Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — 2011 Aviation and Transportation Conference
26 slides from Genco Shipping & Trading's conference presentation, Sep 13, 2011
Slide 1: Genco Shipping & Trading Limited
Genco Shipping & Trading Limited 2011 Aviation and Transportation Conference September 13, 2011
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: Company Overview
Genco Shipping & Trading Limited Company Overview
Slide 4: Management
Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer Over 25 years of Over 40 years of 16 years of experience in experience in the shipping experience in the shipping the shipping industry industry industry CFO since inception Chairman
Slide 5: Genco Overview
Genco Overview Founded in December 2004, completed IPO in July 2005 Pro forma fleet of 53 vessels with an average age of 6.5 years after all deliveries ― Agreements for two substantial acquisitions executed in 2010 ― Agreed to acquire 13 Supramax vessels from affiliates of Bourbon SA ― Agreed to
Slide 6: High Quality Operations
High Quality Operations Extensive relationships with Selected Customer Relationships established drybulk charterers These relationships help us to: ― Stabilize revenue through favorable contract terms ― Minimize counterparty risk ― Maximize fleet utilization We utilize three leading technical
Slide 7: 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 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 57
Slide 8: Financial Overview
Financial Overview
Slide 9: Pro Forma Balance Sheet
Pro Forma Balance Sheet (Excluding Baltic Trading Limited) Selected Financial Information 6/30/11 (Dollars in thousands) Balance Sheet Cash(1) $263,145 Debt(2) $1,652,867 Shareholders’ Equity(3) $1,155,093 Capitalization $2,807,960 Debt/Capitalization 59% See the Appendix for a reconciliation of pro
Slide 10: Remaining Vessel CAPEX
Remaining Vessel CAPEX (Dollars in thousands) Deposit as % Debt Equity Expected Deposit Vessel Name of Purchase Financing Payment on Total Price Delivery (1) Payment Price on Delivery Delivery Metrostar Acquisition Genco Spirit Nov 2011 10% 3,325 20,000 9,925 33,250 Total: $3,325 $20,000 $9,925 $33,
Slide 11: Industry Overview
Industry Overview
Slide 12: Drybulk Index
Drybulk Index Baltic Dry Index (BDI Points) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Source: Clarkson’s Research 2009 2010 2011 Services Limited 2011 09/13/11 12
Slide 13: Current Market Conditions
Current Market Conditions Recent Market Developments Australian coal and iron ore volumes substantially recovered Limited iron ore availability from India leads to increased fixtures from Brazil and Australia ― Brazil exported 32.5 Mt of iron ore in August, a 13% YOY improvement and up almost 50
Slide 14: Demand Side Fundamentals
Demand Side Fundamentals Chinese steel production increased 9.9% YOY through July 2011(1) China’s fixed-asset investment rose 25.0% YOY through the first eight months of 2011(2) Chinese infrastructure development to continue with plans to: ― Build as many as 36 million housing units within the
Slide 15: Increasing Iron Ore and Coal Production are Major Factors
Increasing Iron Ore and Coal Production are Major Factors Key iron ore expansion plans equal an increased capacity of 501 Mt per annum(1) Key Expansion Plans(1) ― 501 Mt represents 50.5% of total 2010 seaborne iron ore trade (million tons) Vale’s iron ore production plans are to reach annual pro
Slide 16: Supply Side Fundamentals
Supply Side Fundamentals Scarce capital continues Depressed vessel values imply higher equity installments required from illiquid owners 17% of the fleet is greater than 25 years old(1) 24% of the fleet is greater than 20 years old (1) 5.7 million DWT scrapped in 2010 and 17.5 million DWT
Slide 17: Appendix
Appendix
Slide 18: Pro Forma Reconciliation
Pro Forma Reconciliation 6/30/11 (Dollars in thousands) 6/30/11 Actual Adjustment 6/30/11 Pro Forma Cash(1) $295,980 (32,835) $263,145 Debt(2) $1,753,172 (100,305) $1,652,867 Shareholders’ Equity(3) $1,155,093 - $1,155,093 Capitalization $2,908,265 (100,305) $2,807,960 (1) June 30, 2011 pro forma ca
Slide 19: Second Quarter Earnings - Genco Consolidated
Second Quarter Earnings - Genco Consolidated Three Months Ended Six Months Ended June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010 (Dollars in thousands, except share and per share (Dollars in thousands, except share and per share data) data) (unaudited) (unaudited) INCOME STATEMENT DATA: Reve
Slide 20: Genco Consolidating Income Statement
Genco Consolidating Income Statement Three Months Ended June 30, 2011 (Dollars in thousands, except share and per share data) Non Controlling INCOME STATEMENT DATA: Genco Baltic Trading Elimination Interest Total Revenues $ 88,597 $ 9,914 $ - $ - $ 98,511 Service revenue 1,562 - (743) - 819 Total re
Slide 21: June 30, 2011 Balance Sheet - Genco Consolidated
June 30, 2011 Balance Sheet - Genco Consolidated June 30, 2011 December 31, 2010 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 295,980 $ 279,877 Current assets, including cash 311,269 293,681 Total assets 3,187,920 3,182,708 Current liabilities (including
Slide 22: Second Quarter Highlights - Genco Consolidated
Second Quarter Highlights - Genco Consolidated Three Months Ended Six Months Ended June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 60 40 60 40 Average number of vessels (1) 59.6 38.0 58.8 36.5 Total ownership days f
Slide 23: GNK Fleet Details
GNK Fleet Details* 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. 100% of BCI December, 2011 Genco Tiberius 2007 Cargill International S.A. 31,000 September, 2011 Genco London 2007 Carg
Slide 24: GNK Fleet Details
GNK Fleet Details* Cash Daily Net Revenue Vessel Type Vessel Name Year Built Charterer Charter Expiration (3) Rate (1) Daily Rate (2) Genco Success 1997 Swissmarine Services S.A. 90% of BSI January, 2012 Genco Carrier 1998 ED & F MAN Shipping Ltd. 92.5% of BSI February, 2012 Handymax Genco Prosperit
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
Slide 26: Footnotes to Fleet Table
Footnotes to Fleet Table (previous two pages) 11) We have reached an agreement with Louis Dreyfus Commodities Suisse S.A. on a time charter at a rate of $12,000 per day less a 5.00% third party brokerage commission for 3 to 5.5 months. Hire payment is made every 15 days in advance. The vessel ended
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