Genco Shipping & Trading (US:GNK)2022-04-02 13:33Company Overview - Genco is the largest U S based drybulk shipowner with a fleet of 44 modern vessels[4] - Genco transported 25 million deadweight tons (mdwt) of drybulk commodities in 2021[9] - Genco is rated 1 in the Webber Research 2021 ESG scorecard[4] Market Dynamics - The drybulk newbuilding orderbook is historically low, limiting net fleet growth to approximately 66%[5,48] - China is shifting to more accommodative policies to defend a 55% GDP growth target in 2022[5] - Vale is targeting a 370 million tons per annum (mtpa) output run rate by the end of 2022 for Brazilian iron ore exports[7] Fleet and Strategy - Genco employs a "barbell" approach, combining 17 Capesize vessels with 27 Ultra/Supramax vessels[13,14] - Iron ore accounts for 51% of Genco's commodities carried, followed by met/thermal coal at 15% and grains at 12%[10] - Genco installed scrubbers on 17 Capesize vessels, with equipment and installation costs already paid off[18] Financial Performance and Dividends - Genco's comprehensive value strategy focuses on growth, significant dividends, deleveraging, and cash flow generation[22] - Genco declared $1725 per share of dividends in aggregate since Q3 2019[27] - Q1 2022 TCE estimate to date is fixed for ~87% of the quarter's available days at $242k[27,29]