Genco Shipping & Trading Limited (NYSE:GNK) Q3 2021 Earnings Conference Call November 4, 2021 8:30 AM ET Company Participants Peter Allen – Senior Vice President, Strategy and Finance John Wobensmith – Chief Executive Officer Apostolos Zafolias – Chief Financial Officer Conference Call Participants Randy Giveans – Jefferies Omar Nokta – Clarksons Securities Magnus Fyhr – HC Wainwright Liam Burke – B. Riley Greg Lewi – BTIG Poe Fratt – Noble Capital Markets Operator Good morning, ladies and gentlemen, and we ...

PART I — FINANCIAL INFORMATION [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Genco Shipping & Trading Limited's unaudited condensed consolidated financial statements for Q3 and the first nine months of 2021, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed explanatory notes [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=f)%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and specific financial statement items, covering business operations, COVID-19 impact, fleet renewal, debt refinancing, derivative instruments, and a post-quarter dividend declaration - As of September 30, 2021, the Company's fleet consisted of **43 drybulk vessels** with an aggregate capacity of approximately **4,568,600 dwt**[29](index=29&type=chunk) - In September 2021, the Company formed a **50/50 joint venture**, GS Shipmanagement Pte. Ltd. ("GSSM"), with Synergy Marine to provide ship management services to the Company's vessels, and GSSM is **consolidated into the Company's financial statements**[30](index=30&type=chunk)[31](index=31&type=chunk) - The company recorded a **loss on debt extinguishment of $4.4 million** in Q3 2021 due to the refinancing of the **$495 Million** and **$133 Million Credit Facilities** with a new **$450 Million Credit Facility**[57](index=57&type=chunk) - **No vessel impairment** was recorded in the three and nine months ended September 30, 2021, in contrast to **significant impairments of $21.9 million** and **$134.7 million** in the same periods of 2020, respectively[46](index=46&type=chunk) - The company is **actively renewing its fleet**, acquiring several modern Ultramax vessels and disposing of older Supramax and Handysize vessels during 2021[72](index=72&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) - Subsequent to the quarter end, on November 3, 2021, the company **declared a quarterly dividend of $0.15 per share**, and on November 2, 2021, it **completed the sale** of the Genco Provence for **$13.25 million**[140](index=140&type=chunk)[141](index=141&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, fleet strategy, and market conditions, highlighting a significant turnaround in 2021 driven by high drybulk freight rates and a new value strategy focused on debt reduction and quarterly dividends [General and Strategy](index=30&type=section&id=MD%26A_General_and_Strategy) Genco operates a fleet focused on Capesize, Ultramax, and Supramax vessels, employing a portfolio approach to chartering, and in April 2021, launched a new comprehensive value strategy prioritizing debt reduction and a sizeable quarterly dividend - The company's fleet focuses on **Capesize, Ultramax, and Supramax vessels**, having disposed of its last Handysize vessel in February 2021[148](index=148&type=chunk) - A **new comprehensive value strategy** was announced in April 2021, **prioritizing debt reduction** and the **payment of a sizeable quarterly dividend**, with the first such dividend anticipated for Q4 2021 results (payable in Q1 2022)[149](index=149&type=chunk) [Results of Operations](index=34&type=section&id=MD%26A_Results_of_Operations) The company's financial results dramatically improved in Q3 and the first nine months of 2021, driven by significantly increased Time Charter Equivalent (TCE) rates across all vessel classes and the absence of substantial vessel impairment charges seen in 2020 Financial Performance Comparison (Q3 2021 vs Q3 2020) | Metric | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | **Voyage Revenues** | $155.3M | $87.5M | +77.4% | | **Net Income (Loss)** | $57.1M | ($21.1M) | +$78.2M | | **EPS (Diluted)** | $1.34 | ($0.50) | +$1.84 | | **EBITDA** | $75.3M | $0.013M | +$75.2M | Time Charter Equivalent (TCE) Rate Comparison (Q3 2021 vs Q3 2020) | Vessel Class | Q3 2021 Daily Rate | Q3 2020 Daily Rate | % Change | | :--- | :--- | :--- | :--- | | **Fleet Average** | **$29,287** | **$11,456** | **+155.6%** | | Capesize | $30,809 | $16,287 | +89.2% | | Ultramax | $23,271 | $10,965 | +112.2% | | Supramax | $31,996 | $9,523 | +236.0% | - **Average daily vessel operating expenses increased** to **$5,833** in Q3 2021 from **$4,961** in Q3 2020, primarily due to higher crew expenses related to COVID-19 disruptions and a larger weighting of Capesize vessels in the fleet[200](index=200&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company's liquidity is primarily derived from operations and credit facilities, with **$80.2 million** in cash and **$137.5 million** available under its new **$450 Million Credit Facility** as of September 30, 2021, deemed sufficient for the next twelve months, alongside a new dividend policy and planned capital expenditures for 2022 - As of September 30, 2021, the company had **$80.2 million** in **unrestricted cash and cash equivalents** and **$137.5 million available under its revolving credit facility**[236](index=236&type=chunk) - A **new quarterly dividend policy was adopted**, with the dividend calculated as: Operating cash flow - Debt repayments - Capex for drydocking - Reserve[241](index=241&type=chunk) Estimated Future Capital Expenditures (2021-2022) | Period | Est. Drydocking Cost | Est. BWTS Cost | Est. Fuel Efficiency Upgrade Costs | Est. Off-hire Days | | :--- | :--- | :--- | :--- | :--- | | **Q4 2021** | $2.2M | $0.6M | $0.2M | 60 | | **2022** | $12.3M | $6.1M | $8.6M | 300 | - **Net cash from operating activities** for the first nine months of 2021 was **$135.0 million**, a significant increase from **$16.0 million** in the same period of 2020, driven by higher charter rates[259](index=259&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its floating-rate debt, managed by **$200 million** in interest rate cap agreements, with currency exchange risk considered immaterial - The company is **exposed to interest rate risk** on its floating-rate debt, and as of September 30, 2021, it held three **interest rate cap agreements** with a total notional amount of **$200.0 million** to hedge this risk[295](index=295&type=chunk)[300](index=300&type=chunk) - A **1% increase in LIBOR** would result in an estimated **increase of $3.0 million in interest expense** for the nine months ended September 30, 2021[299](index=299&type=chunk) - **Currency exchange rate risk is deemed immaterial** as most revenues and operating costs are in U.S. Dollars[303](index=303&type=chunk)[304](index=304&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures are effective** as of the end of the reporting period[305](index=305&type=chunk) - **No changes in internal control over financial reporting occurred** during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[306](index=306&type=chunk) PART II —OTHER INFORMATION [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) This section updates existing risk factors, highlighting potential adverse impacts from new tax legislation, including proposed **15% minimum taxes** in the U.S. and globally, and notes heightened geopolitical risks from rising U.S.-China tensions that could disrupt shipping routes and markets - The company's **tax position could be adversely affected** by **proposed legislative changes**, including a potential **15% minimum corporate tax** in the U.S. and a new OECD framework for a **15% global minimum tax rate** for multinational enterprises[307](index=307&type=chunk)[308](index=308&type=chunk) - **Geopolitical risks are heightened** due to **rising tensions between the U.S. and China**, particularly concerning Taiwan and trade restrictions, which could interfere with shipping routes and disrupt markets[309](index=309&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section indexes all exhibits filed with the quarterly report, including the new **$450 Million Credit Agreement** and certifications from the Chief Executive Officer and Chief Financial Officer - The exhibits include the **US$450 Million Credit Agreement** dated August 3, 2021, which is a **key document for the company's recent refinancing**[313](index=313&type=chunk) - **Certifications from the CEO and CFO** pursuant to the Securities Exchange Act of 1934 and U.S.C. Section 1350 are filed with the report[313](index=313&type=chunk)

Company Overview - Genco has a pro forma fleet of 44 modern, high-quality drybulk vessels, consisting of both major and minor bulk vessels[5] - As of August 31, 2021, Genco's cash position was approximately $118 million, with a net loan-to-value (LTV) of 22%[8] - Genco transported 30 million deadweight tons (mdwt) of drybulk commodities in 2020[7] Financial Strategy - Genco is targeting a maximum net loan-to-value of approximately 20% by year-end[14] - Genco repaid $99 million of debt through August 2021[14] - Genco's target debt outstanding at December 31, 2021, is $250 million[14] Market Dynamics - Drybulk trade accounts for nearly half, 45%, of global seaborne trade volume in 2020[6] - Brazilian iron ore exports have increased by 8% year-over-year through September 2021[23] - The current drybulk newbuilding orderbook is 6% of the total drybulk fleet[30]

Genco Shipping & Trading Limited Virtual Investor Summit Presentation NYSE:GNK August 2021 Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as "anticipate," "budget," "estimate," "expect," "project," "intend," "plan," "believe," and other words and ...

Genco Shipping & Trading Limited (NYSE:GNK) Q2 2021 Results Conference Call August 5, 2021 8:30 AM ET Company Participants Peter Allen - SVP, Strategy and Finance John Wobensmith - CEO Apostolos Zafolias - CFO Conference Call Participants Randy Giveans - Jefferies Omar Nokta - Clarksons Securities James Jang - Univest Securities Operator Good morning, ladies and gentlemen, and welcome to the Genco Shipping & Trading Limited Second Quarter 2021 Earnings Conference Call and Presentation. Before we begin, plea ...

Genco Shipping & Trading Limited Q2 2021 Earnings Presentation August 5th, 2021 Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as "anticipate," "budget," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of si ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33393 GENCO SHIPPING & TRADING LIMITED (Exact name of registrant as specified in its charter) Republic of the Marshall Isl ...

Genco Shipping & Trading Limited Q1 2021 Earnings Presentation May 6th, 2021 Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as "anticipate," "budget," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of simil ...

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Genco Shipping & Trading Limited's unaudited condensed consolidated financial statements for Q1 2021 and 2020, along with detailed explanatory notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=a)%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets and liabilities decreased, while total equity slightly increased, primarily due to changes in cash, vessels, and long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$1,180,343** | **$1,232,809** | | Cash and cash equivalents | $123,191 | $143,872 | | Vessels, net | $924,468 | $919,114 | | **Total Liabilities** | **$433,526** | **$487,815** | | Current portion of long-term debt | $65,277 | $80,642 | | Long-term debt, net | $327,064 | $358,933 | | **Total Equity** | **$746,817** | **$744,994** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=b)%20Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net income of $2.0 million in Q1 2021, a significant turnaround from a $120.4 million net loss in Q1 2020, primarily due to the absence of a vessel impairment charge Q1 Statement of Operations Summary (in thousands USD, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Voyage Revenues | $87,591 | $98,336 | | Total Operating Expenses | $81,282 | $211,751 | | Impairment of vessel assets | $0 | $112,814 | | Operating Income (Loss) | $6,309 | ($113,415) | | **Net Income (Loss)** | **$1,985** | **($120,350)** | | **Net Earnings (Loss) per Share-diluted** | **$0.05** | **($2.87)** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=c)%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company reported a comprehensive income of $2.1 million in Q1 2021, a significant improvement from a $120.4 million comprehensive loss in Q1 2020 Comprehensive Income (Loss) (in thousands USD) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Income (Loss) | $1,985 | ($120,350) | | Other comprehensive income | $161 | $0 | | **Comprehensive Income (Loss)** | **$2,146** | **($120,350)** | [Condensed Consolidated Statements of Equity](index=8&type=section&id=d)%20Condensed%20Consolidated%20Statements%20of%20Equity) Total equity increased to $746.8 million in Q1 2021, driven by net income and other comprehensive income, partially offset by cash dividends - Key changes in equity for Q1 2021 included a **net income of $1.985 million** and the declaration of **cash dividends amounting to $845 thousand ($0.02 per share)**[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=e)%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2021, net cash provided by operating activities significantly improved to $13.5 million, while investing activities provided $20.0 million and financing activities used $49.1 million, resulting in a net cash decrease Q1 Cash Flow Summary (in thousands USD) | Cash Flow Activity | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $13,494 | ($4,038) | | Net cash provided by investing activities | $19,950 | $5,577 | | Net cash used in financing activities | ($49,098) | ($14,280) | | **Net decrease in cash, cash equivalents and restricted cash** | **($15,654)** | **($12,741)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=f)%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide context to the financial statements, detailing the company's business, accounting policies, fleet composition, credit facilities, risk management, and subsequent events - As of March 31, 2021, the company's fleet consisted of **41 drybulk vessels**, including **17 Capesize, 9 Ultramax, and 15 Supramax carriers**[24](index=24&type=chunk) - In Q1 2020, the company recorded a **significant vessel impairment charge of $112.8 million**, primarily on ten Handysize and four Supramax vessels, with **no impairment recorded in Q1 2021**[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - As part of a vessel exchange agreement, the company **acquired two Ultramax vessels** and **disposed of five Handysize vessels** during Q1 2021[54](index=54&type=chunk) - Total debt principal outstanding as of March 31, 2021, was **$401.0 million**, down from **$449.2 million** at year-end 2020, consisting of the $495 Million and $133 Million Credit Facilities[64](index=64&type=chunk) - The company utilizes **three interest rate cap agreements** with a **total notional amount of $200 million** to hedge against interest rate risk on its floating rate debt[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - Subsequent to quarter end, on May 4, 2021, the company **declared a quarterly dividend of $0.05 per share** and entered into an agreement to **purchase a 2016-built Ultramax vessel for $20.2 million**[111](index=111&type=chunk)[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2021 financial performance, highlighting a return to profitability, strong liquidity, and a new value strategy focused on debt reduction, dividends, and fleet renewal - In April 2021, the company announced a **new value strategy** focused on **reducing debt, lowering cash flow breakeven levels, and paying a sizeable quarterly dividend**, with the first anticipated payment in Q1 2022 for Q4 2021 results[122](index=122&type=chunk) - The company has installed **scrubbers on all 17 of its Capesize vessels** to comply with IMO 2020 sulfur emission regulations, with the final installation completed in January 2020[135](index=135&type=chunk) Fleet Average Daily Results Comparison | Metric | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Time Charter Equivalent (TCE) | $12,197 | $9,755 | 25.0% | | Daily vessel operating expenses | $4,887 | $4,413 | 10.7% | - The company's liquidity is considered **sufficient for the next twelve months**, with **$123.2 million in unrestricted cash and cash equivalents** as of March 31, 2021, against a minimum requirement of approximately $30 million[188](index=188&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Q1 2021 saw a 10.9% decrease in voyage revenues but a sharp 61.6% reduction in total operating expenses, primarily due to the absence of a vessel impairment charge, resulting in an operating income turnaround - Voyage revenues **decreased by $10.7 million (10.9%)** in Q1 2021 compared to Q1 2020, mainly due to operating fewer vessels and lower rates for Capesize vessels[162](index=162&type=chunk) - The average Time Charter Equivalent (TCE) rate for the fleet **increased by 25% to $12,197 per day** in Q1 2021, with minor bulk vessel TCE increasing by 72.9% and major bulk vessel TCE decreasing by 18.4%[164](index=164&type=chunk) - Vessel operating expenses **decreased by $2.8 million**, but average daily vessel operating expenses **increased by 10.7% to $4,887 per day**, primarily due to COVID-19 related expenditures and higher crew costs[170](index=170&type=chunk)[171](index=171&type=chunk) - Depreciation and amortization **decreased by $4.1 million** due to vessel sales and impairments that occurred during 2020[181](index=181&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $123.2 million in unrestricted cash, supported by operating cash flow and credit facilities, and has adopted a new dividend policy while focusing capital expenditures on fleet compliance - Net cash provided by operating activities **increased to $13.5 million** in Q1 2021 from a **$4.0 million use of cash** in Q1 2020, driven by higher rates for minor bulk vessels and lower drydocking expenses[213](index=213&type=chunk) - The Board adopted a **new quarterly dividend policy**, effective for Q4 2021 results, based on operating cash flow less debt repayments, drydocking capital expenditures, and a discretionary reserve[195](index=195&type=chunk)[196](index=196&type=chunk) Estimated Future Capital Expenditures (in millions USD) | Year | Estimated Drydocking Cost | Estimated BWTS Cost | | :--- | :--- | :--- | | Remainder of 2021 | $7.4 | $3.2 | | 2022 | $7.5 | $4.0 | - The company has completed the installation of **scrubbers on all 17 of its Capesize vessels** as of January 17, 2020[232](index=232&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to interest rate risk on its floating-rate debt, mitigated by interest rate cap agreements, while currency risk is considered immaterial - As of March 31, 2021, the company held **three interest rate cap agreements** with a **total notional amount of $200.0 million** to manage interest rate risk on its variable debt[246](index=246&type=chunk) - A **1% increase in LIBOR** would result in an estimated **$1.1 million increase in interest expense** for the three months ended March 31, 2021[249](index=249&type=chunk) - Currency and exchange rate risk is deemed **immaterial** as the vast majority of revenues and operating costs are denominated in U.S. Dollars[253](index=253&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures are effective** as of March 31, 2021[254](index=254&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the first quarter of 2021[255](index=255&type=chunk) PART II —OTHER INFORMATION [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) This section updates previously disclosed risk factors, specifically highlighting increased risks and costs related to crew rotations involving Indian crew members due to the COVID-19 outbreak - The company highlights a specific new risk related to the **severe COVID-19 outbreak in India**, leading to **increased costs and difficulties for crew rotations** involving Indian crew members[257](index=257&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including CEO and CFO certifications and interactive data files for financial statements - The exhibits filed with this report include **CEO and CFO certifications** pursuant to SEC rules and Section 1350, as well as **Inline XBRL data for the financial statements**[258](index=258&type=chunk)[260](index=260&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ⌧ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020 or ◻ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-33393 GENCO SHIPPING & TRADING LIMITED (Exact name of registrant as specified in its charter) Republic of the Marshall Islands ...