Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q4 2011 Earnings Presentation
28 slides from Genco Shipping & Trading's earnings presentation, Feb 22, 2012
Slide 1: Genco Shipping & Trading Limited Q4 2011 Earnings Call
Genco Shipping & Trading Limited Q4 2011 Earnings Call February 22, 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 Fourth Quarter and Year to Date 2011 Highlights Financial Overview Industry Overview 02/22/12 3
Slide 4: Fourth Quarter 2011 and Year to Date Highlights
Fourth Quarter 2011 and Year to Date Highlights
Slide 5: Fourth Quarter 2011 and Year to Date Highlights
Fourth Quarter 2011 and Year to Date Highlights Net income attributable to Genco Shipping & Trading Limited of $0.3 million for the fourth quarter of ’11 ― Basic and diluted earnings per share of $0.01 Cash position of $237.7 million on a consolidated basis ― Genco Shipping & Trading Limited: $2
Slide 6: Genco Fleet List
Genco Fleet List 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 5
Slide 7: Financial Overview
Financial Overview
Slide 8: Fourth Quarter Earnings - Consolidated
Fourth Quarter Earnings - Consolidated Three Months Ended Twelve Months Ended December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010 (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, 2011 (Dollars in thousands, except share and per share data) (unaudited) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues: Voyage revenues $ 83,179 $ 13,137 $ - $ - $ 96,316 Service revenues
Slide 10: December 31, 2011 Balance Sheet - Consolidated
December 31, 2011 Balance Sheet - Consolidated December 31, 2011 December 31, 2010 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 237,718 $ 279,877 Current assets, including cash 259,365 293,681 Total assets 3,119,277 3,182,708 Current liabilities (includin
Slide 11: Fourth Quarter Highlights - Consolidated
Fourth Quarter Highlights - Consolidated Three Months Ended Twelve Months Ended December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 62 58 62 58 Average number of vessels (1) 61.6 57.7 60.0 44.6 Total own
Slide 12: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 12/31/11 (Dollars in thousands) Balance Sheet Cash(1) $209,920 Debt(2) $1,573,645 Shareholders’ Equity(3) $1,151,606 Capitalization $2,725,251 Debt/Capitalization 58% See the Appendix for a reconciliation of pr
Slide 13: Q1 2012 Estimated Daily Expenses
Q1 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 1,237 1,478 Management Fees(4) Dry Docking (5) 770 - Interest Expense (6) 4,599 4,478 Depreciation(7) - 6,113
Slide 14: Industry Overview
Industry Overview
Slide 15: 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 02/22/12 15
Slide 16: Recent Drybulk Market Developments
Recent Drybulk Market Developments Weather related disruptions in Brazil and Australia occurred at the start of 2012 temporarily decreasing cargo availability, operations have since resumed ― Force majeure was declared on 2 Mt of iron ore due to rain in Brazil while cyclones along the west coast o
Slide 17: Short and Long-Term Industry Catalysts
Short and Long-Term Industry Catalysts The Chinese government lowered bank reserve requirements by 50 bps in November 2011 and February January 2011-12 Scheduled vs. Actual Deliveries(2) 2012 to fuel lending and stimulate growth(1) January 2012 January 2011 China’s twelfth five-year plan continu
Slide 18: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 8.9% in 2011 compared to 2010(1) China’s fixed-asset investment rose 23.8% YOY in 2011(2) Chinese infrastructure development expected to continue with plans to: ― Build as many as 36 million housing units within the next five years(3)
Slide 19: 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 487 Mt by 2016(1) ― 487 Mt represents 46.1% of total 2011 seaborne iron ore trade Key Expansion Plans(1) Brazilian iron ore exports increased 6% in 2011 from the (million tons) year
Slide 20: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital continues ― European lenders are further reducing funding availability 18% of the fleet is greater than 25 years old(1) 23% of the fleet is greater than 20 years old(1) 5.7 mdwt scrapped in 2010, 22.3 mdwt scrapped in 2011 and 3.6 mdwt scrapped in 2012
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 12/31/11
Pro Forma Reconciliation 12/31/11 (Dollars in thousands) 12/31/11 Actual Adjustment 12/31/11 Pro Forma Cash(1) $237,718 (27,798) $209,920 Debt(2) $1,694,393 (120,748) $1,573,645 Shareholders’ Equity(3) $1,151,606 - $1,151,606 Capitalization $2,845,999 (120,748) $2,725,251 (1) December 31, 2011 pro f
Slide 24: Q1 2012 Estimated Daily Expenses Reconciliation
Q1 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) $ 29,420,300 $ (4,340,700) $ - $ - $ 25,079,600 General, Administr
Slide 25: 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(3) October, 2012 Genco Tiberius 2007 Cargill International S.A. 100% of BCI August, 2012 Genco London 2007 Cargill International S.A. 10
Slide 26: GNK Fleet Details
GNK Fleet Details* Cash Daily Vessel Type Vessel Name Year Built Charterer Charter Expiration(2) Rate(1) Genco Success 1997 Swissmarine Services S.A. 90% of BSI March, 2012 Handymax Genco Carrier 1998 STX Pan Ocean Co. Ltd. $7,000(22) April, 2012 Genco Prosperity 1997 Pacific Basin Chartering Ltd. 9
Slide 27: 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 28: Footnotes to Fleet Table (continued)
Footnotes to Fleet Table (continued) 13) We have reached an agreement with Louis Dreyfus Commodities Suisse S.A. on a time charter for approximately 20 days 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 was previously fix
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