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]

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]