Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q3 2020 Earnings Presentation
32 slides from Genco Shipping & Trading's earnings presentation, Nov 5, 2020
Slide 1: Genco Shipping & Trading Limited Q3 2020 Earnings Presentation
Genco Shipping & Trading Limited Q3 2020 Earnings Presentation November 5th, 2020
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 2020 and Year-to-Date Highlights ◼ Financial Overview ◼ Industry Overview 3
Slide 4: Third Quarter 2020 and Year-to-Date Highlights
Third Quarter 2020 and Year-to-Date Highlights
Slide 5: Third Quarter 2020 and YTD Update
Third Quarter 2020 and YTD Update Q3 2020 financial performance ◼ Cash position: $160.8 million, including $24.2 million of restricted cash related to vessel sales ◼ Net loss: $21.1 million, basic and diluted loss per share: $0.50 ― Adjusted net income of $1.2 million, basic and diluted earnings per
Slide 6: Q4 to date TCE estimates led by our Capesize fleet
Q4 to date TCE estimates led by our Capesize fleet Our vessel deployment strategy remains weighted towards short-term fixtures which provides us with optionality on our sizeable fleet $20 Major Bulk Minor Bulk Fleet-Wide $19.4 $16.7 $16.3 TCE: +71% $15 Q3 vs Q2 $13.0 TCE ($ in 000s) $11.5 $9.8 $9.5
Slide 7: Financial Overview
Financial Overview
Slide 8: Third Quarter Earnings
Third Quarter Earnings Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (un
Slide 9: September 30, 2020 Balance Sheet
September 30, 2020 Balance Sheet September 30, 2020 December 31, 2019 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 160,775 $ 162,249 Current assets 222,428 223,195 Total assets 1,317,547 1,528,892 Current liabilities (excluding current portion of long-ter
Slide 10: Third Quarter Highlights
Third Quarter Highlights Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 51 58 51 58 Average number of vessels (1) 51.4 58.0 52.9 58.1 Total ownership days fo
Slide 11: Genco's industry leading balance sheet
Genco’s industry leading balance sheet Key balance sheet items as of September 30, 2020 Cash1 Debt2 Net Debt3 $160.8 million $475.4 million $314.7 million ◼ Strong financial position: Genco continues to maintain one of the highest liquidity positions and lowest leverage profiles among our drybulk pe
Slide 12: Estimated Q4 2020 Cash Breakeven Rates
Estimated Q4 2020 Cash Breakeven Rates(1) Fleet breakeven rates – estimated Q4 2020 $14,000 (Detailed Q4 2020 estimated b/e rates in appendix) $12,000 $ per vessel per day $10,000 $4,521 $8,000 $900 $353 $677 $6,000 $12,352 $1,150 $4,000 $2,000 $4,750 $0 DVOE G&A Mgmt Fees Drydocking Interest Fixed
Slide 13: Industry Overview
Industry Overview
Slide 14: Freight rate developments in the YTD
$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 02-Jan 09-Jan 16-Jan 23-Jan 30-Jan $20.4k 06-Feb 13-Feb 20-Feb 27-Feb 05-Mar 12-Mar 19-Mar 26-Mar 02-Apr BSI - 2019 BSI - 2020 BCI - 2019 BCI - 2020 09-Apr BHSI - 2019 BHSI - 2020 16-Apr 23-Apr 30-Apr 07-May Baltic Capesize Index 14-M
Slide 15: Brazilian iron ore exports have recovered since June
Brazilian iron ore exports have recovered since June… …following poor weather conditions and operational challenges that disrupted production and shipments during most of the first half of the year ◼ Brazilian iron ore exports have exceeded 30MT in each of the last 5 months ― The first time this has
Slide 16: China's record IO imports led by all-time high steel output
China’s record IO imports led by all-time high steel output China’s IO imports have risen by 11% YOY in 2020, including 4 straight months of over 100MT per month… 120 2017 2018 110 2019 2020 100 90 80 70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec …as China’s steel output continues to set record
Slide 17: China steel inventory and coal stockpiles
100 110 40 50 60 70 80 90 10 15 20 25 30 - 5 Jan-18 Jan-18 Feb-18 Feb-18 Mar-18 Mar-18 Apr-18 Apr-18 May-18 May-18 Jun-18 Jun-18 Jul-18 Jul-18 Aug-18 Aug-18 Sep-18 Sep-18 Oct-18 Oct-18 Nov-18 Nov-18 Dec-18 Dec-18 Jan-19 Jan-19 Feb-19 Feb-19 Mar-19 Mar-19 Apr-19 Apr-19 May-19 May-19 Jun-19 Jun-19 Jul
Slide 18: Strong grain trade + improvement in other minor bulk trades
Strong grain trade + improvement in other minor bulk trades China’s soybean imports 100 95 90 85 80 US – Q4 peak season Black Sea – 2017 2018 2019 2020f 2021f Sold 33MT of Aug peak season China soybeans, with the Ramping up majority being sold to soybean imports buyers in China following recovery in
Slide 19: Supply side fundamentals
Supply side fundamentals Current Drybulk Vessel Orderbook by Type Drybulk Vessel Deliveries vs. Scrapping Capesize Panamax Handymax Handysize Deliveries Scrapping Net Additions 25 10 Newbuilding orderbook as a Jan 2017 percentage of the fleet is 8 20 approximately 6% Jan 2020 Jan 2018 mdwt 6 mdwt 15
Slide 20: 2021 drybulk outlook
2021 drybulk outlook Drybulk market catalysts 2021 supply & demand growth estimates Gradual recommencement of global economic 1 activity levels Vessel* Marsoft Clarksons Iron Ore Capesize +6.2% +3.0% 2 Recovery in Brazilian iron ore exports Coal Capesize +0.4% +4.7% Panamax 3 Improvement in minor bu
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Genco Fleet List
Genco Fleet List Major Bulk Minor Bulk Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Ultramax Genco Predator 2005 55,407 Genco Resolute 2015 181,060 Baltic Hornet 2014 63,574 Genco Provence 2004 55,317 Genco Endeavour 2015 181,060 Baltic Mantis 2015 63,470
Slide 24: Time Charter Equivalent Reconciliation
Time Charter Equivalent Reconciliation(1) Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (unaudited) (unaudited) Total Fleet Voyage revenues (in thousands) $ 87,524 $ 103,776 $ 260,066 $ 280,790 Voyage expenses (in thousands) 33,487 4
Slide 25: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Three Months Ended September 30, 2020 Adjusted Net Income Reconciliation (unaudited) Net loss $ (21,098) + Impairment of vessel assets 21,896 + Loss on sale of vessels 358 Adjusted net income $ 1,156 Adjusted net earnings per share - basic $ 0.03 Adjusted net earni
Slide 26: Q4 2020 Genco Estimated Breakeven Rates
Q4 2020 Genco Estimated Breakeven Rates(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,750 $4,750 General and Administrative 1,150 1,253 Expenses(4) Technical Management Fees(5) 353 353 Drydocking(6) 677 - Interest Expense(7) 900 1,124 Fixed Debt Repayments(
Slide 27: Genco's ESG initiatives overview
Genco’s ESG initiatives overview Given the importance of Environmental, Social and Governance factors to management and Genco’s diverse stakeholders, near and long-term ESG objectives are increasingly reflected in our strategic decision-making process ◼ We have invested in our fleet with the purchas
Slide 28: Shipping plays an essential role in global development
Shipping plays an essential role in global development ◼ Shipping is a fundamental pillar of the global economy ◼ Transportation by sea is a cost-effective and fuel-efficient way to move goods and raw materials in large scale around the world ◼ Maritime activity plays a key role in alleviating extre
Slide 29: As one of the largest drybulk shipping companies in the world
As one of the largest drybulk shipping companies in the world… …Genco recognizes the need to run a safe and responsible business built for the long-term Over the last several years, we have invested in our fleet by… ✓ Purchasing modern, fuel-efficient vessels ✓ Divesting older, less fuel-efficient t
Slide 30: The global sulfur cap has improved air quality
The global sulfur cap has improved air quality The International Maritime Organization implemented new emissions standards to meaningfully curb pollution from ships globally ◼ The sulfur content in fuel consumed by vessels has been reduced from 3.5% to 0.5% as of January 1, 2020 ◼ We implemented a c
Slide 31: Working towards reducing emissions and protecting the environment
Working towards reducing emissions and protecting the environment By purchasing modern, fuel-efficient vessels and selling older, less fuel-efficient tonnage, our Average Efficiency Ratio and Energy Efficiency Operational Indicator have improved leading to a reduction in our carbon emissions (calcs
Slide 32: Thank you
Thank you
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