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Mar 31, 2021
Genco Q1 2021 Earnings Report
Reported financial results for the quarter ended March 31, 2021 and announced a new comprehensive value strategy.
Key Takeaways
Genco Shipping & Trading Limited reported a net income of $2.0 million for Q1 2021, with basic and diluted earnings per share of $0.05. The company also announced a new comprehensive value strategy focused on low financial leverage, quarterly dividends, and fleet growth. They have already reduced debt by $48.2 million and agreed to acquire a fuel-efficient Ultramax vessel.
Announced a new comprehensive value strategy focused on low financial leverage and returning capital to shareholders.
Paid down debt by $48.2 million during the first quarter of 2021.
Increased the regular quarterly cash dividend to $0.05 per share for the first quarter of 2021.
Recorded net income of $2.0 million for the first quarter of 2021.
Forward Guidance
Genco anticipates a positive outlook for the drybulk market due to a low orderbook and potential demand catalysts. The company plans to capitalize on the strong market by securing cash flows through time charters and opportunistically purchasing assets to increase its dividend.
Positive Outlook
- Continue to pay down debt through regularly scheduled quarterly repayments and prepayments from a combination of cash flow generation and cash on the balance sheet
- Opportunistically grow the fleet on a low levered basis utilizing proceeds from previous vessel sales
- Refinance credit facilities to increase flexibility, improve key terms and lower cash flow breakeven rates
- Net loan-to-value ratio of 20% based on current market values
- Cash balance of approximately $75 million, with cash above this level used to pay down debt
Challenges Ahead
- Declines or sustained weakness in demand in the drybulk shipping industry
- Continuation of weakness or declines in drybulk shipping rates
Historical Earnings Impact
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Avg. Return Before/After Earnings
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