Genco Shipping & Trading (US:GNK)2025-11-05 21:48Financial Performance - The company reported a net loss of $1.1 million for Q3 2025, translating to a basic and diluted net loss per share of $0.02, compared to a net income of $21.5 million in Q3 2024 [30][31]. - The Company reported a net loss of $19.8 million or $0.46 per share for the nine months ended September 30, 2025, compared to a net income of $63.7 million or $1.48 per share for the same period in 2024 [40]. - Revenues decreased to $232.1 million for the nine months ended September 30, 2025, down from $323.8 million in the prior year, primarily due to lower rates and a smaller fleet [41]. - EBITDA for the nine months ended September 30, 2025, was $42.6 million, significantly lower than $122.8 million in the prior year [47]. - Adjusted EBITDA for the three months ended September 30, 2025, was $21,695 thousand, a decrease from $36,919 thousand in the same period of 2024 [64]. Revenue and Expenses - Voyage revenues decreased to $79.9 million in Q3 2025 from $99.3 million in Q3 2024, primarily due to lower rates and additional drydocking days [32]. - The average daily time charter equivalent (TCE) for Q3 2025 was $15,959, down from $19,260 in Q3 2024, while the estimated TCE for Q4 2025 is projected to be over $20,000 per day, more than 25% higher than Q3 [6][32][19]. - TCE rates fell to $13,813 per day for the nine months ended September 30, 2025, from $19,458 per day in the same period of 2024 [41]. - General and administrative expenses increased to $22.5 million for the nine months ended September 30, 2025, from $20.8 million in the same period of 2024 [45]. - Depreciation and amortization expenses rose to $55.1 million for the nine months ended September 30, 2025, compared to $50.9 million in 2024 [46]. Fleet and Operations - The fleet consists of 43 vessels with an average age of 12.8 years and an aggregate capacity of approximately 4,629,000 dwt [54]. - Fleet utilization for the three months ended September 30, 2025, was 98.1%, an increase from 97.9% in the same period of 2024 [64]. - The total number of operating days for the fleet in the first nine months of 2025 was 10,748.6, compared to 11,612.1 in the same period of 2024, a decrease of 7.4% [66]. - Daily vessel operating expenses for Capesize vessels increased to $7,017 from $6,783 in Q3 2024, reflecting a rise of 3.5% [66]. - The average daily vessel operating expenses per vessel were $6,312 for the three months ended September 30, 2025, compared to $6,423 in the same period of 2024 [64]. Debt and Liquidity - Genco's strong liquidity position stood at $520 million as of September 30, 2025, consisting of $90 million in cash and $430 million in revolver availability [13]. - The company has paid down $279 million in debt since the inception of its value strategy and invested approximately $200 million in modern Capesize vessels since 2023 [7]. - The net loan-to-value (LTV) ratio was 12% as of September 30, 2025, pro forma for the recently completed vessel acquisition [13]. - The company incurred $53,180 thousand in deferred drydock costs during the nine months ended September 30, 2025, compared to $15,763 thousand in the same period of 2024 [63]. - The Company refinanced its $500 Million Revolver with a $600 Million Revolver, resulting in a net cash provided by financing activities of $47.7 million for the nine months ended September 30, 2025 [52]. Dividends and Future Outlook - Genco Shipping & Trading declared a cash dividend of $0.15 per share for Q3 2025, marking the 25th consecutive quarterly dividend, with cumulative dividends totaling $7.065 per share, approximately 43% of the current share price [6][7][15]. - The ability to pay dividends will depend on factors such as credit agreements, applicable laws, and the Board of Directors' discretion based on financial performance [76]. - The timing and amount of dividends may vary due to cash flow, operational results, required capital expenditures, or reserves [76]. - Financial results for the year ending December 31, 2025, will be influenced by the actual earnings from vessels and various incurred expenses [76]. - The company acknowledges potential impacts from disease outbreaks, trade conflicts, and changes in port fees or tariffs [76].