Genco Shipping & Trading Limited Announces Q1 2025 Financial Results
- New $50 million share repurchase program implemented to enhance shareholder value
- Strong liquidity position of $354.1 million
- Low financial leverage with net loan-to-value of 6%
- Q2 2025 TCE rates showing 18% improvement over Q1
- Maintained 23rd consecutive quarterly dividend despite challenging quarter
- Net loss of $11.9 million in Q1 2025 ($0.28 per share)
- Decreased revenues to $71.3 million from $117.4 million year-over-year
- Lower TCE rates at $11,884 per day vs $19,219 in Q1 2024
- Increased daily vessel operating expenses to $6,592 per vessel from $6,275 year-over-year
Insights
Genco faces Q1 loss but maintains dividend while adding $50M buyback program; Q2 rates improving amid strong balance sheet.
Genco Shipping reported a net loss of $11.9 million ($0.28 per share) for Q1 2025, a significant reversal from the $18.8 million profit in Q1 2024. This performance reflects the inherent seasonality in the drybulk market, with first-quarter rates typically softer. Despite this loss, the company declared its 23rd consecutive quarterly dividend of $0.15 per share, demonstrating remarkable consistency in shareholder returns.
What's particularly noteworthy is management's decision to reduce their formula's voluntary reserve from $19.50 million to just $1.1 million specifically to enable this dividend payment. This deliberate adjustment shows management's commitment to maintaining their dividend streak even during challenging quarters.
The introduction of a $50 million share repurchase program marks a significant strategic evolution. Management explicitly states they believe there's "a disconnect between share valuation and underlying business fundamentals" - corporate speak for believing their stock is undervalued. This program complements rather than replaces their dividend policy.
Financially, Genco maintains extraordinary balance sheet strength with just 6% net loan-to-value and $354.1 million in liquidity. This conservative financial position provides substantial downside protection while enabling opportunistic capital allocation.
Operationally, Q1 saw average TCE rates of $11,884 per day, down 38% from $19,219 in Q1 2024. However, Q2 is showing improvement with rates up 18% to $14,042 per day. The Capesize vessels are currently earning $18,678 versus $11,449 for Ultramax/Supramax vessels, highlighting the premium for larger vessels. The divergence between vessel classes provides important market insights about cargo demand patterns.
Daily vessel operating expenses increased 5% year-over-year to $6,592, primarily due to higher crew, maintenance and insurance costs - persistent industry-wide challenges that bear monitoring.
Declares Dividend of
Represents Genco’s 23ʳᵈ Consecutive Quarterly Dividend
Announces a
NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months ended March 31, 2025.
First Quarter 2025 and Year-to-Date Highlights
- Dividend
- Declared a
$0.15 per share dividend for Q1 2025 - 23ʳᵈ consecutive quarterly dividend
- Cumulative dividends of
$6.76 5 per share or approximately50% of our share price¹
- Cumulative dividends of
- Q1 2025 dividend is payable on or about May 30, 2025 to all shareholders of record as of May 22, 2025
- Declared a
- New share repurchase program
- Board of Directors approved a
$50 million share repurchase program
- Board of Directors approved a
- Q1 2025 financial performance
- Net loss of
$11.9 million , or basic and diluted net loss per share of$0.28 - EBITDA:
$7.9 million ² - Voyage revenues:
$71.3 million - Net revenue²:
$41.6 million - Average daily fleet-wide TCE²:
$11,884 per day
- Net revenue²:
- Net loss of
- Estimated Q2 2025 TCE to date
$14,042 for68% of our owned fleet available days²
John C. Wobensmith, Chief Executive Officer, commented, “Coming off a year of earnings growth and strong execution of our comprehensive value strategy, we have entered 2025 by declaring our 23ʳᵈ consecutive dividend despite a seasonally softer first quarter. Including the Q1 dividend, total dividends to shareholders will amount to
Mr. Wobensmith continued, “We are pleased to build upon our long-standing dividend policy by establishing a new share repurchase program. We believe that significant equity market volatility has resulted in a disconnect between our share valuation and the underlying fundamentals of our business. We have long held the view that when this extreme dynamic materializes it is the appropriate time to put in place a share repurchase program. This is a capital allocation tool that we have extensively evaluated throughout the cycle, and view this as a compelling and opportunistic way to capture shareholder value, particularly if we continue to experience downward volatility. Importantly, the share repurchase program is incremental to our quarterly dividend policy, which we intend to maintain as our primary method of returning cash to shareholders.
Mr. Wobensmith concluded, “Beginning in March 2025, and continuing into the second quarter thus far, drybulk freight rates have improved, which is reflected in our Q2 TCE to date which is
¹ Genco share price as of May 6, 2025.
² We believe the non-GAAP measure presented provides investors with a means of better evaluating and understanding the Company’s operating performance. Please see Summary Consolidated Financial and Other Data below for further reconciliation. Regarding Q2 2025 TCE, this estimate is based on both period and current spot fixtures, actual results will vary from current estimates. Net revenue is defined as voyage revenues minus voyage expenses, charter hire expenses and realized gains or losses on fuel hedges.
Share Repurchase Program
Our Board of Directors approved a
Comprehensive Value Strategy
Genco’s comprehensive value strategy is centered on three pillars:
- Dividends: paying sizeable quarterly cash dividends to shareholders
- Deleveraging: through voluntary debt repayments to maintain low financial leverage, and
- Growth: opportunistically renewing and growing our asset base
Key characteristics of our strategy include:
- Net loan-to-value of
6% ³ - Strong liquidity position of
$354.1 million at March 31, 2025, which consists of:$30.6 million of cash on the balance sheet$323.5 million of revolver availability
- High operating leverage with our scalable fleet across the major and minor bulk sectors
³ Represents the principal amount of our credit facility debt outstanding less our cash and cash equivalents as of March 31, 2025 divided by estimates of the market value of our fleet as of May 6, 2025 from VesselsValue.com. The actual market value of our vessels may vary.
Financial Deleveraging
- Debt outstanding:
$90.0 million as of March 31, 2025 - We plan to continue to voluntarily pay down debt with a goal of zero net debt in order to enhance our ability to pay meaningful dividends and take advantage of strategic opportunities throughout drybulk market cycles
Dividend Policy
Genco declared a cash dividend of
Quarterly dividend policy:
Under the quarterly dividend policy adopted by our Board of Directors, the amount available for quarterly dividends is to be calculated based on the formula in the table below. The table includes the calculation of the actual Q1 2025 dividend and estimated amounts for the calculation of the dividend for Q2 2025:
| Dividend calculation | Q1 2025 actual | Q2 2025 estimates | |||
| Net revenue | $ | 41.64 | Fixtures + market | ||
| Operating expenses | (33.92 | ) | (33.44 | ) | |
| Operating cash flow | $ | 7.71 | Sum of the above | ||
| Less: voluntary quarterly reserve | (1.14 | ) | (19.50 | ) | |
| Cash flow distributable as dividends | $ | 6.58 | Sum of the above | ||
| Dividend per share | $ | 0.15 | |||
| Numbers in millions except per share amounts | |||||
Operating cash flow is defined as net revenue (consisting of voyage revenue less voyage expenses, charter hire expenses, and realized gains or losses on fuel hedges), less operating expenses (consisting of vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management expenses, and interest expense other than non-cash deferred financing costs), for purposes of the foregoing calculation. Estimated expenses for Q2 2025 are estimates and subject to change.
The voluntary quarterly reserve for the second quarter of 2025 under the Company’s dividend formula is expected to be
Anticipated uses for the voluntary reserve include, but are not limited to:
- Vessel acquisitions
- Debt repayments, and
- General corporate purposes
The Board expects to reassess the payment of dividends as appropriate from time to time. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facility) and the Board of Directors’ determination that each declaration and payment is at the time in the best interests of the Company and its shareholders after its review of our financial performance.
Peter Allen, Chief Financial Officer, commented, “Given our significant access to capital with
Genco’s Active Commercial Operating Platform and Fleet Deployment Strategy
We utilize a portfolio approach towards revenue generation through a combination of:
- Short-term, spot market employment, and
- Opportunistically booking longer term coverage
Our fleet deployment strategy currently remains weighted towards short-term fixtures, which provide us with optionality on our sizeable fleet.
Based on current fixtures to date, our estimated TCE to date for the second quarter of 2025 on a load-to-discharge basis is presented below. Actual rates for the second quarter will vary based upon future fixtures. These estimates are based on time charter contracts entered by the Company as well as current spot fixtures on the load-to-discharge method, whereby revenue is recognized ratably over the voyage from the commencement of loading to the completion of discharge. The actual TCE rates to be earned will depend on the number of contracted days and the number of ballast days at the end of the period. According to the load-to-discharge accounting method, the Company does not recognize revenue for any ballast days or uncontracted days at the end of the second quarter of 2025. At the same time, expenses for uncontracted days will be recognized as incurred.
| Estimated net TCE – Q2 2025 to Date | ||||
| Vessel Type | Fleet-wide | % Fixed | ||
| Capesize | $ | 18,678 | ||
| Ultra/Supra | $ | 11,449 | ||
| Total | $ | 14,042 | 68% | |
| Our index-linked and period time charters are listed below: | ||||||||
| Vessel | Type | DWT | Year Built | Rate | Duration | Min Expiration | ||
| Genco Endeavour | Capesize | 181,057 | 2015 | $ | 30,565 | 12-15 months | Oct-25 | |
| Genco Lion | Capesize | 179,185 | 2012 | 14-16 months | Mar-26 | |||
| Genco Resolute | Capesize | 181,060 | 2015 | 11-14 months | Apr-26 | |||
| Genco Defender | Capesize | 180,021 | 2016 | 11-14 months | Apr-26 | |||
Financial Review: 2025 First Quarter
The Company recorded a net loss for the first quarter of 2025 of
Revenue / TCE
The Company’s revenues decreased to
Voyage expenses
Voyage expenses decreased to
Vessel operating expenses
Vessel operating expenses decreased to
We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.
General and administrative expenses
General and administrative expenses decreased to
Depreciation and amortization expenses
Depreciation and amortization expenses increased to
Liquidity and Capital Resources
Cash Flow
Net cash provided by operating activities for the three months ended March 31, 2025 and 2024 was
Net cash (used in) provided by investing activities for the three months ended March 31, 2025 and 2024 was (
Net cash used in financing activities during the three months ended March 31, 2025 and 2024 was
Capital Expenditures
Genco’s fleet consists of 42 vessels with an average age of 12.4 years and an aggregate capacity of approximately 4,446,000 dwt as follows:
- 16 Capesizes
- 15 Ultramaxes
- 11 Supramaxes
In addition to acquisitions that we may undertake, we will incur additional capital expenditures due to special surveys and drydockings. Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems to our vessels in order to reduce fuel consumption and emissions.
We estimate our capital expenditures related to drydocking, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment system costs, fuel efficiency upgrades and scheduled off-hire days for our fleet for the balance of 2025 to be:
| Estimated costs ($ in millions) | Q2 2025 | Q3 2025 | Q4 2025 | ||||||
| Drydock Costs (1) | $ | 21.94 | $ | 6.15 | $ | 3.10 | |||
| Estimated BWTS Costs (2) | $ | 0.81 | $ | – | $ | – | |||
| Fuel Efficiency Upgrade Costs (3) | $ | 4.19 | $ | 0.68 | $ | 0.14 | |||
| Total Costs | $ | 26.93 | $ | 6.83 | $ | 3.24 | |||
| Estimated Offhire Days (4) | 356 | 90 | 55 | ||||||
(1) Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses.
(2) Estimated costs associated with the installation of ballast water treatment systems are expected to be funded with cash on hand.
(3) Estimated costs associated with the installation of fuel efficiency upgrades are expected to be funded with cash on hand.
(4) Actual length will vary based on the condition of the vessel, yard schedules and other factors. The estimated offhire days per sector scheduled for Q2 2025 consists of 240 days for seven Capesizes, 30 days for one Ultramax and 86 days for two Supramaxes.
Summary Consolidated Financial and Other Data
The following table summarizes Genco Shipping & Trading Limited’s selected consolidated financial and other data for the periods indicated below.
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||
| (Dollars in thousands, except share and per share data) | |||||||
| (unaudited) | |||||||
| INCOME STATEMENT DATA: | |||||||
| Revenues: | |||||||
| Voyage revenues | $ | 71,269 | $ | 117,435 | |||
| Total revenues | 71,269 | 117,435 | |||||
| Operating expenses: | |||||||
| Voyage expenses | 27,354 | 37,200 | |||||
| Vessel operating expenses | 24,916 | 25,932 | |||||
| Charter hire expenses | 2,285 | 3,510 | |||||
| General and administrative expenses (inclusive of nonvested stock amortization | 7,494 | 7,664 | |||||
| expense of | |||||||
| Technical management expenses | 1,325 | 1,031 | |||||
| Depreciation and amortization | 17,665 | 17,223 | |||||
| Net loss on sale of vessels | - | 978 | |||||
| Other operating expense | - | 1,804 | |||||
| Total operating expenses | 81,039 | 95,342 | |||||
| Operating (loss) income | (9,770 | ) | 22,093 | ||||
| Other (expense) income: | |||||||
| Other (expense) income | (13 | ) | 66 | ||||
| Interest income | 370 | 824 | |||||
| Interest expense | (2,549 | ) | (4,040 | ) | |||
| Other expense, net | (2,192 | ) | (3,150 | ) | |||
| Net (loss) income | $ | (11,962 | ) | $ | 18,943 | ||
| Less: Net (loss) income attributable to noncontrolling interest | (39 | ) | 145 | ||||
| Net (loss) income attributable to Genco Shipping & Trading Limited | $ | (11,923 | ) | $ | 18,798 | ||
| Net (loss) earnings per share - basic | $ | (0.28 | ) | $ | 0.44 | ||
| Net (loss) earnings per share - diluted | $ | (0.28 | ) | $ | 0.43 | ||
| Weighted average common shares outstanding – basic | 43,201,941 | 42,918,248 | |||||
| Weighted average common shares outstanding – diluted | 43,201,941 | 43,606,580 | |||||
| March 31, 2025 | December 31, 2024 | ||||||
| BALANCE SHEET DATA (Dollars in thousands): | (unaudited) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 30,243 | $ | 43,690 | |||
| Restricted cash | 315 | 315 | |||||
| Due from charterers, net | 18,211 | 21,376 | |||||
| Prepaid expenses and other current assets | 9,432 | 10,375 | |||||
| Inventories | 23,337 | 22,234 | |||||
| Total current assets | 81,538 | 97,990 | |||||
| Noncurrent assets: | |||||||
| Vessels, net of accumulated depreciation of | 907,212 | 915,022 | |||||
| Deferred drydock, net | 36,526 | 30,048 | |||||
| Fixed assets, net | 7,230 | 7,184 | |||||
| Operating lease right-of-use assets | 6,024 | 6,358 | |||||
| Total noncurrent assets | 956,992 | 958,612 | |||||
| Total assets | $ | 1,038,530 | $ | 1,056,602 | |||
| Liabilities and Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 39,343 | $ | 34,492 | |||
| Deferred revenue | 5,345 | 4,665 | |||||
| Current operating lease liabilities | 907 | 1,503 | |||||
| Total current liabilities | 45,595 | 40,660 | |||||
| Noncurrent liabilities | |||||||
| Long-term operating lease liabilities | 5,616 | 5,539 | |||||
| Long-term debt, net of deferred financing costs of | 82,668 | 82,175 | |||||
| Total noncurrent liabilities | 88,284 | 87,714 | |||||
| Total liabilities | 133,879 | 128,374 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Common stock | 429 | 427 | |||||
| Additional paid-in capital | 1,479,415 | 1,491,032 | |||||
| Accumulated deficit | (576,639 | ) | (564,716 | ) | |||
| Total Genco Shipping & Trading Limited shareholders' equity | 903,205 | 926,743 | |||||
| Noncontrolling interest | 1,446 | 1,485 | |||||
| Total equity | 904,651 | 928,228 | |||||
| Total liabilities and equity | $ | 1,038,530 | $ | 1,056,602 | |||
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||
| STATEMENT OF CASH FLOWS (Dollars in thousands): | (unaudited) | ||||||
| Cash flows from operating activities | |||||||
| Net (loss) income | $ | (11,962 | ) | $ | 18,943 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 17,665 | 17,223 | |||||
| Amortization of deferred financing costs | 493 | 499 | |||||
| Right-of-use asset amortization | 334 | 368 | |||||
| Amortization of nonvested stock compensation expense | 1,496 | 1,382 | |||||
| Net loss on sale of vessels | – | 978 | |||||
| Amortization of premium on derivatives | – | 45 | |||||
| Insurance proceeds for protection and indemnity claims | 5 | 117 | |||||
| Insurance proceeds for loss of hire claims | 6 | – | |||||
| Change in assets and liabilities: | |||||||
| Decrease (increase) in due from charterers | 3,165 | (4,073 | ) | ||||
| Decrease in prepaid expenses and other current assets | 317 | 651 | |||||
| Increase in inventories | (1,103 | ) | (3,889 | ) | |||
| Increase in accounts payable and accrued expenses | 3,736 | 5,831 | |||||
| Increase (decrease) in deferred revenue | 680 | (3,067 | ) | ||||
| Decrease in operating lease liabilities | (519 | ) | (563 | ) | |||
| Deferred drydock costs incurred | (11,411 | ) | (2,194 | ) | |||
| Net cash provided by operating activities | 2,902 | 32,251 | |||||
| Cash flows from investing activities | |||||||
| Purchase of vessels and ballast water treatment systems, including deposits | (2,845 | ) | (930 | ) | |||
| Purchase of other fixed assets | (652 | ) | (240 | ) | |||
| Net proceeds from sale of vessels | – | 18,505 | |||||
| Insurance proceeds for hull and machinery claims | 581 | 159 | |||||
| Net cash (used in) provided by investing activities | (2,916 | ) | 17,494 | ||||
| Cash flows from financing activities | |||||||
| Repayments on the | – | (30,000 | ) | ||||
| Cash dividends paid | (13,433 | ) | (17,885 | ) | |||
| Payment of deferred financing costs | – | (38 | ) | ||||
| Net cash used in financing activities | (13,433 | ) | (47,923 | ) | |||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (13,447 | ) | 1,822 | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 44,005 | 46,857 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 30,558 | $ | 48,679 | |||
| Three Months Ended March 31, 2025 | |||||||||
| Net Loss Reconciliation | (unaudited) | ||||||||
| Net loss attributable to Genco Shipping & Trading Limited | $ | (11,923 | ) | ||||||
| + | Unrealized gain on fuel hedges | (6 | ) | ||||||
| Adjusted net loss | $ | (11,929 | ) | ||||||
| Adjusted net loss per share – basic | $ | (0.28 | ) | ||||||
| Adjusted net loss per share – diluted | $ | (0.28 | ) | ||||||
| Weighted average common shares outstanding – basic | 43,201,941 | ||||||||
| Weighted average common shares outstanding – diluted | 43,201,941 | ||||||||
| Weighted average common shares outstanding – basic as per financial statements | 43,201,941 | ||||||||
| Dilutive effect of stock options | – | ||||||||
| Dilutive effect of performance based restricted stock units | – | ||||||||
| Dilutive effect of restricted stock units | – | ||||||||
| Weighted average common shares outstanding – diluted as adjusted | 43,201,941 | ||||||||
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||||
| (Dollars in thousands) | |||||||||
| EBITDA Reconciliation: | (unaudited) | ||||||||
| Net (loss) income attributable to Genco Shipping & Trading Limited | $ | (11,923 | ) | $ | 18,798 | ||||
| + | Net interest expense | 2,179 | 3,216 | ||||||
| + | Depreciation and amortization | 17,665 | 17,223 | ||||||
| EBITDA (1) | $ | 7,921 | $ | 39,237 | |||||
| + | Net loss on sale of vessels | – | 978 | ||||||
| + | Other operating expense | – | 1,804 | ||||||
| + | Unrealized gain on fuel hedges | (6 | ) | (160 | ) | ||||
| Adjusted EBITDA | $ | 7,915 | $ | 41,859 | |||||
| Three Months Ended | |||||||||
| March 31, 2025 | March 31, 2024 | ||||||||
| FLEET DATA: | (unaudited) | ||||||||
| Total number of vessels at end of period | 42 | 45 | |||||||
| Average number of vessels (2) | 42.0 | 45.4 | |||||||
| Total ownership days for fleet (3) | 3,780 | 4,132 | |||||||
| Total chartered-in days (4) | 273 | 196 | |||||||
| Total available days for fleet (5) | 3,777 | 4,189 | |||||||
| Total available days for owned fleet (6) | 3,504 | 3,993 | |||||||
| Total operating days for fleet (7) | 3,732 | 4,115 | |||||||
| Fleet utilization (8) | 98.0 | % | 96.2 | % | |||||
| AVERAGE DAILY RESULTS: | |||||||||
| Time charter equivalent (9) | $ | 11,884 | $ | 19,219 | |||||
| Daily vessel operating expenses per vessel (10) | 6,592 | 6,275 | |||||||
| Three Months Ended | |||||||||
| March 31, 2025 | March 31, 2024 | ||||||||
| FLEET DATA: | (unaudited) | ||||||||
| Ownership days | |||||||||
| Capesize | 1,440.0 | 1,675.4 | |||||||
| Panamax | – | – | |||||||
| Ultramax | 1,350.0 | 1,365.0 | |||||||
| Supramax | 990.0 | 1,092.0 | |||||||
| Total | 3,780.0 | 4,132.4 | |||||||
| Chartered-in days | |||||||||
| Capesize | – | – | |||||||
| Panamax | – | 25.9 | |||||||
| Ultramax | 130.7 | 87.6 | |||||||
| Supramax | 142.7 | 82.3 | |||||||
| Total | 273.4 | 195.8 | |||||||
| Available days (owned & chartered-in fleet) | |||||||||
| Capesize | 1,338.5 | 1,618.5 | |||||||
| Panamax | – | 25.9 | |||||||
| Ultramax | 1,442.9 | 1,410.2 | |||||||
| Supramax | 995.7 | 1,134.3 | |||||||
| Total | 3,777.1 | 4,188.9 | |||||||
| Available days (owned fleet) | |||||||||
| Capesize | 1,338.5 | 1,618.5 | |||||||
| Panamax | – | – | |||||||
| Ultramax | 1,312.2 | 1,322.6 | |||||||
| Supramax | 853.0 | 1,052.0 | |||||||
| Total | 3,503.7 | 3,993.1 | |||||||
| Operating days | |||||||||
| Capesize | 1,307.1 | 1,572.8 | |||||||
| Panamax | – | 25.9 | |||||||
| Ultramax | 1,432.4 | 1,393.1 | |||||||
| Supramax | 992.4 | 1,122.7 | |||||||
| Total | 3,731.9 | 4,114.5 | |||||||
| Fleet utilization | |||||||||
| Capesize | 96.3 | % | 93.9 | % | |||||
| Panamax | – | 100.0 | % | ||||||
| Ultramax | 99.1 | % | 98.1 | % | |||||
| Supramax | 98.7 | % | 97.3 | % | |||||
| Fleet average | 98.0 | % | 96.2 | % | |||||
| Average Daily Results: | |||||||||
| Time Charter Equivalent | |||||||||
| Capesize | $ | 13,059 | $ | 25,601 | |||||
| Panamax | – | – | |||||||
| Ultramax | 12,039 | 14,572 | |||||||
| Supramax | 9,804 | 15,339 | |||||||
| Fleet average | 11,884 | 19,219 | |||||||
| Daily vessel operating expenses | |||||||||
| Capesize | $ | 7,132 | $ | 6,700 | |||||
| Panamax | – | – | |||||||
| Ultramax | 6,046 | 5,915 | |||||||
| Supramax | 6,550 | 6,074 | |||||||
| Fleet average | 6,592 | 6,275 | |||||||
| 1) | EBITDA represents net (loss) income attributable to Genco Shipping & Trading Limited plus net interest expense, taxes, and depreciation and amortization. EBITDA is included because it is used by management and certain investors as a measure of operating performance. EBITDA is used by analysts in the shipping industry as a common performance measure to compare results across peers. Our management uses EBITDA as a performance measure in consolidating internal financial statements and it is presented for review at our board meetings. We believe that EBITDA is useful to investors as the shipping industry is capital intensive which often results in significant depreciation and cost of financing. EBITDA presents investors with a measure in addition to net income to evaluate our performance prior to these costs. EBITDA is not an item recognized by U.S. GAAP (i.e. non-GAAP measure) and should not be considered as an alternative to net income, operating income or any other indicator of a company’s operating performance required by U.S. GAAP. EBITDA is not a measure of liquidity or cash flows as shown in our consolidated statement of cash flows. The definition of EBITDA used here may not be comparable to that used by other companies. |
| 2) | Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was part of our fleet during the period divided by the number of calendar days in that period. |
| 3) | We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period. |
| 4) | We define chartered-in days as the aggregate number of days in a period during which we chartered-in third-party vessels. |
| 5) | We define available days as the number of our ownership days and chartered-in days less the aggregate number of days that our vessels are off-hire due to familiarization upon acquisition, repairs or repairs under guarantee, vessel upgrades or special surveys. Companies in the shipping industry generally use available days to measure the number of days in a period during which vessels should be capable of generating revenues. |
| 6) | We define available days for the owned fleet as available days less chartered-in days. |
| 7) | We define operating days as the number of our total available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. |
| 8) | We calculate fleet utilization as the number of our operating days during a period divided by the number of ownership days plus chartered-in days less drydocking days. |
| 9) | We define TCE rates as our voyage revenues less voyage expenses, charter hire expenses, and realized gain or losses on fuel hedges, divided by the number of the available days of our owned fleet during the period. TCE rate is not an item recognized by U.S. GAAP (i.e., it is a non-GAAP measure). However it is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. Our estimated TCE for the second quarter of 2025 is based on fixtures booked to date. Actual results may vary based on the actual duration of voyages and other factors. Accordingly, we are unable to provide, without unreasonable efforts, a reconciliation of estimated TCE for the second quarter to the most comparable financial measures presented in accordance with GAAP. When we compare our TCE to the Baltic Supramax Index (BSI) in this release, we adjust the BSI for customary commissions. |
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||
| Total Fleet | (unaudited) | ||||||
| Voyage revenues (in thousands) | $ | 71,269 | $ | 117,435 | |||
| Voyage expenses (in thousands) | 27,354 | 37,200 | |||||
| Charter hire expenses (in thousands) | 2,285 | 3,510 | |||||
| Realized gain on fuel hedges (in thousands) | 8 | 18 | |||||
| 41,638 | 76,743 | ||||||
| Total available days for owned fleet | 3,504 | 3,993 | |||||
| Total TCE rate | $ | 11,884 | $ | 19,219 | |||
| 10) | We define daily vessel operating expenses to include crew wages and related costs, the cost of insurance expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period. |
About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited is a U.S. based drybulk ship owning company focused on the seaborne transportation of commodities globally. We provide a full-service logistics solution to our customers utilizing our in-house commercial operating platform, as we transport key cargoes such as iron ore, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes. Our wholly owned high quality, modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk) enabling us to carry a wide range of cargoes. Genco’s fleet consists of 42 vessels with an average age of 12.4 years and an aggregate capacity of approximately 4,446,000 dwt.
Conference Call Announcement
Genco Shipping & Trading Limited will hold a conference call on Thursday,
May 8, 2025 at 8:30 a.m. Eastern Time to discuss its 2025 first quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company’s website, www.GencoShipping.com. To access the call by phone, please register via the live call registration link, https://events.q4inc.com/attendee/102367677, and you will be provided with dial-in instructions and details. Please dial in at least 10 minutes prior to 8:30 a.m. Eastern Time to ensure a prompt start to the call. The conference call will be broadcast live and available for replay on the Company’s website: http://www.gencoshipping.com.
Website Information
We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. To subscribe to our e-mail alert service, please click the “Receive E-mail Alerts” link in the Investor Relations section of our website and submit your email address. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on our management’s current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this release are the following: (i) declines or sustained weakness in demand in the drybulk shipping industry; (ii) weakness or declines in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube oil, bunkers, repairs, maintenance, general and administrative expenses, and management expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) acts of war, terrorism, or piracy, including without limitation the ongoing war in Ukraine, the Israel-Hamas war, and attacks on vessels in the Red Sea; (x) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the Company’s acquisition or disposition of vessels; (xii) the amount of offhire time needed to complete maintenance, repairs, and installation of equipment to comply with applicable regulations on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xiii) the completion of definitive documentation with respect to charters; (xiv) charterers’ compliance with the terms of their charters in the current market environment; (xv) the extent to which our operating results are affected by weakness in market conditions and freight and charter rates; (xvi) our ability to maintain contracts that are critical to our operation, to obtain and maintain acceptable terms with our vendors, customers and service providers and to retain key executives, managers and employees; (xvii) completion of documentation for vessel transactions and the performance of the terms thereof by buyers or sellers of vessels and us; (xviii) the relative cost and availability of low sulfur and high sulfur fuel, worldwide compliance with sulfur emissions regulations that took effect on January 1, 2020 and our ability to realize the economic benefits or recover the cost of the scrubbers we have installed; (xix) our financial results for the year ending December 31, 2024 and other factors relating to determination of the tax treatment of dividends we have declared; (xx) the financial results we achieve for each quarter that apply to the formula under our new dividend policy, including without limitation the actual amounts earned by our vessels and the amounts of various expenses we incur, as a significant decrease in such earnings or a significant increase in such expenses may affect our ability to carry out our new value strategy; (xxi) the exercise of the discretion of our Board regarding the declaration of dividends, including without limitation the amount that our Board determines to set aside for reserves under our dividend policy; (xxii) outbreaks of disease such as the COVID-19 pandemic; (xxiii) trade conflicts and the imposition of port fees, tariffs and other import restrictions; and (xxiv) other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports on Form 8-K and Form 10-Q). Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance, market developments, and the best interests of the Company and its shareholders. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT:
Peter Allen
Chief Financial Officer
Genco Shipping & Trading Limited
(646) 443-8550
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