Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q3 2012 Earnings Presentation
25 slides from Genco Shipping & Trading's earnings presentation, Nov 1, 2012
Slide 1: Genco Shipping & Trading Limited Q3 2012 Earnings Call
Genco Shipping & Trading Limited Q3 2012 Earnings Call November 1, 2012
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 Third Quarter and Year to Date 2012 Highlights Financial Overview Industry Overview 11/01/2012 3
Slide 4: Third Quarter 2012 and Year to Date Highlights
Third Quarter 2012 and Year to Date Highlights
Slide 5: Third Quarter 2012 and Year to Date Highlights
Third Quarter 2012 and Year to Date Highlights Net loss attributable to Genco Shipping & Trading Limited of $38.4 million for the third quarter of 2012 ― Basic and diluted loss per share of $0.90 Cash position of $97.93 million on a consolidated basis ― Genco Shipping & Trading Limited: $94.67 m
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: Third Quarter Earnings - Consolidated
Third Quarter Earnings - Consolidated Three Months Ended Nine Months Ended September 30, 2012 September 30, 2011 September 30, 2012 September 30, 2011 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEM
Slide 9: Consolidating Income Statement
Consolidating Income Statement Three Months Ended September 30, 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 $ 47,312 $ 6,291 $ - $ - $ 53,603 Service revenues
Slide 10: September 30, 2012 Balance Sheet - Consolidated
September 30, 2012 Balance Sheet - Consolidated September 30, 2012 December 31, 2011 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 97,928 $ 237,718 Current assets 113,414 259,365 Total assets 2,894,573 3,119,277 Current liabilities 28,277 221,702 Total lon
Slide 11: Third Quarter Highlights - Consolidated
Third Quarter Highlights - Consolidated Three Months Ended Nine Months Ended September 30, 2012 September 30, 2011 September 30, 2012 September 30, 2011 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 62 61 62 61 Average number of vessels (1) 62.0 60.8 62.0 59.5 Total ow
Slide 12: Q4 2012 Estimated Daily Expenses
Q4 2012 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Genco Standalone Consolidated Direct Vessel Operating(3) 5,200 5,215 General, Administrative and 1,425 1,574 Management Fees(4) Dry Docking(5) - - Interest Expense(6) 3,879 4,035 Depreciation(7) - 6,136 Debt
Slide 13: Industry Overview
Industry Overview
Slide 14: Drybulk Index
Drybulk Index Baltic Dry Index (BDI Points) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2010 2011 2012 Source: Clarkson Research Services Limited 2012 11/01/2012 14
Slide 15: Recent Drybulk Market Developments
Recent Drybulk Market Developments Scrapping increased 31% YOY during the first nine months of 2012 on a tonnage basis(1) ― 27 of the 64 Capesize vessels scrapped YTD in 2012 were built from 1990 to 1995, Capesize vessels built in 1995 or earlier total 16% of the Capesize fleet New vessel orders
Slide 16: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts Change in China’s leadership expected in November China’s twelfth five-year plan continues to emphasize infrastructure Drybulk Vessel Deliveries vs. Scrapping(4) ― Steel market is expected to improve as (million dwt) construction on new stimulus projects 16
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 1.7% YOY through the first nine months of 2012(1) ― China’s apparent steel use is expected to rise 3.1% in 2013 Total seaborne iron ore and coal trade are projected to grow 6% and 7% YOY in 2012, respectively(2) China’s fixed-asset in
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 426 Mt by 2016(1) ― 426 Mt represents 40.5% of total 2011 seaborne iron ore trade Key Expansion Plans(1) Iron ore production from the world’s top four miners Vale, Rio Tinto, BHP an
Slide 19: Supply Side Fundamentals
Supply Side Fundamentals Newbuilding orders through the first nine months of 2012 have decreased 52% compared to the same period last year(1) ― Just two Capesize newbuilding vessels have been contracted since March 2012 ― Declining newbuilding activity and prices have put pressure on shipyard marg
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Q4 2012 Estimated Daily Expenses Reconciliation
Q4 2012 Estimated Daily Expenses Reconciliation(1) Consolidated Income Statement Less Baltic Trading(2) Elimination(3) Genco Cash/Non-Cash Adj. (4) Free Cash Flow (5) Quarterly Expenses by Category Direct Vessel Operating Expenses(6) $ 29,743,600 $ (4,388,400) $ - $ - $ 25,355,200 General, Administr
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 December, 2012 Genco Tiberius 2007 Cargill International S.A. 100% of BCI(3) September, 2013 Genco London 2007 Cargill International S.A
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 SK Shipping Co. Ltd. $8,000 Novem
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
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