Genco Shipping & Trading (GNK) - 2025 Q2 - Quarterly Report

PART I — FINANCIAL INFORMATION Financial Statements (unaudited) The unaudited condensed consolidated financial statements for Genco Shipping & Trading Limited show a net loss for current periods compared to net income in prior year periods, driven by lower voyage revenues, with total assets slightly decreasing to $1.04 billion and liabilities increasing to $147.2 million Condensed Consolidated Balance Sheets%20Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030,%202025%20and%20December%2031,%202024) Total assets decreased slightly to $1.040 billion as of June 30, 2025, while total liabilities increased to $147.2 million, leading to a decrease in total equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $78,972 | $97,990 | | Total Assets | $1,040,250 | $1,056,602 | | Total Current Liabilities | $48,547 | $40,660 | | Total Liabilities | $147,208 | $128,374 | | Total Equity | $893,042 | $928,228 | Condensed Consolidated Statements of Operations%20Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030,%202025%20and%202024) The company reported a net loss for Q2 and H1 2025, a significant shift from net income in prior periods, primarily due to decreased voyage revenues Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Voyage Revenues | $80,939 | $107,047 | $152,208 | $224,482 | | Operating (Loss) Income | $(4,262) | $26,314 | $(14,031) | $48,407 | | Net (Loss) Income | $(6,809) | $23,493 | $(18,771) | $42,436 | | Net (Loss) Earnings Per Share-diluted | $(0.16) | $0.54 | $(0.43) | $0.97 | Condensed Consolidated Statements of Comprehensive (Loss) Income%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030,%202025%20and%202024) Comprehensive loss for Q2 and H1 2025 mirrored net loss figures, with no significant other comprehensive income or loss items impacting results Comprehensive (Loss) Income (in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $(6,809) | $23,493 | | Six Months Ended June 30 | $(18,771) | $41,909 | Condensed Consolidated Statements of Equity%20Condensed%20Consolidated%20Statements%20of%20Equity%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030,%202025%20and%202024) Total equity decreased to $893.0 million by June 30, 2025, primarily due to net loss and cash dividends declared - Total equity decreased by $35.2 million in the first six months of 2025, driven by net loss and dividend payments[18] - Cash dividends declared in H1 2025 amounted to $0.45 per share ($0.30 in Q1 and $0.15 in Q2), totaling $19.7 million[18] Condensed Consolidated Statements of Cash Flows%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20ended%20June%2030,%202025%20and%202024) Net cash from operating activities significantly decreased in H1 2025, while net cash used in investing activities shifted to an outflow, and financing activities saw lower cash usage Cash Flow Summary (in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $8,303 | $61,283 | | Net Cash (used in)/from Investing Activities | $(6,661) | $65,118 | | Net Cash from Financing Activities | $(9,893) | $(130,910) | | Net Decrease in Cash | $(8,251) | $(4,509) | Notes to Condensed Consolidated Financial Statements%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail fleet composition, segment reporting, debt structure, compensation plans, and significant subsequent events including a dividend declaration and credit facility upsizing - As of June 30, 2025, the Company's fleet consisted of 42 drybulk vessels (16 Capesize, 15 Ultramax, 11 Supramax) with an aggregate capacity of approximately 4,446,000 dwt[25] - The company operates under two reportable segments: Major Bulk (Capesize vessels) and Minor Bulk (Ultramax and Supramax vessels)[41][42] - Subsequent to the quarter end, on August 6, 2025, the company declared a quarterly dividend of $0.15 per share[102] - On July 10, 2025, the company upsized its revolving credit facility from $500 million to $600 million and extended the maturity to July 2030[103] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial results, highlighting decreased voyage revenues and TCE rates leading to a net loss, alongside capital allocation, fleet strategy, regulatory updates, and liquidity - The company's capital allocation strategy focuses on compelling quarterly dividends, financial deleveraging, and accretive fleet growth, with debt reduced by $349.2 million since 2021[110][114] - Total liquidity as of June 30, 2025, was $335.6 million, comprising $35.8 million in cash and $299.8 million in undrawn revolver availability[111] Fleet Average Daily Results Comparison | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Time Charter Equivalent (TCE) | $13,631 | $19,938 | (31.6)% | | Daily Vessel Operating Expenses | $6,213 | $6,855 | (9.4)% | - Subsequent to quarter end, the company agreed to acquire the Genco Courageous, a 2020-built Capesize vessel, for $63.55 million, expected for delivery in Q3 2025[122] Quantitative and Qualitative Disclosures About Market Risk The company faces market risks primarily from floating-rate debt interest rate changes and fuel price fluctuations, with currency exchange rate risk deemed immaterial - The company is subject to interest rate risk on its floating rate debt tied to SOFR; a hypothetical 1% increase in SOFR would have increased H1 2025 interest expense by $0.5 million[231][232] - The company's last interest rate cap agreement expired in Q1 2024, increasing exposure to variable interest rate fluctuations[229][233] - Bunker swap and forward fuel purchase agreements are utilized to mitigate risk from changing fuel prices, with gains or losses recognized in other income[235] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of June 30, 2025[237] - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[238] PART II —OTHER INFORMATION Exhibits This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial data in Inline XBRL format - The report includes CEO and CFO certifications as required by Rules 13a-14(a) and 15d-14(a) of the Exchange Act[240] - Financial statements and notes are provided in Inline XBRL format as part of the filing[242]