Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q1 2017 Earnings Presentation
26 slides from Genco Shipping & Trading's earnings presentation, May 9, 2017
Slide 1: Genco Shipping & Trading Limited Q1 2017 Earnings Call
Genco Shipping & Trading Limited Q1 2017 Earnings Call May 9th, 2017
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 2017 and Year to Date Highlights Financial Overview Industry Overview 3
Slide 4: First Quarter 2017 and Year to Date Highlights
First Quarter 2017 and Year to Date Highlights
Slide 5: First Quarter 2017 and Year to Date Highlights
First Quarter 2017 and Year to Date Highlights Increased cash position to $173.9 million as of March 31, 2017 Net loss of $15.6 million for the first quarter of 2017 ― Basic and diluted loss per share of $0.47 ― Adjusted basic and diluted loss of $22.0 million or $0.66 per share, excluding $6.4 mill
Slide 6: Genco's Leading Market Position
Genco’s Leading Market Position Genco has significantly improved its leading market position focusing on enhancing its commercial strategy and leading low-cost operations Strong Balance Sheet & Straight Forward Capital Structure Strong Liquidity Position Diversified Fleet $174 Million at Mar 31 Genc
Slide 7: Strategic Plan Implemented
Strategic Plan Implemented Management has significantly enhanced Genco’s commercial and operating platform through the execution of the following initiatives Concentration on full in-house commercial platform: withdrawing certain Supramax and Handysize vessels from pools Commercial Continue to augme
Slide 8: 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 Augustus 2007 180,151 Genco Warrior 2005 55,435 Genco Explorer 1999 29,952 13 Genco Tiberius 2007 175,874 Genco Hunter 2007 58,729 Genco Progress 1999 29,952
Slide 9: Financial Overview
Financial Overview
Slide 10: First Quarter Earnings
First Quarter Earnings Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 (Dollars in thousands, except share and per share data) (unaudited) INCOME STATEMENT DATA: Revenues: Voyage revenues $ 38,249 $ 20,131 Service revenues - 811 Total revenues 38,249 20,942 Operating expenses: Vo
Slide 11: March 31, 2017 Balance Sheet
March 31, 2017 Balance Sheet March 31, 2017 December 31, 2016 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 173,895 $ 169,068 Current assets 173,651 172,605 Total assets 1,551,431 1,568,960 Current liabilities (excluding current portion of long-term debt)
Slide 12: First Quarter Highlights
First Quarter Highlights Three Months Ended March 31, 2017 March 31, 2016 (unaudited) FLEET DATA: Total number of vessels at end of period 61 70 Average number of vessels (1) 62.9 70.0 Total ownership days for fleet (2) 5,662 6,370 Total available days for fleet (3) 5,387 6,174 Total operating days
Slide 13: Improved Estimated Cash Breakeven Rates
Improved Estimated Cash Breakeven Rates(1) Fleet Breakeven Rates Fleet Breakeven Rates Estimated Q2-Q4 2017 Estimated Q2 2017 (Detailed Q2-Q4 2017 Estimated B/E Rates in Appendix) (Detailed Q2 2017 Estimated B/E Rates in Appendix) $8,000 $8,000 $147 $230 $1,006 $7,000 $1,007 $7,000 $934 $6,000 $452
Slide 14: Industry Overview
Industry Overview
Slide 15: Market Update and Industry Overview
Market Update and Industry Overview Baltic Dry Index (BDI Points) 1,400 1,200 1,000 800 600 400 200 0 2015 2016 2017 Source: Clarkson Research Services Limited 2017 15
Slide 16: Recent Market Developments
Recent Market Developments Iron Ore Imports by Country(1) Recent Developments (Mt) 120 Freight rates during the second half of Q1 2017 were China EU Japan South Korea supported primarily by: 100 ― Heightened demand for iron ore cargoes by 80 China predominantly from Brazil 60 Brazil gaining market s
Slide 17: Major Bulks
Major Bulks Iron Ore Trade Growth vs. Capesize Fleet Growth(1) Coal Power Plant Stockpiles(2) 25.0% $140,000 120 45 Iron Ore Ton-Mile Demand Growth Forecasted gap China India 40 between iron ore trade Capesize Fleet Growth and supply growth is the $120,000 100 20.0% 35 China Stockpiles (MT) Average
Slide 18: Minor Bulks
Minor Bulks (1) Wheat Exports USDA Global Grain Trade Estimates Exports (Mtpa) 2015/16(est) 2016/17(proj) % Change World 172.8 180.7 5% 2015/16 (est) 2016/17 (proj) 250 USA 21.1 27.9 32% Canada 22.1 20.0 -10% +5% +17% +8% Australia 16.1 25.0 55% FSU 12 51.5 53.4 4% 200 EU 27 34.7 26.5 -24% (1) Coars
Slide 19: 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 16 16 1.8% Newbuilding orderbook as a percentage Peak 14 14 of the fleet is currently 8% 12 Jan 2013 12 This
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Genco Fleet Details
Genco Fleet Details (1) Cash Daily Rate Vessel Name Year Built Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (2) Expiring Contracts (Total Fleet) : 29 20 8 2 1 1 0 (3) Swissmarine, $7,800 Swissmarine, 106% of BCI Capesize Genco Augustus 2007 13 Genco Tiberius 2007 Cargill, $10,500 Genco Lo
Slide 23: Genco Fleet Details
Genco Fleet Details* (1) Cash Daily Rate Vessel Name Year Built Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (2) Expiring Contracts (Total Fleet) : 29 20 8 2 1 1 0 (15) Supramax Genco Brittany 2010 Clipper Sapphire, Spot Pool (15) 21 Genco Languedoc 2010 Clipper Sapphire, Spot Pool (13) G
Slide 24: Footnotes to Genco Fleet Table
Footnotes to Genco Fleet Table (1) Time charter rates presented are the gross daily charterhire rates before third-party brokerage commission 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 and ca
Slide 25: Q2 2017 Genco Estimated Breakeven Rates
Q2 2017 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 689 1,004 Expenses(4) Technical Management Fees(5) 343 343 Drydocking(6) 934 - Interest Expense(7) 1,006 1,391 Fixed Debt Repayments
Slide 26: Q2 to Q4 2017 Genco Estimated Breakeven Rates
Q2 to Q4 2017 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 684 910 Expenses(4) Technical Management Fees(5) 340 340 Drydocking(6) 452 - Interest Expense(7) 1,007 1,393 Fixed Debt Repaym
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