Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2012 Earnings Presentation
26 slides from Genco Shipping & Trading's earnings presentation, Feb 21, 2013
Slide 1: Q4 2012 Earnings Call
Genco Shipping & Trading Limited Q4 2012 Earnings Call February 21, 2013
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 Fourth Quarter and Year to Date 2012 Highlights Financial Overview Industry Overview 02/21/2013 3
Slide 4: Fourth Quarter 2012 and Year to Date Highlights
Fourth Quarter 2012 and Year to Date Highlights
Slide 5: Fourth Quarter 2012 and Year to Date Highlights
Fourth Quarter 2012 and Year to Date Highlights Net loss attributable to Genco Shipping & Trading Limited of $45.7 million for the fourth quarter of 2012 ― Basic and diluted loss per share of $1.06 Cash position of $82.75 million on a consolidated basis ― Genco Shipping & Trading Limited: $79.47
Slide 6: Genco Fleet List
Genco Fleet List Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Handymax Genco Augustus 2007 180,151 Genco Muse 2001 48,913 Genco Tiberius 2007 175,874 Genco Marine 1996 45,222 Genco London 2007 177,833 Genco Wisdom 1997 47,180 Genco Titus 2007 177,729 Genco Carrier 1998 47,180 Genco
Slide 7: Financial Overview
Financial Overview
Slide 8: Fourth Quarter Earnings - Consolidated
Fourth Quarter Earnings - Consolidated Three Months Ended Twelve Months Ended December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEME
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended December 31, 2012 (Dollars in thousands, except share and per share data) (unaudited) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues: Voyage revenues $ 41,303 $ 7,116 $ - $ - $ 48,419 Service revenues
Slide 10: December 31, 2012 Balance Sheet - Consolidated
December 31, 2012 Balance Sheet - Consolidated December 31, 2012 December 31, 2011 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 82,750 $ 237,718 Current assets 102,460 259,365 Total assets 2,843,371 3,119,277 Current liabilities 25,680 221,702 Total long-
Slide 11: Fourth Quarter Highlights - Consolidated
Fourth Quarter Highlights - Consolidated Three Months Ended Twelve Months Ended December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 62 62 62 62 Average number of vessels (1) 62.0 61.6 62.0 60.0 Total own
Slide 12: 2013 Estimated Daily Expenses
2013 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Genco Standalone Consolidated Direct Vessel Operating(3) $5,250 $5,275 General, Administrative and 1,319 1,452 Management Fees(4) Dry Docking(5) 357 - Interest Expense(6) 3,762 3,937 Depreciation(7) - 6,176 Deb
Slide 13: Industry Overview
Industry Overview
Slide 14: Drybulk Index
Drybulk Index Baltic Dry Index (BDI Points) 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 Source: Clarkson Research Services Limited 2013 02/21/2013 14
Slide 15: Recent Drybulk Market Developments
Recent Drybulk Market Developments Scrapping increased by 45% in 2012 compared to the prior year on a tonnage basis(1) ― 33.7 Mt scrapped during all of 2012 which represents about one third of 2012 deliveries Newbuilding orders in 2012 decreased 43% compared to the prior year(1) Vessel deliver
Slide 16: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts FY 2012 & Jan. 2013 Scheduled vs. Actual Deliveries(2) Construction on new Chinese stimulus projects set to ramp up likely supporting steel production(1) FY 2012 January 2013 (mdwt) (mdwt) Low iron ore inventories along with increased steel production could
Slide 17: Steel Demand Still Drives the Market
Steel Demand Still Drives the Market Chinese steel production increased by 3.1% in 2012 compared to 2011(1) ― China’s apparent steel use is expected to rise by an additional 3.1% in 2013 Total seaborne iron ore and coal trade are estimated to grow by 6% and 5% YOY in 2013, respectively(2) Chin
Slide 18: Increasing Iron Ore and Coal Production are Major Factors
Increasing Iron Ore and Coal Production are Major Factors Key iron ore expansion plans equal increased capacity of 407 Mt by 2016(1) ― 407 Mt represents 36.5% of total 2012 seaborne iron ore trade ― 115 Mt represents 10.3% of total 2012 seaborne iron ore Key Expansion Plans(1) trade planned for 20
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Declining newbuilding activity and prices have put pressure on shipyard margins(1) Scarce capital continues Slippage of newbuilding vessel deliveries as financing concerns continue 16% of the fleet is 20 years old or greater while 11% of the fleet is 25 years old or
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: 2013 Estimated Daily Expenses Reconciliation
2013 Estimated Daily Expenses Reconciliation(1) (2) (3) (4) (5) Consolidated Income Statement Less Baltic Trading Elimination Genco Cash/Non-Cash Adj. Free Cash Flow Annual Expenses by Category (6) Direct Vessel Operating Expenses $ 119,365,950 $ (17,804,700) $ - $ - $ 101,561,250 (7) General, Admin
Slide 23: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Augustus 2007 Cargill International S.A. 100% of BCI March, 2013 Genco Tiberius 2007 Cargill International S.A. 100% of BCI September, 2013 Genco London 2007 Cargill International S.A. 100%
Slide 24: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Success 1997 ED & F MAN Shipping Ltd. 91.5% of BSI April, 2013 Handymax Genco Carrier 1998 Klaveness Chartering 91% of BSI June, 2013 Genco Prosperity 1997 ED & F MAN Shipping Ltd. $7,000(1
Slide 25: 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 a
Slide 26: Footnotes to Fleet Table (continued)
Footnotes to Fleet Table (continued) 15) We have reached an agreement with ED & F MAN Shipping Ltd. on a time charter for 3.5 to 7 months at a rate of $7,000 per day less a 5.00% third party brokerage commission. Hire is paid every 15 days in advance. The vessel is expected to deliver to charterers
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