Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q3 2010 Earnings Presentation
26 slides from Genco Shipping & Trading's earnings presentation, Nov 4, 2010
Slide 1: Genco Shipping & Trading Limited Q3 2010 Earnings Call
Genco Shipping & Trading Limited Q3 2010 Earnings Call November 4th, 2010
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 Third Quarter and Year to Date 2010 Highlights Financial Overview Industry Overview 11/4/10 3
Slide 4: Third Quarter 2010 and Year to Date Highlights
Third Quarter 2010 and Year to Date Highlights
Slide 5: Third Quarter 2010 and Year to Date Highlights
Third Quarter 2010 and Year to Date Highlights Net Income attributable to Genco Shipping & Trading Limited of $36.2 million for the third quarter of ’10 ― Basic and diluted earnings per share of $1.07 and $0.99 respectively Cash position of $285.9 million on a consolidated basis ― Genco Shipping
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 Nine Months Ended September 30, 2010 September 30, 2009 September 30, 2010 September 30, 2009 (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 September 30, 2010 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Voyage Revenues $ 108,373 $ 10,407 $ (1,222) $ - $ 117,558 Service Revenue 462 - - - 462
Slide 10: September 30, 2010 Balance Sheet - Consolidated
September 30, 2010 Balance Sheet - Consolidated September 30, 2010 December 31, 2009 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 285,867 $ 205,767 Current assets 304,566 218,068 Total assets 3,143,554 2,336,802 Current liabilities (including current port
Slide 11: Third Quarter Highlights - Consolidated
Third Quarter Highlights - Consolidated Three Months Ended Nine Months Ended September 30, 2010 September 30, 2009 September 30, 2010 September 30, 2009 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 56 34 56 34 Average number of vessels (1) 47.4 32.9 40.2 32.3 Total ow
Slide 12: Pro Forma Balance Sheet (Excluding Baltic Trading Limited)
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 9/30/10 (Dollars in thousands) Balance Sheet Cash(1) $203,112 Debt(2) $1,644,084 Shareholders’ Equity(3) $1,095,006 Capitalization $2,739,090 Debt/Capitalization 60% See the Appendix for a reconciliation of pro
Slide 13: Q4 2010 Estimated Daily Expenses
Q4 2010 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Genco Standalone Consolidated Direct Vessel Operating(3) 5,100 5,100 General, Administrative and 1,177 1,504 Management Fees(4) Dry Docking (5) 122 - Interest Expense (6) 4,319 4,158 Depreciation(7) - 6,403
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
11/4/10 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 2010 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: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 12.7% YOY for the nine months ending September 30, 2010 Iron ore inventories at Chinese ports currently stand at 68.8 Mt(1) Iron ore pricing system shifted to quarterly negotiations ― Lower pricing for the fourth quarter of 2010 as co
Slide 18: Iron Ore and Coal The Major Factors
Iron Ore and Coal The Major Factors Key iron ore expansion plans equal an increased capacity of 524 Mt(1) ― 524 Mt represents 56.8% of total 2009 seaborne iron ore trade Key Iron Ore Expansion Plans(1) Vale’s iron ore production plans are to BHP Fortescue Rio Tinto Vale MMX reach annual producti
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 first nine months of 2010(1) 33% of the fleet is greater than 20
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Pro Forma Reconciliation 9/30/10
Pro Forma Reconciliation 9/30/10 (Dollars in thousands) 9/30/10 Actual Adjustment 9/30/10 Pro Forma Cash(1) $285,867 (82,755) $203,122 Debt(2) $1,731,869 (87,785) $1,644,084 Shareholders’ Equity(3) $1,309,204 (214,198) $1,095,006 Capitalization $3,041,073 (301,983) $2,739,090 (1) September 30, 2010
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 Q1 2011 10% 3,325 20,000 9,925 33,250 Genco Mare Q2 2011 10% 3,325 20,000
Slide 24: GNK Fleet Details
GNK Fleet Details* Cash Daily Net Revenue Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Rate (2) Genco Augustus 2007 Cargill International S.A. $39,000 December, 2010 Genco Tiberius 2007 Cargill International S.A. 31,000 September, 2011 Genco London 2007 Cargill
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 Korea Line Corporation 33,000 (7) February, 2011 Genco Carrier 1998 Louis Dreyfus Corporation 37,000 March, 2011 Handymax Genco Prosperity 1997 Paci
Slide 26: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) (1) Time charter rates presented are the gross daily charter-hire rates before the payments of brokerage commissions generally ranging from 1.25% to 6.25% to third parties. In a time charter, the charterer is responsible for voyage expenses such as bunke
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