Financial Performance - Reported net income of $12.7 million for Q4 2024, with basic and diluted earnings per share of $0.29, compared to $4.9 million in Q4 2023[32] - The company recorded net income of $76.4 million for the twelve months ended December 31, 2024, compared to a net loss of $12.9 million for the same period in 2023[42] - Revenues increased to $423.0 million for the twelve months ended December 31, 2024, up from $383.8 million in 2023, driven by higher rates for both major and minor bulk vessels[43] - EBITDA for the twelve months ended December 31, 2024, amounted to $155.4 million, significantly up from $59.7 million in the prior year[48] - The total EBITDA for the twelve months ended December 31, 2024, was $287,065,000, compared to $231,921,000 for the same period in 2023, marking an increase of approximately 23.8%[68] Revenue and Expenses - Total voyage revenues for Q4 2024 were $99.2 million, with net revenue of $66.1 million[34] - Voyage expenses decreased to $127.0 million for the twelve months ended December 31, 2024, down from $143.0 million in 2023, due to fewer vessels operating[44] - Total voyage expenses for the same period were $31,256,000, down from $42,450,000, indicating a reduction of about 26%[68] - Vessel operating expenses decreased to $23.9 million for Q4 2024 from $25.4 million in Q4 2023, with daily vessel operating expenses (DVOE) increasing to $6,211 per vessel per day from $6,153[36] Dividends and Shareholder Returns - Declared a dividend of $0.30 per share for Q4 2024, marking the 22nd consecutive quarterly dividend, with cumulative dividends totaling $6.615 per share, approximately 45% of the share price[4] - The timing and amount of dividends may vary based on cash flows, operational results, and capital expenditure requirements[78] Fleet and Capital Expenditures - Acquired the Genco Intrepid, a 180,000 dwt Capesize vessel, for $47.5 million, while selling the Genco Hadrian for $25 million[15] - Capital expenditures related to drydocking and upgrades are estimated to total $25.75 million in Q1 2025[56] - The fleet consists of 42 vessels with an average age of 12.2 years and an aggregate capacity of approximately 4,446,000 dwt[55] Debt and Liquidity - Reduced debt by $110 million in 2024, with total debt outstanding at $90 million as of December 31, 2024[23] - Maintained a strong liquidity position of $381.3 million, consisting of $44 million in cash and $337.3 million in revolver availability[19] Future Outlook and Risks - The company anticipates potential declines in demand within the drybulk shipping industry, which could materially affect future performance[77] - The company expects that changes in drybulk shipping rates may impact its financial results significantly[77] - The ongoing geopolitical tensions, including the war in Ukraine and the Israel-Hamas conflict, could adversely affect the company's operations[77] - The company faces risks related to the adequacy of its insurance arrangements and potential increases in operational costs[77] - Compliance with sulfur emissions regulations that took effect on January 1, 2020, will impact the company's operational costs and economic benefits from installed scrubbers[78] Operational Efficiency - Average daily fleet-wide TCE for Q4 2024 was $18,007, a nearly 30% increase year-over-year[4] - The average daily time charter equivalent increased from $14,766 to $19,107, representing an increase of approximately 29.3% for the twelve months ended December 31, 2024[65] - Fleet utilization for the twelve months ended December 31, 2024, was 96.8%, slightly down from 97.3% in 2023[65] Conference Call and Communication - Genco Shipping & Trading Limited will hold a conference call on February 20, 2025, to discuss its fourth-quarter financial results for 2024[72]

Declares Dividend of $0.30 per share for Q4 2024Represents Genco’s 22nd Consecutive Quarterly Dividend NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months and twelve months ended December 31, 2024. Fourth Quarter 2024 and Year-to-Date Highlights Dividend: Declared a $0.30 per share divid ...

Company Overview - Genco Shipping & Trading (GNK) is expected to report a year-over-year decline in earnings, with a projected earnings per share (EPS) of $0.28, reflecting a decrease of 34.9% compared to the previous year [3] - Revenues for the upcoming quarter are anticipated to be $65.04 million, which is an 11% decline from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 162.19% over the last 30 days, indicating a significant reassessment by analysts regarding the company's earnings prospects [4] - The Most Accurate Estimate for Genco Shipping is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.76%, suggesting a bearish outlook from analysts [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, but the predictive power is stronger for positive readings [7][8] - Genco Shipping's current Zacks Rank is 4 (Sell), which, combined with the negative Earnings ESP, makes it challenging to predict an earnings beat [11][18] Historical Performance - In the last reported quarter, Genco Shipping met the consensus EPS estimate of $0.41, resulting in no surprise [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times, indicating some level of historical performance consistency [13] Industry Context - In the broader Zacks Transportation - Shipping industry, Star Bulk Carriers (SBLK) is also expected to report a decline in earnings, with an EPS estimate of $0.42, reflecting a year-over-year change of -42.5% [17] - Star Bulk Carriers has seen a 114.8% downward revision in its consensus EPS estimate over the last 30 days and currently holds a Zacks Rank of 5 (Strong Sell), indicating a challenging outlook similar to Genco Shipping [18]

Core Points - Genco Shipping & Trading Limited will hold a conference call to discuss its fourth quarter 2024 results on February 20, 2025 at 8:30 a.m. Eastern Time [1] - The financial results for the fourth quarter ended December 31, 2024 will be released on February 19, 2025 after market close [1] Company Overview - Genco Shipping & Trading Limited is a U.S.-based dry bulk ship owning company focused on the global seaborne transportation of commodities [3] - The company provides a full-service logistics solution, transporting key cargoes such as iron ore, grain, steel products, bauxite, cement, and nickel ore [3] - Genco's fleet consists of 42 vessels, including 16 Capesize, 15 Ultramax, and 11 Supramax vessels, with an aggregate capacity of approximately 4,446,000 deadweight tons (dwt) and an average age of 12.2 years [3]

NEW YORK, Jan. 27, 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 fourth quarter of 2024 on Thursday, February 20, 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 fourth quarter ended December 31, 2024 on Wednesday, February 19, 2025 after the close of market tra ...

Group 1 - The article expresses a full-time analyst's interest in a diverse range of stocks, aiming to provide contrasting views on their portfolio based on their unique insights and knowledge [1] - The analyst has no current or planned positions in any mentioned companies, indicating an unbiased perspective [2] - The analysis is intended for informational purposes only, emphasizing the importance of personal research and due diligence before making investment decisions [3] Group 2 - The article clarifies that past performance does not guarantee future results, and no specific investment recommendations are provided [4]

Financial Data and Key Metrics - Net income for Q3 2024 was $21.5 million, with basic and diluted EPS of $0.50 and $0.49 respectively [17] - Adjusted net income was $18.1 million, with basic and diluted EPS of $0.42 and $0.41, excluding gains on vessel sales and non-cash charges [17] - Adjusted EBITDA for Q3 was $36.9 million, and $118.5 million for the first nine months of 2024, surpassing the full-year 2023 figure of $101.5 million [18] - Net revenues increased by 48% YoY, driven by Capesize vessels earning $26,951 per day, nearly $12,000 higher than the same period last year [18] - The company declared a $0.40 per share dividend for Q3, marking an 18% QoQ increase, with 21 consecutive dividends totaling $6.31 per share [9][10] Business Line Performance - The company acquired a 2016-built Capesize vessel, the third such acquisition in the last 12 months, as part of its fleet renewal strategy [7] - The exit from older vessels and redeployment of proceeds into newer Capesize ships resulted in $13 million in dry dock CapEx savings for 2024 and 2025 [8] - Fleet-wide TCE increased by 59% YoY in Q3, with 65% of Q4 available days fixed at $18,786 per day, well above the break-even rate [12][25] Market Performance - Capesize rates averaged nearly $25,000 per day in Q3, the strongest quarter since 2021, though rates have since pulled back [26] - China's iron ore imports rose by 5% YoY through September, with port inventories at 154 million tons, a 37% YoY increase [28] - The Simandou iron ore project in West Africa is expected to begin production in late 2025, with annualized production of 60 million tons, benefiting the Capesize segment [30] Strategic Direction and Industry Competition - The company is nearing its goal of net debt zero, having paid down 82% of its debt since 2020, reducing interest expense by $6 million annually [19][20] - The company maintains a low net loan-to-value ratio of 5%, with over $330 million in undrawn revolver availability, providing significant financial flexibility [13][21] - The dry bulk market is expected to remain strong due to low new building order books and firm commodity demand, despite recent volatility [15][33] Management Commentary on Market Conditions - Management remains optimistic about freight rates, expecting a rebound in late November and December, though a seasonal downturn is anticipated in Q1 2025 [42][43] - The company views the recent pullback in rates as temporary, driven by bauxite export issues and iron ore slowdowns, with equilibrium expected to return [41][42] Other Key Information - The company enhanced its dividend policy by removing dry-docking CapEx from the calculation, increasing the dividend by $0.27 per share [10][22] - Daily vessel operating expenses (DVOE) are expected to decline to $6,200 per vessel per day in Q4, down from $6,423 in Q3 [24][25] Q&A Session Summary Question: Impact of the incoming Trump administration on the dry bulk market - Management does not expect a substantial impact on ton miles, though tariffs could lead to more inefficient trade routes, potentially increasing ton miles slightly [36][37] - The Chinese government may increase fiscal stimulus spending in response to potential trade disruptions [38][39] Question: Recent market volatility and rate improvements - Recent rate declines were attributed to bauxite export issues and iron ore slowdowns, but management expects rates to firm up by late November and December [41][42] - Force majeure issues with bauxite have been resolved, though volumes have not fully recovered [44] Question: Acquisition pipeline and financial flexibility - The company remains focused on fleet renewal, with firm prices for eco vessels expected to continue into 2025 [46][47] - The company has significant liquidity, with over $330 million in undrawn revolver availability, providing flexibility for accretive growth opportunities [48] Question: Potential expansion beyond Capesize and Ultramax vessels - The company plans to stick to its core segments, though transformative opportunities in other vessel classes could be considered [50][51] Question: Timing of revenue generation for newly acquired vessels - The Genco Intrepid, acquired in October, is expected to generate revenue shortly after delivery, with minimal downtime [52] Question: Dividend policy and leverage - The company aims to maintain a net debt zero position, with the option to lever up to the 20s for accretive transactions [57][58] Question: Charter contract strategy - The company will continue to opportunistically lock in fixed-rate charters, particularly in the Capesize sector, while maintaining flexibility with index charters [54][59]

Group 1: Earnings Performance - Genco Shipping & Trading reported quarterly earnings of $0.41 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.09 per share a year ago [1] - The company had previously expected earnings of $0.42 per share but delivered $0.46, resulting in a surprise of 9.52% [1] - Over the last four quarters, Genco Shipping has surpassed consensus EPS estimates three times [1] Group 2: Revenue Analysis - Genco Shipping posted revenues of $71.1 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.11%, but up from $49.11 million year-over-year [2] - The company has topped consensus revenue estimates three times over the last four quarters [2] Group 3: Stock Performance and Outlook - Genco Shipping shares have declined approximately 1.2% since the beginning of the year, while the S&P 500 has gained 21.2% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.53 for the coming quarter and $1.80 for the current fiscal year [4][7] Group 4: Industry Context - The Transportation - Shipping industry, to which Genco Shipping belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Genco Shipping's stock performance [5]

Fleet Operations - The company operates a fleet of 42 drybulk vessels with a total carrying capacity of approximately 4,446,000 deadweight tons (dwt) and an average age of 11.9 years[106]. - The company has entered into agreements to acquire three 2016-built Capesize vessels for a total purchase price of approximately $129.1 million, with deliveries occurring between November 2023 and October 2024[115]. - The company completed the sale of three older Capesize vessels in early 2024 as part of its fleet renewal strategy[116]. - The company has a fleet of 42 drybulk vessels, including 16 Capesize, 15 Ultramax, and 11 Supramax vessels, and is implementing a fuel efficiency upgrade program[206]. Financial Performance - Operating income for the three months ended September 2024 was $24,034, compared to a loss of $30,353 in the same period last year, representing a turnaround of $54,387[136]. - Net income for September 2024 was $21,574, a substantial improvement from a net loss of $31,864 in September 2023, indicating a change of $53,438[136]. - Voyage revenues increased by $55.5 million, or 20.7%, to $323.8 million for the three months ended September 30, 2024, compared to $268.3 million for the same period in 2023[137]. - Total operating expenses decreased by $29.8 million, or 10.6%, to $251.4 million for the three months ended September 30, 2024, from $281.2 million in the prior year[137]. - Net income attributable to Genco Shipping & Trading Limited was $63.7 million for the three months ended September 30, 2024, compared to a loss of $17.8 million in the prior year, marking an increase of $81.5 million[137]. - EBITDA for the three months ended September 30, 2024, was $122.8 million, a significant increase of $86.6 million from $36.2 million in the same period of 2023, reflecting a 239.0% growth[139]. Revenue and Charter Rates - Average Time Charter Equivalent (TCE) rate for Capesize vessels increased by $11,527, or 74.7%, from $15,424 in September 2023 to $26,951 in September 2024[122]. - Total fleet average TCE rate increased by $7,178, or 59.4%, from $12,082 in September 2023 to $19,260 in September 2024[122]. - The average Time Charter Equivalent (TCE) rate for the overall fleet increased by 59.4% to $19,260 per day during Q3 2024, up from $12,082 per day in Q3 2023[143]. - TCE for major bulk vessels rose by 74.7% from $15,424 per day in Q3 2023 to $26,951 per day in Q3 2024, driven by higher rates for Capesize vessels[143]. - TCE for minor bulk vessels increased by 41.9% from $10,296 per day in Q3 2023 to $14,608 per day in Q3 2024, primarily due to higher rates for Ultramax and Supramax vessels[143]. Debt and Liquidity - Since 2021, the company has reduced its debt by $369.2 million, achieving a debt balance of $80.0 million as of September 30, 2024, representing an 82% reduction from January 1, 2021 levels[109]. - The company has drawn down $20.0 million to partially fund the purchase of the Genco Intrepid, increasing its debt balance to $100.0 million[110]. - The company has a total liquidity of $360.0 million, including $47.0 million in cash and undrawn revolver availability[111]. - As of September 30, 2024, the company had unrestricted cash and cash equivalents of $46.7 million and $333.0 million available under the $500 million revolver[178]. - The company made $231.0 million in voluntary debt prepayments throughout 2022, 2023, and the nine months ended September 30, 2024[179]. - As of September 30, 2024, there are no mandatory debt repayments until $80.0 million is due in 2028[179]. Dividends - The company declared cumulative dividends of $5.26 per share from Q4 2021 to Q3 2024, positioning itself to pay sizeable quarterly dividends across diverse market environments[111]. - The company announced a quarterly dividend of $0.40 per share on November 6, 2024, subject to legally available funds and compliance with contractual obligations[187]. - Future dividend payments may be suspended, reduced, or terminated due to heightened economic uncertainty and potential market weakness[189]. Environmental Initiatives - The company plans to invest in energy-saving devices and other initiatives to comply with the International Maritime Organization (IMO) regulations aimed at reducing greenhouse gas emissions[112]. - The company aims for a 20% reduction in greenhouse gas emissions by 2030, with further targets of 70% by 2040 and net zero by 2050[114]. Operating Expenses - Daily vessel operating expenses for Capesize vessels increased by $547, or 8.8%, from $6,236 in September 2023 to $6,783 in September 2024[122]. - Daily vessel operating expenses for the fleet averaged $6,514, reflecting a 9.1% increase from $5,971 in the previous year[134]. - Voyage expenses decreased by 17.6% to $28,232 from $34,256 in the previous year[136]. - Vessel operating expenses increased by $6.1 million from $71.7 million during the nine months ended September 30, 2023, to $77.8 million during the same period in 2024[165]. - General and administrative expenses decreased from $21.3 million during the nine months ended September 30, 2023, to $20.8 million during the same period in 2024[168]. Impairment and Asset Valuation - The company reported a significant reduction in impairment of vessel assets, down to $961 from $28,102, a decrease of 96.6%[136]. - Impairment of vessel assets decreased significantly by 76.5% to $6.6 million for the three months ended September 30, 2024, compared to $28.1 million in the same period of 2023[137]. - As of September 30, 2024, four Capesize vessels had carrying values exceeding their vessel valuations, indicating potential impairment[220]. - The total carrying value of vessels as of September 30, 2024, was $835.9 million, a decrease from $895.9 million as of December 31, 2023[224]. Interest Rates and Financial Instruments - The company transitioned from LIBOR to SOFR for its $450 million credit facility effective June 30, 2023, with a margin reduction from 2.15% to 2.10%[227]. - The $500 million revolver has a borrowing rate of one-month SOFR plus 1.85%, which will increase to 1.90% on August 1, 2024[228]. - A 1% increase in SOFR would result in an additional $1.1 million in interest expense for the nine months ended September 30, 2024[228]. - The company has significant exposure to interest rate changes due to its floating rate debt, which necessitates management strategies to mitigate risks[225]. - The last remaining interest rate cap agreement expired in the first quarter of 2024, impacting the management of interest costs[225]. - The company continues to explore derivative financial instruments to protect against interest rate fluctuations[228]. Cash Flow - Net cash provided by operating activities increased to $96.9 million for the nine months ended September 30, 2024, compared to $52.2 million for the same period in 2023, primarily due to higher freight rates and changes in working capital[199]. - Net cash provided by investing activities was $73.7 million for the nine months ended September 30, 2024, a significant increase from a cash outflow of $3.3 million in 2023, mainly due to $79.1 million from the sale of multiple vessels[200]. - Net cash used in financing activities rose to $170.4 million for the nine months ended September 30, 2024, up from $60.8 million in 2023, driven by a $93.8 million increase in debt repayments and a $15.9 million increase in dividend payments[201].

Financial Performance - The company reported a net income of $21.5 million for Q3 2024, with basic and diluted earnings per share of $0.50 and $0.49, respectively, compared to a net loss of $32.0 million in Q3 2023 [19]. - Net income for the nine months ended September 30, 2024, was $63.7 million, or $1.48 per share, compared to a net loss of $17.8 million for the same period in 2023 [25]. - Net income for the nine months ended September 30, 2024, was $64,010 thousand, a significant improvement compared to a net loss of $17,463 thousand for the same period in 2023 [39]. - Adjusted net income for the three months ended September 30, 2024, was $18,078 thousand, with adjusted earnings per share of $0.42 (basic) and $0.41 (diluted) [40]. - The company reported net cash provided by operating activities of $96,855 thousand for the nine months ended September 30, 2024, compared to $52,166 thousand for the same period in 2023, indicating a year-over-year increase of approximately 85.5% [39]. Revenue and Expenses - Voyage revenues totaled $99.3 million in Q3 2024, an increase from $83.4 million in Q3 2023, driven by higher rates for major and minor bulk vessels [20]. - Revenue increased to $323.8 million for the nine months ended September 30, 2024, from $268.3 million in the same period of 2023, driven by higher rates for major bulk vessels [26]. - Voyage expenses decreased to $28.2 million for Q3 2024 from $34.3 million in Q3 2023, primarily due to lower bunker consumption [21]. - Total voyage expenses decreased to $28,232,000 from $34,256,000 year-over-year, reflecting a reduction of 17.6% [44]. - The total charter hire expenses for the three months ended September 30, 2024, were $1,267, down from $2,026 in the same period of 2023, a decrease of 37.5% [44]. EBITDA and Cash Flow - Adjusted EBITDA for Q3 2024 was $36.9 million, bringing year-to-date adjusted EBITDA to $118.5 million, exceeding the full year of 2023 [13]. - EBITDA for the nine months ended September 30, 2024, amounted to $122.8 million, compared to $36.2 million in the prior year [29]. - Net cash provided by operating activities increased to $96.9 million for the nine months ended September 30, 2024, from $52.2 million in the same period of 2023 [30]. Debt and Liquidity - The company reduced its debt by 82% since 2021, with outstanding debt of $80.0 million as of September 30, 2024, and plans to continue voluntary debt repayments [6]. - Genco's strong liquidity position includes $380.0 million as of September 30, 2024, consisting of $47.0 million in cash and $333.0 million in revolver availability [5]. - Net cash used in financing activities increased to $170.4 million for the nine months ended September 30, 2024, from $60.8 million in the same period of 2023, primarily due to increased debt repayments [32]. Fleet and Operations - Genco acquired the Genco Intrepid, a 2016-built 180,000 dwt Capesize vessel, for $47.5 million, enhancing fleet capacity and modernization efforts [7]. - Total number of vessels at the end of the period was 42, down from 44 in the previous year, indicating a reduction in fleet size [41]. - Fleet utilization improved to 97.9% for the three months ended September 30, 2024, compared to 97.7% for the same period in 2023 [42]. - The fleet consists of 42 vessels with an average age of 11.9 years and an aggregate capacity of approximately 4,446,000 dwt [45]. Dividends - Genco declared a dividend of $0.40 per share for Q3 2024, marking the 21st consecutive quarterly dividend, totaling $6.315 per share or approximately 40% of the current share price [2]. - Genco enhanced its dividend policy to exclude drydocking capex from the dividend calculation, resulting in an incremental dividend of $0.27 per share in Q3 2024 [2]. - Cash dividends paid increased to $50,410 thousand for the nine months ended September 30, 2024, compared to $34,506 thousand for the same period in 2023, reflecting a year-over-year increase of approximately 46% [39]. Future Outlook - The estimated TCE for Q4 2024 to date is $18,786 for 65% of the owned fleet available days, based on both period and current spot fixtures [16]. - The company plans to upgrade a portion of its fleet with energy-saving devices and high-performance paint systems to reduce fuel consumption and emissions [33]. - The company plans to hold a conference call on November 7, 2024, to discuss its third quarter financial results [46]. - The company emphasizes the importance of monitoring its Investor Relations website for material non-public information and updates [48].