121.5 4.1% 80 30 Japan 78.3 78.4 -0.1% India 75.3 71.3 5.7% 25 60
Slide 21: Minor Bulks
Minor Bulks Clarksons Global Grain Trade Estimates Seaborne Wheat / Course Grain Trade (MT) Exporter 2016 2017 (f) % Variance Argentina 39 39 1% 400 +4% 2016 2017F Australia 23 32 40% Canada 25 25 1% 350 EU 44 36 -18% 300 US 87 91 4% Others 127 136 7% 250 Total 346 360 4% Mtpa Seaborne Soybean Trade
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 14 10 Jan 2017 12 Newbuilding orderbook as a percentage 8 1.3% of the fleet is currently 8.2% 10 1.1% 6 8 4
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Genco Fleet Details
Genco Fleet Details Cash Daily Rate (1) Vessel Name Year Built Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (2) 48 9 2 1 0 Expiring Contracts (Total Fleet) : Capesize Genco Augustus 2007 Swissmarine, 106% of BCI 13 Genco Tiberius 2007 Jiangsu, $18,100 Genco London 2007 Swissmarine, 98% of BCI Genco Titus
Slide 26: Genco Fleet Details
Based on Preliminary Results which are subject to change Genco Fleet Details* Cash Daily Rate (1) Vessel Name Year Built Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (2) Expiring Contracts (Total Fleet) : 48 9 2 1 0 (22) Supramax Genco Brittany 2010 Trafigura, $15,000 (23) 21 Genco Languedoc 2010 Oldendo
Slide 27: Footnotes to Genco Fleet Table
Footnotes to Genco Fleet Table (1) Time charter rates presented are the gross daily charterhire rates before third-party brokerage commission 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 and ca
Slide 28: Q4 2017 Genco Estimated Breakeven Rates
Q4 2017 Genco Estimated Breakeven Rates (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,440 $4,440 General and Administrative 868 995 Expenses(4) Technical Management Fees(5) 339 339 Drydocking(6) 154 - Interest Expense(7) 1,059 1,447 Fixed Debt Repayments(8
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