Financial Performance - Voyage revenues decreased by 39.3% to $71.269 million in Q1 2025 from $117.435 million in Q1 2024[124]. - Net loss attributable to Genco Shipping & Trading Limited was $11.923 million in Q1 2025, a decline of 163.4% from a profit of $18.798 million in Q1 2024[124]. - For the three months ended March 31, 2025, EBITDA decreased to $7.9 million from $39.2 million in the same period of 2024, representing an 80.1% decline[125]. - Net cash provided by operating activities decreased from $32.3 million in Q1 2024 to $2.9 million in Q1 2025, attributed to lower rates earned and increased drydocking costs[163]. - Total operating expenses decreased by 15.0% to $81.039 million in Q1 2025 compared to $95.342 million in Q1 2024[124]. Fleet and Operations - The fleet consists of 42 drybulk vessels with an aggregate carrying capacity of approximately 4,446,000 deadweight tons (dwt) and an average age of approximately 12.4 years[95]. - The company sold three Capesize vessels in early 2024 to renew its fleet, completing sales for Genco Commodus, Genco Claudius, and Genco Maximus[105]. - Fleet utilization improved to 98.0% in Q1 2025 from 96.2% in Q1 2024, reflecting a 1.8% increase[123]. - Operating days decreased by 9.3% to 3,731.9 days in Q1 2025 from 4,114.5 days in Q1 2024[123]. - Total available days for the owned fleet decreased to 3,504 in Q1 2025 from 3,993 in Q1 2024, a reduction of 489 days[121]. Revenue and Expenses - Average Daily Time Charter Equivalent (TCE) for Capesize vessels fell by 49.0% to $13,059 from $25,601 year-over-year[114]. - The average TCE rate for the overall fleet decreased by 38.2% to $11,884 per day during Q1 2025 from $19,219 per day in Q1 2024[131]. - Voyage expenses decreased from $37.2 million in Q1 2024 to $27.4 million in Q1 2025, primarily due to lower bunker consumption[134]. - Vessel operating expenses decreased by $1.0 million from $25.9 million in Q1 2024 to $24.9 million in Q1 2025[135]. - Daily vessel operating expenses increased by 5.1% to $6,592 in Q1 2025 from $6,275 in Q1 2024[114]. Debt and Liquidity - The company has reduced its debt by $359.2 million cumulatively through March 31, 2025, resulting in a debt balance of $90.0 million, an 80% reduction from January 1, 2021 levels[98]. - As of March 31, 2025, the company has $30.6 million in cash and undrawn revolver availability of $323.5 million, totaling liquidity of $354.1 million[99]. - Interest expense decreased from $4.0 million in Q1 2024 to $2.5 million in Q1 2025, primarily due to lower outstanding debt and interest rates[146]. - The company was in compliance with all financial covenants under the $500 million revolver as of March 31, 2025[155]. - The company may seek additional capital through equity or debt offerings, or other strategic opportunities, depending on market conditions[154]. Environmental Initiatives - The company aims to reduce total annual greenhouse gas emissions from shipping by at least 20% by 2030 compared to 2008 levels[108]. - The International Maritime Organization (IMO) implemented energy efficiency measures effective January 2023, including the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII)[100][102]. Capital Expenditures and Investments - The company plans to incur capital expenditures of $37.0 million for drydockings and $26.5 million for fuel efficiency upgrades in 2025 and 2026, respectively[150]. - Drydocking costs incurred in Q1 2025 were $11.4 million, compared to $2.2 million in Q1 2024[175]. - The company announced a quarterly dividend of $0.15 per share on May 7, 2025, subject to financial performance and legal availability[158]. Asset Valuation and Impairment - The carrying value of eight Capesize vessels exceeded their vessel valuations by an aggregate of $22.4 million as of March 31, 2025, with individual vessel discrepancies ranging from $1.2 million to $4.9 million[185]. - The company has no impairment losses recorded for vessel assets during the three months ended March 31, 2025, despite indicators of impairment for some vessels[184]. - The average amount by which the carrying value of certain vessels exceeded their valuations was $2.8 million as of March 31, 2025[185]. Currency and Fuel Price Risk - The company incurs certain operating expenses in currencies other than the U.S. dollar, but the foreign exchange risk associated with these expenses is considered immaterial[195]. - The company has entered into bunker swap and forward fuel purchase agreements to mitigate the risk of changing fuel prices, with any gains or losses recognized as other income[194].

Dividend and Shareholder Value - Genco Shipping & Trading declared a dividend of $0.15 per share for Q1 2025, marking its 23rd consecutive quarterly dividend, with cumulative dividends totaling $6.765 per share, approximately 50% of the current stock price[5] - Genco announced a $50 million share repurchase program to enhance shareholder value amid market volatility, which is incremental to its dividend policy[6] Financial Performance - The company reported a net loss of $11.9 million for Q1 2025, translating to a basic and diluted net loss per share of $0.28, compared to a net income of $18.8 million in Q1 2024[32] - Total revenues for the three months ended March 31, 2025, were $71.3 million, a decrease of 39.2% compared to $117.4 million for the same period in 2024[52] - Net loss attributable to Genco Shipping & Trading Limited for the three months ended March 31, 2025, was $11.9 million, compared to a net income of $18.8 million for the same period in 2024[52] - Cash flows from operating activities generated $2.9 million for the three months ended March 31, 2025, down from $32.3 million in the same period of 2024[54] - Net cash provided by operating activities fell to $2.9 million in Q1 2025 from $32.3 million in Q1 2024, primarily due to lower rates and increased drydocking costs[40] - Net cash used in financing activities was $13.4 million for the three months ended March 31, 2025, compared to $47.9 million in 2024, primarily due to a $30.0 million decrease in debt repayments[42] Revenue and Expenses - Voyage revenues decreased to $71.3 million in Q1 2025 from $117.4 million in Q1 2024, primarily due to lower rates and a smaller fleet, with average daily TCE rates dropping to $11,884 per day from $19,219 per day[33] - Total voyage expenses decreased to $27.4 million in Q1 2025 from $37.2 million in Q1 2024, a decline of 26.5%[57] - Charter hire expenses decreased to $2.3 million in Q1 2025 from $3.5 million in Q1 2024, a decline of 34.8%[57] - Vessel operating expenses decreased to $24.9 million in Q1 2025, with daily vessel operating expenses (DVOE) at $6,592 per vessel per day, up from $6,275 in Q1 2024[35] Fleet and Utilization - The fleet consists of 42 vessels with an average age of 12.4 years and an aggregate capacity of approximately 4,446,000 dwt[45] - Fleet utilization improved to 98.0% for the three months ended March 31, 2025, compared to 96.2% in the same period of 2024[55] - Total available days for the owned fleet dropped to 3,504 days in Q1 2025 from 3,993 days in Q1 2024, a decrease of 12.2%[57] Future Outlook - Estimated TCE for Q2 2025 is $14,042 per day, reflecting an 18% increase compared to Q1 levels, indicating improved drybulk freight rates[7] - The company plans to continue voluntary debt repayments, aiming for zero net debt to enhance its ability to pay dividends and pursue strategic opportunities[17] - Estimated capital expenditures for drydocking and upgrades for the balance of 2025 total $26.93 million for Q2, $6.83 million for Q3, and $3.24 million for Q4[46] Key Metrics - Average daily time charter equivalent decreased to $11,884 for the three months ended March 31, 2025, from $19,219 in the same period of 2024[55] - Daily vessel operating expenses increased to $6,592 in Q1 2025 from $6,275 in Q1 2024, an increase of 5.1%[57] - Capesize average daily TCE rate decreased significantly to $13,059 in Q1 2025 from $25,601 in Q1 2024, a decline of 48.9%[57] - Ultramax average daily TCE rate decreased to $12,039 in Q1 2025 from $14,572 in Q1 2024, a decline of 17.4%[57] - Supramax average daily TCE rate decreased to $9,804 in Q1 2025 from $15,339 in Q1 2024, a decline of 36.5%[57] - Total current assets decreased to $81.5 million as of March 31, 2025, from $98.0 million as of December 31, 2024[53] - Total liabilities increased to $133.9 million as of March 31, 2025, compared to $128.4 million as of December 31, 2024[53]

Dividend Declaration - Genco Shipping & Trading Limited declared a cash dividend of $0.15 per share for Q1 2025, marking the 23rd consecutive quarterly dividend [1][12] - Total dividends to shareholders will amount to $6.765 per share, approximately 50% of the current stock price [5][8] Share Repurchase Program - The Board of Directors approved a $50 million share repurchase program to supplement the existing dividend strategy [2][8] - The share repurchase program is intended to address the disconnect between share valuation and the underlying fundamentals of the business [5][17] Financial Performance - For Q1 2025, Genco reported a net loss of $11.9 million, or a basic and diluted net loss per share of $0.28, compared to a net income of $18.8 million for the same period in 2024 [27][28] - Voyage revenues decreased to $71.3 million from $117.4 million year-over-year, primarily due to lower rates and a smaller fleet [28][42] - The average daily time charter equivalent (TCE) rate was $11,884 per day, down from $19,219 per day in Q1 2024 [28][52] Operational Metrics - The estimated TCE for Q2 2025 to date is $14,042, reflecting an 18% increase compared to Q1 levels [6][20] - Genco's fleet consists of 42 vessels with an average age of 12.4 years and an aggregate capacity of approximately 4,446,000 dwt [54] Capital Allocation Strategy - The company aims to maintain a focus on dividends, deleveraging, and capitalizing on growth opportunities while implementing the share repurchase program as an additional capital allocation tool [6][17] - Genco has a strong liquidity position with $354.1 million available as of March 31, 2025, consisting of $30.6 million in cash and $323.5 million in revolver availability [14][17]

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) announced today that it will hold a conference call to discuss the Company's results for the first quarter of 2025 on Thursday, May 8, 2025 at 8:30 a.m. Eastern Time. The conference call will also be broadcast live over the Internet and include a slide presentation. The Company will issue financial results for the first quarter ended March 31, 2025 on Wednesday, May 7, 2025 after the close of market trading. What:First ...

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE: GNK) announced today that it will hold a conference call to discuss the Company’s results for the first quarter of 2025 on Thursday, May 8, 2025 at 8:30 a.m. Eastern Time. The conference call will also be broadcast live over the Internet and include a slide presentation. The Company will issue financial results for the first quarter ended March 31, 2025 on Wednesday, May 7, 2025 after the close of market trading. What:First ...

Genco (NYSE: GNK ), a global shipper of drybulk cargo, recently came out with Q4 2024 results , which also announced a reduction in the quarterly dividend from $0.40 to $0.30. Nevertheless, I think today's price is a good one, at a discount to book valueMy articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundam ...

Environmental Regulations - As of January 1, 2015, ships operating within designated Emission Control Areas (ECAs) must not use fuel with sulfur content exceeding 0.1% m/m[71] - The Mediterranean Sea will become an ECA on May 1, 2025, requiring compliance with stringent emission controls[71] - By 2025, all new ships built are expected to be 30% more energy efficient than those built in 2014, as mandated by MARPOL regulations[75] - The Energy Efficiency Existing Ship Index (EEXI) and operational carbon intensity indicator (CII) requirements aim to reduce carbon intensity in international shipping[76] - The company plans to install scrubbers on all Capesize vessels to reduce sulfur emissions to 0.1% in fuel[71] - Compliance with new nitrogen oxide emissions standards (Tier III) may require additional costs for future vessel acquisitions[72] - The International Maritime Organization (IMO) has established a roadmap to reduce greenhouse gas emissions from ships, with data collection starting from January 1, 2019[74] - The company may incur significant capital expenditures to comply with revised environmental standards and regulations[77] - The European Union's Maritime Fuel Regulation mandates a 2% reduction in greenhouse gas emissions from covered vessels starting January 1, 2025, with further reductions every five years[128] - The company is committed to reducing its carbon footprint and transitioning to low-carbon fuels as part of its strategy to manage greenhouse gas emissions[129] - The EU Emissions Trading System will require shipping companies to surrender allowances equivalent to a portion of their carbon emissions, starting with 40% for verified emissions from 2024[127] - Compliance with the D-2 standard for ballast water management systems is mandatory for all ships starting September 8, 2024, with significant compliance costs ranging from $0.5 million to $1.09 million per system depending on vessel size[93] - The IMO's amendments to the BWM Convention adopted in November 2020 require a commissioning test for ballast water management systems during initial or additional surveys, effective June 1, 2022[92] - The Ballast Water Management Convention requires ships to manage ballast water to prevent the spread of invasive species, with compliance regulations phased in since September 8, 2017[89] Financial and Operational Risks - The company faces potential operational impacts from evolving greenhouse gas regulations under both U.S. and EU frameworks[135] - The company operates in markets that exhibit seasonal variations in supply and demand for drybulk commodities, leading to potential quarter-to-quarter volatility in operating results[146] - A significant number of the company's vessels' port calls involve loading or discharging raw materials in the Asia Pacific region, making it vulnerable to economic changes in countries like China, India, and Japan[151] - The company faces risks from potential trade barriers, particularly involving China, which could adversely impact global economic conditions and drybulk trade volumes[152] - The drybulk charter market has been volatile over the past five years, and there is no assurance that it will not experience future downturns, which could negatively affect earnings[155] - If the supply of newbuilding vessels outpaces demand, it could negatively impact freight and charterhire rates, affecting the company's profitability[159] - The company evaluates its vessels for impairment based on future cash flow projections, which are subject to volatility in freight rates and earnings[161] - Inflation could increase the costs of labor and materials, potentially decreasing profit margins if charter rates cannot be raised sufficiently[165] - The company is exposed to international risks, including piracy and geopolitical tensions, which could reduce revenue or increase expenses[166] - Future security measures related to vessel security could have a significant financial impact on the company[141] - The company must comply with various maritime security regulations, which may incur additional costs and affect operational efficiency[140] - Increased tensions between the U.S. and China could disrupt shipping routes and adversely affect the company's business and financial condition[167] - Houthi attacks on commercial vessels have led to increased risks and many shipping companies rerouting vessels, impacting operational efficiency[168] - The ongoing war in Ukraine has resulted in volatile commodity prices and a redirection of cargo flows, affecting trade volumes and potentially increasing inflation[177] - The Black Sea Grain Initiative's suspension has led to lower export volumes from Ukraine, impacting the drybulk market unpredictably[178] - Acts of piracy in regions like the Gulf of Aden could lead to increased insurance costs and operational risks for the company[174] - Compliance with environmental and operational safety laws may require significant expenditures, impacting cash flows and financial condition[169] - Labor interruptions could disrupt operations, adversely affecting the company's results and financial condition[188] - The company faces risks from potential maritime claims leading to vessel arrests, which could result in significant earnings loss during off-hire periods[186] - The company may be adversely affected by violations of anti-corruption laws, leading to civil and criminal penalties[184] - The need to attract and retain skilled employees is critical, as competition for qualified personnel is intense, impacting operational capabilities[185] Financial Position and Capital Structure - Approximately 48% of the company's revenues for the year ended December 31, 2024, were derived from ten charterers, indicating a significant reliance on a limited customer base[203] - The company has $337.3 million of availability under its credit facility as of December 31, 2024, which may restrict its growth and financing options[215] - The company operates a large portion of its vessels on spot market voyage charters, exposing it to the volatility of fuel prices and operational costs[191] - The company has retrofitted its Capesize vessels with scrubbers to comply with IMO regulations, but a decrease in the fuel spread could reduce the return on this investment[192] - The company may face liquidity issues if the drybulk market declines for a prolonged period, potentially leading to defaults under its credit facility[200] - The aging fleet and reliance on previously owned vessels may result in increased operating costs and liabilities, adversely affecting earnings[204] - An increase in interest rates could significantly affect the company's cash flow and financial condition due to its floating rate debt[207] - The company faces operational risks from delays in cargo delivery, which may result in customer claims and affect financial performance[198] - The company depends on the GSSM joint venture for technical management of its fleet, and any failure in this partnership could materially impact its operations[208] - Genco's U.S. source shipping income could be subject to a 4% tax if it does not qualify for the Section 883 exemption, which applies to 50% of gross shipping income attributable to U.S. transportation[224] - If Genco's U.S. source shipping income is considered effectively connected income, it would be subject to a federal corporate income tax rate of 21%[225] - Genco does not intend to have vessels sailing to or from the U.S. on a regularly scheduled basis, which helps avoid effectively connected income[227] - The company generates all revenues in U.S. dollars but incurs some expenses in other currencies, exposing it to exchange rate fluctuations[236] - Legislative changes, such as the OECD's framework for a minimum 15% tax rate on multinational enterprises with revenues over €750 million, could impact Genco's tax position[238] - Genco's corporate governance is subject to the laws of the Republic of the Marshall Islands, which may not provide the same protections as U.S. corporate law[241] - Future sales of common stock could lead to a decline in market price and make it difficult for Genco to raise funds[242] - The company may need to raise additional capital, which could dilute existing shareholders' interests or be unavailable on favorable terms[243] - Provisions in Genco's articles of incorporation may have anti-takeover effects, potentially impacting shareholder interests[246] - The market price of Genco's common stock could fluctuate significantly due to various factors, including industry conditions and investor perceptions[244] Interest Rate and Financial Management - The company transitioned from LIBOR to SOFR for its $450 Million Credit Facility effective June 30, 2023, with an applicable margin reduced from 2.15% to 2.10%[406] - A 1% increase in SOFR would result in an increase of $1.3 million in interest expense for the year ended December 31, 2024[410] - The company has entered into a $500 Million Revolver with an interest rate of one-month SOFR plus 1.85% until August 1, 2024, when the margin will increase to 1.90%[416] - The last remaining interest rate cap agreement expired in the first quarter of 2024, which was used to manage interest costs and risks associated with changing interest rates[411] - The company is exposed to interest rate risk due to significant amounts of floating rate debt outstanding, necessitating management strategies to mitigate this risk[406] - The company may consider derivative financial instruments such as swaps and caps to protect against interest rate fluctuations[410] Information Technology and Governance - The company relies on information technology systems to manage business processes, which may be vulnerable to disruptions, potentially affecting operations and reputation[253] - The majority of transactions in the international shipping industry are denominated in U.S. Dollars, with most revenues and operating costs also in U.S. Dollars, minimizing foreign exchange risk[415] - The company has bunker swap and forward fuel purchase agreements to mitigate the risk of changing fuel prices, although these do not qualify for hedge accounting treatment[414] - The company’s by-laws require shareholders to provide timely notice for director nominations and proposals, which may impede their ability to bring matters before annual meetings[250]

GENCO SHIPPING & TRADING LIMITED Q4 2024 Earnings Presentation February 20th, 2025 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 ...

Financial Data and Key Metrics Changes - Genco recorded net income of $12.7 million, or $0.29 per share, for Q4 2024 [15] - Adjusted EBITDA for Q4 totaled $32.7 million, bringing the yearly total to $151.2 million, an increase of 49% year-over-year [15][16] - Time charter equivalent (TCE) rates increased to $19,107 per day from $14,766 the prior year, with Capesize vessels earning over $25,000 per day during Q4 [10][16] Business Line Data and Key Metrics Changes - The acquisition of the Genco Intrepid, a high specification Capesize vessel, is part of a broader fleet renewal strategy, increasing investment in modern vessels to approximately $285 million since 2021 [8][10] - The company exited from four smaller and older vessels, redeploying proceeds towards acquiring three 2016 built Capesize vessels, enhancing earnings power and reducing drydocking CapEx by $13 million in 2024 and 2025 [9][10] Market Data and Key Metrics Changes - The dry bulk market experienced a strong 2024, with the Baltic Capesize Index averaging $22,593 per day [22] - Brazilian iron ore exports in January 2025 were approximately 11% lower than the second half of 2024 due to poor weather and scheduled maintenance [23] - China's iron ore imports grew by 5% year-over-year in 2024, while steel production declined, indicating reduced domestic demand [24][25] Company Strategy and Development Direction - Genco's value strategy focuses on dividends, deleveraging, and growth, with a commitment to providing sizable returns to shareholders [6][10] - The company aims to capitalize on diverse freight market environments and continue fleet growth through opportunistic acquisitions [13][40] - The decision to remove drydocking CapEx from the dividend calculation aims to enhance cash distributions to shareholders while maintaining financial strength [12][21] Management's Comments on Operating Environment and Future Outlook - Management remains constructive on long-term dry bulk fundamentals despite near-term softening of freight rates due to seasonal factors [13][40] - The company is positioned to thrive in various freight environments, with a low net loan to value ratio of 5% and significant access to capital [13][40] - The expectation of a heavy drydocking year in 2025 is acknowledged, with plans to frontload drydockings to maximize fleet utilization in the second half of the year [21][40] Other Important Information - Genco declared a $0.30 per share dividend for Q4, marking the 22nd consecutive dividend, representing 45% of the current share price [11][12] - The company has $337 million of undrawn revolver availability for growth opportunities [19] Q&A Session Summary Question: Genco's position in the current dry bulk market and future opportunities - Management highlighted the company's strong position with a 5% LTV and liquidity nearing $400 million, indicating readiness to acquire vessels at lower prices in a softer market [38][40] Question: Dividend outlook in light of potential earnings decline - Management reaffirmed commitment to the value strategy and indicated flexibility in using reserves to maintain dividends even during periods of softness [44][48] Question: Impact of drydocking on fleet capacity - Management noted that while many players are frontloading drydockings, Genco is adhering to a regulatory schedule and does not foresee significant capacity reduction this year [54][56] Question: Suez Canal transit impact on dry bulk sector - Management indicated minimal impact on dry bulk demand from Suez Canal transit issues, with Genco avoiding the Red Sea area due to safety concerns [57][58] Question: Relative strength in Capesize market - Management acknowledged downward pressure on Capesize rates but noted that they remain competitive compared to smaller vessels [62] Question: Growth from iron ore and bauxite projects - Management expects full ramp-up of iron ore and bauxite projects to impact dry bulk trade significantly by 2027 and 2028 [68][71]

Core Insights - Genco Shipping & Trading reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, but down from $0.43 per share a year ago, indicating an earnings surprise of 3.57% [1] - The company generated revenues of $67.95 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.48%, although this is a decline from year-ago revenues of $73.07 million [2] - Genco Shipping has outperformed the S&P 500, gaining approximately 6.5% since the beginning of the year compared to the S&P 500's 4.2% increase [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is -$0.20 on revenues of $38.23 million, while for the current fiscal year, it is $0.48 on revenues of $242.85 million [7] Industry Context - The Transportation - Shipping industry, to which Genco Shipping belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Competitor Insights - Frontline, another company in the same industry, is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year decline of 56.5%, with the consensus EPS estimate revised down by 35.9% over the last 30 days [9] - Frontline's anticipated revenues are projected to be $266.87 million, representing a 3.9% increase from the previous year [10]