Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2018 Earnings Presentation
26 slides from Genco Shipping & Trading's earnings presentation, May 9, 2018
Slide 1: Genco Shipping & Trading Limited Q1 2018 Earnings Call
Genco Shipping & Trading Limited Q1 2018 Earnings Call May 9th, 2018
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 First Quarter 2018 and Year to Date Highlights Financial Overview Industry Overview 3
Slide 4: First Quarter 2018 and Year to Date Highlights
First Quarter 2018 and Year to Date Highlights
Slide 5: First Quarter 2018 and Year to Date Highlights
First Quarter 2018 and Year to Date Highlights Entered into a commitment letter for a senior secured term loan facility with an aggregate principal amount of up to $460 million to – $460 Million ― Refinance our existing credit facilities Credit Facility ― Remove restrictions on vessel acquisitions
Slide 6: Genco's Leading Market Position
Genco’s Leading Market Position Significant improvement in margins driven by successful implementation of our commercial platform together with continued cost optimization and improved market conditions Genco TCE vs. DVOE TCE (net of voyage expenses & 64% of Q2-18 days $12,000 broker commission) $11
Slide 7: Genco is Uniquely Positioned to Capture Market Upside
Genco is Uniquely Positioned to Capture Market Upside Enhanced commercial strategy focused on increasing margins and outperforming benchmarks Full in-house logistics solution to major cargo owners Revamped Fleet concentrated on major and minor bulks Commercial Strategy ― Capesize: upside poten
Slide 8: Financial Overview
Financial Overview
Slide 9: First Quarter Earnings
First Quarter Earnings Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 (Dollars in thousands, except share and per s hare data) (unaudited) INCOME STATEMENT DATA: Revenues: Voyage revenues $ 76,916 $ 38,249 Total revenues 76,916 38,249 Operating expenses: Voyage expenses 21,093 3
Slide 10: March 31, 2018 Balance Sheet
March 31, 2018 Balance Sheet March 31, 2018 December 31, 2017 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 201,199 $ 204,946 Current assets 221,280 217,239 Total assets 1,452,567 1,520,959 Current liabilities (excluding current portion of long-term debt)
Slide 11: First Quarter Highlights
First Quarter Highlights Three Months Ended March 31, 2018 March 31, 2017 (unaudited) FLEET DATA: Total number of vessels at end of period 60 61 Average number of vessels (1) 60.0 62.9 Total ownership days for fleet (2) 5,400 5,662 Total available days for fleet (3) 5,335 5,538 Total operating days
Slide 12: Overview of the New Credit Facility up to $460 Million
Overview of the New Credit Facility up to $460 Million Entered into a commitment letter for a $460 million credit facility Existing Credit Facilities New Facility (Mar 31, 2018 Balances) 1 1 $400m Nordea Facility $460m Facility Mandated Lead Arrangers & Bookrunners: Nordea, SEB, ABN, DVB, CA, Danish
Slide 13: Pro Forma Balance Sheet Items
Pro Forma Balance Sheet Items Selected Financial Information March 31, 2018 (Dollars in thousands) Balance Sheet Cash $137,689 Debt $460,000 Shareholders’ Equity $919,048 Pro forma cash and debt balances reflect the pay down of $49.8 million of debt as well as estimated fees to be incurred during
Slide 14: Estimated Q2 2018 Cash Breakeven Rates
Estimated Q2 2018 Cash Breakeven Rates(1) Fleet Breakeven Rates Estimated Q2 2018 – Does Not Reflect New Facility Structure (Detailed Q2 2018 Estimated B/E Rates in Appendix) $8,000 $604 $7,000 $1,511 $ per vessel per day $6,000 $156 $357 $5,000 $830 $4,000 $7,898 $3,000 $2,000 $4,440 $1,000 $0 DVOE
Slide 15: Industry Overview
Industry Overview
Slide 16: Market Update and Industry Overview
Market Update and Industry Overview Baltic Dry Index (BDI Points) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2016 2017 2018 Source: Clarkson Research Services Limited 2018 16
Slide 17: Recent Market Developments
Recent Market Developments Key Iron Ore Expansion Plans(2) Recent Developments In Q1 2018 seasonal factors that impacted the BHP drybulk market include: 50.0 Significant Brazilian iron ore volume expected over the next two years Rio Tinto ― Timing of newbuilding deliveries towards Roy Hill the beg
Slide 18: Major Bulks
Major Bulks Coal Power Plant Stockpiles(2) (1) Global Steel Production (million tons) 120 45 3 Mos 2018 3 Mos 2017 % Variance China India 40 China 212.2 201.2 5.4% 100 European Union 43.1 42.7 0.9% 35 China Stockpiles (MT) Japan 26.4 26.2 0.7% India Stockpiles (MT) India 26.7 25.7 3.7% 80 30 South K
Slide 19: Minor Bulks
Minor Bulks Clarksons Global Grain Trade Estimates Seaborne Wheat / Course Grain Trade (MT) Exporter 2017 2018 (f) % Variance 400 +1% Argentina 41 45 11% 2017 2018F Australia 32 28 -11% 350 Canada 26 27 3% EU 32 35 10% 300 US 86 90 4% Others 147 143 -3% 250 Total 364 368 1% Mtpa Seaborne Soybean Tra
Slide 20: Supply Side Fundamentals
Supply Side Fundamentals Current Drybulk Vessel Orderbook by Type Drybulk Vessel Deliveries vs. Scrapping (mdwt) Capesize Panamax Handymax Handysize (mdwt) Deliveries Scrapping Net Additions 14 10 Jan 2017 Newbuilding orderbook as a percentage 12 of the fleet is currently 9.9% 8 10 1.2% 1.1% 1.0%
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Genco Fleet List
Genco Fleet List* Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Capesize Supramax Handysize Genco Constantine 2008 180,183 Genco Hunter 2007 58,729 Genco Spirit 2011 34,432 13 Genco Augustus 2007 180,151 Genco Auvergne 2009 58,020 Genco Mare 2011 34,428 Ge
Slide 24: Time Charter Equivalent Reconciliation
Time Charter Equivalent Reconciliation(1) Three Months Ended March 31, 2018 March 31, 2017 (unaudited) Total Fleet Voyage revenues (in thousands) $ 76,916 $ 38,249 Voyage expenses (in thousands) 21,093 3,241 55,823 35,008 Total available days 5,335 5,538 Total TCE rate $ 10,463 $ 6,321 Three Months
Slide 25: Pro Forma Balance Sheet Items Reconciliation
Pro Forma Balance Sheet Items Reconciliation ($ in thousands) Mar 31, 2018 Actual Adjustment Mar 31, 2018 Pro Forma Cash(1) $201,199 $(63,510) $137,689 Debt(2) $509,767 $(49,767) $460,000 Shareholders’ Equity $919,048 - $919,048 (1) March 31, 2018 pro forma cash is reduced by the paydown of our exis
Slide 26: Q2 2018 Genco Estimated Breakeven Rates
Q2 2018 Genco Estimated Breakeven Rates (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,440 $4,440 General and Administrative 830 1,008 Expenses(4) Technical Management Fees(5) 357 357 Drydocking(6) 156 - Interest Expense(7) 1,511 1,618 Fixed Debt Repayments
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