Core Viewpoint Genco Shipping & Trading Limited reported its financial results for Q2 2025, highlighting a net loss while continuing its commitment to shareholder returns through dividends and strategic fleet expansion. The company declared a dividend of $0.15 per share, marking its 24th consecutive quarterly dividend, and announced the acquisition of a high-specification Capesize vessel to enhance its fleet and earnings potential. Financial Performance - The company recorded a net loss of $6.8 million for Q2 2025, translating to a basic and diluted net loss per share of $0.16, compared to a net income of $23.5 million in Q2 2024 [34][45] - Adjusted net loss for Q2 2025 was $6.2 million, or $0.14 per share, excluding non-cash vessel impairment charges [34][36] - Total revenues for Q2 2025 were $80.9 million, down from $107.0 million in Q2 2024, primarily due to lower rates and a smaller fleet [36][45] Dividend Declaration - Genco declared a cash dividend of $0.15 per share for Q2 2025, with cumulative dividends amounting to $6.915 per share, representing approximately 41% of the current share price [5][21] - The Q2 2025 dividend is payable on or about August 25, 2025, to shareholders of record as of August 18, 2025 [21][6] Growth Strategy - The company agreed to acquire a 2020-built, scrubber-fitted Capesize vessel for $63.6 million, expected to be delivered between September and October 2025 [12][56] - Genco has invested approximately $200 million in the Capesize sector over the last two years, focusing on modernizing its fleet with eco-friendly ships [5][12] - The company closed a $600 million revolving credit facility, increasing its borrowing capacity by 50%, to support growth opportunities [15][19] Operational Metrics - Average daily time charter equivalent (TCE) for Q2 2025 was $13,631, down from $19,938 in Q2 2024 [36][42] - Estimated TCE for Q3 2025 to date is $15,926 for 70% of the owned fleet available days [6][30] - The company reported voyage revenues of $80.9 million and net revenue of $46.9 million for Q2 2025 [6][36] Liquidity and Capital Resources - Genco's liquidity position was strong, with $335.6 million available as of June 30, 2025, including $35.8 million in cash and $299.8 million in revolver availability [18][25] - The company maintained a net loan-to-value (LTV) ratio of 7%, with a pro forma LTV of 13% after the vessel acquisition [18][19] Fleet and Capital Expenditures - Following the acquisition of the new vessel, Genco's fleet will expand to 43 vessels, with an average age reduced to 12.5 years [56][58] - The company plans to incur additional capital expenditures for drydocking and upgrades to improve fuel efficiency and reduce emissions [58][59]

Financial Data and Key Metrics Changes - Time charter revenues for Q2 2025 were $54.7 million, a 2% decrease from $56 million in Q2 2024, attributed to a smaller fleet size rather than market conditions [13][14] - Net income for Q2 2025 improved significantly to $4.5 million compared to a net loss of $2.8 million in Q2 2024, driven by decreased interest and finance costs [13][14] - Earnings per diluted share were $0.30 in Q2 2025, compared to a loss of $0.04 per share in Q2 2024 [13][14] - Cash reserves decreased to $149.6 million as of June 30, 2025, from $207.2 million at the end of 2024 [14] Business Line Data and Key Metrics Changes - Fleet utilization reached 99.5% in 2025, slightly down from 99.9% in the same quarter last year [17][21] - Vessel operating expenses decreased by 6% to $20 million in Q2 2025 compared to $21.3 million in Q2 2024 [21][22] - Daily operating expenses decreased by 1% to $5,944 in Q2 2025 from $5,993 in Q2 2024 [21][22] Market Data and Key Metrics Changes - The dry bulk market saw average sector earnings down by about 30% year on year amid weaker demand trends in key commodities [5][28] - The average time charter rate for Capes was around $20,250 per day as of July 28, 2025, showing an increase from earlier in the year [29] - The overall market outlook for 2025 indicates softer earnings than 2024 due to an estimated fleet growth of around 3% [30] Company Strategy and Development Direction - The company focuses on staggered medium to long-term charters to ensure earnings visibility and resilience against market downturns [11] - Ongoing fleet modernization efforts include the delivery of two methanol dual fuel new building Kamsarmax drybulk vessels expected in 2027 and early 2028 [8] - The company has initiated a position in Genco Shipping and Trading Limited, reflecting confidence in long-term value and aligning with broader investment objectives [15] Management Comments on Operating Environment and Future Outlook - Management noted that despite uncertainties in the geopolitical landscape, they secured three charters during the quarter, taking advantage of favorable market conditions [7][28] - The company remains confident in its ability to navigate market cycles, supported by a strong balance sheet and predictable cash flow [26] - Management highlighted ongoing ESG commitments, including promoting eco-friendly technologies and modernizing the fleet [45] Other Important Information - The company declared a quarterly cash dividend of $0.01 per common share, totaling approximately $1.16 million [10] - The average age of the fleet is 11.7 years, with a total deadweight capacity of approximately 4.1 million tons [8] Q&A Session Summary Question: Can you provide insights on the Genco transaction? - Management explained that Genco is a well-run dry bulk company trading at a discount to NAV, and the strategic positioning as a major shareholder offers additional value [48][50] Question: Why not buy back shares instead of acquiring Genco? - The decision to acquire Genco was based on its different chartering strategy and dividend-paying nature, which was considered a better option than buying back shares at a discount [50]

Financial Data and Key Metrics Changes - The company reported a net income of $500,000 with an adjusted net loss of $7,800,000 or $0.07 adjusted loss per share for Q1 2025 [4] - Adjusted EBITDA for the quarter was $49,000,000 [4] - Pro forma total cash stands at $437,000,000, while pro forma total debt is $1,200,000,000 [5] - The average net debt per vessel decreased from $11,600,000 to $5,400,000 since 2021, a reduction of over 50% [7] Business Line Data and Key Metrics Changes - The time charter equivalent (TCE) rate was $12,439 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,217 [5] - Operating expenses for Q1 2025 were $4,898 per vessel per day, with net cash G&A expenses at $13.19 per vessel per day [12] Market Data and Key Metrics Changes - Total dry bulk trade is projected to contract by 1.2% in tons and 0.4% in ton miles during 2025 [22] - Chinese dry bulk imports contracted by 8.3% year on year during Q1 2025, driven by elevated inventories and rising domestic production [25] - The average steaming speed of the fleet reached a new record low of 10.8 knots in February due to soft freight rates and environmental regulations [21] Company Strategy and Development Direction - The company continues to prioritize returns to shareholders, having taken actions totaling $2,600,000,000 in dividends, share buybacks, and debt repayments since 2021 [6] - The integration of the Eagle Bulk transaction has resulted in almost $40,000,000 in cumulative cost synergies [11] - The company plans to invest in energy-saving technologies and upgrade its fleet to comply with IMO carbon reduction regulations [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the medium-term outlook for the dry bulk market, citing favorable supply conditions and stricter environmental regulations [34] - The geopolitical landscape and macroeconomic factors are seen as potential positives, while challenges include reduced coal imports from China and uncertainties in global trade [40][44] - The company anticipates a moderate year with potential upward movement if geopolitical tensions ease [46] Other Important Information - The company has completed the integration process of the Eagle Bulk transaction across all departments [5] - The expected drydock expense schedule for the remainder of 2025 is estimated at $47,000,000 for 38 vessels [13] Q&A Session Summary Question: Market outlook and asset values - Management noted that while rates are stable, asset values are holding up well, and the market may see gradual progress in the coming quarters [36][38] Question: Timing for asset sales and cash inflow - The company confirmed that proceeds from announced vessel sales will be received in the second and early third quarters of 2025, totaling approximately $38,500,000 [51] Question: Use of sales proceeds - The priority for the use of sales proceeds will be share buybacks as long as shares trade at a significant discount to NAV [52] Question: Demolition rates and future outlook - Management indicated that environmental regulations could lead to increased scrapping of older vessels, but the immediate effect will be on operational speeds and drydock delays [60][62] Question: Buyers' intentions for older ships - The company explained that as long as vessels are not making a loss, they are not scrapped, and buyers may have different return expectations [58]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net income of $500,000 with an adjusted net loss of $7,800,000, equating to an adjusted loss per share of $0.07. Adjusted EBITDA was $49,000,000 for the quarter [4][5] - The company repurchased 1,300,000 shares for a total consideration of $19,600,000 and declared a dividend of $0.05 per share [4][5] - Pro forma total cash stands at $437,000,000, while pro forma total debt is $1,200,000,000, resulting in pro forma liquidity of almost $500,000,000 [5][6] Business Line Data and Key Metrics Changes - The time charter equivalent (TCE) rate was $12,439 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,217, leading to a TCE less OpEx and cash G&A of approximately $6,220 per day per vessel [5] - Operating expenses for Q1 2025 were $4,898 per vessel per day, with net cash G&A expenses at $13.19 per vessel per day [12] Market Data and Key Metrics Changes - The dry bulk trade is projected to contract by 1.2% in tons and 0.4% in ton miles during 2025, with the IMF revising its global economic growth forecast to 2.8% [22][24] - Total dry bulk volumes were up year on year in Q1, supported by strong bauxite and minor bulk shipments, while iron ore, coal, and grains volumes combined declined by 3.5% year on year [24][25] Company Strategy and Development Direction - The company continues to focus on capital allocation to strengthen its position, having taken actions totaling $2,600,000,000 in dividends, share buybacks, and debt repayments since 2021 [6] - The company is investing in energy-saving technologies and fleet upgrades to comply with IMO carbon reduction regulations, with 42 installations completed and another 21 planned for 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the medium-term outlook for the dry bulk market, citing favorable supply conditions and stricter environmental regulations as potential positives [33] - The geopolitical landscape and macroeconomic factors were highlighted as influencing market conditions, with potential reconstruction efforts in conflict areas seen as a positive catalyst for trade [40][41] Other Important Information - The company has completed the integration of the Eagle Bulk transaction, achieving almost $40,000,000 in cumulative cost synergies since its completion [10][11] - The average age of the fleet is 11.9 years, with plans to dispose of non-eco vessels to improve overall fleet efficiency [15] Q&A Session Summary Question: Market outlook and asset values - Management acknowledged the current holding pattern in dry bulk rates and asset values, indicating that something must give in the future [36][37] Question: Timing for asset sales and cash inflow - The company confirmed that proceeds from announced vessel sales will be fully received in the second and early third quarters of 2025 [52] Question: Use of sales proceeds - The priority for the use of sales proceeds will be on share buybacks as long as shares trade at a meaningful discount to NAV [53] Question: Future demolition rates - Management indicated that environmental regulations could lead to increased demolition rates in the future, particularly for older, less efficient vessels [62]