Fleet Operations - The company operates a fleet of 44 drybulk vessels with a total carrying capacity of approximately 4,636,000 deadweight tons (dwt) and an average age of 10.2 years[106]. - The fleet currently consists of 44 drybulk vessels, including 17 Capesize, 15 Ultramax, and 12 Supramax drybulk carriers[195]. - Ultramax ownership days increased significantly by 83.1% to 1,339.9 days, while Supramax ownership days decreased by 23.3% to 1,080.0 days[129]. - The company has installed scrubbers on its 17 Capesize vessels to comply with IMO 2020 sulfur emissions regulations[120]. - The company has completed the installation of scrubbers on 17 Capesize vessels, with the last installation completed on January 17, 2020[200]. - A fuel efficiency upgrade program has been implemented for certain vessels to generate fuel savings and increase future earnings potential[196]. - The company plans to upgrade a portion of its fleet with energy-saving devices and apply high-performance paint systems to reduce fuel consumption and emissions[201]. Financial Performance - Total voyage revenues for the three months ended March 31, 2022, were $136.2 million, an increase of 55.5% from $87.6 million in 2021[137]. - Net income attributable to Genco Shipping & Trading Limited was $41.7 million for Q1 2022, a significant increase of $39.7 million or 2,000.2% compared to $1.985 million in Q1 2021[141]. - Operating income surged to $42.1 million in Q1 2022, up 567.2% from $6.3 million in Q1 2021[145]. - EBITDA for Q1 2022 was $58.0 million, compared to $19.9 million in Q1 2021, reflecting a 191.4% increase[142]. - Total operating expenses rose to $94.1 million in Q1 2022, an increase of 15.8% from $81.3 million in Q1 2021[145]. - Net cash provided by operating activities increased to $52.6 million for the three months ended March 31, 2022, compared to $13.5 million for the same period in 2021, primarily due to higher rates achieved by vessels and changes in working capital[186]. - Net cash used in investing activities was $47.0 million for the three months ended March 31, 2022, a decrease from net cash provided of $20.0 million in the same period in 2021, mainly due to the purchase of two Ultramax vessels[187]. - Net cash used in financing activities increased to $77.1 million for the three months ended March 31, 2022, compared to $49.1 million in 2021, driven by a $27.4 million increase in dividend payments[188]. Debt Management - In 2021, the company paid down $203 million of debt and an additional $49 million in 2022, reducing cash flow breakeven rates[109]. - The company announced a new $450 million credit facility to refinance prior credit facilities, improving terms and increasing flexibility[109]. - The company entered into a $450 million credit facility on August 3, 2021, to refinance existing debt[189]. - As of March 31, 2022, the company had three interest rate cap agreements with a total notional principal amount of $200.0 million to manage interest costs[190]. - Net interest expense decreased by $2.2 million from $4.5 million in Q1 2021 to $2.2 million in Q1 2022, primarily due to lower outstanding debt[162]. Dividend Policy - The first quarterly dividend under the company's value strategy was paid in Q1 2022 based on Q4 2021 financial results[109]. - A quarterly dividend of $0.79 per share was announced on May 4, 2022, subject to the company's financial performance and compliance with legal and contractual obligations[173]. - The company aims to pay attractive dividends, continue debt reduction, and opportunistically grow the fleet[110]. Operational Challenges - The company continues to monitor COVID-19 impacts on operations, including crew rotations and supply chain disruptions[118]. - China's GDP growth forecast for 2022 is around 5.5%, with Q1 2022 growth reported at 4.8% due to COVID-19 impacts[113]. - Daily vessel operating expenses rose to $6,839, a 39.9% increase compared to $4,887 in 2021[130]. - Vessel operating expenses increased by $8.0 million to $27.0 million in Q1 2022, primarily due to higher crew expenses and COVID-19 related costs[151]. - Voyage expenses were $38.5 million in Q1 2022, up from $35.1 million in Q1 2021, driven by increased fuel prices due to oil supply disruptions[150]. Asset Management - The total carrying value of vessels as of March 31, 2022, is $897.9 million, a decrease from $906.3 million as of December 31, 2021[218]. - The carrying value of eleven Capesize vessels exceeded their valuation for covenant compliance purposes by an aggregate of $71.0 million as of March 31, 2022[215]. - The consolidated total carrying value of assets, including unencumbered vessels, is $1,031.9 million as of March 31, 2022[218]. Risk Management - The company has entered into bunker swap and forward fuel purchase agreements to mitigate the risk of changing fuel prices, although these do not qualify for hedge accounting treatment[227]. - The majority of the company's transactions are denominated in U.S. Dollars, minimizing foreign exchange risk[228]. - The company is exposed to interest rate changes, impacting earnings and cash flow related to borrowings[219]. - A 1% increase in LIBOR would result in an increase of $0.6 million in interest expense for the three months ended March 31, 2022[222]. - Inflation has a moderate effect on the company's expenses, but significant global inflationary pressures could increase operating and financing costs[208].
Genco Shipping & Trading (GNK) - 2022 Q1 - Quarterly Report