Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the
“Company”) today reported its financial results for the three and
six months ended June 30, 2017.
The following financial review discusses the
results for the three and six months ended June 30, 2017 and June
30, 2016.
Second Quarter 2017 and
Year-to-Date Highlights
- Recorded a net loss of $14.5 million for the second quarter of
2017• Basic and diluted loss per share of $0.42• Adjusted
basic and diluted loss of $12.5 million or $0.36 per share,
excluding $1.3 million for gain on sale of vessel and $3.3 million
non-cash impairment charge1
- During the second quarter of 2017 we completed our vessel sale
program• Sold the Genco Prosperity for total net proceeds of $2.9
million
_____________________________________1 We believe the non-GAAP
measure presented provides investors with a means of better
evaluating and understanding the Company’s operating
performance.
Financial Review: 2017 Second
Quarter
The Company recorded a net loss for the second
quarter of 2017 of $14.5 million, or $0.42 basic and diluted net
loss per share. Comparatively, for the three months ended June 30,
2016, the Company recorded a net loss of $110.7 million, or $15.32
basic and diluted net loss per share. Basic and diluted net loss
per share for the three months ended June 30, 2016 has been
adjusted for the one-for-ten reverse stock split of Genco’s common
stock effected on July 7, 2016.
John C. Wobensmith, Chief Executive Officer,
commented, “During the second quarter, we took additional steps to
strengthen our leading and sizeable drybulk platform as the market
continues its recovery. Our ongoing success optimizing the profile
and deployment of Genco’s diversified fleet provides us significant
optionality in a rising market. In addition, our fleet strongly
aligns with global trade dynamics and our increased focus on
providing customers with a full-service logistics solution through
direct liftings of both major and minor bulks contribute to our
strong commercial prospects. We intend to maintain our position as
a leading low cost operator, which should serve us well as supply
and demand fundamentals continue to come into balance. With
significant financial flexibility, we also remain well positioned
to capitalize on compelling opportunities as we seek to further
enhance Genco’s industry leadership.”
The Company’s revenues increased to $45.4
million for the three months ended June 30, 2017, compared to $31.9
million for the three months ended June 30, 2016. The increase was
primarily due to higher spot market rates achieved by the majority
of the vessels in our fleet during the second quarter of 2017
versus the same period last year partially offset by the operation
of fewer vessels during the second quarter of 2017 as compared to
the second quarter of 2016.
The average daily time charter equivalent, or
TCE, rates obtained by the Company’s fleet was $8,439 per day for
the three months ended June 30, 2017 as compared to $4,618 for the
three months ended June 30, 2016. The increase in TCE was primarily
due to higher spot rates achieved by the majority of the vessels in
our fleet during the second quarter of 2017 versus the second
quarter of 2016. The freight market strength that materialized at
the end of Q1 2017 carried into the beginning of the second quarter
as a result of record Chinese steel output which led to heightened
demand for seaborne iron ore and coal cargoes. Additionally, the
South American grain season aided in supporting smaller class
vessels. Towards the end of the quarter, the freight market came
under pressure as the drybulk fleet expanded at a higher pace due
to a significant year-over-year decline in demolition activity.
Total operating expenses were $52.6 million for
the three months ended June 30, 2017 compared to $132.6 million for
the three months ended June 30, 2016. During the three months ended
June 30, 2017, a $3.3 million impairment loss was recorded as of
June 30, 2017, as the Company determined that the sum of the
estimated undiscounted future cash flows for the Genco Surprise, a
1998-built Panamax vessel, would not exceed the carrying value of
the vessel. Additionally, as of June 30, 2017, we recorded a gain
on sale of vessel in the amount of $1.3 million due to the sale of
the Genco Prosperity during Q2 2017. During the three months ended
June 30, 2016, a $67.6 million impairment loss was recorded in
order to adjust the value of nine of our vessels to their estimated
net realizable value as of June 30, 2016, as the Company determined
that the sale or scrapping of these vessels was more likely than
not based on the terms of the commitment letter of the $400 Million
Credit Facility. Vessel operating expenses declined to $23.9
million for the three months ended June 30, 2017 compared to $28.5
million for the three months ended June 30, 2016. This decrease was
primarily due to the operation of fewer vessels during the second
quarter of 2017 as compared to the same period of the prior year.
The decrease was also due to lower expenses related to crewing and
insurance as well as the timing of purchases of stores partially
offset by higher drydocking related expenses. General and
administrative expenses were $5.8 million for the second quarter of
2017 compared to $11.6 million for the second quarter of 2016,
primarily due to a decrease in nonvested stock amortization
expense. Included in general and administrative expenses is
nonvested stock amortization expense of $1.6 million and $5.4
million for the second quarter of 2017 and 2016, respectively.
Depreciation and amortization expenses decreased to $18.2 million
for the three months ended June 30, 2017 from $19.7 million for the
three months ended June 30, 2016, primarily due to the operation of
fewer vessels in the second quarter of 2017 as well as the
revaluation of ten of our vessels to their estimated net realizable
value during the first half of 2016.
Daily vessel operating expenses, or DVOE,
decreased to $4,333 per vessel per day for the second quarter of
2017 compared to $4,511 per vessel per day for the same quarter of
2016, predominantly due to lower expenses related to crewing and
insurance as well as the timing of purchases of stores, partially
offset by higher drydocking related expenses. 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. For the six months ended June 30, 2017 our
DVOE decreased to $4,364 from $4,542 for the same period of 2016.
Based on estimates provided by our technical managers and
management’s views, our DVOE budget for 2017 is $4,440 per vessel
per day on a weighted average basis for the entire year for the
core fleet of 60 vessels.
Apostolos Zafolias, Chief Financial Officer,
commented, “Our year-over-year results improved and reflected
higher spot market rates achieved by the majority of the vessels in
our fleet. This enabled Genco to increase its cash position to $181
million at the end of the second quarter, further enhancing our
financial flexibility. We also continued to focus on cost
management initiatives in the quarter, enabling Genco to maintain
break-even levels among the lowest in the industry.”
Financial Review: First Half
2017
The Company recorded a net loss of $30.1 million
or $0.89 basic and diluted net loss per share for the six months
ended June 30, 2017. This compares to a net loss of $165.1 million
or $22.87 basic and diluted net loss per share for the six months
ended June 30, 2016. Basic and diluted net loss per share for the
six months ended June 30, 2016 has been adjusted for the
one-for-ten reverse stock split of Genco’s common stock effected on
July 7, 2016. Net loss for the six months ended June 30, 2017 and
2016, includes non-cash vessel impairment charges of $3.3 million
and $69.3 million, respectively. Net loss for the six months ended
June 30, 2017 also includes the gain on sale of vessels in the
amount of $7.7 million due to the sale of five vessels during the
period. Revenues increased to $83.6 million for the six months
ended June 30, 2017 compared to $52.8 million for the six months
ended June 30, 2016 due to higher spot market rates achieved by the
majority of our vessels partially offset by the operation of fewer
vessels. TCE rates obtained by the Company increased to $7,458 per
day for the six months ended June 30, 2017 from $3,622 per day for
the six months ended June 30, 2016, due to higher rates achieved by
the majority of the vessels in our fleet. Total operating expenses
for the six months ended June 30, 2017 and 2016 were $99.4 million
and $200.5 million, respectively. Total operating expenses,
excluding a non-cash vessel impairment charge of $3.3 million
relating to the revaluation of the Genco Surprise to its fair value
as of June 30, 2017 and the gain on sale of vessels of $7.7
million, were $103.8 million for the six months ended June 30,
2017. This compares to adjusted total operating expenses, which
excludes non-cash vessel impairment charges totaling $69.3 million
relating to the revaluation of ten vessels to their estimated net
realizable value, of $131.3 million for the six months ended June
30, 2016. We believe the presentation of the adjusted amounts above
is useful to investors in understanding our current performance and
financial condition, as it excludes items that may not be
indicative of our core operating results. General and
administrative expenses for the six months ended June 30, 2017
decreased to $10.7 million as compared to $22.2 million for the
same period of 2016, primarily due to a decrease in nonvested stock
amortization expense. Daily vessel operating expenses per vessel
were $4,364 versus $4,542 in the comparative periods predominantly
due to lower expenses related to crewing and insurance, as well as
the timing of purchases of spares and stores partially offset by
higher drydocking related expenses.
After the second quarter of 2017, the Company
decided to dispose of the five 1999-built vessels in its fleet at
times and on terms to be determined in the future. Since the
estimated future undiscounted cash flows for each of these vessels
did not exceed their net book values, we have adjusted their values
to fair market value and will incur an impairment loss of
approximately $19 million in the third quarter of 2017.
Liquidity and Capital
Resources
Cash Flow
Net cash used in operating activities for the
six months ended June 30, 2017 and 2016 was $0.6 million and $41.2
million, respectively. Included in the net loss during the six
months ended June 30, 2017 and 2016 are $3.3 million and $72.0
million of non-cash impairment charges, respectively. Also included
in the net loss during the six months ended June 30, 2017 and 2016
are $2.3 million and $10.9 million, respectively, of non-cash
amortization of nonvested stock compensation related to the
Company’s equity incentive plans. There was also a gain on sale of
vessels in the amount of $7.7 million due to the sale of five
vessels and paid in kind interest of $3.0 million related to the
$400 Million Credit Facility during the six months ended June 30,
2017. Depreciation and amortization expense for the six months
ended June 30, 2017 decreased by $3.7 million primarily due to the
operation of fewer vessels in the second quarter of 2017 as well as
the revaluation of ten of our vessels to their estimated net
realizable value during the first half of 2016. Additionally, the
fluctuation in prepaid expense and other current assets decreased
by $8.8 million due to the timing of prepaid payments made and the
hull and machinery insurance claims for repairs of the Genco Tiger
and Baltic Lion. Lastly, there was a $4.2 million increase in
deferred drydocking costs incurred because there were more vessels
that completed drydocking during the six months ended June 30, 2017
as compared to the same period during 2016. This was offset by
an increase in the fluctuation in accounts payable and accrued
expenses of $2.9 million due to the timing payments.
Net cash provided by investing activities was
$17.0 million during the six months ended June 30, 2017 as compared
to $3.7 million during the six months ended June 30, 2016.
The increase is primarily due to a $13.6 million increase in the
proceeds from the sale of five vessels during the six months ended
June 30, 2017 as compared to the scrapping of one vessel during the
six months ended June 30, 2016. Additionally, there was a $1.8
million decrease in deposits of restricted cash during the six
months ended June 30, 2017 primarily as a result of the release of
restricted cash for required capital expenditures for our
vessels. These increases were partially offset by a decrease
of $2.4 million for the proceeds from the sale of
available-for-sale securities for the six months ended June 30,
2016.
Net cash used in financing activities was $2.7
million and $26.9 million during the six months ended June 30, 2017
and 2016, respectively. Net cash used in financing activities
of $2.7 million for the six months ended June 30, 2017 consisted
primarily of the following: $1.1 million payment of Series A
Preferred Stock issuance costs; $1.4 million repayment of debt
under the 2014 Term Loan Facilities; and $0.2 million repayment of
debt under the $400 Million Credit Facility. Net cash
used in financing activities of $26.9 million for the six months
ended June 30, 2016 consisted primarily of the following: $10.2
million repayment of debt under the $253 Million Term Loan
Facility, $6.0 million repayment of debt under the $148
Million Credit Facility, $3.8 million repayment of debt under the
$100 Million Term Loan Facility, $3.3 million repayment of
debt under the 2015 Revolving Credit Facility, $1.4 million
repayment of debt under $44 Million Term Loan Facility, $1.4
million repayment of debt under the 2014 Term Loan Facilities; and
$0.8 million repayment of debt under the $22 Million Term Loan
Facility. On November 15, 2016, the $400 Million Credit
Facility refinanced the following six credit facilities: the $253
Million Term Loan Facility, the $148 Million Credit Facility,
the $100 Million Term Loan Facility, the 2015 Revolving Credit
Facility, the $44 Million Term Loan Facility and the $22 Million
Term Loan Facility.
Capital Expenditures
We make capital expenditures from time to time
in connection with vessel acquisitions. As of August 7, 2017, our
fleet consists of 13 Capesize, six Panamax, four Ultramax, 21
Supramax, one Handymax and 15 Handysize vessels with an aggregate
capacity of approximately 4,688,000 dwt.
In addition to acquisitions that we may
undertake in future periods, we will incur additional capital
expenditures due to special surveys and drydockings for our fleet.
Four of our vessels completed drydocking during the second quarter
of 2017. We currently expect five of our vessels to be drydocked
during the remainder of 2017 including one Capesize, two Panamax
and two Supramax vessels.
We estimate our capital expenditures related to
drydocking for our fleet through 2017 to be:
|
|
Q3 2017 |
|
Q4 2017 |
Estimated Costs
(1) |
|
$3.2
million |
|
$0.9
million |
Estimated Offhire Days
(2) |
|
80 |
|
20 |
(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 from operations.
These costs do not include drydock expense items that are reflected
in vessel operating expenses or potential costs associated with the
installation of ballast water treatment systems.
(2) Actual length will vary based on the
condition of the vessel, yard schedules and other factors.
Four of our vessels completed drydocking during
the second quarter of 2017 while one other vessel began drydocking
during the end of the second quarter. The offhire days recorded for
these vessels during the second quarter of 2017 due to scheduled
drydocking amounted to 100.6 days. Capitalized costs associated
with drydocking incurred during the second quarter of 2017 were
approximately $2.5 million.
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 EndedJune 30, 2017 |
|
Three Months EndedJune 30, 2016 |
|
Six Months EndedJune 30, 2017 |
|
Six Months EndedJune 30, 2016 |
|
|
|
|
|
(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 |
$ |
45,370 |
|
|
$ |
31,460 |
|
|
$ |
83,619 |
|
|
$ |
51,590 |
|
|
|
Service
revenues |
|
- |
|
|
|
414 |
|
|
|
- |
|
|
|
1,225 |
|
|
|
|
Total
revenues |
|
45,370 |
|
|
|
31,874 |
|
|
|
83,619 |
|
|
|
52,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
951 |
|
|
|
3,074 |
|
|
|
4,192 |
|
|
|
6,970 |
|
|
|
Vessel
operating expenses |
|
23,852 |
|
|
|
28,538 |
|
|
|
48,736 |
|
|
|
57,665 |
|
|
|
General and administrative expenses (inclusive of
nonvested stock amortization |
|
5,752 |
|
|
|
11,589 |
|
|
|
10,661 |
|
|
|
22,158 |
|
|
|
expense of $1.6 million, $5.4 million, $2.3 million and
$10.9 million respectively) |
|
|
|
|
|
|
|
|
|
Technical
management fees |
|
1,871 |
|
|
|
2,264 |
|
|
|
3,852 |
|
|
|
4,550 |
|
|
|
Depreciation and amortization |
|
18,185 |
|
|
|
19,686 |
|
|
|
36,358 |
|
|
|
40,025 |
|
|
|
Other
operating income |
|
- |
|
|
|
(182 |
) |
|
|
- |
|
|
|
(182 |
) |
|
|
Impairment
of vessel assets |
|
3,339 |
|
|
|
67,594 |
|
|
|
3,339 |
|
|
|
69,278 |
|
|
|
(Gain) loss
on sale of vessels |
|
(1,343 |
) |
|
|
77 |
|
|
|
(7,712 |
) |
|
|
77 |
|
|
|
|
Total
operating expenses |
|
52,607 |
|
|
|
132,640 |
|
|
|
99,426 |
|
|
|
200,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(7,237 |
) |
|
|
(100,766 |
) |
|
|
(15,807 |
) |
|
|
(147,726 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(expense) income: |
|
|
|
|
|
|
|
|
|
Impairment
of investment |
|
- |
|
|
|
(2,696 |
) |
|
|
- |
|
|
|
(2,696 |
) |
|
|
Other
expense |
|
(50 |
) |
|
|
(50 |
) |
|
|
(115 |
) |
|
|
(174 |
) |
|
|
Interest
income |
|
338 |
|
|
|
33 |
|
|
|
512 |
|
|
|
95 |
|
|
|
Interest
expense |
|
(7,564 |
) |
|
|
(7,013 |
) |
|
|
(14,702 |
) |
|
|
(14,127 |
) |
|
|
|
Other
expense |
|
(7,276 |
) |
|
|
(9,726 |
) |
|
|
(14,305 |
) |
|
|
(16,902 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
reorganization items, net |
|
(14,513 |
) |
|
|
(110,492 |
) |
|
|
(30,112 |
) |
|
|
(164,628 |
) |
|
|
Reorganization items, net |
|
- |
|
|
|
(65 |
) |
|
|
- |
|
|
|
(160 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
income taxes |
|
(14,513 |
) |
|
|
(110,557 |
) |
|
|
(30,112 |
) |
|
|
(164,788 |
) |
|
|
Income tax
expense |
|
- |
|
|
|
(96 |
) |
|
|
- |
|
|
|
(350 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(14,513 |
) |
|
$ |
(110,653 |
) |
|
$ |
(30,112 |
) |
|
$ |
(165,138 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share - basic |
$ |
(0.42 |
) |
|
$ |
(15.32 |
) |
|
$ |
(0.89 |
) |
|
$ |
(22.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share - diluted |
$ |
(0.42 |
) |
|
$ |
(15.32 |
) |
|
$ |
(0.89 |
) |
|
$ |
(22.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic |
|
34,430,766 |
|
|
|
7,221,735 |
|
|
|
33,965,835 |
|
|
|
7,220,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted |
|
34,430,766 |
|
|
|
7,221,735 |
|
|
|
33,965,835 |
|
|
|
7,220,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
December 31, 2016 |
|
|
|
BALANCE SHEET DATA: |
|
|
|
(unaudited) |
|
|
|
|
Cash
(including restricted cash) |
|
|
$ |
180,995 |
|
|
$ |
169,068 |
|
|
|
|
Current
assets |
|
|
|
184,354 |
|
|
|
172,605 |
|
|
|
|
Total
assets |
|
|
|
1,541,719 |
|
|
|
1,568,960 |
|
|
|
|
Current
liabilities (excluding current portion of long-term debt) |
|
|
|
22,003 |
|
|
|
24,373 |
|
|
|
|
Current
portion of long-term debt |
|
|
|
9,576 |
|
|
|
4,576 |
|
|
|
|
Long-term
debt (net of $10.2 million and $11.4 million of unamortized debt
issuance |
|
|
|
506,044 |
|
|
|
508,444 |
|
|
|
|
|
|
costs at
June 30, 2017 and December 31, 2016, respectively) |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
1,001,868 |
|
|
|
1,029,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months EndedJune 30, 2017 |
|
Six Months EndedJune 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
Net cash
used in operating activities |
|
|
$ |
(585 |
) |
|
$ |
(41,230 |
) |
|
|
|
Net cash
provided by investing activities |
|
|
|
17,022 |
|
|
|
3,697 |
|
|
|
|
Net cash
used in financing activities |
|
|
|
(2,684 |
) |
|
|
(26,879 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, 2017 |
|
Three Months EndedJune 30, 2016 |
|
Six Months EndedJune 30, 2017 |
|
Six Months EndedJune 30, 2016 |
|
|
|
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
|
EBITDA Reconciliation: |
(unaudited) |
|
(unaudited) |
|
|
Net
loss |
$ |
(14,513 |
) |
|
$ |
(110,653 |
) |
|
$ |
(30,112 |
) |
|
$ |
(165,138 |
) |
|
|
+ |
Net interest expense |
|
7,226 |
|
|
|
6,980 |
|
|
|
14,190 |
|
|
|
14,032 |
|
|
|
+ |
Income tax expense |
|
- |
|
|
|
96 |
|
|
|
- |
|
|
|
350 |
|
|
|
+ |
Depreciation and amortization |
|
18,185 |
|
|
|
19,686 |
|
|
|
36,358 |
|
|
|
40,025 |
|
|
|
|
EBITDA(1) |
$ |
10,898 |
|
|
$ |
(83,891 |
) |
|
$ |
20,436 |
|
|
$ |
(110,731 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
|
GENCO CONSOLIDATED FLEET DATA: |
(unaudited) |
|
(unaudited) |
|
Total
number of vessels at end of period |
|
60 |
|
|
|
69 |
|
|
|
60 |
|
|
|
69 |
|
|
Average
number of vessels (2) |
|
60.5 |
|
|
|
69.5 |
|
|
|
61.7 |
|
|
|
69.8 |
|
|
Total
ownership days for fleet (3) |
|
5,505 |
|
|
|
6,326 |
|
|
|
11,167 |
|
|
|
12,696 |
|
|
Total
available days for fleet (4) |
|
5,264 |
|
|
|
6,146 |
|
|
|
10,650 |
|
|
|
12,321 |
|
|
Total
operating days for fleet (5) |
|
5,086 |
|
|
|
6,107 |
|
|
|
10,415 |
|
|
|
12,177 |
|
|
Fleet
utilization (6) |
|
96.6 |
% |
|
|
99.4 |
% |
|
|
97.8 |
% |
|
|
98.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY RESULTS: |
|
|
|
|
|
|
|
|
Time
charter equivalent (7) |
$ |
8,439 |
|
|
$ |
4,618 |
|
|
$ |
7,458 |
|
|
$ |
3,622 |
|
|
Daily
vessel operating expenses per vessel (8) |
|
4,333 |
|
|
|
4,511 |
|
|
|
4,364 |
|
|
|
4,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) EBITDA represents net income (loss) 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. For these reasons, we
believe that EBITDA is a useful measure to present to our
investors. 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 source
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 available days as the number of our
ownership days less the aggregate number of days that our vessels
are off-hire due to scheduled repairs or repairs under guarantee,
vessel upgrades or special surveys and the aggregate amount of time
that we spend positioning our vessels between time charters.
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.5) We define operating days as
the number of our available days in a period less the aggregate
number of days that our 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.6) We calculate fleet utilization by
dividing the number of our operating days during a period by the
number of our available days during the period. The shipping
industry uses fleet utilization to measure a company's efficiency
in finding suitable employment for its vessels and minimizing the
number of days that its vessels are off-hire for reasons other than
scheduled repairs or repairs under guarantee, vessel upgrades,
special surveys or vessel positioning.7) We define TCE rates as our
net voyage revenue (voyage revenues less voyage expenses (including
voyage expenses to Parent)) divided by the number of our available
days during the period, which is consistent with industry
standards. 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.8) 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.
Genco Shipping & Trading Limited’s
Fleet
Genco Shipping & Trading Limited transports
iron ore, coal, grain, steel products and other drybulk cargoes
along worldwide shipping routes. As of August 7, 2017, Genco
Shipping & Trading Limited’s fleet consists of 13 Capesize, six
Panamax, four Ultramax, 21 Supramax, one Handymax and 15 Handysize
vessels with an aggregate capacity of approximately 4,688,000
dwt.
Our current fleet contains 15 groups of sister
ships, which are vessels of virtually identical sizes and
specifications. We believe that maintaining a fleet that includes
sister ships reduces costs by creating economies of scale in the
maintenance, supply and crewing of our vessels. As of August 7,
2017, the average age of our current fleet was 9.3 years.
The following table reflects the employment of
Genco’s fleet as of August 7, 2017:
Vessel |
Year Built |
Charterer |
CharterExpiration(1) |
|
Cash DailyRate(2) |
|
|
|
|
|
|
Capesize Vessels |
|
|
|
|
|
Genco
Augustus |
2007 |
Swissmarine Services S.A. |
February 2018 |
|
106% of BCI |
Genco
Tiberius |
2007 |
Cargill International S.A. |
September 2017 |
|
$10,500 |
Genco
London |
2007 |
Swissmarine Services S.A. |
May
2018 |
|
98% of BCI(3) |
Genco
Titus |
2007 |
Louis Dreyfus Company Freight Asia Pte. Ltd. |
September 2017 |
|
$12,000 |
Genco
Constantine |
2008 |
Cargill Ocean Transportation Pte. Ltd./Oldendorff GMBH &
Co. |
Aug./Sep. 2017 |
|
$8,750/$14,500(4) |
Genco
Hadrian |
2008 |
Swissmarine Services S.A. |
August
2017 |
|
98.5% of BCI |
Genco
Commodus |
2009 |
Swissmarine Asia Pte. Ltd. |
January 2018 |
|
88% of BCI(5) |
Genco
Maximus |
2009 |
Trafigura Maritime Logistics Pte. Ltd. |
August
2017 |
|
$11,000 |
Genco
Claudius |
2010 |
Louis Dreyfus Company Freight Asia Pte. Ltd. |
September 2017 |
|
$13,000 |
Genco
Tiger |
2011 |
Uniper Global Commodities SE. |
October 2017 |
|
$10,750 |
Baltic
Lion |
2012 |
Koch Shipping Pte. Ltd. |
October 2017 |
|
$15,300(6) |
Baltic
Bear |
2010 |
Classic Maritime Inc./Trafigura Maritime Logistics Pte. Ltd. |
Jul./Oct. 2017 |
|
$10,500/$10,750 (7) |
Baltic
Wolf |
2010 |
Cargill International S.A. |
February 2018 |
|
$15,350 |
|
|
|
|
|
|
Panamax Vessels |
|
|
|
|
|
Genco
Beauty |
1999 |
Intermarine Shipping Co., Ltd. |
June
2017 |
|
$4,600(8) |
Genco
Knight |
1999 |
Cargill International S.A. |
August
2017 |
|
$9,000(9) |
Genco
Vigour |
1999 |
Raffles Shipping International Pte. Ltd. |
September 2017 |
|
$10,500(10) |
Genco
Surprise |
1998 |
Swissmarine Asia Pte., Ltd. |
October 2017 |
|
$8,000(11) |
Genco
Raptor |
2007 |
Cofco Agri Freight Geneva, S.A./Golden Ocean Trading Ltd.
Bermuda |
Jul./Oct. 2017 |
|
$8,500/$9,650(12) |
Genco
Thunder |
2007 |
Swissmarine Services S.A. |
August
2017 |
|
100% of BPI |
|
|
|
|
|
|
Ultramax Vessels |
|
|
|
|
|
Baltic
Hornet |
2014 |
Swissmarine Asia Pte. Ltd. |
June
2018 |
|
113.5% of BSI |
Baltic
Wasp |
2015 |
Pioneer Navigation Ltd. |
July
2018 |
|
$11,000 |
Baltic
Scorpion |
2015 |
SK
Shipping Co., Ltd. |
September 2017 |
|
$2,700(13) |
Baltic
Mantis |
2015 |
Pioneer Navigation Ltd. |
August
2017 |
|
115% of BSI |
|
|
|
|
|
|
Supramax Vessels |
|
|
|
|
|
Genco
Predator |
2005 |
Western Bulk Carriers A/S/Cargill International S.A. |
Aug./Sep. 2017 |
|
$14,250/$13,000(14) |
Genco
Warrior |
2005 |
Centurion Bulk Pte. Ltd., Singapore/Western Bulk Carriers A/S |
Aug./Sep. 2017 |
|
98.5% of BSI/ $8,250(15) |
Genco
Hunter |
2007 |
Pioneer Navigation Ltd. |
August
2017 |
|
104% of BSI |
Genco
Cavalier |
2007 |
Bulkhandling Handymax A/S |
November 2017 |
|
Spot Pool(16) |
Genco
Lorraine |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
|
Spot Pool(16) |
Genco
Loire |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
|
Spot Pool(16) |
Genco
Aquitaine |
2009 |
Gearbulk Pool Ltd., Norway |
August
2017 |
|
$16,000 (17) |
Genco
Ardennes |
2009 |
Norvic Shipping International Ltd./ED&F Man Shipping Ltd. |
Aug./Sep. 2017 |
|
Backhaul/$9,000 (18) |
Genco
Auvergne |
2009 |
Western Bulk Pte. Ltd., Singapore |
August
2017 |
|
$9,350(19) |
Genco
Bourgogne |
2010 |
Clipper Sapphire Pool |
August
2017 |
|
Spot Pool |
Genco
Brittany |
2010 |
Clipper Bulk Shipping NV |
August
2017 |
|
$3,500(20) |
Genco
Languedoc |
2010 |
Oldendorff Carriers GMBH & Co. |
September 2017 |
|
$7,900(21) |
Genco
Normandy |
2007 |
Bulkhandling Handymax A/S |
November 2017 |
|
Spot Pool(16) |
Genco
Picardy |
2005 |
Centurion Bulk Pte. Ltd., Singapore |
October 2017 |
|
$9,000(22) |
Genco
Provence |
2004 |
Eastern Bulk A/S/Cam Negoce Paris |
Jul./Oct. 2017 |
|
$11,600/Voyage (23) |
Genco
Pyrenees |
2010 |
Clipper Sapphire Pool/Ultrabulk A/S |
Aug./Sep. 2017 |
|
Spot Pool/$6,000 (24) |
Genco
Rhone |
2011 |
Sims Group Global Trade Corp./ Marubeni Grain and Oilseeds Trading
Asia Pte. Ltd. |
Jul./Aug. 2017 |
|
Voyage(25) |
Baltic
Leopard |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
|
Spot Pool(16) |
Baltic
Panther |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
|
Spot Pool(16) |
Baltic
Jaguar |
2009 |
Oldendorff GMBH & Co./Cargill Americas Inc. |
Aug./Sep. 2017 |
|
$3,350/Voyage (26) |
Baltic
Cougar |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
|
Spot Pool(16) |
|
|
|
|
|
|
Handymax Vessels |
|
|
|
|
|
Genco
Muse |
2001 |
Centurion Bulk Pte. Ltd. Singapore |
Jul./Sep. 2017 |
|
$10,250/ $8,500(27) |
|
|
|
|
|
|
Handysize Vessels |
|
|
|
|
|
Genco
Progress |
1999 |
Clipper Logger Pool |
August
2017 |
|
Spot Pool |
Genco
Explorer |
1999 |
Clipper Logger Pool/Xianglong Shipping Co., Ltd. |
Jul./Aug. 2017 |
|
Spot Pool/ $8,000(28) |
Baltic
Hare |
2009 |
Clipper Logger Pool |
August
2017 |
|
Spot Pool |
Baltic
Fox |
2010 |
Clipper Logger Pool |
November 2017 |
|
Spot Pool |
Genco
Charger |
2005 |
Clipper Logger Pool |
August
2017 |
|
Spot Pool |
Genco
Challenger |
2003 |
Clipper Logger Pool/Clipper Bulk Shipping Pte. Ltd./Sun United
Maritime Ltd. |
Jul./Aug./Oct. 2017 |
|
Spot Pool/$5,000/ $6,000(29) |
Genco
Champion |
2006 |
Clipper Logger Pool |
November 2017 |
|
Spot Pool |
Baltic
Wind |
2009 |
Ultrabulk A/S |
September 2017 |
|
$9,000(30) |
Baltic
Cove |
2010 |
Clipper Bulk Shipping Ltd. |
September 2017 |
|
$5,750 |
Baltic
Breeze |
2010 |
Clipper Bulk Shipping |
August
2017 |
|
$8,000(31) |
Genco
Ocean |
2010 |
Thorco Bulk A/S |
August
2017 |
|
$13,500(32) |
Genco
Bay |
2010 |
Clipper Bulk Shipping |
September 2017 |
|
$8,000(33) |
Genco
Avra |
2011 |
Ultrabulk S.A. |
August
2017 |
|
104% of BHSI |
Genco
Mare |
2011 |
Pioneer Navigation Ltd. |
September 2017 |
|
103.5% of BHSI |
Genco
Spirit |
2011 |
Ultrabulk S.A. |
September 2017 |
|
$8,500(34) |
(1) The charter expiration dates presented represent the
earliest dates that our charters may be terminated in the ordinary
course. Under the terms of certain contracts, the charterer is
entitled to extend the time charter from two to four months in
order to complete the vessel's final voyage plus any time the
vessel has been off-hire.(2) 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 canal dues.(3) We have
reached an agreement with Swissmarine Services S.A. on a time
charter for 11 to 14.5 months at a rate based on 98% of the Baltic
Capesize Index 5TC (BCI), as published by the Baltic Exchange,
reflected in daily reports. Hire is paid every 15 days in arrears
less a 5.00% third-party brokerage commission. The vessel delivered
to charterers on June 19, 2017 after completion of drydocking for
scheduled repairs.(4) We have reached an agreement with Oldendorff
GMBH & Co. on a time charter for approximately 45 days at a
rate of $14,500 per day. Hire is paid every 15 days in advance less
a 5.00% third-party brokerage commission. The vessel is expected to
deliver to charterers on or about August 11, 2017.(5) We have
agreed to an extension with Swissmarine Asia Pte. Ltd. on a time
charter for 6.5 to 9.5 months at a rate on 88% of the BCI, as
published in daily reports. Hire is paid every 15 days in arrears
less a 5.00% third-party brokerage commission. The extension began
on June 26, 2017.(6) We have reached an agreement with Koch
Shipping Pte. Ltd. on a time charter for 5 to 8.5 months at a rate
of $15,300 per day except for the first 50 days in which the hire
rate is $10,000 per day. Hire is paid every 15 days in advance less
a 5.00% third-party brokerage commission. The vessel delivered to
charterers on May 18, 2017.(7) We have reached an agreement with
Trafigura Maritime Logistics Pte. Ltd. on a time charter for 3.5 to
7.5 months at a rate of $10,750 per day. Hire is paid every 15 days
in advance less a 5.00% third-party brokerage commission. The
vessel delivered to charterers on July 12, 2017.(8) The vessel
redelivered to Genco on June 29, 2017 and is currently in
drydocking for scheduled maintenance.(9) We have reached an
agreement with Cargill International S.A. on a time charter trip at
a rate of $9,000 per day. Hire is paid every 15 days in advance
less a 5.00% third-party brokerage commission. The vessel delivered
to charterers on July 2, 2017 after repositioning. A ballast bonus
was awarded after the repositioning period. The vessel redelivered
to Genco on April 17, 2017 and then completed drydocking for
scheduled maintenance.(10) We have reached an agreement with
Raffles Shipping International Pte. Ltd. on a time charter for
approximately 55 days at a rate of $10,500 per day. Hire is paid
every 15 days in advance less a 5.00% third-party brokerage
commission. The vessel delivered to charterers on July 10, 2017
after repositioning. A ballast bonus was awarded after the
repositioning period. The vessel redelivered to Genco on May 26,
2017.(11) We have reached an agreement with Swissmarine Asia Pte.,
Ltd. on a time charter for 3.5 to 8.5 months at a rate of $8,000
per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The vessel delivered to
charterers on June 18, 2017.(12) We have reached an agreement with
Golden Ocean Trading Ltd. Bermuda on a time charter for
approximately 60 days at a rate of $9,650 per day. Hire is paid
every 15 days in advance less a 5.00% third-party brokerage
commission. The vessel delivered to charterers on August 4, 2017
after repositioning. The vessel had redelivered to Genco on July
29, 2017.(13) We have reached an agreement with SK Shipping Co.,
Ltd. on a time charter for approximately 75 days at a rate of
$2,700 per day. If the time charter exceeds 66 days then the hire
rate will be $8,500 per day. Hire is paid every 15 days in advance
less a 6.25% third-party brokerage commission. The vessel delivered
to charterers on June 23, 2017.(14) We have reached an agreement
with Cargill International S.A. on a time charter for approximately
40 days at a rate of $13,000 per day. Hire is paid every 15 days in
advance less a 5.00% third-party brokerage commission. The vessel
is expected to deliver to charterers on or about August 14, 2017
after repositioning. The vessel redelivered to Genco on August 1,
2017.(15) We have reached an agreement with Western Bulk Carriers
A/S on a time charter for approximately 35 days at a rate of $8,250
per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The vessel delivered to
charterers on August 1, 2017.(16) We have reached an agreement to
enter these vessels into the Bulkhandling Handymax A/S Pool, a
vessel pool trading in the spot market of which Torvald Klaveness
acts as the pool manager. Genco can withdraw a vessel with three
months’ notice.(17) We have reached an agreement with Gearbulk Pool
Ltd., Norway on a time charter for approximately 40 days at a rate
of $16,000 per day. Hire is paid every 15 days in advance less a
5.00% third-party brokerage commission. The vessel delivered to
charterers on April 29, 2017 after repositioning. The vessel had
redelivered to Genco on April 10, 2017.(18) We have reached an
agreement with ED&F Man Shipping Ltd. on a time charter for
approximately 25 days at a rate of $9,000 per day. Hire is paid
every 15 days in advance less a 5.00% third-party brokerage
commission. The vessel is expected to deliver to charterers on or
about August 8, 2017.(19) We have reached an agreement with Western
Bulk Pte. Ltd., Singapore on a time charter for 3 to 5.5 months at
a rate of $9,350 per day. Hire is paid every 15 days in advance
less a 5.00% third-party brokerage commission. The vessel delivered
to charterers on March 19, 2017 after repositioning. The vessel had
redelivered to Genco on March 16, 2017.(20) We have reached an
agreement with Clipper Bulk Shipping NV on a time charter for
approximately 50 days at a rate of $3,500. If the time charter
exceeds 50 days then the hire rate will be $7,000 per day. Hire is
paid every 15 days in advance less a 3.75% third-party broker
commission. The vessel delivered to charterers on June 19,
2017.(21) We have reached an agreement with Oldendorff Carriers
GMBH & Co. on a time charter for 3 to 5.5 months at a rate of
$7,900 per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The vessel delivered to
charterers on June 21, 2017.(22) We have agreed to an extension
with Centurion Bulk Pte. Ltd., Singapore on a time charter at a
rate of $9,000 per day. The minimum and maximum expiration dates of
the time charter are October 1, 2017 and December 1, 2017,
respectively. Hire is paid every 15 days in advance less a 5.00%
third-party broker age commission.(23) We have reached an agreement
with Cam Negoce Paris for one voyage for approximately 61 days.(24)
We have reached an agreement with Ultrabulk A/S on a time charter
for approximately 25 days at a rate of $6,000 per day. Hire is paid
every 15 days in advance less a 5.00% third-party brokerage
commission. The vessel is expected to deliver to charterers on or
about August 9, 2017.(25) We have reached an agreement with
Marubeni Grain and Oilseeds Trading Asia Pte. Ltd. for one voyage
for approximately 35 days.(26) We have reached an agreement with
Cargill Americas Inc. for one voyage for approximately 30 days.(27)
We have agreed to an extension with Centurion Bulk Pte. Ltd.
Singapore on a time charter for 2.5 to 5.5 months at a rate of
$8,500 per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The extension began on July 4,
2017.(28) We have reached an agreement with Xianglong Shipping Co.,
Ltd. on a time charter for approximately 20 days at a rate of
$8,000 per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The vessel delivered to
charterers on July 21, 2017.(29) We have reached an agreement with
Sun United Maritime Ltd. on a time charter for approximately 65
days at a rate of $6,000 per day. If the time charter extends
beyond 65 days, the hire rate will be $7,500 per day. Hire is paid
every 15 days in advance less a 5.00% third-party brokerage
commission. The vessel is expected to deliver to charterers on or
about August 17, 2017.(30) We have reached an agreement with
Ultrabulk A/S on a time charter for 2.5 to 5.5 months at a rate of
$9,000 per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The vessel delivered to
charterers on April 23, 2017.(31) We have reached an agreement with
Clipper Bulk Shipping on a time charter for 3 to 5.5 months at a
rate of $8,000 per day. Hire is paid every 15 days in advance less
a 5.00% third-party brokerage commission. The vessel delivered to
charterers on March 15, 2017 after repositioning. The vessel had
redelivered to Genco on February 21, 2017.(32) We have reached an
agreement with Thorco Bulk A/S on a time charter for approximately
30 days at a rate of $13,500 per day. Hire is paid every 15 days in
advance less a 5.00% third-party brokerage commission. The vessel
delivered to charterers on July 2, 2017 after repositioning. The
vessel had redelivered to Genco on June 19, 2017.(33) We have
reached an agreement with Clipper Bulk Shipping on a time charter
for 3 to 5.5 months at a rate of $8,000 per day. Hire is paid every
15 days in advance less a 5.00% third-party brokerage commission.
The vessel delivered to charterers on March 28, 2017.(34) We have
reached an agreement with Ultrabulk S.A. on a time charter for 2.5
to 5.5 months at a rate of $8,500 per day. Hire is paid every 15
days in advance less a 5.00% third-party brokerage commission. The
vessel delivered to charterers on May 24, 2017.
About Genco Shipping & Trading
Limited
Genco Shipping & Trading Limited transports
iron ore, coal, grain, steel products and other drybulk cargoes
along worldwide shipping routes. As of August 7, 2017, Genco
Shipping & Trading Limited’s fleet consists of 13 Capesize, six
Panamax, four Ultramax, 21 Supramax, one Handymax and 15 Handysize
vessels with an aggregate capacity of approximately 4,688,000
dwt.
Conference Call Announcement
Genco Shipping & Trading Limited will hold a
conference call on Tuesday, August 8, 2017 at 10:00 a.m. Eastern
Time to discuss its 2017 second 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 (323)
794-2130 or (866) 564-2842 and enter passcode 2914626. A replay of
the conference call can also be accessed for two weeks by dialing
(888) 203-1112 or (719) 457-0820 and entering the passcode 2914626.
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 press 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 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 report are the
following: (i) further declines or sustained weakness in demand in
the drybulk shipping industry; (ii) continuation of weakness or
further 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 and general, administrative, 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; (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 repairs 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
continue to be affected by weakness in market conditions 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; and other factors listed from
time to time in our public filings with the Securities and Exchange
Commission including, without limitation, the Company’s Annual
Report on Form 10-K for the year ended December 31, 2016 and its
subsequent reports on Form 10-Q and Form 8-K. 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. 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:
John C. Wobensmith
Chief Executive Officer
Genco Shipping & Trading Limited
(646) 443-8555
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