Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the
“Company”), the largest U.S. headquartered drybulk shipowner
focused on the global transportation of commodities, today reported
its financial results for the three months and twelve months ended
December 31, 2023.
Fourth Quarter 2023 and Year-to-Date
Highlights
-
Dividend: Declared a $0.41 per share dividend for
Q4 2023
- 18th consecutive
quarterly payout
- Cumulative
dividends of $5.155 per share or 29% of our share price1
- Q4 2023 dividend
is payable on or about March 13, 2024 to all shareholders of record
as of March 6, 2024.
- Global
refinancing: Closed a $500 million revolving credit
facility providing additional capital allocation flexibility and
improved terms compared to our previous facility
- 100% revolver
structure with increased borrowing capacity by $156 million,
maturity is extended by over two years to the end of 2028 and
margin is reduced to a grid of 1.85% to 2.15% from 2.15% to
2.75%
- Fleet
renewal: Acquired two 2016-built scrubber-fitted Capesize
vessels, the Genco Ranger and the Genco Reliance, for $86.1
million, in Q4 2023
- Agreed to sell
three 2009-2010-built 169,000 dwt Capesize vessels
- Saved nearly $10
million in 2024 drydocking capex for these vessels which had
upcoming third special surveys due
-
Financial performance: Net income of $4.9 million
for Q4 2023, including a non-cash vessel impairment charge of $13.6
million, or basic and diluted earnings per share of $0.12 and
$0.11, respectively
- Adjusted net
income of $18.6 million or basic and diluted earnings per share of
$0.43, excluding the non-cash vessel impairment charge of $13.6
million2
- Adjusted EBITDA
of $37.1 million for Q4 2023 and $101.5 million for FY 20232
- Voyage
revenues: Totaled $115.5 million in Q4 2023
- Net revenue2 was
$70.6 million during Q4 2023
- Average daily
fleet-wide TCE2 was $17,373 for Q4 2023
-
Fleet-wide TCE for FY 2023: $14,766, which
outperformed our scrubber-adjusted internal benchmark by
approximately $1,300 per day3
-
Estimated TCE to date for Q1 2024: $18,724 for 81%
of our owned fleet available days, based on both period and current
spot fixtures2
John C. Wobensmith, Chief Executive
Officer, commented, “2023 marked another strong year for
Genco, as we continued to take concrete steps to drive sustainable
long-term shareholder value while remaining the #1 shipping company
for the third consecutive year in the Webber Research ESG
Scorecard. Notably, we further executed on all three pillars of our
comprehensive value strategy focused on dividends, deleveraging and
growth. We declared our 18th consecutive dividend, increasing
cumulative dividends to shareholders to $5.155 per share over this
period. We also continued to enhance our financial strength,
lowering our debt by 55% since 2021 and reducing our cash flow
breakeven rate to the lowest in the peer group. In terms of growth,
including the two high-specification scrubber-fitted Capesize
vessels we acquired in 2023 to advance our fleet renewal strategy,
we have invested $520 million over the past 5 years. We also
enhanced our ability to opportunistically drive growth with the
closing of our $500 million revolving credit facility.”
Mr. Wobensmith continued, “Our performance in
the fourth quarter was strong. Importantly, we capitalized on our
industry leading commercial platform and our significant operating
leverage to once again outperform benchmarks and increase TCE by
44% from third quarter levels. We expect the first quarter to be
solid as 81% of our Q1 days are fixed at over $18,700 per day.”
Mr. Wobensmith concluded, “Since implementing
our value strategy in early 2021, we have taken important steps to
position Genco to drive value through drybulk shipping market
cycles. Going forward, we continue to focus on providing
significant returns to shareholders, reducing our financial risk
and maximizing our ability to pursue accretive growth
opportunities. At the same time, we remain committed to maintaining
high corporate governance standards for the benefit of
shareholders.”
1 Genco share price as of February 20, 2024.2 We
believe the non-GAAP measure presented provides investors with a
means of better evaluating and understanding the Company’s
operating performance. Please see Summary Consolidated Financial
and Other Data below for further reconciliation. Regarding Q1 2024
TCE, actual results will vary from current estimates. Net revenue
is defined as voyage revenues minus voyage expenses, charter hire
expenses and realized gains or losses on fuel hedges.3 Our
benchmark is defined as the weighted average of the Baltic Supramax
Index as published by the Baltic Exchange and the Platts Scrubber
Fitted Capesize Index net of 5% for commissions, adjusted for our
owned-fleet composition as well as the characteristics of our
vessels. We compare our actual TCE performance against this
benchmark to assess TCE performance. We benchmark our fully
scrubber-fitted Capesize fleet against the Platts Scrubber Fitted
Capesize Index as we view this as a more relevant benchmark than
the Baltic Capesize Index which represents a non-scrubber fitted
vessel.
Comprehensive Value Strategy
Genco’s comprehensive value strategy is centered
on three pillars:
- Dividends: paying
sizeable quarterly cash dividends to shareholders
- Deleveraging:
through voluntary debt repayments to maintain low financial
leverage, and
- Growth:
opportunistically growing and renewing the Company’s asset
base
This strategy is a key differentiator
for Genco, which we believe creates a compelling
risk-reward balance to drive shareholder value over the long-term.
The Company intends to pay a sizeable quarterly dividend across the
cyclicality of the drybulk market while maintaining significant
flexibility to grow the fleet through accretive vessel
acquisitions.
Key characteristics of our unique
platform include:
- Industry low cash flow breakeven
rate
- Net loan-to-value of 10%4
- Strong liquidity position of $341.7
million at December 31, 2023, which consists of:
- $46.9 million of
cash on the balance sheet
- $294.8 million
of revolver availability
- High operating
leverage with our scalable fleet across the major and minor bulk
sectors
4 Represents the principal amount of our credit
facility debt outstanding less our cash and cash equivalents as of
December 31, 2023 divided by estimates of the market value of our
fleet as of February 20, 2024 from VesselsValue.com. These figures
are pro forma for agreed upon vessel sales, the delivery of which
occurred or is expected to occur in Q1 2024. The actual market
value of our vessels may vary.
Financial deleveraging
Genco has reduced debt outstanding by
~$250 million or 55% since implementation of our value
strategy
- Debt
outstanding: $200.0 million as of December 31, 2023
- Drew down $65.0
million under our revolver in Q4 2023 to partially fund the
acquisition of the Genco Ranger and the Genco Reliance
- Later in Q4, we
paid down $9.8 million of debt as we actively manage our debt
outstanding under our $500 million revolver to reduce interest
expense
- We plan to
continue to voluntarily pay down debt with a medium-term goal of
zero net debt in order to enhance our ability to pay meaningful
dividends and take advantage of strategic opportunities throughout
drybulk market cycles
Growth
Acquired two 2016-built 181,000
dwt scrubber-fitted Capesize vessels for $86.1 million constructed
at SWS shipyard in China. We took delivery of these vessels on the
following days:
- Genco Reliance: November 21,
2023
- Genco Ranger: November 27,
2023
We took delivery of the two acquired Capesize
vessels as the freight rate environment was strengthening. As such,
EBITDA generated on the first fixtures for these ships are
estimated to have paid off approximately 10% of the purchase
price.
Furthermore, we agreed to sell three of our
169,000 dwt Capesize vessels for aggregate gross proceeds of $56.0
million. These sales resulted in approximately $10 million of
drydocking savings in 2024 due to the vessels' upcoming third
special surveys. We delivered or expect to deliver these vessels to
their respective buyers based on the following schedule:
- Genco Commodus: February 7,
2024
- Genco Claudius: February 2024
expected delivery
- Genco Maximus: March 2024 expected
delivery
We continue to further evaluate fleet renewal
and growth opportunities in the sale and purchase market.
Dividend Policy
Genco declared a cash dividend of $0.41
per share for the fourth quarter of 2023. This represents
our ninth dividend payment under our value strategy with cumulative
dividends declared to date of $4.10 per share. The Q4 2023 dividend
is payable on or about March 13, 2024 to all shareholders of record
as of March 6, 2024.
Quarterly dividend policy: 100%
of excess quarterly operating cash flow ex-maintenance and
withholding for future investment
Under the quarterly dividend policy adopted by
our Board of Directors, the amount available for quarterly
dividends is to be calculated based on the formula in the table
below. The table includes the calculation of the actual Q4 2023
dividend and estimated amounts for the calculation of the dividend
for Q1 2024:
|
|
|
|
|
|
Dividend calculation |
Q4 2023
actual |
Q1 2024
estimates |
|
|
Net revenue |
$ |
70.62 |
|
Fixtures + market |
|
|
Operating expenses |
|
(33.33 |
) |
(35.05 |
) |
|
|
Less: capex for dydocking/BWTS/ESDs |
|
- |
|
(4.76 |
) |
|
|
Operating cash flow less DD capex |
$ |
37.29 |
|
Sum of the above |
|
|
Less: voluntary quarterly reserve |
|
(19.50 |
) |
(19.50 |
) |
|
|
Cash flow distributable as dividends |
$ |
17.79 |
|
Sum of the above |
|
|
Number of shares to be paid dividends |
|
43.2 |
|
43.2 |
|
|
|
Dividend per share |
$ |
0.41 |
|
|
|
|
Numbers in
millions except per share amounts |
|
|
|
|
|
|
Operating cash flow is defined
as net revenue (consisting of voyage revenue less voyage expenses,
charter hire expenses, and realized gains or losses on fuel
hedges), less operating expenses (consisting of vessel operating
expenses, general and administrative expenses other than non-cash
restricted stock expenses, technical management fees, and interest
expense other than non-cash deferred financing costs), for purposes
of the foregoing calculation. Estimated expenses and capital
expenditures for Q1 2024 are estimates and subject to
change. For the first quarter, operating expenses are expected
to exclude extraordinary annual meeting related expenses.
The voluntary quarterly reserve for the
first quarter of 2024 under the Company’s dividend formula
is expected to be $19.5 million, which remains fully within our
discretion. A key component of Genco’s value strategy is
maintaining a voluntary quarterly reserve, as well as the
optionality for the use of the reserve as Genco seeks to pay
sizeable dividends across the cyclicality of the drybulk market.
Subject to the development of freight rates for the remainder of
the first quarter and our assessment of our liquidity and forward
outlook, we maintain flexibility to reduce the quarterly reserve to
pay dividends or increase the amount of dividends otherwise payable
under our formula. The reserve is set by our Board of Directors at
its discretion, and our Board has generally allotted an amount for
anticipated debt prepayments plus an additional amount. We plan to
set the voluntary reserve on a quarterly basis for the subsequent
quarter.
Anticipated uses for the voluntary
reserve include, but are not limited to:
- Vessel acquisitions
- Debt repayments, and
- General corporate purposes
The Board expects to reassess the payment
of dividends as appropriate from time to time. Our quarterly
dividend policy and declaration and payment of dividends are
subject to legally available funds, compliance with applicable law
and contractual obligations (including our credit facility) and the
Board of Directors’ determination that each declaration and payment
is at the time in the best interests of the Company and its
shareholders after its review of our financial performance.
Peter Allen, Chief Financial Officer,
commented, “During the fourth quarter, we continued to
enhance our financial strength and increase the fleet’s earnings
power. We closed on a new $500 million revolving credit facility,
meaningfully increasing Genco’s borrowing capacity, reducing
margin, extending maturity and augmenting our ability to capitalize
on opportunistic growth. This 100% revolver structure aligns well
with Genco’s value strategy, providing both the flexibility to
continue on our debt paydown trajectory and the optionality to
strategically access capital when attractive opportunities
materialize. Furthermore, during the quarter, the operating
leverage of the fleet was on full display. Net revenues increased
by approximately 50% in Q4 compared to Q3, while our recurring cost
structure remained nearly flat over that period, illustrating the
high degree of operating leverage inherent in the business and
specifically our approach to fleet composition. This cash flow
generation together with our new revolver enabled Genco to increase
our overall liquidity position to $341.7 million at year end.
Lastly, following the completion of our agreed upon vessel sales,
our net loan-to-value ratio is expected to be further reduced to an
industry low of 10%.”
Genco’s Active Commercial Operating
Platform and Fleet Deployment Strategy
We utilize a portfolio approach
towards revenue generation through a combination of:
- Short-term, spot market employment,
and
- Opportunistically booking longer
term coverage
Our fleet deployment strategy currently remains
weighted towards short-term fixtures, which provide us with
optionality on our sizeable fleet.
Our barbell approach towards fleet
composition enables Genco to gain exposure to both the
major and minor bulk commodities with a fleet whose cargoes carried
align with global commodity trade flows. This approach continues to
serve us well given the upside potential in major bulk rates
together with the relative stability of minor bulk rates.
Based on current fixtures to date, our estimated
TCE to date for the first quarter of 2024 on a load-to-discharge
basis is presented below. Actual rates for the first quarter will
vary based upon future fixtures. These estimates are based on time
charter contracts entered by the Company as well as current spot
fixtures on the load-to-discharge method, whereby revenue is
recognized ratably over the voyage from the commencement of loading
to the completion of discharge. The actual TCE rates to be earned
will depend on the number of contracted days and the number of
ballast days at the end of the period. According to the
load-to-discharge accounting method, the Company does not recognize
revenue for any ballast days or uncontracted days at the end of the
first quarter of 2024. At the same time, expenses for uncontracted
days will be recognized.
|
|
|
Estimated
net TCE - Q1 2024 to Date |
|
|
|
Vessel Type |
Fleet-wide |
% Fixed |
Capesize |
$ |
23,504 |
76% |
Ultra/Supra |
$ |
15,798 |
84% |
Total |
$ |
18,724 |
81% |
|
|
|
Our index-linked and short-period time charters
are listed below. The Genco Reliance and Genco Ranger index-linked
charters are estimated to begin in March following the completion
of current employment.
Vessel |
Type |
DWT |
Year Built |
Rate |
Duration |
Min Expiration |
|
Genco Endeavour |
Capesize |
181,060 |
2015 |
BCI + 27% + scrubber |
11-14 months |
Apr-24 |
|
Genco Resolute |
Capesize |
181,060 |
2015 |
BCI + 27% +
scrubber |
11-14 months |
Apr-24 |
|
Genco Defender |
Capesize |
180,021 |
2016 |
BCI + 25% +
scrubber |
11-14 months |
Apr-24 |
|
Genco Reliance |
Capesize |
181,146 |
2016 |
BCI + 28% +
scrubber |
10-12 months |
Jan-25 |
|
Genco Ranger |
Capesize |
180,882 |
2016 |
BCI + 28% + scrubber |
11-14 months |
Feb-25 |
|
|
|
|
|
|
|
|
|
Genco Madeleine |
Ultramax |
63,166 |
2014 |
$ |
16,000 |
5-7 months |
Mar-24 |
|
Genco Constellation |
Ultramax |
63,310 |
2017 |
$ |
16,000 |
5-7 months |
Mar-24 |
|
Genco Languedoc |
Supramax |
58,018 |
2010 |
$ |
18,250 |
3-5 months |
Mar-24 |
|
Genco Bourgogne |
Supramax |
58,018 |
2010 |
$ |
15,000 |
4-6 months |
Mar-24 |
|
Baltic Wasp |
Ultramax |
63,389 |
2015 |
$ |
16,500 |
5-7 months |
Apr-24 |
|
|
|
|
|
|
|
|
|
Financial Review: 2023 Fourth
Quarter
The Company recorded net income for the fourth
quarter of 2023 of $4.9 million, or $0.12 and $0.11 basic and
diluted earnings per share, respectively. Adjusted net income is
$18.6 million or $0.43 basic and diluted earnings per share,
excluding a non-cash vessel impairment charge of $13.6 million.
During the fourth quarter of 2023, we entered into agreements to
sell three of our 169,000 dwt Capesize vessels, that we are
divesting as part of fleet renewal with third special surveys
scheduled in 2024. Therefore, the values of these vessels were
adjusted to their net sales prices during the fourth quarter of
2023. Comparatively, for the three months ended December 31, 2022,
the Company recorded net income of $28.7 million, or $0.67 basic
and diluted earnings per share, respectively.
Revenue / TCEThe Company’s
revenues decreased to $115.5 million for the three months ended
December 31, 2023, as compared to $127.0 million recorded for the
three months ended December 31, 2022, primarily due to lower rates
earned by our minor bulk vessels and a decrease in revenues earned
by third party chartered-in vessels, partially offset by higher
rates achieved by our major bulk vessels. The average daily time
charter equivalent, or TCE, rates obtained by the Company’s fleet
was $17,373 per day for the three months ended December 31, 2023 as
compared to $19,330 per day for the three months ended December 31,
2022.
Voyage expensesVoyage expenses
were $42.5 million for the three months ended December 31, 2023
compared to $43.5 million during the prior year period. This
decrease was primarily due to lower bunker expenses for our minor
bulk vessels and third-party chartered-in vessels, partially offset
by higher voyage expenses incurred by our major bulk vessels.
Vessel operating expensesVessel
operating expenses increased to $25.4 million for the three months
ended December 31, 2023 from $20.9 million for the three months
ended December 31, 2022. Daily vessel operating expenses, or DVOE,
amounted to $6,153 per vessel per day for the fourth quarter of
2023 compared to $5,164 per vessel per day for the fourth quarter
of 2022. The increase was primarily due to the timing of the
purchase of stores and spare parts and timing of crew changes as
well as higher repair and insurance related expenses. For the full
year of 2023, our DVOE was $6,017 per vessel per day, essentially
in line with our full year budget.
We believe daily vessel operating expenses are
best measured for comparative purposes over a 12-month period in
order to take into account all of the expenses that each vessel in
our fleet will incur over a full year of operation. Based on
estimates provided by our technical manager, our DVOE budget for Q1
2024 is $6,150 per vessel per day on a fleet-wide basis.
General and administrative
expensesGeneral and administrative expenses decreased to
$7.0 million for the fourth quarter of 2023 compared to $7.4
million for the fourth quarter of 2022, primarily due to a decrease
in compensation related expenses.
Depreciation and amortization
expensesDepreciation and amortization expenses increased
to $16.7 million for the three months ended December 31, 2023 from
$16.0 million for the three months ended December 31, 2022,
primarily due to an increase in drydocking amortization expense for
certain vessels that completed their respective drydockings during
the third quarter of 2022 through the second quarter of 2023.
Financial Review: Twelve Months
2023
The Company recorded net loss of $12.9 million
or $0.30 basic and diluted loss per share for the twelve months
ended December 31, 2023. Adjusted net income is $28.8 million or
$0.67 basic and diluted earnings per share excluding a non-cash
vessel impairment charge of $41.7 million. This compares to net
income of $158.6 million or $3.74 and $3.70 basic and diluted
earnings per share, respectively, for the twelve months ended
December 31, 2022.
Revenue / TCEThe Company’s
revenues decreased to $383.8 million for the twelve months ended
December 31, 2023 compared to $536.9 million for the twelve months
ended December 31, 2022. The decrease in voyage revenues was
primarily due to lower rates earned by our minor bulk vessels.
Additionally, there was a decrease in voyage revenues earned by
third party chartered-in vessels primarily as a result of fewer
chartered-in days, as well as decrease in rates earned. TCE rates
obtained by the Company decreased to $14,766 per day for the twelve
months ended December 31, 2023 from $23,824 per day for the twelve
months ended December 31, 2022.
Voyage expensesVoyage expenses
decreased to $143.0 million for the twelve months ended December
31, 2023 from $153.9 million for the same period in 2022. This
decrease was primarily due to lower bunker expenses for our minor
bulk vessels and third-party chartered-in vessels, partially offset
by higher voyage expenses incurred by our major bulk vessels.
Vessel operating expensesVessel
operating expenses decreased to $97.1 million for the twelve months
ended December 31, 2023 from $99.5 million for the twelve months
ended December 31, 2022. DVOE was $6,017 for 2023 versus $6,197 in
2022. This decrease was primarily due to an absence of COVID-19
related expenses, partially offset by an increase in the purchase
of spare parts, higher insurance related costs, and higher crew
costs due to the timing of crew changes. For the full year of 2023,
our DVOE of $6,017 per vessel per day, essentially in line with our
full year budget.
General and administrative
expensesGeneral and administrative expenses for the twelve
months ended December 31, 2023 increased to $28.3 million as
compared to $25.7 million in the same period of 2022 primarily due
to higher nonvested stock amortization expense.
EBITDAEBITDA for the twelve
months ended December 31, 2023 amounted to $59.7 million compared
to $226.8 million during the prior period. During the twelve months
of 2023 and 2022, EBITDA included non-cash impairment charges as
well as gains and losses on fuel hedges. Excluding these items, our
adjusted EBITDA would have amounted to $101.5 million and $226.8
million, for the respective periods.
Liquidity and Capital
Resources
Cash Flow
Net cash provided by operating
activities for the years ended December 31, 2023 and 2022
was $91.8 million and $189.3 million, respectively. This decrease
in cash provided by operating activities was primarily due to lower
net revenue earned by our minor and major bulk vessels, as well as
changes in working capital. These decreases were partially offset
by a decrease in drydocking costs incurred during 2023 as compared
to 2022.
Net cash used in investing
activities during the years ended December 31, 2023 and
2022 was $91.6 million and $55.0 million, respectively. The
increase was primarily due to a $38.8 million increase in the
purchase of vessels, principally resulting from the purchase of two
Capesize vessels that delivered during the fourth quarter of 2023
as compared to the purchase of two Ultramax vessels that delivered
during the first quarter of 2022. There was also a $1.4 million
increase in insurance proceeds for hull and machinery claims for
our vessels.
Net cash used in financing
activities during the years ended December 31, 2023 and
2022 was $17.4 million and $190.7 million,
respectively. During 2023, the decrease in total net cash used
in financing activities related to our credit facilities was $104.0
million as compared to 2022. This was a result of the $65.0 million
drawn down during the further quarter of 2023 used to partially
finance the purchase two Capesize vessels that delivered during the
fourth quarter of 2023, as well as a decrease in debt repayments
during 2023 as compared to 2022. Additionally, there was a $74.8
million decrease in the payment of dividends during 2023 as
compared to 2022. These decreases were partially offset by a $5.5
million increase in deferred financing costs during 2023 as
compared to 2022 related to the $500 Million Revolver that was
entered into on November 29, 2023 to amend our $450 Million Credit
Facility.
Capital Expenditures
After the agreed upon vessel sales, Genco’s
fleet will consist of 43 vessels:
- 16 Capesizes
- 15 Ultramaxes
- 12 Supramaxes
The fleet’s average age is 11.6 years and has an
aggregate capacity of approximately 4,490,000 dwt.
In addition to acquisitions that we may
undertake, we will incur additional capital expenditures due to
special surveys and drydockings. Furthermore, we plan to upgrade a
portion of our fleet with energy saving devices and apply high
performance paint systems to our vessels in order to reduce fuel
consumption and emissions.
We estimate our capital expenditures related to
drydocking, including capitalized costs incurred during drydocking
related to vessel assets and vessel equipment, ballast water
treatment system costs, fuel efficiency upgrades and scheduled
off-hire days for our fleet for the balance of 2024 to be:
|
|
|
|
|
|
Estimated costs ($ in millions) |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 |
|
Drydock Costs(1) |
$ |
3.55 |
$ |
3.55 |
$ |
5.10 |
$ |
5.85 |
|
Estimated BWTS Costs(2) |
$ |
0.53 |
$ |
0.53 |
$ |
- |
$ |
- |
|
Fuel Efficiency Upgrade Costs(3) |
$ |
0.68 |
$ |
0.68 |
$ |
0.82 |
$ |
0.96 |
|
Total Costs |
$ |
4.76 |
$ |
4.76 |
$ |
5.92 |
$ |
6.81 |
|
Estimated Offhire Days(4) |
|
60 |
|
60 |
|
80 |
|
90 |
|
|
|
|
|
|
|
(1) Estimates are based on our budgeted cost of
drydocking our vessels in China. Actual costs will vary based on
various factors, including where the drydockings are actually
performed. We expect to fund these costs with cash on hand. These
costs do not include drydock expense items that are reflected in
vessel operating expenses.
(2) Estimated costs associated with the
installation of ballast water treatment systems are expected to be
funded with cash on hand.
(3) Estimated costs associated with the
installation of fuel efficiency upgrades are expected to be funded
with cash on hand.
(4) Actual length will vary based on the condition of the
vessel, yard schedules and other factors. The estimated offhire
days per sector scheduled for Q1 2024 consists of 30 days for one
Ultramax and 30 days for one Supramax.
Summary Consolidated Financial and Other
Data
The following table summarizes Genco Shipping
& Trading Limited’s selected consolidated financial and other
data for the periods indicated below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2023 |
|
Three Months Ended December 31, 2022 |
|
Twelve Months Ended December 31, 2023 |
|
Twelve Months Ended December 31, 2022 |
|
|
|
|
|
|
(Dollars in thousands, except share and per share data) |
|
(Dollars in thousands, except share and per share data) |
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Voyage revenues |
$ |
115,516 |
|
|
$ |
126,973 |
|
|
$ |
383,825 |
|
|
$ |
536,934 |
|
|
|
|
|
Total revenues |
|
115,516 |
|
|
|
126,973 |
|
|
|
383,825 |
|
|
|
536,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
42,450 |
|
|
|
43,470 |
|
|
|
142,971 |
|
|
|
153,889 |
|
|
|
|
Vessel operating expenses |
|
25,368 |
|
|
|
20,902 |
|
|
|
97,093 |
|
|
|
99,469 |
|
|
|
|
Charter hire expenses |
|
2,404 |
|
|
|
7,497 |
|
|
|
9,135 |
|
|
|
27,130 |
|
|
|
|
General and administrative expenses (inclusive of nonvested stock
amortization |
|
7,001 |
|
|
|
7,372 |
|
|
|
28,268 |
|
|
|
25,708 |
|
|
|
|
expense of $1.4 million, $0.9 million, $5.5 million and $3.2
million, respectively) |
|
|
|
|
|
|
|
|
|
|
Technical management fees |
|
937 |
|
|
|
932 |
|
|
|
4,021 |
|
|
|
3,310 |
|
|
|
|
Depreciation and amortization |
|
16,703 |
|
|
|
16,028 |
|
|
|
66,465 |
|
|
|
60,190 |
|
|
|
|
Impairment of vessel assets |
|
13,617 |
|
|
|
- |
|
|
|
41,719 |
|
|
|
- |
|
|
|
|
|
Total operating expenses |
|
108,480 |
|
|
|
96,201 |
|
|
|
389,672 |
|
|
|
369,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
7,036 |
|
|
|
30,772 |
|
|
|
(5,847 |
) |
|
|
167,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
Other (expense) income |
|
(98 |
) |
|
|
(439 |
) |
|
|
(396 |
) |
|
|
178 |
|
|
|
|
Interest income |
|
790 |
|
|
|
666 |
|
|
|
2,667 |
|
|
|
1,042 |
|
|
|
|
Interest expense |
|
(2,622 |
) |
|
|
(2,171 |
) |
|
|
(8,780 |
) |
|
|
(9,094 |
) |
|
|
|
|
Other expense, net |
|
(1,930 |
) |
|
|
(1,944 |
) |
|
|
(6,509 |
) |
|
|
(7,874 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
5,106 |
|
|
$ |
28,828 |
|
|
$ |
(12,356 |
) |
|
$ |
159,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest |
|
169 |
|
|
|
149 |
|
|
|
514 |
|
|
$ |
788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Genco Shipping & Trading
Limited |
$ |
4,937 |
|
|
$ |
28,679 |
|
|
$ |
(12,870 |
) |
|
$ |
158,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share - basic |
$ |
0.12 |
|
|
$ |
0.67 |
|
|
$ |
(0.30 |
) |
|
$ |
3.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share - diluted |
$ |
0.11 |
|
|
$ |
0.67 |
|
|
$ |
(0.30 |
) |
|
$ |
3.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
42,827,334 |
|
|
|
42,563,836 |
|
|
|
42,766,262 |
|
|
|
42,412,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted |
|
43,290,851 |
|
|
|
42,916,252 |
|
|
|
42,766,262 |
|
|
|
42,915,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
BALANCE SHEET DATA (Dollars in thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
46,542 |
|
|
$ |
58,142 |
|
|
|
|
|
|
|
Restricted cash |
|
|
|
- |
|
|
|
5,643 |
|
|
|
|
|
|
|
Due from charterers, net |
|
|
|
17,815 |
|
|
|
25,333 |
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
|
10,154 |
|
|
|
8,399 |
|
|
|
|
|
|
|
Inventories |
|
|
|
26,749 |
|
|
|
21,601 |
|
|
|
|
|
|
|
Fair value of derivative instruments |
|
|
|
572 |
|
|
|
6,312 |
|
|
|
|
|
|
|
Vessels held for sale |
|
|
|
55,440 |
|
|
|
- |
|
|
|
|
|
|
Total current assets |
|
|
|
157,272 |
|
|
|
125,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
|
|
|
Vessels, net of accumulated depreciation of $296,452 and $303,098,
respectively |
|
|
|
945,114 |
|
|
|
1,002,810 |
|
|
|
|
|
|
|
Deferred drydock, net |
|
|
|
29,502 |
|
|
|
32,254 |
|
|
|
|
|
|
|
Fixed assets, net |
|
|
|
7,071 |
|
|
|
8,556 |
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
|
2,628 |
|
|
|
4,078 |
|
|
|
|
|
|
|
Restricted cash |
|
|
|
315 |
|
|
|
315 |
|
|
|
|
|
|
|
Fair value of derivative instruments |
|
|
|
- |
|
|
|
423 |
|
|
|
|
|
|
Total noncurrent assets |
|
|
|
984,630 |
|
|
|
1,048,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
1,141,902 |
|
|
$ |
1,173,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
$ |
24,245 |
|
|
$ |
29,475 |
|
|
|
|
|
|
|
Deferred revenue |
|
|
|
8,746 |
|
|
|
4,958 |
|
|
|
|
|
|
|
Current operating lease liabilities |
|
|
|
2,295 |
|
|
|
2,107 |
|
|
|
|
|
|
Total current liabilities |
|
|
|
35,286 |
|
|
|
36,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent liabilities |
|
|
|
|
|
|
|
|
|
|
|
Long-term operating lease liabilities |
|
|
|
1,801 |
|
|
|
4,096 |
|
|
|
|
|
|
|
Long-term debt, net of deferred financing costs of $9,831 and
$6,079, respectively |
|
|
|
190,169 |
|
|
|
164,921 |
|
|
|
|
|
|
Total noncurrent liabilities |
|
|
|
191,970 |
|
|
|
169,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
227,256 |
|
|
|
205,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
|
425 |
|
|
|
423 |
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
|
1,553,421 |
|
|
|
1,588,777 |
|
|
|
|
|
|
|
Accumulated other comprehensive income |
|
|
|
527 |
|
|
|
6,480 |
|
|
|
|
|
|
|
Accumulated deficit |
|
|
|
(641,117 |
) |
|
|
(628,247 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Genco Shipping & Trading Limited shareholders'
equity |
|
|
|
913,256 |
|
|
|
967,433 |
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
|
1,390 |
|
|
|
876 |
|
|
|
|
|
|
Total equity |
|
|
|
914,646 |
|
|
|
968,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
$ |
1,141,902 |
|
|
$ |
1,173,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2023 |
|
Twelve Months Ended December 31, 2022 |
|
|
|
|
STATEMENT OF CASH FLOWS (Dollars in
thousands): |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
$ |
(12,356 |
) |
|
$ |
159,364 |
|
|
|
|
|
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
66,465 |
|
|
|
60,190 |
|
|
|
|
|
|
|
Amortization of deferred financing costs |
|
|
|
1,779 |
|
|
|
1,694 |
|
|
|
|
|
|
|
Right-of-use asset amortization |
|
|
|
1,450 |
|
|
|
1,417 |
|
|
|
|
|
|
|
Amortization of nonvested stock compensation expense |
|
|
|
5,530 |
|
|
|
3,242 |
|
|
|
|
|
|
|
Impairment of vessel assets |
|
|
|
41,719 |
|
|
|
- |
|
|
|
|
|
|
|
Amortization of premium on derivatives |
|
|
|
210 |
|
|
|
86 |
|
|
|
|
|
|
|
Insurance proceeds for protection and indemnity claims |
|
|
|
269 |
|
|
|
829 |
|
|
|
|
|
|
|
Insurance proceeds for loss of hire claims |
|
|
|
506 |
|
|
|
- |
|
|
|
|
|
|
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Decrease
(increase) in due from charterers |
|
|
|
7,518 |
|
|
|
(5,217 |
) |
|
|
|
|
|
|
|
Increase in
prepaid expenses and other current assets |
|
|
|
(4,767 |
) |
|
|
(317 |
) |
|
|
|
|
|
|
|
(Increase)
decrease in inventories |
|
|
|
(5,148 |
) |
|
|
2,962 |
|
|
|
|
|
|
|
|
Decrease in
accounts payable and accrued expenses |
|
|
|
(2,205 |
) |
|
|
(2,134 |
) |
|
|
|
|
|
|
|
Increase
(decrease) in deferred revenue |
|
|
|
3,788 |
|
|
|
(5,123 |
) |
|
|
|
|
|
|
|
Decrease in
operating lease liabilities |
|
|
|
(2,107 |
) |
|
|
(1,858 |
) |
|
|
|
|
|
|
|
Deferred
drydock costs incurred |
|
|
|
(10,867 |
) |
|
|
(25,812 |
) |
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
91,784 |
|
|
|
189,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Purchase of vessels and ballast water treatment systems, including
deposits |
|
|
|
(91,305 |
) |
|
|
(52,473 |
) |
|
|
|
|
|
|
Purchase of other fixed assets |
|
|
|
(2,707 |
) |
|
|
(3,566 |
) |
|
|
|
|
|
|
Insurance proceeds for hull and machinery claims |
|
|
|
2,388 |
|
|
|
1,024 |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
|
(91,624 |
) |
|
|
(55,015 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the $500 Million Revolver |
|
|
|
209,750 |
|
|
|
- |
|
|
|
|
|
|
|
Repayments from the $500 Million Revolver |
|
|
|
(9,750 |
) |
|
|
- |
|
|
|
|
|
|
|
Proceeds from the $450 Million Credit Facility |
|
|
|
65,000 |
|
|
|
- |
|
|
|
|
|
|
|
Repayments on the $450 Million Credit Facility |
|
|
|
(236,000 |
) |
|
|
(75,000 |
) |
|
|
|
|
|
|
Cash dividends paid |
|
|
|
(40,910 |
) |
|
|
(115,728 |
) |
|
|
|
|
|
|
Payment of deferred financing costs |
|
|
|
(5,493 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
Net cash used in financing activities |
|
|
|
(17,403 |
) |
|
|
(190,739 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
|
(17,243 |
) |
|
|
(56,431 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
|
|
64,100 |
|
|
|
120,531 |
|
|
|
|
|
Cash, cash equivalents and restricted cash at end of period |
|
|
$ |
46,857 |
|
|
$ |
64,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31,
2023 |
|
|
|
|
|
|
|
|
Net Income Reconciliation |
(unaudited) |
|
|
|
|
|
|
|
|
Net income attributable to Genco Shipping & Trading
Limited |
$ |
4,937 |
|
|
|
|
|
|
|
|
|
|
+ |
Impairment
of vessel assets |
|
13,617 |
|
|
|
|
|
|
|
|
|
|
+ |
Unrealized
loss on fuel hedges |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
18,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income per share - basic |
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income per share - diluted |
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic |
|
42,827,334 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted |
|
43,290,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic as per financial
statements |
|
42,827,334 |
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive
effect of stock options |
|
166,289 |
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive
effect of performance based restricted stock units |
|
55,353 |
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive
effect of restricted stock units |
|
241,876 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted as adjusted |
|
43,290,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2023 |
|
Three Months Ended December 31, 2022 |
|
Twelve Months Ended December 31, 2023 |
|
Twelve Months Ended December 31, 2022 |
|
|
|
|
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
|
|
EBITDA Reconciliation: |
(unaudited) |
|
(unaudited) |
|
|
|
Net income (loss) attributable to Genco Shipping &
Trading Limited |
$ |
4,937 |
|
|
$ |
28,679 |
|
|
$ |
(12,870 |
) |
|
$ |
158,576 |
|
|
|
|
+ |
Net interest
expense |
|
1,832 |
|
|
|
1,505 |
|
|
|
6,113 |
|
|
|
8,052 |
|
|
|
|
+ |
Depreciation
and amortization |
|
16,703 |
|
|
|
16,028 |
|
|
|
66,465 |
|
|
|
60,190 |
|
|
|
|
|
|
EBITDA(1) |
$ |
23,472 |
|
|
$ |
46,212 |
|
|
$ |
59,708 |
|
|
$ |
226,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+ |
Impairment
of vessel assets |
|
13,617 |
|
|
|
- |
|
|
|
41,719 |
|
|
|
- |
|
|
|
|
+ |
Unrealized
loss (gain) on fuel hedges |
|
1 |
|
|
|
(115 |
) |
|
|
96 |
|
|
|
(4 |
) |
|
|
|
|
|
Adjusted EBITDA |
$ |
37,090 |
|
|
$ |
46,097 |
|
|
$ |
101,523 |
|
|
$ |
226,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
|
|
FLEET DATA: |
(unaudited) |
|
(unaudited) |
|
|
Total number of vessels at end of period |
|
46 |
|
|
|
44 |
|
|
|
46 |
|
|
|
44 |
|
|
|
Average number of vessels(2) |
|
44.8 |
|
|
|
44.0 |
|
|
|
44.2 |
|
|
|
44.0 |
|
|
|
Total ownership days for fleet(3) |
|
4,123 |
|
|
|
4,048 |
|
|
|
16,135 |
|
|
|
16,050 |
|
|
|
Total chartered-in days(4) |
|
105 |
|
|
|
303 |
|
|
|
556 |
|
|
|
1,062 |
|
|
|
Total available days for fleet(5) |
|
4,169 |
|
|
|
4,235 |
|
|
|
16,263 |
|
|
|
16,070 |
|
|
|
Total available days for owned fleet(6) |
|
4,065 |
|
|
|
3,932 |
|
|
|
15,706 |
|
|
|
15,008 |
|
|
|
Total operating days for fleet(7) |
|
4,108 |
|
|
|
4,139 |
|
|
|
16,001 |
|
|
|
15,741 |
|
|
|
Fleet utilization(8) |
|
97.2 |
% |
|
|
97.3 |
% |
|
|
97.3 |
% |
|
|
96.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY RESULTS: |
|
|
|
|
|
|
|
|
|
Time charter equivalent(9) |
$ |
17,373 |
|
|
$ |
19,330 |
|
|
$ |
14,766 |
|
|
$ |
23,824 |
|
|
|
Daily vessel operating expenses per vessel(10) |
|
6,153 |
|
|
|
5,164 |
|
|
|
6,017 |
|
|
|
6,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
|
|
FLEET DATA: |
(unaudited) |
|
(unaudited) |
|
|
Ownership days |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,639.2 |
|
|
|
1,564.0 |
|
|
|
6,280.2 |
|
|
|
6,205.0 |
|
|
|
Ultramax |
|
1,380.0 |
|
|
|
1,380.0 |
|
|
|
5,475.0 |
|
|
|
5,464.9 |
|
|
|
Supramax |
|
1,104.0 |
|
|
|
1,104.0 |
|
|
|
4,380.0 |
|
|
|
4,380.0 |
|
|
|
Total |
|
4,123.2 |
|
|
|
4,048.0 |
|
|
|
16,135.2 |
|
|
|
16,049.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered-in days |
|
|
|
|
|
|
|
|
|
Capesize |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Ultramax |
|
104.5 |
|
|
|
172.3 |
|
|
|
435.4 |
|
|
|
476.8 |
|
|
|
Supramax |
|
- |
|
|
|
130.7 |
|
|
|
120.9 |
|
|
|
584.9 |
|
|
|
Total |
|
104.5 |
|
|
|
303.0 |
|
|
|
556.3 |
|
|
|
1,061.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days (owned & chartered-in fleet) |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,596.3 |
|
|
|
1,493.3 |
|
|
|
6,138.2 |
|
|
|
5,458.2 |
|
|
|
Ultramax |
|
1,480.0 |
|
|
|
1,518.2 |
|
|
|
5,880.0 |
|
|
|
5,793.5 |
|
|
|
Supramax |
|
1,093.1 |
|
|
|
1,223.8 |
|
|
|
4,244.5 |
|
|
|
4,817.8 |
|
|
|
Total |
|
4,169.4 |
|
|
|
4,235.4 |
|
|
|
16,262.7 |
|
|
|
16,069.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available days (owned fleet) |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,596.3 |
|
|
|
1,493.3 |
|
|
|
6,138.2 |
|
|
|
5,458.2 |
|
|
|
Ultramax |
|
1,375.5 |
|
|
|
1,346.0 |
|
|
|
5,444.6 |
|
|
|
5,316.7 |
|
|
|
Supramax |
|
1,093.1 |
|
|
|
1,093.1 |
|
|
|
4,123.6 |
|
|
|
4,232.9 |
|
|
|
Total |
|
4,064.8 |
|
|
|
3,932.4 |
|
|
|
15,706.4 |
|
|
|
15,007.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating days |
|
|
|
|
|
|
|
|
|
Capesize |
|
1,578.0 |
|
|
|
1,454.2 |
|
|
|
6,088.6 |
|
|
|
5,329.2 |
|
|
|
Ultramax |
|
1,465.5 |
|
|
|
1,498.3 |
|
|
|
5,745.4 |
|
|
|
5,730.0 |
|
|
|
Supramax |
|
1,064.3 |
|
|
|
1,186.0 |
|
|
|
4,167.4 |
|
|
|
4,681.6 |
|
|
|
Total |
|
4,107.8 |
|
|
|
4,138.5 |
|
|
|
16,001.4 |
|
|
|
15,740.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet utilization |
|
|
|
|
|
|
|
|
|
Capesize |
|
96.3 |
% |
|
|
97.0 |
% |
|
|
98.1 |
% |
|
|
96.8 |
% |
|
|
Ultramax |
|
98.7 |
% |
|
|
98.5 |
% |
|
|
97.2 |
% |
|
|
97.7 |
% |
|
|
Supramax |
|
96.4 |
% |
|
|
96.1 |
% |
|
|
96.1 |
% |
|
|
94.7 |
% |
|
|
Fleet average |
|
97.2 |
% |
|
|
97.3 |
% |
|
|
97.3 |
% |
|
|
96.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Results: |
|
|
|
|
|
|
|
|
|
Time Charter Equivalent |
|
|
|
|
|
|
|
|
|
Capesize |
$ |
22,052 |
|
|
$ |
19,928 |
|
|
$ |
18,280 |
|
|
$ |
22,492 |
|
|
|
Ultramax |
|
16,193 |
|
|
|
21,980 |
|
|
|
13,780 |
|
|
|
25,945 |
|
|
|
Supramax |
|
12,026 |
|
|
|
15,245 |
|
|
|
10,840 |
|
|
|
22,873 |
|
|
|
Fleet average |
|
17,373 |
|
|
|
19,330 |
|
|
|
14,766 |
|
|
|
23,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily vessel operating expenses |
|
|
|
|
|
|
|
|
|
Capesize |
$ |
6,344 |
|
|
$ |
5,354 |
|
|
$ |
6,270 |
|
|
$ |
6,023 |
|
|
|
Ultramax |
|
5,484 |
|
|
|
4,682 |
|
|
|
5,449 |
|
|
|
5,450 |
|
|
|
Supramax |
|
6,703 |
|
|
|
5,495 |
|
|
|
6,405 |
|
|
|
7,382 |
|
|
|
Fleet average |
|
6,153 |
|
|
|
5,164 |
|
|
|
6,017 |
|
|
|
6,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) EBITDA represents net income (loss) attributable to Genco
Shipping & Trading Limited plus net interest expense, taxes,
and depreciation and amortization. EBITDA is included because it is
used by management and certain investors as a measure of operating
performance. EBITDA is used by analysts in the shipping industry as
a common performance measure to compare results across peers. Our
management uses EBITDA as a performance measure in consolidating
internal financial statements and it is presented for review at our
board meetings. We believe that EBITDA is useful to investors as
the shipping industry is capital intensive which often results in
significant depreciation and cost of financing. EBITDA presents
investors with a measure in addition to net income to evaluate our
performance prior to these costs. EBITDA is not an item recognized
by U.S. GAAP (i.e. non-GAAP measure) and should not be considered
as an alternative to net income, operating income or any other
indicator of a company's operating performance required by U.S.
GAAP. EBITDA is not a measure of liquidity or cash flows as shown
in our consolidated statement of cash flows. The definition of
EBITDA used here may not be comparable to that used by other
companies.2) Average number of vessels is the number of vessels
that constituted our fleet for the relevant period, as measured by
the sum of the number of days each vessel was part of our fleet
during the period divided by the number of calendar days in that
period.3) We define ownership days as the aggregate number of days
in a period during which each vessel in our fleet has been owned by
us. Ownership days are an indicator of the size of our fleet over a
period and affect both the amount of revenues and the amount of
expenses that we record during a period.4) We define chartered-in
days as the aggregate number of days in a period during which we
chartered-in third-party vessels.5) We define available days as the
number of our ownership days and chartered-in days less the
aggregate number of days that our vessels are off-hire due to
familiarization upon acquisition, repairs or repairs under
guarantee, vessel upgrades or special surveys. Companies in the
shipping industry generally use available days to measure the
number of days in a period during which vessels should be capable
of generating revenues.6) We define available days for the owned
fleet as available days less chartered-in days.7) We define
operating days as the number of our total available days in a
period less the aggregate number of days that the vessels are
off-hire due to unforeseen circumstances. The shipping industry
uses operating days to measure the aggregate number of days in a
period during which vessels actually generate revenues.8) We
calculate fleet utilization as the number of our operating days
during a period divided by the number of ownership days plus
chartered-in days less drydocking days.9) We define TCE rates as
our voyage revenues less voyage expenses, charter hire expenses,
and realized gain or losses on fuel hedges, divided by the number
of the available days of our owned fleet during the
period. TCE rate is a common shipping industry
performance measure used primarily to compare daily earnings
generated by vessels on time charters with daily earnings generated
by vessels on voyage charters, because charterhire rates for
vessels on voyage charters are generally not expressed in per-day
amounts while charterhire rates for vessels on time charters
generally are expressed in such amounts. Our estimated TCE for the
first quarter of 2024 is based on fixtures booked to date. Actual
results may vary based on the actual duration of voyages and other
factors. Accordingly, we are unable to provide, without
unreasonable efforts, a reconciliation of estimated TCE for the
first quarter to the most comparable financial measures presented
in accordance with GAAP. When we compare our TCE to the Baltic
Supramax Index (BSI) in this release, we adjust the BSI for
customary commissions.
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31, 2023 |
|
Three Months EndedDecember 31, 2022 |
|
Twelve Months EndedDecember 31, 2023 |
|
Twelve Months EndedDecember 31, 2022 |
|
|
Total Fleet |
(unaudited) |
|
(unaudited) |
|
|
Voyage revenues (in thousands) |
$ |
115,516 |
|
|
$ |
126,973 |
|
|
$ |
383,825 |
|
|
$ |
536,934 |
|
|
|
Voyage expenses (in thousands) |
|
42,450 |
|
|
|
43,470 |
|
|
|
142,971 |
|
|
|
153,889 |
|
|
|
Charter hire expenses (in thousands) |
|
2,404 |
|
|
|
7,497 |
|
|
|
9,135 |
|
|
|
27,130 |
|
|
|
Realized (loss) gain on fuel hedges (in thousands) |
|
(43 |
) |
|
|
9 |
|
|
|
202 |
|
|
|
1,631 |
|
|
|
|
|
70,619 |
|
|
|
76,015 |
|
|
|
231,921 |
|
|
|
357,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available days for owned fleet |
|
4,065 |
|
|
|
3,932 |
|
|
|
15,706 |
|
|
|
15,008 |
|
|
|
Total TCE rate |
$ |
17,373 |
|
|
$ |
19,330 |
|
|
$ |
14,766 |
|
|
$ |
23,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10) We define daily vessel operating expenses to
include crew wages and related costs, the cost of insurance
expenses relating to repairs and maintenance (excluding
drydocking), the costs of spares and consumable stores, tonnage
taxes and other miscellaneous expenses. Daily vessel operating
expenses are calculated by dividing vessel operating expenses by
ownership days for the relevant period.
About Genco Shipping & Trading
Limited
Genco Shipping & Trading Limited is a U.S.
based drybulk ship owning company focused on the seaborne
transportation of commodities globally. We provide a full-service
logistics solution to our customers utilizing our in-house
commercial operating platform, as we transport key cargoes such as
iron ore, grain, steel products, bauxite, cement, nickel ore among
other commodities along worldwide shipping routes. Our wholly owned
high quality, modern fleet of dry cargo vessels consists of the
larger Capesize (major bulk) and the medium-sized Ultramax and
Supramax vessels (minor bulk) enabling us to carry a wide range of
cargoes. We make capital expenditures from time to time in
connection with vessel acquisitions. Genco’s fleet will consist of
43 vessels, including 16 Capesize, 15 Ultramax and 12 Supramax
vessels with an aggregate capacity of approximately 4,490,000 dwt
and an average age of 11.6 years, after agreed upon vessel
sales.
Conference Call Announcement
Genco Shipping & Trading Limited will hold a
conference call on Thursday, February 22, 2024 at 8:30 a.m. Eastern
Time to discuss its 2023 fourth quarter financial results. The
conference call and a presentation will be simultaneously webcast
and will be available on the Company’s website,
www.GencoShipping.com. To access the conference call, dial (416)
764-8624 or (888) 259-6580 and enter passcode 373966. A replay of
the conference call can also be accessed for two weeks by dialing
(416) 764-8692 or (877) 674-7070 and entering the passcode 373966.
The Company intends to place additional materials related to the
earnings announcement, including a slide presentation, on its
website prior to the conference call.
Website Information
We intend to use our website,
www.GencoShipping.com, as a means of disclosing material non-public
information and for complying with our disclosure obligations under
Regulation FD. Such disclosures will be included in our website’s
Investor Relations section. Accordingly, investors should monitor
the Investor Relations portion of our website, in addition to
following our press releases, SEC filings, public conference calls,
and webcasts. To subscribe to our e-mail alert service, please
click the “Receive E-mail Alerts” link in the Investor Relations
section of our website and submit your email address. The
information contained in, or that may be accessed through, our
website is not incorporated by reference into or a part of this
document or any other report or document we file with or furnish to
the SEC, and any references to our website are intended to be
inactive textual references only.
"Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995
This release 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 words such as “anticipate,” “budget,” “estimate,”
“expect,” “project,” “intend,” “plan,” “believe,” and other words
and terms of similar meaning in connection with a discussion of
potential future events, circumstances or future operating or
financial performance. These forward-looking statements are based
on our management’s current expectations and observations. Included
among the factors that, in our view, could cause actual results to
differ materially from the forward looking statements contained in
this release are the following: (i) declines or sustained
weakness in demand in the drybulk shipping industry;
(ii) weakness or declines in drybulk shipping rates;
(iii) changes in the supply of or demand for drybulk products,
generally or in particular regions; (iv) changes in the supply
of drybulk carriers including newbuilding of vessels or lower than
anticipated scrapping of older vessels; (v) changes in
rules and regulations applicable to the cargo industry,
including, without limitation, legislation adopted by international
organizations or by individual countries and actions taken by
regulatory authorities; (vi) increases in costs and expenses
including but not limited to: crew wages, insurance, provisions,
lube oil, bunkers, repairs, maintenance, general and administrative
expenses, and management fee expenses; (vii) whether our
insurance arrangements are adequate; (viii) changes in general
domestic and international political conditions; (ix) acts of
war, terrorism, or piracy, including without limitation the ongoing
war in Ukraine, the Israel-Hamas war, and attacks on vessels in the
Red Sea; (x) changes in the condition of the Company’s vessels
or applicable maintenance or regulatory standards (which may
affect, among other things, our anticipated drydocking or
maintenance and repair costs) and unanticipated drydock
expenditures; (xi) the Company’s acquisition or disposition of
vessels; (xii) the amount of offhire time needed to complete
maintenance, repairs, and installation of equipment to comply with
applicable regulations on vessels and the timing and amount of any
reimbursement by our insurance carriers for insurance claims,
including offhire days; (xiii) the completion of definitive
documentation with respect to charters; (xiv) charterers’
compliance with the terms of their charters in the current market
environment; (xv) the extent to which our operating results
are affected by weakness in market conditions and freight and
charter rates; (xvi) our ability to maintain contracts that
are critical to our operation, to obtain and maintain acceptable
terms with our vendors, customers and service providers and to
retain key executives, managers and employees; (xvii) completion of
documentation for vessel transactions and the performance of the
terms thereof by buyers or sellers of vessels and us; (xviii) the
relative cost and availability of low sulfur and high sulfur fuel,
worldwide compliance with sulfur emissions regulations that took
effect on January 1, 2020 and our ability to realize the economic
benefits or recover the cost of the scrubbers we have installed;
(xix) our financial results for the year ending December 31, 2023
and other factors relating to determination of the tax treatment of
dividends we have declared; (xx) the financial results we achieve
for each quarter that apply to the formula under our new dividend
policy, including without limitation the actual amounts earned by
our vessels and the amounts of various expenses we incur, as a
significant decrease in such earnings or a significant increase in
such expenses may affect our ability to carry out our new value
strategy; (xxi) the exercise of the discretion of our Board
regarding the declaration of dividends, including without
limitation the amount that our Board determines to set aside for
reserves under our dividend policy; (xxii) outbreaks of disease
such as the COVID-19 pandemic; and (xxiii) other factors
listed from time to time in our filings with the Securities and
Exchange Commission, including, without limitation, our Annual
Report on Form 10-K for the year ended December 31, 2022 and
subsequent reports on Form 8-K and Form 10-Q). Our ability to pay
dividends in any period will depend upon various factors, including
the limitations under any credit agreements to which we may be a
party, applicable provisions of Marshall Islands law and the final
determination by the Board of Directors each quarter after its
review of our financial performance, market developments, and the
best interests of the Company and its shareholders. The timing and
amount of dividends, if any, could also be affected by factors
affecting cash flows, results of operations, required capital
expenditures, or reserves. As a result, the amount of dividends
actually paid may vary. We do not undertake any obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
CONTACT:Peter AllenChief
Financial OfficerGenco Shipping & Trading Limited(646)
443-8550
Genco Shipping and Trading (NYSE:GNK)
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