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Genco Shipping & Trading (GNK) - 2024 Q4 - Annual Results
GNKGenco Shipping & Trading (GNK)2025-02-19 22:18

Financial Performance - Reported net income of 12.7millionforQ42024,withbasicanddilutedearningspershareof12.7 million for Q4 2024, with basic and diluted earnings per share of 0.29, compared to 4.9millioninQ42023[32]−Thecompanyrecordednetincomeof4.9 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 12.9millionforthesameperiodin2023[42]−Revenuesincreasedto12.9 million for the same period in 2023[42] - Revenues increased to 423.0 million for the twelve months ended December 31, 2024, up from 383.8millionin2023,drivenbyhigherratesforbothmajorandminorbulkvessels[43]−EBITDAforthetwelvemonthsendedDecember31,2024,amountedto383.8 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 59.7millionintheprioryear[48]−ThetotalEBITDAforthetwelvemonthsendedDecember31,2024,was59.7 million in the prior year[48] - The total EBITDA for the twelve months ended December 31, 2024, was 287,065,000, compared to 231,921,000forthesameperiodin2023,markinganincreaseofapproximately23.8231,921,000 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 66.1million[34]−Voyageexpensesdecreasedto66.1 million[34] - Voyage expenses decreased to 127.0 million for the twelve months ended December 31, 2024, down from 143.0millionin2023,duetofewervesselsoperating[44]−Totalvoyageexpensesforthesameperiodwere143.0 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,indicatingareductionofabout2642,450,000, indicating a reduction of about 26%[68] - Vessel operating expenses decreased to 23.9 million for Q4 2024 from 25.4millioninQ42023,withdailyvesseloperatingexpenses(DVOE)increasingto25.4 million in Q4 2023, with daily vessel operating expenses (DVOE) increasing to 6,211 per vessel per day from 6,153[36]DividendsandShareholderReturns−Declaredadividendof6,153[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 6.615pershare,approximately456.615 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 25million[15]−Capitalexpendituresrelatedtodrydockingandupgradesareestimatedtototal25 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 110millionin2024,withtotaldebtoutstandingat110 million in 2024, with total debt outstanding at 90 million as of December 31, 2024[23] - Maintained a strong liquidity position of 381.3million,consistingof381.3 million, consisting of 44 million in cash and 337.3millioninrevolveravailability[19]FutureOutlookandRisks−Thecompanyanticipatespotentialdeclinesindemandwithinthedrybulkshippingindustry,whichcouldmateriallyaffectfutureperformance[77]−Thecompanyexpectsthatchangesindrybulkshippingratesmayimpactitsfinancialresultssignificantly[77]−Theongoinggeopoliticaltensions,includingthewarinUkraineandtheIsrael−Hamasconflict,couldadverselyaffectthecompany′soperations[77]−Thecompanyfacesrisksrelatedtotheadequacyofitsinsurancearrangementsandpotentialincreasesinoperationalcosts[77]−CompliancewithsulfuremissionsregulationsthattookeffectonJanuary1,2020,willimpactthecompany′soperationalcostsandeconomicbenefitsfrominstalledscrubbers[78]OperationalEfficiency−Averagedailyfleet−wideTCEforQ42024was337.3 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 14,766to14,766 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]