Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2010 Earnings Presentation
23 slides from Genco Shipping & Trading's earnings presentation, May 4, 2010
Slide 1: Genco Shipping & Trading Limited Q1 2010 Earnings Call
Genco Shipping & Trading Limited Q1 2010 Earnings Call May 4, 2010
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 First Quarter and Year to Date 2010 Highlights Financial Overview Industry Overview 05/04/10 3
Slide 4: First Quarter 2010 and Year to Date Highlights
First Quarter 2010 and Year to Date Highlights
Slide 5: First Quarter 2010 and Year to Date Highlights
First Quarter 2010 and Year to Date Highlights Net Income attributable to Genco of $33.5 million for the first quarter of 2010 ― Consolidated basic and diluted earnings per share of $1.07 and $1.06 respectively ― Basic and diluted earnings per shares of $1.07 excluding our investment in Baltic Tra
Slide 6: 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. 39,000 December, 2010 Genco Tiberius 2007 Cargill International S.A. 38,000 June, 2010 Genco London 2007 SK Shipping Co.,
Slide 7: 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 generally ranging from 1.25% to 5.00% to third parties. In a time charter, the charterer is responsible for voyage expenses such as bunkers, po
Slide 8: Financial Overview
Financial Overview
Slide 9: Year to Date Earnings - Consolidated
Year to Date Earnings - Consolidated Three Months Ended March 31, 2010 March 31, 2009 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Revenues $ 94,681 $ 96,650 Operating expenses: Voyage expenses 737 1,579 Vessel operating expenses 14,887 14,202 General, a
Slide 10: Consolidating Income Statement
Consolidating Income Statement Three Months Ended March 31, 2010 (Dollars in thousands, except share and per share data - unaudited) INCOME STATEMENT DATA: Genco Baltic Trading Elimination Total Revenues $ 94,681 $ - $ - $ 94,681 Operating expenses: Voyage expenses 737 - - 737 Vessel operating expen
Slide 11: March 31, 2010 Balance Sheet - Consolidated
March 31, 2010 Balance Sheet - Consolidated March 31, 2010 December 31, 2009 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash & cash equivalents (including restricted cash) $ 422,983 $ 205,767 Current assets, including cash 437,055 218,068 Total assets 2,570,279 2,336,802 Current liabilit
Slide 12: First Quarter Highlights
First Quarter Highlights Three Months Ended March 31, 2010 March 31, 2009 (unaudited) FLEET DATA: (excluding Baltic Trading) Total number of vessels at end of period 35 32 Average number of vessels (1) 35.0 32.0 Total ownership days for fleet (2) 3,150 2,880 Total available days for fleet (3) 3,106
Slide 13: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 3/31/10 (Dollars in thousands) Balance Sheet Cash(1) $161,268 Debt(2) $1,302,000 Shareholders’ Equity(3) $961,387 Capitalization $2,263,387 Debt/Capitalization 58% See the Appendix for a reconciliation of pro f
Slide 14: Q2 2010 Estimated Daily Expenses
Q2 2010 Estimated Daily Expenses (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) 5,350 5,350 General, Administrative and 1,374 2,031 Management Fees(4) Dry Docking (5) 373 - Interest Expense (6) 5,508 5,226 Depreciation(7) - 7,607 Debt Amortization/Principal(8)
Slide 15: Industry Overview
Industry Overview
Slide 16: Drybulk Indices
05/04/10 Source: Clarkson’s W ee k 0 5,000 10,000 15,000 20,000 25,000 W 1 W ee ee k k 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 W 3 W 1 ee ee k k W 5 W 3 Drybulk Indices ee ee k k W 7 W 5 ee ee W k9 k ee W 7 2005 ee k k W 11 W ee ee 9 k k W 13 W 11 ee ee k k W 13 W 15 ee ee k k W 15 W 17 ee 20
Slide 17: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 22.5% YOY for through March of 2010 Iron ore inventories at lowest point since 2008 as compared to steel production(1) Japan is expected to have 1.9% GDP growth in 2010 (2) Global economy will expand 4.2% in 2010 and China’s economy
Slide 18: China Continues to be a Major Factor
China Continues to be a Major Factor China produced 46% of world total crude steel in the 1st Quarter of 2010(1) Iron ore imports(2): ― China increased approximately 18% YOY for Q1 2010 ― Japan increased approximately 43% YOY for Q1 2010 Coal Imports(2): ― China increased approximately 225% YO
Slide 19: Increasing Iron Ore Production is a Major Factor
Increasing Iron Ore Production is a Major Factor Key Expansion Plans(1) The World Steel Association projects the Global apparent steel use excluding China 160 BHP Fortescue Rio Tinto Vale MMX to increase 14% in 2010 140 ― Chinese apparent steel use to increase 7.0% in 2010 (2) 120 The World Stee
Slide 20: Supply Side Fundamentals
Supply Side Fundamentals Lack of financing as well as out of the money options overstate orderbook Estimated 40% slippage of the scheduled orderbook through the first 3 months Concentration of Capesize newbuilding deliveries in the first quarter partially explain Capesize to Panamax earnings r
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Pro Forma Reconciliation 3/31/10
Pro Forma Reconciliation 3/31/10 (Dollars in thousands) 3/31/10 Actual Adjustment 3/31/10 Pro Forma Cash(1) $422,983 (261,715) $161,268 Debt(2) $1,314,500 (12,500) $1,302,000 Shareholders’ Equity $1,174,157 (212,770) $961,387 Capitalization $2,488,657 (225,270) $2,263,387 (1) March 31, 2010 pro form
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