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Sep 30, 2020
Genco Q3 2020 Earnings Report
Genco reported a net loss but benefited from improved drybulk market conditions.
Key Takeaways
Genco Shipping & Trading Limited reported a net loss of $21.1 million for Q3 2020, but experienced a 71% increase in TCE relative to the prior quarter due to a strengthening drybulk freight rate environment. The company capitalized on the spot market and saw improved TCE to date, particularly in Capesize bookings. Genco declared a regular quarterly cash dividend of $0.02 per share and maintains a strong financial position with $160.8 million in cash.
Genco announced a regular quarterly cash dividend of $0.02 per share for Q3 2020.
Genco maintains a strong financial position with $160.8 million of cash as of September 30, 2020.
Voyage revenues totaled $87.5 million and net revenue totaled $53.0 million during Q3 2020.
The company recorded a net loss of $21.1 million for Q3 2020, but adjusted net income was $1.2 million.
Forward Guidance
Genco anticipates a favorable drybulk market outlook for the rest of the year and into 2021, driven by a low orderbook and a recovery in Brazilian iron ore trade.
Positive Outlook
- The orderbook as a percentage of the fleet is at an all-time low, limiting net fleet growth.
- The Brazilian iron ore recovery and growth story is expected to continue.
- Genco is well-positioned to take advantage of these positive fundamentals due to its ownership of both major and minor bulk vessels.
- Genco has a world-class in-house commercial operating platform.
- Genco has an industry-leading balance sheet.
Challenges Ahead
- Economic activity is highly dependent on the trajectory of COVID-19, which is uncertain.
- Heightened economic uncertainty as a result of the COVID-19 pandemic and related economic conditions may result in suspension, reduction, or termination of future quarterly dividends.
- Actual rates for the fourth quarter will vary based upon future fixtures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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