Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the
“Company”) today reported its financial results for the three and
nine months ended September 30, 2017.
The following financial review discusses the
results for the three and nine months ended September 30, 2017 and
September 30, 2016.
Third Quarter 2017 and
Year-to-Date Highlights
- Recorded a net loss of $31.2 million for the third quarter of
2017- Basic and diluted loss per share of $0.90- Adjusted basic and
diluted loss of $12.5 million or $0.36 per share, excluding $18.7
million non-cash impairment charge1
- Established Singapore presence with the opening of a new
office- Appointed Ivo Kempenaer as Vice President and Commercial
Director, Head of Major Bulks
Financial Review: 2017 Third
Quarter
The Company recorded a net loss for the third
quarter of 2017 of $31.2 million, or $0.90 basic and diluted net
loss per share. Comparatively, for the three months ended September
30, 2016, the Company recorded a net loss of $27.5 million, or
$3.80 basic and diluted net loss per share.
John C. Wobensmith, Chief Executive Officer,
commented, “Heightened demand for seaborne iron ore, coal and minor
bulks, combined with marginal net fleet growth, led to an
improvement in the rate environment during the third quarter. We
expect supply and demand fundamentals to further come into balance
as we continue to implement initiatives to strengthen Genco's
commercial prospects. Following the steps taken earlier in the year
to bolster our minor bulk operations, we recently established a
Singapore presence and appointed an industry veteran to spearhead
the employment of our major bulk fleet. Our success expanding our
in-house commercial platform has enabled Genco to offer a
full-scale logistics solution and has served to strengthen
relationships with leading drybulk commodities producers and
charterers around the world, positioning Genco to capitalize on a
market recovery.”
The Company’s revenues increased to $51.2
million for the three months ended September 30, 2017, compared to
$38.9 million for the three months ended September 30, 2016. The
increase was primarily due to higher spot market rates achieved by
the majority of the vessels in our fleet during the third quarter
of 2017 versus the same period last year partially offset by the
operation of fewer vessels during the third quarter of 2017 as
compared to the third quarter of 2016.
The average daily time charter equivalent, or
TCE, rates obtained by the Company’s fleet was $8,573 per day for
the three months ended September 30, 2017 as compared to $5,779 for
the three months ended September 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 third quarter of 2017 versus the
third quarter of 2016. The drybulk freight market strengthened
considerably during Q3 2017 as a result of record Chinese steel
output which led to heightened demand for seaborne iron ore and
coal cargoes. This increase in demand has been met with marginal
net fleet growth so far in the second half of the year, leading to
tighter tonnage availability across the sectors.
Total operating expenses were $74.9 million for
the three months ended September 30, 2017 compared to $59.0 million
for the three months ended September 30, 2016. During the three
months ended September 30, 2017, an $18.7 million impairment loss
was recorded as the Company determined that the sum of the
estimated undiscounted future cash flows for each of Genco’s five
1999-built vessels that it decided to dispose of at a time and on
terms to be determined would not exceed the carrying value of these
vessels. Vessel operating expenses declined to $25.1 million for
the three months ended September 30, 2017 compared to $28.5 million
for the three months ended September 30, 2016. This decrease was
primarily due to the operation of fewer vessels during the third
quarter of 2017 as compared to the same period of the prior year.
General and administrative expenses were $5.9 million for the third
quarter of 2017 compared to $7.9 million for the third 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 $1.3 million and $3.6
million for the third quarter of 2017 and 2016, respectively.
Depreciation and amortization expenses decreased to $17.8 million
for the three months ended September 30, 2017 from $18.1 million
for the three months ended September 30, 2016, primarily due to the
revaluation of our 1999-built vessels to their respective fair
values during the third quarter of 2017.
Daily vessel operating expenses, or DVOE,
increased to $4,553 per vessel per day for the third quarter of
2017 compared to $4,483 per vessel per day for the same quarter of
2016, predominantly due to the timing of drydocking related
expenses and purchases of stores and spare parts partially offset
by lower crew costs. 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 nine
months ended September 30, 2017, our DVOE decreased to $4,427 from
$4,523 for 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, “Maintaining a strong balance sheet remains a priority
for Genco and provides us with the appropriate foundation
to capitalize on a market recovery. We increased our cash position
to $185 million at the end of the third quarter, highlighting an
improving rate environment
and Genco's leading drybulk platform. As the market
continues to come into balance, we expect that our low breakeven
levels and strong operating platform will continue to benefit the
Company.”
Financial Review: Nine Months
2017
The Company recorded a net loss of $61.3 million
or $1.80 basic and diluted net loss per share for the nine months
ended September 30, 2017. This compares to a net loss of $192.7
million or $26.65 basic and diluted net loss per share for the nine
months ended September 30, 2016. Net loss for the nine months ended
September 30, 2017 and 2016, includes non-cash vessel impairment
charges of $22.0 million and $69.3 million, respectively. Net loss
for the nine months ended September 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 $134.8
million for the nine months ended September 30, 2017 compared to
$91.7 million for the nine months ended September 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 $7,829 per day for the nine
months ended September 30, 2017 from $4,341 per day for the nine
months ended September 30, 2016, due to higher rates achieved by
the majority of the vessels in our fleet. Total operating expenses
for the nine months ended September 30, 2017 and 2016 were $174.4
million and $259.5 million, respectively. Adjusted total operating
expenses, which excludes a non-cash vessel impairment charge of
$22.0 million relating to the revaluation of Genco’s 1999-built
vessels and the Genco Surprise to their respective fair values and
the gain on sale of vessels of $7.7 million, were $160.1 million
for the nine months ended September 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 $190.3 million for the nine months ended September 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
nine months ended September 30, 2017 decreased to $16.6 million as
compared to $30.1 million for same period of 2016, primarily due to
a decrease in nonvested stock amortization expense. Daily vessel
operating expenses per vessel were $4,427 versus $4,523 in the
comparative periods predominantly due to lower expenses related to
crewing and insurance partially offset by higher drydocking related
expenses.
Liquidity and Capital
Resources
Cash Flow
Net cash provided by operating activities for
the nine months ended September 30, 2017 was $4.4 million as
compared to net cash used in operating activities for the nine
months ended September 30, 2016 of $45.9 million. Included in the
net loss during the nine months ended September 30, 2017 and 2016
are $22.0 million and $72.0 million of non-cash impairment charges,
respectively. Also included in the net loss during the nine months
ended September 30, 2017 and 2016 are $3.5 million and $14.5
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 $4.6
million related to the $400 Million Credit Facility during the nine
months ended September 30, 2017. Depreciation and amortization
expense for the nine months ended September 30, 2017 decreased by
$4.0 million primarily due to the operation of fewer vessels during
the nine months ended September 30, 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 expenses and other current assets decreased by $11.1
million due to the timing of prepaid payments made, a portion of
which includes the hull and machinery insurance claims for repairs
of the Genco Tiger and Baltic Lion. Lastly, there was a $5.7
million increase in deferred drydocking costs incurred because
there were more vessels that completed drydocking during the nine
months ended September 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 $6.2 million due to the
timing payments.
Net cash provided by investing activities was
$18.1 million during the nine months ended September 30, 2017 as
compared to $5.1 million during the nine months ended September 30,
2016. The increase is primarily due to a $13.6 million increase in
the proceeds from the sale of five vessels during the nine months
ended September 30, 2017 as compared to the scrapping of one vessel
during the nine months ended September 30, 2016. Additionally,
there was a $3.1 million decrease in deposits of restricted cash
during the nine months ended September 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 $3.9 million for the proceeds from the sale of
available-for-sale securities for the nine months ended September
30, 2016.
Net cash used in financing activities was $3.5
million and $40.3 million during the nine months ended September
30, 2017 and 2016, respectively. Net cash used in financing
activities of $3.5 million for the nine months ended September 30,
2017 consisted primarily of the following: $1.1 million payment of
Series A Preferred Stock issuance costs; $2.1 million
repayment of debt under the 2014 Term Loan Facilities; and $0.3
million repayment of debt under the $400 Million Credit
Facility. Net cash used in financing activities of $40.3 million
for the nine months ended September 30, 2016 consisted primarily of
the following: $15.2 million repayment of debt under the $253
Million Term Loan Facility, $9.0 million repayment of debt
under the $148 Million Credit Facility, $5.8 million repayment of
debt under the $100 Million Term Loan Facility, $4.9 million
repayment of debt under the 2015 Revolving Credit Facility, $2.1
million repayment of debt under the $44 Million Term Loan Facility,
$2.1 million repayment of debt under the 2014 Term Loan Facilities,
and $1.1 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 November 1, 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 third quarter
of 2017. We currently expect one of our Capesize vessels to be
drydocked during the fourth quarter of 2017.
We estimate our capital expenditures related to
drydocking for our fleet through 2017 to be:
|
Q4 2017 |
2018 |
Estimated Costs
(1) |
$0.9
million |
$3.4
million |
Estimated Offhire Days
(2) |
20 |
80 |
(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
third quarter of 2017. The offhire days recorded for these vessels
during the third quarter of 2017 due to scheduled drydocking
amounted to 98.1 days. Capitalized costs associated with drydocking
incurred during the third quarter of 2017 were approximately $2.4
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 Ended September 30,
2017 |
|
Three Months Ended September 30,
2016 |
|
Nine Months Ended September 30,
2017 |
|
Nine Months Ended September 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 |
$ |
51,161 |
|
|
$ |
37,871 |
|
|
$ |
134,780 |
|
|
$ |
89,461 |
|
|
|
Service
revenues |
|
- |
|
|
|
1,016 |
|
|
|
- |
|
|
|
2,240 |
|
|
|
|
Total
revenues |
|
51,161 |
|
|
|
38,887 |
|
|
|
134,780 |
|
|
|
91,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
5,550 |
|
|
|
2,262 |
|
|
|
9,743 |
|
|
|
9,232 |
|
|
|
Vessel
operating expenses |
|
25,131 |
|
|
|
28,460 |
|
|
|
73,867 |
|
|
|
86,125 |
|
|
|
General and administrative expenses (inclusive of
nonvested stock amortization |
|
5,889 |
|
|
|
7,943 |
|
|
|
16,550 |
|
|
|
30,101 |
|
|
|
expense of $1.3 million, $3.6 million, $3.5 million and
$14.5 million respectively) |
|
|
|
|
|
|
|
|
|
Technical
management fees |
|
1,883 |
|
|
|
2,210 |
|
|
|
5,735 |
|
|
|
6,760 |
|
|
|
Depreciation and amortization |
|
17,836 |
|
|
|
18,127 |
|
|
|
54,194 |
|
|
|
58,152 |
|
|
|
Other
operating income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(182 |
) |
|
|
Impairment
of vessel assets |
|
18,654 |
|
|
|
- |
|
|
|
21,993 |
|
|
|
69,278 |
|
|
|
(Gain) loss
on sale of vessels |
|
- |
|
|
|
- |
|
|
|
(7,712 |
) |
|
|
77 |
|
|
|
|
Total
operating expenses |
|
74,943 |
|
|
|
59,002 |
|
|
|
174,370 |
|
|
|
259,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(23,782 |
) |
|
|
(20,115 |
) |
|
|
(39,590 |
) |
|
|
(167,842 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(expense) income: |
|
|
|
|
|
|
|
|
|
Impairment
of investment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,696 |
) |
|
|
Other
(expense) income |
|
(37 |
) |
|
|
125 |
|
|
|
(152 |
) |
|
|
(49 |
) |
|
|
Interest
income |
|
494 |
|
|
|
49 |
|
|
|
1,006 |
|
|
|
143 |
|
|
|
Interest
expense |
|
(7,857 |
) |
|
|
(7,073 |
) |
|
|
(22,559 |
) |
|
|
(21,199 |
) |
|
|
|
Other
expense |
|
(7,400 |
) |
|
|
(6,899 |
) |
|
|
(21,705 |
) |
|
|
(23,801 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
reorganization items, net |
|
(31,182 |
) |
|
|
(27,014 |
) |
|
|
(61,295 |
) |
|
|
(191,643 |
) |
|
|
Reorganization items, net |
|
- |
|
|
|
(83 |
) |
|
|
- |
|
|
|
(243 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
income taxes |
|
(31,182 |
) |
|
|
(27,097 |
) |
|
|
(61,295 |
) |
|
|
(191,886 |
) |
|
|
Income tax
expense |
|
- |
|
|
|
(417 |
) |
|
|
- |
|
|
|
(766 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(31,182 |
) |
|
$ |
(27,514 |
) |
|
$ |
(61,295 |
) |
|
$ |
(192,652 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share - basic |
$ |
(0.90 |
) |
|
$ |
(3.80 |
) |
|
$ |
(1.80 |
) |
|
$ |
(26.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share - diluted |
$ |
(0.90 |
) |
|
$ |
(3.80 |
) |
|
$ |
(1.80 |
) |
|
$ |
(26.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic |
|
34,469,998 |
|
|
|
7,245,268 |
|
|
|
34,135,736 |
|
|
|
7,228,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted |
|
34,469,998 |
|
|
|
7,245,268 |
|
|
|
34,135,736 |
|
|
|
7,228,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2017 |
|
December 31, 2016 |
|
|
|
BALANCE SHEET DATA: |
|
|
(unaudited) |
|
|
|
|
|
Cash
(including restricted cash) |
|
|
$ |
185,105 |
|
|
$ |
169,068 |
|
|
|
|
Current
assets |
|
|
|
194,583 |
|
|
|
172,605 |
|
|
|
|
Total
assets |
|
|
|
1,516,483 |
|
|
|
1,568,960 |
|
|
|
|
Current
liabilities (excluding current portion of long-term debt) |
|
|
|
25,163 |
|
|
|
24,373 |
|
|
|
|
Current
portion of long-term debt |
|
|
|
12,076 |
|
|
|
4,576 |
|
|
|
|
Long-term
debt (net of $9.6 million and $11.4 million of unamortized debt
issuance |
|
|
|
504,896 |
|
|
|
508,444 |
|
|
|
|
|
|
costs at
September 30, 2017 and December 31, 2016, respectively) |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
971,940 |
|
|
|
1,029,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2017 |
|
Nine Months Ended September 30,
2016 |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
Net cash
provided by (used in) operating activities |
|
|
$ |
4,439 |
|
|
$ |
(45,907 |
) |
|
|
|
Net cash
provided by investing activities |
|
|
|
18,137 |
|
|
|
5,119 |
|
|
|
|
Net cash
used in financing activities |
|
|
|
(3,465 |
) |
|
|
(40,258 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2017 |
|
Three Months Ended September 30,
2016 |
|
Nine Months Ended September 30,
2017 |
|
Nine Months Ended September 30,
2016 |
|
|
|
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
|
EBITDA Reconciliation: |
(unaudited) |
|
(unaudited) |
|
|
Net
loss |
$ |
(31,182 |
) |
|
$ |
(27,514 |
) |
|
$ |
(61,295 |
) |
|
$ |
(192,652 |
) |
|
|
+ |
Net interest
expense |
|
7,363 |
|
|
|
7,024 |
|
|
|
21,553 |
|
|
|
21,056 |
|
|
|
+ |
Income tax expense |
|
- |
|
|
|
417 |
|
|
|
- |
|
|
|
766 |
|
|
|
+ |
Depreciation and
amortization |
|
17,836 |
|
|
|
18,127 |
|
|
|
54,194 |
|
|
|
58,152 |
|
|
|
|
|
EBITDA(1) |
$ |
(5,983 |
) |
|
$ |
(1,946 |
) |
|
$ |
14,452 |
|
|
$ |
(112,678 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
September 30, 2017 |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 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) |
|
60.0 |
|
|
|
69.0 |
|
|
|
61.1 |
|
|
|
69.5 |
|
|
Total
ownership days for fleet (3) |
|
5,520 |
|
|
|
6,348 |
|
|
|
16,687 |
|
|
|
19,044 |
|
|
Total
available days for fleet (4) |
|
5,320 |
|
|
|
6,161 |
|
|
|
15,970 |
|
|
|
18,482 |
|
|
Total
operating days for fleet (5) |
|
5,206 |
|
|
|
6,123 |
|
|
|
15,611 |
|
|
|
18,293 |
|
|
Fleet
utilization (6) |
|
97.9 |
% |
|
|
99.4 |
% |
|
|
97.8 |
% |
|
|
99.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DAILY RESULTS: |
|
|
|
|
|
|
|
|
Time
charter equivalent (7) |
$ |
8,573 |
|
|
$ |
5,779 |
|
|
$ |
7,829 |
|
|
$ |
4,341 |
|
|
Daily
vessel operating expenses per vessel (8) |
|
4,553 |
|
|
|
4,483 |
|
|
|
4,427 |
|
|
|
4,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 November 1, 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 November 1,
2017, the average age of our current fleet was 9.6 years.
The following table reflects the employment of
Genco’s fleet as of November 1, 2017:
Vessel |
YearBuilt |
Charterer |
Charter Expiration(1) |
Cash Daily Rate(2) |
|
|
|
|
|
Capesize Vessels |
|
|
|
|
Genco
Augustus |
2007 |
Swissmarine Services S.A. |
February 2018 |
106% of BCI |
Genco
Tiberius |
2007 |
Jiangsu Steamship Pte. Ltd. |
November 2017 |
$18,100 |
Genco
London |
2007 |
Swissmarine Services S.A. |
May
2018 |
98% of BCI |
Genco
Titus |
2007 |
Louis Dreyfus Company Freight Asia Pte. Ltd. |
Oct.
2017/Feb. 2018 |
$12,000/ $17,750(3) |
Genco
Constantine |
2008 |
Oldendorff GMBH & Co. |
Oct./Nov. 2017 |
$18,500/ $21,750(4) |
Genco
Hadrian |
2008 |
Swissmarine Services S.A./ Pacific Bulk Cape Company Ltd. |
Oct.
2017/Jan. 2018 |
98.5% of BCI/ $16,600(5) |
Genco
Commodus |
2009 |
Swissmarine Asia Pte. Ltd. |
January 2018 |
88% of BCI |
Genco
Maximus |
2009 |
Oldendorff GMBH & Co. |
Oct./Nov. 2017 |
$14,750/ $14,750(6) |
Genco
Claudius |
2010 |
Louis Dreyfus Company Freight Asia Pte. Ltd. |
December 2017 |
$13,000 |
Genco
Tiger |
2011 |
Uniper Global Commodities SE. |
December 2017 |
$10,750 |
Baltic
Lion |
2012 |
Koch Shipping Pte. Ltd. |
December 2017 |
$15,300 |
Baltic
Bear |
2010 |
Trafigura Maritime Logistics Pte. Ltd. |
December 2017 |
$10,750(7) |
Baltic
Wolf |
2010 |
Cargill International S.A. |
February 2018 |
$15,350 |
|
|
|
|
|
Panamax Vessels |
|
|
|
|
Genco
Beauty |
1999 |
Swissmarine Asia Pte. Ltd. |
December 2017 |
$9,000(8) |
Genco
Knight |
1999 |
Raffles Shipping International Pte. Ltd. |
November 2017 |
$12,000(9) |
Genco
Vigour |
1999 |
Trafigura Maritime Logistics Pte. Ltd. |
November 2017 |
$9,750(10) |
Genco
Surprise |
1998 |
Swissmarine Asia Pte., Ltd. |
December 2017 |
$8,000(11) |
Genco
Raptor |
2007 |
Golden Ocean Trading Ltd. Bermuda/Aquavita International S.A. |
Oct.
2017/Feb. 2018 |
$9,650/ $12,300(12) |
Genco
Thunder |
2007 |
Raffles Shipping International Pte. Ltd. |
October 2017 |
$10,500(13) |
|
|
|
|
|
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./Mosaic Global Sales |
Oct.
2017/Jan. 2018 |
$8,500/Voyage |
Baltic
Mantis |
2015 |
Gavilon Grain LLC |
November 2017 |
Voyage(14) |
|
|
|
|
|
Supramax Vessels |
|
|
|
|
Genco
Predator |
2005 |
D/S Norden A/S |
November 2017 |
$10,250(15) |
Genco
Warrior |
2005 |
Americas Bulk Transport (BVI) Ltd./Ultrabulk A/S |
Oct./Nov. 2017 |
$10,750/ $12,000(16) |
Genco
Hunter |
2007 |
Daewoo Logistics Corp. |
November 2017 |
$3,500(17) |
Genco
Cavalier |
2007 |
Bulkhandling Handymax A/S/Transwind Shipping Co., Ltd. |
Oct./Nov. 2017 |
Spot Pool/$10,500 |
Genco
Lorraine |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
Spot Pool |
Genco
Loire |
2009 |
Bulkhandling Handymax A/S/ Medi Supra Pool Management Ltd./ BaltNav
A/S |
Oct./Nov./Nov. 2017 |
Spot Pool/$13,500/ $8,000(18) |
Genco
Aquitaine |
2009 |
ADMIntermare/S. Norton & Co. Ltd. |
Oct./Nov. 2017 |
$16,000/ $20,000(19) |
Genco
Ardennes |
2009 |
Norvic Shipping International Ltd./Clipper Bulk Shipping Ltd. |
Oct./Nov. 2017 |
$14,000/ $7,000(20) |
Genco
Auvergne |
2009 |
Western Bulk Pte. Ltd., Singapore/International Materials Inc. |
Oct./Nov. 2017 |
$9,350/ Voyage(21) |
Genco
Bourgogne |
2010 |
Phoenix Global DMCC |
November 2017 |
Voyage |
Genco
Brittany |
2010 |
Trafigura Maritime Logistics Pte. Ltd. |
November 2017 |
$15,000(22) |
Genco
Languedoc |
2010 |
Oldendorff Carriers GMBH & Co. |
November 2017 |
$7,900(23) |
Genco
Normandy |
2007 |
Bulkhandling Handymax A/S/ SK Shipping Co., Ltd. |
Oct./Dec. 2017 |
Spot Pool/ $5,000(24) |
Genco
Picardy |
2005 |
Centurion Bulk Pte. Ltd., Singapore |
November 2017 |
$9,000(25) |
Genco
Provence |
2004 |
HC
Trading Malta Ltd. |
November 2017 |
Voyage(26) |
Genco
Pyrenees |
2010 |
Kawasaki Kisen Kaisha Ltd./ Western Bulk Pte. Ltd./ Western Bulk
Pte. Ltd. |
Oct./Nov. 2017/ Mar. 2018 |
$17,600/ $13,000/ $16,500(27) |
Genco
Rhone |
2011 |
Camden Iron and Metal/Ameropa S.A. Lausanne |
Oct./Nov. 2017 |
Voyage/ Voyage(28) |
Baltic
Leopard |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
Spot Pool |
Baltic
Panther |
2009 |
Bulkhandling Handymax A/S |
November 2017 |
Spot Pool |
Baltic
Jaguar |
2009 |
Bunge Latin America LLC/Sims Group Global Trade Corp. |
Oct./Nov. 2017 |
$11,000/ Voyage(29) |
Baltic
Cougar |
2009 |
Bulkhandling Handymax A/S/ Nordic Bulk Carriers A/S |
Oct.
2017/Jan. 2018 |
Spot Pool/$10,500 |
|
|
|
|
|
Handymax Vessels |
|
|
|
|
Genco
Muse |
2001 |
Centurion Bulk Pte. Ltd. Singapore |
November 2017 |
$8,500(30) |
|
|
|
|
|
Handysize Vessels |
|
|
|
|
Genco
Progress |
1999 |
Sun United Maritime Ltd. |
November 2017 |
$6,000(31) |
Genco
Explorer |
1999 |
Daiichi Chuo Kisen Kaisha/ ADMIntermare/ ADMIntermare |
Oct./Nov./Nov. 2017 |
$4,000/ Voyage/ Voyage(32) |
Baltic
Hare |
2009 |
NYK Bulk & Projects Carriers Ltd./Norden Shipping (Singapore)
Pte. Ltd. |
Oct./Nov. 2017 |
$8,300/$5,000(33) |
Baltic
Fox |
2010 |
Clipper Logger Pool |
November 2017 |
Spot Pool |
Genco
Charger |
2005 |
Agriculture & Energy Carriers Ltd. |
November 2017 |
$4,000(34) |
Genco
Challenger |
2003 |
Mitsui OSK Lines, Ltd. |
November 2017 |
$7,000(35) |
Genco
Champion |
2006 |
Clipper Logger Pool/Cargill Ocean Transportation, Singapore Pte.
Ltd. |
Oct./Nov. 2017 |
Spot Pool/ $7,250(36) |
Baltic
Wind |
2009 |
Ultrabulk Parcel Service A/S |
November 2017 |
$7,500(37) |
Baltic
Cove |
2010 |
Clipper Bulk Shipping Ltd./MUR Shipping B.V. |
Nov./Nov. 2017 |
$5,750/ $10,000(38) |
Baltic
Breeze |
2010 |
ADMIntermare/CAI Trading LLC |
Oct./Nov. 2017 |
Voyage/ Voyage(39) |
Genco
Ocean |
2010 |
Empremar S.A./Cargill International S.A. |
Oct./Nov. 2017 |
$8,500/ $8,000(40) |
Genco
Bay |
2010 |
Pacific Basin Handysize Ltd./Bulk Atlantic Inc. |
Oct./Nov. 2017 |
$9,500/ $12,000(41) |
Genco
Avra |
2011 |
Sims Group Global Trade Corp./ NYK Bulk & Projects Carriers
Ltd. |
Oct./Nov. 2017 |
Voyage/ 10,500(42) |
Genco
Mare |
2011 |
Pioneer Navigation Ltd. |
November 2017 |
103.5% of BHSI |
Genco
Spirit |
2011 |
Norvic Shipping International Ltd./BBC Chartering Carriers GMBH
& Co. KG |
Oct./Dec. 2017 |
$5,250/ $12,500(43) |
|
|
|
|
|
- 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.
- 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.
- We have agreed to an extension with Louis Dreyfus Company
Freight Asia Pte. Ltd. on a time charter for 3.5 to 6 months at a
rate of $17,750 per day. Hire is paid every 15 days in advance less
a 5.00% third-party brokerage commission. The extension began on
October 21, 2017.
- We have agreed to an extension with Oldendorff GMBH & Co.
on a time charter for approximately 35 days at a rate of $21,750
per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The extension began on October
20, 2017.
- We have reached an agreement with Pacific Bulk Cape Company
Ltd. on a time charter for 3.5 to 6.5 months at a rate of $16,600
per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The vessel delivered to
charterers on October 4, 2017.
- We have agreed to an extension with Oldendorff GMBH & Co.
on a time charter for approximately 35 days at a rate of $14,750
per day Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The extension began on October 6,
2017.
- 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.
- We have reached an agreement with Swissmarine Asia Pte. Ltd. on
a time charter for 3.5 to 6.5 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 August
4, 2017 after completion of drydocking for scheduled maintenance.
The vessel had redelivered to Genco on June 29, 2017.
- We have reached an agreement with Raffles Shipping
International Pte. Ltd. on a time charter for approximately 75 days
at a rate of $12,000 per day. Hire is paid every 15 days in advance
less a 5.00% third-party brokerage commission. The vessel delivered
to charterers on September 1, 2017 after repositioning. The vessel
had redelivered to Genco on August 26, 2017.
- We have reached an agreement with Trafigura Maritime Logistics
Pte. Ltd. on a time charter for approximately 25 days at a rate of
$9,750 per day. Hire is paid every 15 days in advance less a 5.00%
third-party brokerage commission. The vessel delivered to
charterers on October 4, 2017 after repositioning. A ballast bonus
was awarded after the repositioning period. The vessel redelivered
to Genco on September 4, 2017.
- 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.
- We have reached an agreement with Aquavita International S.A.
on a time charter for 4 to 6.5 months at a rate of $12,300 per day.
Hire is paid every 15 days in advance less a 5.00% third-party
brokerage commission. The vessel delivered to charterers on October
8, 2017.
- The vessel redelivered to Genco on October 31, 2017 and is
currently awaiting next employment.
- We have reached an agreement with Gavilon Grain LLC for one
voyage for approximately 90 days.
- We have reached an agreement with D/S Norden A/S on a time
charter for approximately 45 days at a rate of $10,250 per day. If
the duration of the time charter exceeds 47 days, the hire rate
will be $12,500 thereafter. Hire is paid every 15 days in advance
less a 5.00% third-party brokerage commission. The vessel delivered
to charterers on September 22, 2017 after repositioning. The vessel
redelivered to Genco on September 16, 2017.
- We have reached an agreement with Ultrabulk A/S on a time
charter for approximately 50 days at a rate of $12,000 per day.
Hire is paid every 15 days in advance less a 5.00% third-party
brokerage commission. The vessel delivered to charterers on October
1, 2017.
- We have reached an agreement with Daewoo Logistics Corp. on a
time charter for approximately 60 days at a rate of $3,500 per day.
If the duration of the time charter exceeds 66 days, the hire rate
will be $10,000 per day thereafter. Hire is paid every 15 days in
advance less a 5.00% third-party brokerage commission. The vessel
delivered to charterers on September 11, 2017 after completion of
drydocking for scheduled maintenance. The vessel had redelivered to
Genco on August 18, 2017.
- We have reached an agreement with BaltNav A/S 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 November 1,
2017.
- We have reached an agreement with S. Norton & Co. Ltd. on a
time charter for approximately 20 days at a rate of $20,000 per
day. Hire is paid every 15 days in advance less a 5.00% third-party
brokerage commission. The vessel delivered to charterers on October
18, 2017.
- We have reached an agreement with Clipper Bulk Shipping Ltd. on
a time charter for approximately 35 days at a rate of $7,000 per
day. Hire is paid every 15 days in advance less a 5.00% third-party
brokerage commission. The vessel delivered to charterers on October
17, 2017.
- We have reached an agreement with International Materials Inc.
for one voyage for approximately 50 days.
- We have reached an agreement with Trafigura Maritime Logistics
Pte. Ltd. on a time charter for approximately 50 days at a rate of
$15,000. Hire is paid every 15 days in advance less a 5.00%
third-party broker commission. The vessel delivered to charterers
on September 18, 2017.
- 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.
- We have reached an agreement with SK Shipping Co., Ltd. on a
time charter for approximately 65 days at a rate of $5,000 per day.
If the duration of the time charter exceeds 67 days, the hire rate
will be $11,000 per day thereafter. Hire is paid every 15 days in
advance less a 5.00% third-party brokerage commission. The vessel
delivered to charterers on October 24, 2017.
- 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.
- We have reached an agreement with HC Trading Malta Ltd. for one
voyage for approximately 25 days.
- We have reached an agreement with Western Bulk Pte. Ltd. on a
time charter for 3.5 to 6.5 months at a rate of $16,500 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 November 15, 2017.
- We have reached an agreement with Ameropa S.A. Lausanne for one
voyage for approximately 45 days.
- We have reached an agreement with Sims Group Global Trade Corp.
for one voyage for approximately 45 days.
- 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.
- 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 delivered to
charterers on August 17, 2017.
- We have reached an agreement with ADMIntermare for one voyage
for approximately 20 days.
- We have reached an agreement with Norden Shipping (Singapore)
Pte. Ltd. on a time charter for approximately 40 days at a rate of
$5,000 per day. If the time charter extends beyond 50 days, the
hire rate will be $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 October 21, 2017 after repositioning.
The vessel had redelivered to Genco on October 13, 2017.
- We have reached an agreement with Agriculture & Energy
Carriers Ltd. on a time charter for approximately 65 days at a rate
of $4,000 per day. If the time charter exceeds 67 days then the
hire rate will be $7,000 per day. Hire is paid every 15 days in
advance less a 5.00% third-party brokerage commission. The vessel
delivered to charterers on August 27, 2017.
- We have reached an agreement with Mitsui OSK Lines, Ltd. on a
time charter for approximately 60 days at a rate of $7,000 per day.
Hire is paid every 15 days in advance less a 5.00% third-party
brokerage commission. The vessel delivered to charterers on August
26, 2017 after repositioning. The vessel redelivered to Genco on
August 22, 2017.
- We have reached an agreement with Cargill Ocean Transportation,
Singapore Pte. Ltd. on a time charter for approximately 20 days at
a rate of $7,250 per day. Hire is paid every 15 days in advance
less a 5.00% third-party brokerage commission. The vessel delivered
to charterers on October 5, 2017.
- We have reached an agreement with Ultrabulk Parcel Service A/S
on a time charter for approximately 55 days at a rate of $7,500 per
day for the first 45 days and $9,250 per thereafter. Hire is paid
every 15 days in advance less a 5.00% third-party brokerage
commission. The vessel delivered to charterers on September 17,
2017.
- We have reached an agreement with MUR Shipping B.V. on a time
charter for approximately 25 days at a rate of $10,000 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
charterer on or about November 4, 2017.
- We have reached an agreement with CAI Trading LLC for one
voyage for approximately 30 days.
- We have reached an agreement with Cargill International S.A. on
a time charter for approximately 40 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 October
5, 2017.
- We have reached an agreement with Bulk Atlantic Inc. on a time
charter for approximately 35 days at a rate of $12,000 per day.
Hire is paid every 15 days in advance less a 5.00% third-party
brokerage commission. The vessel delivered to charterers on October
16, 2017.
- We have reached an agreement with NYK Bulk & Projects
Carriers Ltd. on a time charter for approximately 15 days at a rate
of $10,500 per day. Hire is paid every 15 days in advance less a
5.00% third-party broker commission. The vessel delivered to
charterers on October 14, 2017.
- We have reached an agreement with BBC Chartering Carriers GMBH
& Co. KG on a time charter for approximately 45 days at a rate
of $12,500 per day. Hire is paid every 15 days in advance less a
5.00% third-party brokerage commission. The vessel delivered to
charterers on October 21, 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 November 1, 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 Thursday, November 2, 2017 at 8:30 a.m. Eastern
Time to discuss its 2017 third 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)
794-2551 or (800) 239-9838 and enter passcode 8299019. 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 8299019.
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. WobensmithChief
Executive Officer Genco Shipping & Trading Limited(646)
443-8555
_____________________________
1 We believe the non-GAAP measure presented provides investors
with a means of better evaluating and understanding the Company’s
operating performance.
Genco Shipping and Trading (NYSE:GNK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Genco Shipping and Trading (NYSE:GNK)
Historical Stock Chart
From Apr 2023 to Apr 2024