Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2011 Earnings Presentation
27 slides from Genco Shipping & Trading's earnings presentation, May 4, 2011
Slide 1: Genco Shipping & Trading Limited Q1 2011 Earnings Call
Genco Shipping & Trading Limited Q1 2011 Earnings Call May 4th, 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 First Quarter and Year to Date 2011 Highlights Financial Overview Industry Overview 5/4/11 3
Slide 4: First Quarter 2011 and Year to Date Highlights
First Quarter 2011 and Year to Date Highlights
Slide 5: First Quarter 2011 and Year to Date Highlights
First Quarter 2011 and Year to Date Highlights Net Income attributable to Genco Shipping & Trading Limited of $13.4 million for the first quarter of ’11 ― Basic and diluted earnings per share of $0.38 Cash position of $285.2 million on a consolidated basis ― Genco Shipping & Trading Limited: $28
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: First Quarter Earnings - Consolidated
First Quarter Earnings - Consolidated Three Months Ended March 31, 2011 March 31, 2010 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Voyage revenues $ 100,619 $ 94,681 Service revenue 810 - Total revenues: 101,429 94,681 Operating expenses: Voyage expense
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended March 31, 2011 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Voyage revenues $ 91,076 $ 9,543 $ - $ - $ 100,619 Service revenue 1,539 - (729) - 810 Total
Slide 10: March 31, 2011 Balance Sheet - Consolidated
March 31, 2011 Balance Sheet - Consolidated March 31, 2011 December 31, 2010 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 285,216 $ 279,877 Current assets 299,535 293,681 Total assets 3,190,707 3,182,708 Current liabilities (including current portion of l
Slide 11: First Quarter Highlights - Consolidated
First Quarter Highlights - Consolidated Three Months Ended March 31, 2011 March 31, 2010 (unaudited) FLEET DATA: Total number of vessels at end of period 59 35 Average number of vessels (1) 58.0 35.0 Total ownership days for fleet (2) 5,223 3,150 Total available days for fleet (3) 5,202 3,106 Total
Slide 12: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 3/31/11 (Dollars in thousands) Balance Sheet Cash(1) $244,119 Debt(2) $1,670,910 Shareholders’ Equity(3) $1,155,515 Capitalization $2,826,425 Debt/Capitalization 59% See the Appendix for a reconciliation of pro
Slide 13: Q2 2011 Estimated Daily Expenses
Q2 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 1,298 1,592 Management Fees(4) Dry Docking (5) 532 - Interest Expense (6) 4,161 4,052 Depreciation(7) - 6,318
Slide 14: Industry Overview
Industry Overview
Slide 15: Drybulk Index
5/4/11 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 15 k W 27 ee Baltic Dry Index k W 29 ee
Slide 16: Current Market Conditions
Current Market Conditions Main drivers behind suppressed rate environment Rebounding but still reduced iron ore and coal volumes in Australia due to weather related disruptions(1) ― Coal production decreased by 30Mt or 15% of annual output from Queensland(2) ― BHP’s coal output down by 14% for the
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 10.0% YOY for the first quarter of 2011 Iron ore inventories at Chinese ports currently stand at 82.3Mt(1) China’s economic growth accelerated 9.7% in the first quarter of 2011 from the same period last year(2) The World Bank raised
Slide 18: 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 536 Mt per annum(1) ― 536 Mt represents 52.4% of total 2010 Key Expansion Plans(1) seaborne iron ore trade Vale’s iron ore production plans are to reach annual (million tons) production o
Slide 19: 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) ― Similar levels estimated through March 2011(1
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Pro Forma Reconciliation 3/31/11
Pro Forma Reconciliation 3/31/11 (Dollars in thousands) 3/31/11 Actual Adjustment 3/31/11 Pro Forma Cash(1) $285,216 (41,097) $244,119 Debt(2) $1,750,754 (79,844) $1,670,910 Shareholders’ Equity(3) $1,155,515 - $1,155,515 Capitalization $2,906,269 (79,844) $2,826,425 (1) March 31, 2011 pro forma cas
Slide 23: 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 24: 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 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 Success 1997 Swissmarine Services S.A. 90% of BSI (16) January, 2012 Genco Carrier 1998 ED & F MAN Shipping Ltd. 92.5% of BSI (17) February, 2012 Handymax Genco
Slide 26: Footnotes to Fleet Table
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 27: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) (14) We have reached an agreement with Setaf-Saget SAS at a rate of $15,250 per day less a 5.00% third party brokerage commission for approximately 60 days. If the time charter exceeds 68 days, hire is to be $16,000 per day. Payment is made in advance. T
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