Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Q2 2019 Earnings Presentation
29 slides from Genco Shipping & Trading's earnings presentation, Aug 8, 2019
Slide 1: Genco Shipping & Trading Limited Q2 2019 Earnings Call
Genco Shipping & Trading Limited Q2 2019 Earnings Call August 8th, 2019
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 Second Quarter 2019 and Year-to-Date Highlights Financial Overview Industry Overview 3
Slide 4: Second Quarter 2019 and Year-to-Date Highlights
Second Quarter 2019 and Year-to-Date Highlights
Slide 5: Second Quarter 2019 and YTD Update
Second Quarter 2019 and YTD Update Q2 2019 Financials Net loss: $34.5 million ― Basic and diluted loss per share: $0.83 Adjusted net loss: $20.4 million ― Adjusted basic and diluted loss per share: $0.49 (excluding $13.9 million in non-cash vessel impairment charges as well as a $0.2 million non
Slide 6: Genco's Leading Commercial Operating Platform
Genco’s Leading Commercial Operating Platform 1H 2019 TCE performance of our active commercial strategy Q3 2019 to date Outperformance TCE Relevant adj Baltic Exchance benchmark sub-indices $14,000 $13,237 +57% Improvement $11,640 $12,000 based on Q3 to $10,463 $10,964 $10,696 date fixtures ~$700 $1
Slide 7: 2H 2019 & 2020 Drybulk Outlook
2H 2019 & 2020 Drybulk Outlook 2H 2019 fundamentals are improving off of the 1H lows – a further uplift is forecast in 2020 Drybulk Market Catalysts 2H 2019 & 2020 Supply & Demand Estimates Vessel* 2H 2019 2020 1 2 Iron Ore Coal Trade Linked Iron Ore Trade Capesize to Developing +5.5% +3.3% Growth E
Slide 8: 2019 is our heaviest operational year to date
2019 is our heaviest operational year to date… …with 35 vessels or 60% of the fleet entering a shipyard at some point during the year 25 Special surveys scheduled 10 completed to date Vessels consist of 4 x Capes, 4 x Supras, 2 x Handies 9 additional special surveys expected to begin in Q3 20
Slide 9: Shipping plays an essential role in global development
Shipping plays an essential role in global development ~90% of global trade is carried by the international shipping industry Shipping is a fundamental pillar of the global economy Transportation by sea is the most cost-effective and fuel-efficient way to move goods and raw materials in large sc
Slide 10: 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, responsible and sustainable business built for the long-term Environmental Social Governance Invest in our fleet to reduce GHG Employ a gender and culturally diverse U.S. filer committed to
Slide 11: Financial Overview
Financial Overview
Slide 12: Second Quarter Earnings
Second Quarter Earnings Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 (Dollars in thousands, except s hare and per share data) (Dollars in thousands, except share and per s hare data) (unaudited) (unaudited) INCOME STA
Slide 13: June 30, 2019 Balance Sheet
June 30, 2019 Balance Sheet June 30, 2019 December 31, 2018 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 165,436 $ 202,761 Current assets 219,364 270,451 Total assets 1,564,444 1,627,470 Current liabilities (excluding current portion of long-term debt) 43
Slide 14: Second Quarter Highlights
Second Quarter Highlights Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 58 60 58 60 Average number of vessels (1) 58.0 60.0 58.2 60.0 Total ownership days for fleet (2) 5,278 5,
Slide 15: Key Balance Sheet Items and Capital Structure
Key Balance Sheet Items and Capital Structure ($ in millions) Simplified and efficient debt structure offers more flexibility and visibility into Genco’s capital structure – Highlights Genco’s access to high quality commercial bank financing Select Financial Information – Jun 30, 2019 Simplified Deb
Slide 16: Estimated Q3 2019 Cash Breakeven Rates
Estimated Q3 2019 Cash Breakeven Rates(1) Fleet Breakeven Rates – Estimated Q3 2019 (Detailed Q3 2019 Estimated B/E Rates in Appendix) $15,000 $12,500 $ per vessel per day $3,107 $10,000 $1,326 In Q3, we plan to incur one-time $7,500 $2,066 costs for BWTS $353 $12,603 installation of $5,000 $1,136 ~
Slide 17: Industry Overview
Industry Overview
Slide 18: Capesize rates recently hit multi-year highs
Capesize rates recently hit multi-year highs Highlights the importance of Capesize exposure as the sector has led the market move… $35,000 BCI rose by BCI BPI 9.5x from April to July to $30,000 ~$33k BSI BHSI $25,000 BPI nearly reached $18k $20,000 $15,000 $10,000 $5,000 …while the minor bulks remai
Slide 19: Splitting the 2019 drybulk market into two halves
Splitting the 2019 drybulk market into two halves… 1H 2019: seasonality + Vale incident + iron 2H 2019: recovery in iron ore volumes + ore inventory drawdowns in China vessel supply-side disruption Capesize Panamax Supramax Handysize $35,000 Seasonal factors impacted… Freight market is being driven
Slide 20: Major Bulks – China's Steel Production Growth Remains Strong
Major Bulks – China’s Steel Production Growth Remains Strong Coal Power Plant Stockpiles(2) 120 45 China (1) Global Steel Production (million tons) 40 100 India 6 Mos 2019 6 Mos 2018 % Variance 35 China Stockpiles (MT) China 492.2 447.8 9.9% India Stockpiles (MT) 80 30 European Union 84.7 86.9 -2.5%
Slide 21: Minor Bulks – Steady Grain Trade with Seasonal Impact
Minor Bulks – Steady Grain Trade with Seasonal Impact Seaborne Wheat / Course Grain Trade (MT) Clarksons Global Grain Trade Estimates Exporter 2018 (e) 2019 (f) % Variance Argentina 37 39 5% +1% 350 Australia 19 18 -5% 2018E 2019F Canada 24 25 4% 300 EU 33 34 3% US 83 82 -1% 250 Others 128 130 2% To
Slide 22: 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 22 10 Newbuilding orderbook as a percentage of 2.4% Jan 2017 20 the fleet is currently 11% 8 18 16 1.7% Jan 2018 mdwt mdwt
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Genco Fleet List
Genco Fleet List Major Bulk Minor Bulk Capesize Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Ultramax Baltic Cougar 2009 53,432 17 Genco Resolute 2015 181,060 Baltic Hornet 2014 63,574 Genco Loire 2009 53,430 Genco Endeavour 2015 181,060 Baltic Mantis 201
Slide 26: Time Charter Equivalent Reconciliation
Time Charter Equivalent Reconciliation(1) Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 (unaudited) (unaudited) Total Fleet Voyage revenues (in thousands) $ 83,550 $ 86,157 $ 177,014 $ 163,073 Voyage expenses (in thousands) 41,800 25,983 84,822 47,075 Ch
Slide 27: Adjusted Net Loss Reconciliation
Adjusted Net Loss Reconciliation Three Months Ended June 30, 2019 Adjusted Net Loss Reconciliation (unaudited) Net loss $ (34,476) + Impairment of vessel assets 13,897 + Impairment of right-of-use asset 223 Adjusted net loss $ (20,356) Adjusted net loss per share - basic $ (0.49) Adjusted net loss p
Slide 28: Q3 2019 Genco Estimated Breakeven Rates
Q3 2019 Genco Estimated Breakeven Rates (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $4,615 $4,615 General and Administrative 1,136 1,257 Expenses(4) Technical Management Fees(5) 353 353 Drydocking(6) 2,066 - Interest Expense(7) 1,326 1,506 Fixed Debt Repaym
Slide 29: Thank you
Thank you <<
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