Genco Shipping & Trading Limited · NYSE:GNK

Genco Shipping & Trading — Q3 2008 Earnings Presentation

23 slides from Genco Shipping & Trading's earnings presentation, Oct 30, 2008

  1. Slide 1: Genco Shipping & Trading Limited Q3 2008 Earnings Call

    Genco Shipping & Trading Limited Q3 2008 Earnings Call October 30, 2008

  2. 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

  3. Slide 3: Agenda

    Agenda „ Third Quarter 2008 and Year to Date Highlights „ Financial Overview „ Industry Overview 10/30/08 3

  4. Slide 4: Third Quarter 2008 and Year to Date Highlights

    Third Quarter 2008 and Year to Date Highlights

  5. Slide 5: Third Quarter 2008 and Year to Date Highlights

    Third Quarter 2008 and Year to Date Highlights „ Net Income of $58.6 million for the third quarter of ’08, excluding the Jinhui dividend ― Basic earnings per share of $1.86 and diluted of $1.85 „ Net Income of $63.0 million for the third quarter of ‘08 ― Basic earnings per share of $2.00 and diluted

  6. Slide 6: Current Fleet

    Current Fleet * 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. 45,263 62,750 December, 2009 Capesize Genco Tiberius 2007 Cargill International S.A. 45,263 62,750 January, 2010 Genco Lon

  7. Slide 7: Footnotes to Fleet Table (previous page)

    Footnotes to Fleet 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 Leader in note 6 below. In a time charter, the charterer is res

  8. Slide 8: Acquisition Vessels to be Delivered

    Acquisition Vessels to be Delivered Cash Year Duration/ Vessel Type Vessel Name DWT Yard Delivery(1) Charterer Daily Built(1) Expiration Rate Capesize Cargill International 46 to 62 months 65,000(3) Genco Hadrian(2) 170,500 Sungdong Q1 2009 2009 S.A. (2) from delivery Genco 170,500 Sungdong Q2 2009

  9. Slide 9: Financial Overview

    Financial Overview

  10. Slide 10: Year to Date Earnings

    Year to Date Earnings Three Months Ended Nine Months Ended September 30, 2008 September 30, 2007 September 30, 2008 September 30, 2007 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenu

  11. Slide 11: September 30, 2008 Balance Sheet

    September 30, 2008 Balance Sheet September 30, 2008 December 31, 2007 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 142,455 $ 71,496 Current assets, including cash 220,815 267,594 Total assets 2,030,947 1,653,272 Current liabilities, including current portion of long-term debt 31,133

  12. Slide 12: 3rd Quarter Highlights

    3rd Quarter Highlights Three Months Ended Nine Months Ended September 30, 2008 September 30, 2007 September 30, 2008 September 30, 2007 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 31 22 31 22 Average number of vessels (1) 29.9 19.9 28.7 19.5 Total ownership days for

  13. Slide 13: Balance Sheet Selected Financial Information Updated Pro Forma 09/30/08

    Balance Sheet Selected Financial Information Updated Pro Forma 09/30/08 (Dollars in thousands) Balance Sheet Liquidity Position Cash(1) $110,937 Revolving Credit Facility $1,377,000 Term Facility 320,000 Debt $1,129,500 Drawn Portion (1,129,500) Shareholders’ Equity(2) $783,669 Undrawn Portion $567,

  14. Slide 14: Q4 2008 Estimated Break-Even Levels

    Q4 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) 987 1,456 Management Fees(5) 259 259 Dry Docking (6) 982 - Interest Expense (7) 5,367 4,787 Depreciation(8) - 7,013 Daily Break-Even(9) 12

  15. Slide 15: Dividend Declaration & Policy

    Dividend Declaration & Policy Disciplined DisciplinedAsset AssetGrowth Growth „ Declared a Q3 2008 dividend of and andT/C T/CStrategy Strategy $1.00 per share payable on or Period Declared Dividend about November 28, 2008 to all shareholders of record as of Q3 2005 $0.60 November 17, 2008 Q4 2005 $0

  16. Slide 16: Industry Overview

    Industry Overview

  17. Slide 17: Drybulk Indices

    W 10/30/08 W ee k 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 ee W 1 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 k W 1 ee k ee W 3 k W 3 ee k ee W 5 k W 5 ee k ee k W 7 W 7 e ee W ek Source: Clarkson’s ee 9 W k9 k (BDI Points) ee W 11 k (BPI Points) ee W 11 ee k W 13 k ee W 13 ee k W 15 k ee W

  18. Slide 18: Reasons Behind Current Market Weakness

    Reasons Behind Current Market Weakness „ Several steel mills were shutdown during the Olympics due to: ― Government efforts to curb pollution and force industry wide consolidation ― Increasing prices of raw materials (coke and ore) „ Construction and manufacturing slowdown due to Olympics ― Continue

  19. Slide 19: Demand Side Fundamentals

    Demand Side Fundamentals „ YOY growth for Chinese steel production at 7.8% and iron ore imports at 22% through September 2008 „ Iron ore stockpiles slightly reduced but still stand at approximately 68 million tons „ Slowdown in Indian iron ore exports due to higher taxes and monsoon season „ North A

  20. Slide 20: China's Development – Macro Picture

    China’s Development – Macro Picture „ Chinese economic growth is mostly domestically driven by urbanization and industrialization „ Chinese industrial production grows 11.4% through September 2008 „ Chinese fixed asset investment rise of 27.0% through September 2008 „ $555 billion investment on tran

  21. Slide 21: Supply Side Fundamentals

    Supply Side Fundamentals „ 23% of Capesize orders for 2009 delivery and 33% of orders for 2010 being constructed at Greenfield yards(1) „ Credit crunch poses threat to new as well as existing yards „ Newbuilding delivery delays starting to occur due to engine, crane and other part shortages „ Over 3

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Pro Forma Reconciliation 09/30/08

    Pro Forma Reconciliation 09/30/08 (Dollars in thousands) 09/30/08 Actual Adjustment 09/30/08 Pro Forma Cash(1) $142,455 ($31,518) $110,937 Debt $1,129,500 - $1,129,500 Shareholders’ Equity(2) $815,187 ($31,518) $783,669 Capitalization $1,944,687 - $1,913,169 (1) September 30, 2008 pro forma cash tak

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