Genco Shipping & Trading Limited Announces Q2 2024 Financial Results

Core Viewpoint - Genco Shipping & Trading Limited reported strong financial results for Q2 2024, highlighting a commitment to shareholder value through consistent dividends, debt reduction, and fleet renewal strategies. Financial Performance - Declared a dividend of $0.34 per share for Q2 2024, marking the 20th consecutive quarterly dividend over the last five years, with cumulative dividends totaling $5.915 per share, representing 33% of the share price [2][9] - Net income for Q2 2024 was $23.5 million, or $0.54 per share, compared to $11.6 million, or $0.27 per share, in Q2 2023 [20][21] - Adjusted net income for Q2 2024 was $19.9 million, or $0.46 per share, excluding certain non-cash charges and gains [20][46] - Total revenues for Q2 2024 reached $107.0 million, up from $90.6 million in Q2 2023, driven by higher rates for major bulk vessels [21][28] Debt Management - The company has reduced its outstanding debt by approximately $349 million, or 78%, since implementing its value strategy in 2021, with $105 million remaining as of June 30, 2024 [5][14] - Paid down $65 million of debt in Q2 2024 and an additional $5 million in Q3 2024, primarily using proceeds from vessel sales [5][14] Fleet Renewal Strategy - Agreed to sell two vessels, the Genco Warrior and Genco Hadrian, for $11.95 million and $25 million respectively, to modernize the fleet and enhance earnings capacity [7][8] - The fleet is expected to consist of 41 vessels with an average age of 11.8 years, including 15 Capesizes and 15 Ultramaxes [36] Operational Efficiency - Average daily time charter equivalent (TCE) for Q2 2024 was $19,938, compared to $15,556 in Q2 2023, reflecting improved operational performance [21][28] - Estimated TCE for Q3 2024 is projected at $19,291 for 67% of the owned fleet available days [2][18] Liquidity and Capital Resources - Strong liquidity position with $370 million as of June 30, 2024, including $42.3 million in cash and $327.7 million in revolver availability [4] - Net cash provided by operating activities for the first half of 2024 was $61.3 million, up from $38.9 million in the same period of 2023 [33] Dividend Policy - The company maintains a quarterly dividend policy based on 100% of excess quarterly operating cash flow, less drydocking capital expenditures and a voluntary reserve [9][12] - The voluntary reserve for Q3 2024 is expected to be $19.5 million, allowing flexibility in dividend payments [12][13]