Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Jefferies 6th Annual Shipping Logistics & Offshore Services Conference (September 2009)
27 slides from Genco Shipping & Trading's conference presentation, Sep 9, 2009
Slide 1: Genco Shipping & Trading Limited
Genco Shipping & Trading Limited Jefferies 6th Annual Shipping Logistics & Offshore Services Conference September 9, 2009
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 Company Overview Financial Overview Industry Overview Conclusions 09/09/09 3
Slide 4: Company Overview
Company Overview
Slide 5: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 High quality, modern fleet of 33 vessels ― Average age of 6.8 years compared to the average age of the world fleet of approximately 15 years ― Expected delivery of 2 additional vessels through the fourth quarter of 2009 Operat
Slide 6: Management
Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer Over 20 years of Over 40 years of 15 years of experience in experience in the shipping experience in the shipping the shipping industry industry industry CFO since inception Chairman
Slide 7: High Quality Operations
High Quality Operations Extensive relationships with Selected Customer Relationships established drybulk charterers These relationships help us to: ― Stabilize revenue through favorable contract terms ― Minimize counterparty risk ― Maximize fleet utilization We utilize two leading technical Te
Slide 8: Diversified and Modern Fleet
Diversified and Modern Fleet Vessel Name Year Built Dwt A Portfolio Approach to Maximize ROC Genco Augustus 2007 180,151 Modern, diversified fleet Genco Tiberius 2007 175,874 Capesize Genco London 2007 177,833 ― 7 Capesize Genco Titus 2007 177,729 ― 8 Panamax Genco Constantine 2008 180,183 Genco H
Slide 9: Financial Overview
Financial Overview
Slide 10: Acquisition Vessel Payment Schedule
Acquisition Vessel Payment Schedule (Dollars in thousands) Expected Deposit as % of Deposit Payment on Vessel Name Delivery (1) Purchase Price Payment (2) Delivery Metrostar Acquisition Vessels Genco Maximus Q3 2009 20% 24,000 96,000 Genco Claudius Q4 2009 20% 24,000 96,000 Total: $48,200 $192,000
Slide 11: Pro-forma Balance Sheet Selected Financial Information
Pro-forma Balance Sheet Selected Financial Information 06/30/09 (Dollars in thousands) Balance Sheet Liquidity Position Cash $228,764 Revolving Credit Facility(2) $1,352,000 Drawn Portion (1,269,800) Debt(1) $1,269,800 Shareholders’ Equity $818,224 Undrawn Portion $82,200 Capitalization $2,088,024 C
Slide 12: Credit Facility Amendment
Credit Facility Amendment Amended AmendedRevolving RevolvingFacility Facility Highlights Highlights Collateral maintenance covenant Amount Up to $1.4 billion waived until compliance achieved Term 10 Years Dividend and share buyback Quarterly $12.5 million starting programs suspended until Reduct
Slide 13: Industry Overview
Industry Overview
Slide 14: Market Update and Industry Overview
09/09/09 Source: Clarkson’s W ee k 0 5,000 10,000 15,000 20,000 25,000 W 1 W ee k ee 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 W 3 k ee W 1 ee k k W 5 W 3 ee ee k k W 7 W 5 ee ee W k9 W k7 ee ee k W k9 W 11 ee ee W k1 k 2005 ee 1 W 13 k ee W 13 k ee W 15 ee W k1 k ee 5 W 17 W k1 ee ee 7 k k W 1
Slide 15: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 3% YOY through July of 2009 Iron ore imports increased 32% YOY reaching 58mt for July of 2009 No clear conclusion on iron ore negotiations with Chinese steel mills Japan and Europe reopening idle steel mills China’s pullback in ir
Slide 16: China Driving Growth
China Driving Growth Iron ore imports: ― China increased approximately 32% YOY ― EU, Japan and South Korea combined decreased approximately 48% YOY Coal imports: ― Chinese imports increased approximately 148% YOY ― EU, Japan and South Korea combined decreased approximately 13% YOY Iron ore min
Slide 17: Supply Side Fundamentals
Supply Side Fundamentals Approximately 40% of the orderbook at Expansion or Greenfield yards Newer yards are unable to obtain refund guarantees and working capital Estimated 450 vessel cancellations so far, plus large scale delays(1) Analyst estimated 30% - 40% slippage of the scheduled 2009
Slide 18: Global Stimulus Plan
Global Stimulus Plan $586 billion stimulus plan impact much quicker than expected Bank lending increased 34% YOY despite a sharp decline in July’s new lending(1) GDP growth of 7.9% through the second quarter of 2009 PMI rose at 54.0 in August, continuing in expansionary territory(2) Urban
Slide 19: Conclusions
Conclusions
Slide 20: Genco's Strategy
Genco’s Strategy Maintain Focus on Drybulk Sector with ROC Approach Consistent Time Charter Strategy Modern High-Quality Fleet Cost Efficient Operations Transparent Operations 09/09/09 20
Slide 21: Appendices
Appendices
Slide 22: Year to Date Earnings
Year to Date Earnings Three Months Ended Six Months Ended June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues $ 93,701 $ 104,572
Slide 23: June 30, 2009 Balance Sheet
June 30, 2009 Balance Sheet June 30, 2009 December 31, 2008 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 228,764 $ 124,956 Current assets, including cash 247,232 140,748 Total assets 2,084,260 1,990,006 Current liabilities 28,874 30,192 Total long-term debt 1,173,300 1,173,300 Share
Slide 24: 2nd Quarter Highlights
2nd Quarter Highlights Three Months Ended Six Months Ended June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 32 29 32 29 Average number of vessels (1) 32.0 28.1 32.0 28.1 Total ownership days for fleet (2) 2,912 2,555
Slide 25: Pro Forma Reconciliation
Pro Forma Reconciliation 06/30/09 (Dollars in thousands) 06/30/09 Actual Adjustment 06/30/09 Pro Forma Cash $228,764 - $228,764 Debt(1) $1,173,300 96,500 $1,269,800 Shareholders’ Equity $818,224 - $818,224 Capitalization $1,991,524 - $2,088,029 (1) June 30, 2009 pro forma debt takes into effect the
Slide 26: 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 Genco Tiberius 2007 Cargill International S.A. 45,263 62,750 January, 2010 Capesize Genco Lon
Slide 27: Footnotes to Fleet Table
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, Predator and Thunder in notes 5, 7 and 8 below. In a ti