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Jun 30, 2021
Genco Q2 2021 Earnings Report
Genco achieved its highest quarterly earnings per share since 2010
Key Takeaways
Genco Shipping & Trading Limited reported a net income of $32.0 million for the second quarter of 2021, with basic and diluted earnings per share of $0.76 and $0.75, respectively. Voyage revenues totaled $121.0 million, and the company's average daily fleet-wide time charter equivalent (TCE) was $21,137, marking the highest quarterly TCE since Q4 2010.
Entered into an agreement for a new $450 million credit facility to refinance existing debt, providing additional flexibility and lowering the cash flow breakeven rate.
Agreed to acquire an additional three modern, fuel efficient Ultramax vessels in July 2021, bringing the total to six Ultramaxes acquired since April 2021.
Recorded net income of $32.0 million, representing the highest quarterly earnings per share result since 2010.
Increased its regular quarterly cash dividend to $0.10 per share for the second quarter of 2021.
Forward Guidance
Genco expects to close the refinancing of its credit facilities by the end of August and continue to pay down debt under the new facility's revolver through the end of the year, advancing towards its goal of 20% net LTV by year end. Genco is targeting Q4 2021 results for its anticipated first dividend under its new corporate strategy, which would be payable in Q1 2022.
Positive Outlook
- Refinancing of credit facilities expected to close by the end of August.
- Targeting debt paydowns to reach approximately $250 million by the end of 2021.
- No mandatory debt amortization payments until December 2025, providing financial flexibility.
- Plan to continue voluntarily paying down debt with a medium term objective of reducing net debt to zero.
- Targeting Q4 2021 results for its anticipated first dividend under its new corporate strategy, which would be payable in Q1 2022.
Challenges Ahead
- Potential impacts of COVID-19 are beyond our control and are difficult to predict due to uncertainties surrounding the pandemic.
- Actual rates for the third quarter will vary based upon future fixtures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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