Genco Shipping & Trading Limited · NYSE:GNK

Genco Shipping & Trading — Q2 2010 Earnings Presentation

27 slides from Genco Shipping & Trading's earnings presentation, Aug 10, 2010

  1. Slide 1: Genco Shipping & Trading Limited Q2 2010 Earnings Call

    Genco Shipping & Trading Limited Q2 2010 Earnings Call August 10th, 2010

  2. 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

  3. Slide 3: Agenda

    Agenda „ Second Quarter and Year to Date 2010 Highlights „ Financial Overview „ Industry Overview 8/10/10 3

  4. Slide 4: Second Quarter 2010 and Year to Date Highlights

    Second Quarter 2010 and Year to Date Highlights

  5. Slide 5: Second Quarter 2010 and Year to Date Highlights

    Second Quarter 2010 and Year to Date Highlights „ Net Income attributable to Genco Shipping & Trading Limited of $36.8 million for the second quarter of ’10 ― Basic and diluted earnings per share of $1.17 and $1.16 respectively „ Agreed to acquire five Handysize vessels from companies within the Met

  6. 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(1) 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

  7. Slide 7: Financial Overview

    Financial Overview

  8. Slide 8: Year to Date Earnings - Consolidated

    Year to Date Earnings - Consolidated Three Months Ended Six Months Ended June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues $ 1

  9. Slide 9: Consolidating Income Statement

    Consolidating Income Statement Three Months Ended June 30, 2010 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues $ 100,775 $ 6,991 $ (2,429) $ - $ 105,337 Operating expenses: Voyage expenses 959 15

  10. Slide 10: June 30, 2010 Balance Sheet - Consolidated

    June 30, 2010 Balance Sheet - Consolidated June 30, 2010 December 31, 2009 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 208,139 $ 205,767 Current assets, including cash 233,916 218,068 Total assets 2,583,301 2,336,802 Current liabilities (including curren

  11. Slide 11: Second Quarter Highlights - Consolidated

    Second Quarter Highlights – Consolidated Three Months Ended Six Months Ended June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 40 32 40 32 Average number of vessels (1) 38.0 32.0 36.5 32.0 Total ownership days for fle

  12. Slide 12: Pro Forma Balance Sheet (Excluding Baltic Trading Limited)

    Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 6/30/10 (Dollars in thousands) Balance Sheet Cash(1) $165,288 Debt(2) $1,698,500 Shareholders’ Equity(3) $1,027,778 Capitalization $2,726,278 Debt/Capitalization 62% See the Appendix for a reconciliation of pro

  13. Slide 13: Acquisition Financing Commitments

    Acquisition Financing Commitments Metrostar Acquisition of Five Bourbon Acquisition of 13 Handysize Vessels Supramax Vessels Purchase price $166.3 million(1) $439.5 million(1) $100 million senior secured credit facility $253 million senior secured credit facility Bank facilities commitment from seve

  14. Slide 14: Q3 2010 Estimated Daily Expenses

    Q3 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 1,627 2,101 Management Fees(4) Dry Docking (5) 156 - Interest Expense (6) 5,108 4,886 Depreciation(7) - 6,670

  15. Slide 15: Convertible Debt Terms and Accounting Treatment

    Convertible Debt Terms and Accounting Treatment Main Terms Amount Issued $125.0 million Coupon Rate 5.00% per year Strike Price $19.60 Additional Shares if Converted 6,377,551 Expected Accounting Treatment „ Net Income – Basic and Diluted EPS ― Notes payable equals the present value of remaining cou

  16. Slide 16: Industry Overview

    Industry Overview

  17. Slide 17: Drybulk Index

    8/10/10 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 Services Limited 2010 W 3 Source: Clarkson’s Research ee k W 5 ee W k7 ee W k9 ee k Drybulk Index W 11 ee k W 13 ee W k1 ee 5 k W 17 ee k W 19 ee W k2 ee 1 k W 23 ee k W 25 17 ee k W 27 ee Baltic Dry Index W k2 ee 9

  18. Slide 18: Demand Side Fundamentals

    Demand Side Fundamentals „ Chinese steel production increased 21.1% YOY through June of 2010 „ Iron ore inventories at Chinese ports currently stand at 74.4 mt(1) „ Iron ore pricing system shifted to quarterly negotiations „ Unusually warm weather in China increased coal imports „ Return of grain ca

  19. Slide 19: Increasing Iron Ore Production is a Major Factor

    Increasing Iron Ore Production is a Major Factor Key Expansion Plans(1) „ Key iron ore expansion plans equal an BHP Fortescue Rio Tinto Vale MMX increased capacity of 331 million tons per 180 annum(1) 160 140 ― 331 million tons represents 35.8% of 120 total 2009 seaborne iron ore trade 100 80 „ Rio

  20. Slide 20: Supply Side Fundamentals

    Supply Side Fundamentals „ Scarce capital ― Banks lending only to selective clients „ Depressed vessel values imply higher equity installments required from illiquid owners „ Estimated 40% slippage of the scheduled orderbook through the first six months „ 33% of the fleet is greater than 20 years ol

  21. Slide 21: Q&A

    Q&A

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Pro Forma Reconciliation 6/30/10

    Pro Forma Reconciliation 6/30/10 (Dollars in thousands) 6/30/10 Actual Adjustment 6/30/10 Pro Forma Cash(1) $208,139 (42,851) $165,288 Debt(2) $1,311,975 386,525 $1,698,500 Shareholders’ Equity(3) $1,186,670 (158,892) $1,027,778 Capitalization $2,498,645 (227,633) $2,726,278 (1) June 30, 2010 pro fo

  24. Slide 24: Acquisition Vessel Payment Schedule

    Acquisition Vessel Payment Schedule (Dollars in thousands) Expected Deposit as % of Payment on Vessel Name Deposit Payment Total Price Delivery (1) Purchase Price Delivery Metrostar Acquisition Vessels Genco Ocean Delivered 10% 3,325 29,925 33,250 Genco Bay Q3 2010 10% 3,325 29,925 33,250 Genco Avra

  25. Slide 25: Fleet Details

    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. 44,000 August, 2010 Genco London 2007 SK Shipping Co.

  26. Slide 26: Fleet Details

    Fleet Details Cash Daily Net Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Daily Rate (2) Genco Aquitaine 2009 -- 20,000 (7) May, 2012 Genco Ardennes 2009 -- -- -- Genco Auvergne 2009 -- -- -- 15-17.5 months after Genco Bourgogne 2010 Setaf-Saget SAS 19,900 del

  27. Slide 27: 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 5.00% to third parties. In a time charter, the charterer is responsible for voyage expenses such as bunke

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