Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2017 Earnings Presentation
26 slides from Genco Shipping & Trading's earnings presentation, Feb 28, 2018
Slide 1: Genco Shipping & Trading Limited Q4 2017 Earnings Call
Genco Shipping & Trading Limited Q4 2017 Earnings Call February 28th, 2018
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 2017 and Year to Date Highlights Financial Overview Industry Overview 3
Slide 4: Fourth Quarter 2017 and Year to Date Highlights
Fourth Quarter 2017 and Year to Date Highlights
Slide 5: Fourth Quarter 2017 and Year to Date Highlights
Fourth Quarter 2017 and Year to Date Highlights Recorded net income of $2.6 million for the fourth quarter of 2017 ― Basic and diluted earnings per share of $0.07 ― First reported quarterly net income since Q4 2011 highlighting the successful implementation of our commercial strategy and cost opti
Slide 6: Genco's Leading Market Position
Genco’s Leading Market Position Significant improvement in margins driven by successful implementation of our commercial platform together with continued cost optimization and improving market conditions Genco TCE vs. DVOE Ending Cash Balances TCE (net of voyage expenses & broker commission) (Includ
Slide 7: Genco is Uniquely Positioned to Capture Market Upside in 2018
Genco is Uniquely Positioned to Capture Market Upside in 2018 Enhanced commercial strategy focused on increasing margins and outperforming benchmarks Full in-house logistics solution to major cargo owners Revamped Fleet concentrated on major and minor bulks Commercial Strategy ― Capesize: upsi
Slide 8: Financial Overview
Financial Overview
Slide 9: Fourth Quarter Earnings
Fourth Quarter Earnings Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (Dollars in thousands, except share and per s hare data) (Dollars in thousands, except share and per s hare data) (unaudited)
Slide 10: December 31, 2017 Balance Sheet
December 31, 2017 Balance Sheet December 31, 2017 December 31, 2016 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 204,946 $ 169,068 Current assets 217,239 172,605 Total assets 1,520,959 1,568,960 Current liabilities (excluding current portion of long-term
Slide 11: Fourth Quarter Highlights
Fourth Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 60 65 60 65 Average number of vessels (1) 60.0 66.7 60.8 68.8 Total ownership days for
Slide 12: Pro Forma Balance Sheet
Pro Forma Balance Sheet Selected Financial Information December 31, 2017 (Dollars in thousands) Balance Sheet Cash $193,612 Debt $513,090 Shareholders’ Equity $975,027 Paid down the $400 Million Credit Facility by $11.3 million on February 13, 2018, from cash flow from operations during Q4 2017 ̶
Slide 13: Fixed Quarterly Debt Repayment Schedule (2018-2020)
Fixed Quarterly Debt Repayment Schedule (2018-2020) Paid down the $400 Million Credit Facility by $11.3 million on February 13, 2018, from cash flow from operations during Q4 2017 Credit Facility Debt as of Dec 31, 2017 Quarter Fixed 2018 Debt Repayments $400 Million Credit Facility $404.9 million Q
Slide 14: Estimated Cash Breakeven Rates
Estimated Cash Breakeven Rates(1) Fleet Breakeven Rates Estimated Q1 2018 (Detailed Q1 2018 Estimated B/E Rates in Appendix) $8,000 $608 $7,000 $1,423 $ per vessel per day $6,000 $306 $361 $5,000 $840 $4,000 $7,978 $3,000 $2,000 $4,440 $1,000 $0 DVOE G&A Mgmt Fees Drydocking Interest Fixed Debt Brea
Slide 15: Industry Overview
Industry Overview
Slide 16: 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 2016 2017 2018 Source: Clarkson Research Services Limited 2018 16
Slide 17: Recent Market Developments
Recent Market Developments Key Iron Ore Expansion Plans(2) Recent Developments Freight rates in Q4 2017 strengthened primarily due to: BHP 50.0 Significant Brazilian iron ore volume ― Strong steel production in China leading to expected over the next two years Rio Tinto heightened demand for high
Slide 18: Major Bulks
Major Bulks Coal Power Plant Stockpiles(2) (1) Global Steel Production (million tons) 120 45 2017 2016 % Variance China India 40 China 831.7 786.9 5.7% 100 European Union 168.7 162.0 4.1% 35 China Stockpiles (MT) India Stockpiles (MT) Japan 104.7 104.8 -0.1% 80 30 India 101.4 95.5 6.2% 71.1 68.6 3.6
Slide 19: Minor Bulks
Minor Bulks Clarksons Global Grain Trade Estimates Seaborne Wheat / Course Grain Trade (MT) Exporter 2017 2018 (f) % Variance Argentina 42 42 0% 400 +1% Australia 34 26 -24% 2017 2018F Canada 26 25 -4% 350 EU 34 35 2% US 86 84 -2% 300 Others 141 154 10% 250 Total 363 366 1% Seaborne Soybean Trade (M
Slide 20: 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 Newbuilding orderbook as a percentage 12 of the fleet is currently 9.8% 1.4% 8 10 1.1% 6 Jan
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: 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 24: Q1 2018 Genco Estimated Breakeven Rates
Q1 2018 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 840 952 Expenses(4) Technical Management Fees(5) 361 361 Drydocking(6) 306 - Interest Expense(7) 1,423 1,529 Fixed Debt Repayments(8
Slide 25: Time Charter Equivalent Reconciliation
Time Charter Equivalent Reconciliation(1) Three Months Ended Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (unaudited) (unaudited) Total Fleet Voyage revenues (in thousands) $ 74,918 $ 43,785 $ 209,698 $ 133,246 Voyage expenses (in thousands) 15,579 3,99
Slide 26: Pro Forma Balance Sheet Reconciliation
Pro Forma Balance Sheet Reconciliation ($ in thousands) Dec 31, 2017 Actual Adjustment Dec 31, 2017 Pro Forma Cash(1) $204,946 $(11,334) $193,612 Debt(2) $524,424 $(11,334) $513,090 Shareholders’ Equity $975,027 - $975,027 (1) December 31, 2017 pro forma cash is reduced by the paydown made on Februa
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