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Mar 31, 2020
Genco Q1 2020 Earnings Report
Reported financial results for the three months ended March 31, 2020.
Key Takeaways
Genco Shipping & Trading Limited reported a net loss of $120.4 million for Q1 2020, with voyage revenues totaling $98.3 million and an average daily TCE of $9,755. The company is focused on crew safety amid COVID-19 and maintains a strong financial position with $149.5 million in cash.
Focused on health and safety of crew members and onshore team, taking proactive measures in response to COVID-19.
Maintained a strong financial position with $149.5 million of cash as of March 31, 2020.
Declared a regular quarterly cash dividend of $0.02 per share for Q1 2020.
Completed scrubber installation program for 17 Capesize vessels in January 2020.
Forward Guidance
Based on current fixtures to date, the company estimates the following TCE for the second quarter of 2020.
Positive Outlook
- Potential gradual recovery in iron ore shipments out of the Atlantic basin for Capesize vessels.
- Commercial trading flexibility and wider array of fixing options due to scrubber program completion.
- Strategic repositioning of minor bulk vessels to key regions ahead of potentially improving market later in the year.
- Fleet deployment strategy remains weighted towards short-term fixtures which provides optionality on sizeable fleet.
- Economic activity in China, the world’s largest importer of drybulk commodities, has improved over the last two months which is viewed as a positive step.
Challenges Ahead
- Market conditions have softened during the second quarter to date for minor bulk vessels.
- Trade flows of several commodities closely tied to global economic activity have slowed.
- Backhaul fixtures are reflected in forward guidance without the positive offset of a corresponding fronthaul.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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