Genco Shipping & Trading (US:GNK)2025-05-07 20:48Financial 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].