Genco Shipping & Trading Limited · NYSE:GNK
Genco Shipping & Trading — Sidoti Virtual Small-Cap Conference March 2025
36 slides from Genco Shipping & Trading's conference presentation, March 2025
Slide 1: Genco Shipping & Trading Limited - Sidoti Virtual Small-Cap Conference
GENCO SHIPPING & TRADING LIMITED Sidoti Virtual Small-Cap Conference March 2025 NYSE: GNK
Slide 2: Forward Looking Statements
Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation 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
Slide 3: Presenters
Presenters John C. Wobensmith Peter Allen Michael Orr CEO CFO VP, Finance ▪ Over 25 years of experience ▪ 17 years of experience in the ▪ Has held various finance roles in the shipping industry shipping industry at Genco since 2018 ▪ Strong background in ▪ Significant experience in ▪ Also serves as
Slide 4: Executive summary
Executive summary 4
Slide 5: Genco Shipping & Trading overview
Genco Shipping & Trading overview ◼ The largest U.S. based drybulk shipowner, with 42 modern, high-quality vessels ◼ Headquartered in New York with global offices in Singapore and Copenhagen ◼ Transport both major (iron ore & coal) and minor (grains, cement, fertilizers, etc.) bulk across all key wo
Slide 6: Global drybulk trade and key routes
Global drybulk trade and key routes Copenhagen Commercial Operations Minor Bulk focus U.S. Headquarters Corporate strategy Finance/accounting Commercial Technical Operations Singapore Commercial Iron Ore Operations Capesize focus Coal Grain Minor Bulks Source: Clarksons Research Services Limited 202
Slide 7: Genco's "barbell" approach to fleet composition
Genco’s “barbell” approach to fleet composition …combines upside potential of Capesize vessels with the more stable earnings stream of minor bulk vessels These two sectors provide Major bulk complementary characteristics Minor bulk Capesize Ultra/Supra for Genco’s value strategy… 16 Direct exposure
Slide 8: Genco's approach to capital allocation
Genco’s approach to capital allocation Dividends Deleveraging Growth Consecutive quarterly Invested in modern Capesize 22 quarters dividends since Q3 2019 $110m Debt paid down in 2024 $134m vessels since end 2023 Debt paid down since Invested in modern tonnage Dividends in aggregate since $6.615/sh
Slide 9: Financial flexibility in various freight market conditions
Financial flexibility in various freight market conditions $80 Significant Capesize 5-year asset value operating leverage $70 Ultramax 5-year asset value $60 Flexibility to $50 capture growth opportunities $40 $30 Countercyclical $20 opportunities to buy vessels from a $10 position of strength $0 Ja
Slide 10: Comprehensive value strategy
Comprehensive value strategy 10
Slide 11: Genco's strong balance sheet and growth capacity
Genco’s strong balance sheet and growth capacity Cash Debt Revolver availability LTV $44m $90m $337m ~5% Recently tapped $20m Balance as of Dec 31, 80% reduction since the under the revolver to Low financial leverage with 2024 beginning of 2021 opportunistically purchase a capacity to grow modern Ca
Slide 12: Debt outstanding per quarter
Continued voluntary debt repayments with opportunistic revolver drawdowns $500 Debt outstanding Draw down $400 Debt outstanding per quarter ($ in m) $300 Draw for 2 x Cape acquisitions $449 $200 $401 $367 $65 Draw for 1 x $305 Cape acquisition $246 $100 $197 $189 $200 $180 $171 $170 $162 $154 $20 $1
Slide 13: Transparent dividend policy
Transparent dividend policy Dividend calculation (numbers in millions Q4 2024 actual except per share amounts) Net revenue $ 66.09 Operating cash flow Operating expenses $ (33.69) Quarterly dividend policy target: Operating cash flow $ 32.41 100% of quarterly cash flow less a voluntary reserve Volun
Slide 14: Current drybulk market dynamics
Current drybulk market dynamics 14
Slide 15: Drybulk freight market
Drybulk freight market $40,000 Baltic Capesize Index Baltic Supramax 58 Index 2023 Cape Avg 2024 Cape Avg 2023 Supra avg 2024 Supra avg $35,000 Spot: $22,954 YTD 2025: $11,366 $30,000 2024: $22,593 2023: $16,389 $25,000 $20,000 $15,000 $10,000 Spot: $10,020 YTD 2025: $7,883 $5,000 2024: $13,601 2023
Slide 16: The return of seasonality in Q1 2025
The return of seasonality in Q1 2025 Brazilian iron ore exports have declined vs 2H 2024 levels…. …while increasing Capesize port congestion aligns with improving rates Capesize Panamax Capesize Average Panamax Average 38 125 115 33 105 MDWT MT 28 95 85 23 ~14mt lower than July or ~77 less 75 Capes
Slide 17: China's steel complex
China’s steel complex Strong imports over the past two years in part to replenish stockpiles… 160 2.50 150 +5% 2024 China iron ore import growth 140 2.00 130 120 1.50 Iron ore stockpiles are currently only +1% Ratio MT 110 1% higher than this time last year 100 1.00 90 80 0.50 Months worth of import
Slide 18: Global iron ore growth projects
Global iron ore growth projects Key iron ore and bauxite expansion ramps up Long-haul trades expected to boost ton-mile demand ~167MT annualized iron ore and bauxite growth potential in the coming years Iron Ore Bauxite 3x >200 Key iron ore and bauxite expansion # of Capes absorbed by key have 3x th
Slide 19: Global bauxite trade has grown significantly
Global bauxite trade has grown significantly 2025f global bauxite shipments are expected to be more than double the levels seen a decade ago Global seaborne bauxite trade (mt) 250 Rest of World Guinea Guinea accounts for ~70% of the global seaborne Major global Capesize trade routes bauxite trade –
Slide 20: Grain trade impacted by macro environment
Grain trade impacted by macro environment Currently South American grain season Wheat 2024/25p 2023/24e Variance % Variance World 208.07 221.21 (13.14) -6% US 22.73 19.24 3.49 18% -17MT Russia 45.00 55.50 (10.50) -19% Ukraine 15.50 18.58 (3.08) -17% -11MT Aust 26.00 19.84 6.16 31% Canada 26.00 25.44
Slide 21: Suez Canal transits remain low due to geopolitical factors
Suez Canal transits remain low due to geopolitical factors 800 Monthly Suez Canal transits Avg -68% 700 vs Dec 2023 high 600 500 400 300 200 100 - Source: Clarksons Research Services Limited 2025 21
Slide 22: Aging global drybulk fleet profile
Aging global drybulk fleet profile Global drybulk fleet age profile vs newbuilding orderbook 450 ~30% In 2030, ~30% of the current 400 drybulk fleet will be 20 years or older or ~4,200 ships 350 300 10% Fleet size (mdwt) 10% of the fleet is currently 20 250 years or older 200 19.8% 150 11.8% Yard ca
Slide 23: Conclusion
Conclusion 23
Slide 24: Executing comprehensive value strategy
Industry low Balanced risk- cash flow reward strategy breakeven rate Executing comprehensive Strong value strategy Revenue generation balance sheet + liquidity Strong corporate Fleet renewal governance / growth 24
Slide 25: Appendix
Appendix 25
Slide 26: Fourth quarter earnings
Fourth quarter earnings Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (u
Slide 27: December 31, 2024 balance sheet
December 31, 2024 balance sheet December 31, 2024 December 31, 2023 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash (including restricted cash) $ 44,005 $ 46,857 Current assets 97,990 157,272 Total assets 1,056,602 1,141,902 Current liabilities (excluding current portion of long-term deb
Slide 28: Fourth quarter highlights
Fourth quarter highlights Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 42 46 42 46 Average number of vessels (1) 41.8 44.8 43.1 44.2 Total ownership days for
Slide 29: Genco's fleet list
Genco’s fleet list Major Bulk Minor Bulk Vessel Name Year Built Dwt Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Ultramax Supramax Genco Reliance Genco Resolute 2016 2015 181,146 181,060 Genco Freedom Baltic Hornet 2015 2014 63,671 63,574 Genco Hunter Genco Auvergne 2007 2009 58,72
Slide 30: Longer term time charter activity
Longer term time charter activity Vessel Type Rate Duration Min Expiry Genco Ranger Capesize 128% of BCI + scrubber 11-14 months Apr-25 ◼ We continue to utilize a fleet-wide portfolio Genco Resolute Capesize 123% of BCI + scrubber 11-14 months Apr-25 approach to fixture activity ◼ We continue to eva
Slide 31: Significant fleet-wide operating leverage
Significant fleet-wide operating leverage Highlights the improved risk / reward profile of our value strategy $350 $300 $15m Every $1,000 increase in TCE is ~$15m of incremental annualized EBITDA on our 42-vessel fleet $29m For our 16 Capesizes specifically, every $5,000 $250 increase in TCE is ~$29
Slide 32: EBITDA reconciliation
EBITDA reconciliation(1) Adjusted EBITDA Q1 2023-Q4 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net income $ 2,634 $ 11,562 $ (32,004) $ 4,937 $ 18,798 $ 23,467 $ 21,459 $ 12,681 Net interest expense 1,259 1,611 1,411 1,832 3,216 2,731 2,221 2,151 Income tax expense - - - -
Slide 33: Time charter equivalent reconciliation
Time charter equivalent reconciliation(1) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (unaudited) (unaudited) Total Fleet Voyage revenues (in thousands) $ 99,203 $ 115,516 $ 423,016 $ 383,825 Voyage expenses (in thousands) 31,256 42,
Slide 34: Net income reconciliation
Net income reconciliation Three Months Ended December 31, 2024 Net Income Reconciliation (unaudited) Net income attributable to Genco Shipping & Trading Limited $ 12,681 + Gain on sale of vessels 224 + Unrealized gain on fuel hedges (76) Adjusted net income $ 12,829 Adjusted earnings per share - bas
Slide 35: Portfolio approach to scrubber installation
Portfolio approach to scrubber installation Genco continues to capture fuel spreads through scrubbers installed on 15 Capesize vessels ◼ Portfolio approach: installed on Capesize vessels + Singapore Fuel Spread Developments consuming very low sulfur fuel oil (VLSFO) on our minor bulk vessels $1,200
Slide 36: Thank You
Thank You
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