Genco Shipping & Trading Limited Announces Third Quarter Financial Results
Nov 07, 2018
Completed Acquisitions of Six High Specification, Fuel Efficient Capesize and Ultramax Vessels
Entered into a $108 Million Credit Facility with Favorable Terms
NEW YORK, Nov. 07, 2018 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the transportation of major and minor bulk commodities globally, today reported its financial results for the three months and nine months ended September 30, 2018.
The following financial review discusses the results for the three and nine months ended September 30, 2018 and September 30, 2017.
Third Quarter 2018 and Year-to-Date Highlights
Completed the acquisition of a total of six high specification, fuel efficient Capesize and Ultramax vessels:
In July 2018, we took delivery of the Genco Weatherly, a 2014-built Ultramax vessel
In August 2018, we took delivery of two 2015-built Capesize vessels, the Genco Endeavour and the Genco Resolute
In September 2018, we took delivery of the Genco Columbia, a 2016-built Ultramax vessel, as well as two 2016-built Capesize vessels, the Genco Defender and the Genco Liberty
Entered into a $108 million, five-year senior secured credit facility with favorable terms
Announced our comprehensive fleet-wide plan for IMO 2020 sulfur emission regulation compliance
Plan to install exhaust gas cleaning systems (“scrubbers”) on our 17 Capesize vessels with options for installation on an additional 15 minor bulk vessels to provide flexibility for developing market conditions
Balance of the fleet is expected to consume compliant, low sulfur fuel
Implementing a portfolio approach aimed at reducing our environmental footprint, maximizing shareholder returns and lowering fuel costs
Anticipate the completion of five vessel sales as part of our fleet renewal program
We completed the sales of two vessels, the Genco Surprise and the Genco Progress, during the third quarter of 2018 for a cumulative gain of $1.5 million
During the fourth quarter of 2018, we expect to complete the sales of the three other vessels, the Genco Cavalier, the Genco Explorer and the Genco Muse
Given the acquisition of the six vessels, upon the completion of these vessel sales, the average age of our fleet will be reduced by over one year to 9.3 years
Recorded net income of $5.7 million for the third quarter of 2018
Basic and diluted earnings per share of $0.14
Adjusted net income of $4.2 million or adjusted basic and diluted earnings per share of $0.10, excluding a $1.5 million gain on sale of vessels
Net revenue (voyage revenues minus voyage expenses and charter hire expenses) totaled $60.1 million during Q3 2018, over 30% higher than the same period of 2017
Time charter equivalent (“TCE”) increased to $10,696 for Q3 2018 marking a year-over-year improvement of 27%
Maintained low daily vessel operating expenses (“DVOE”) of $4,434 per vessel per day during Q3 2018 highlighting our industry leading low-cost structure
Costs remained under our 2018 budget without sacrificing our high safety and maintenance standards
Recorded EBITDA of $29.6 million during Q3 2018
Adjusted EBITDA of $28.1 million, after excluding a $1.5 million of gain on sale of vessels1