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Sep 30, 2022
Genco Q3 2022 Earnings Report
Genco Shipping & Trading Limited reported strong earnings driven by high TCE and lower expense levels.
Key Takeaways
Genco Shipping & Trading Limited announced its Q3 2022 financial results, reporting a net income of $40.8 million and declared a dividend of $0.78 per share, a 56% increase from Q2 2022. The company's TCE exceeded $20,000 per day for the sixth consecutive quarter, and it prepaid $8.75 million of debt, reducing the total debt to $179.8 million.
Declared a dividend of $0.78 per share for Q3 2022, which represents a 56% increase from Q2 2022.
Prepaid $8.75 million of debt during Q3 2022, reducing debt to $179.8 million.
Recorded a net income of $40.8 million for Q3 2022.
Voyage revenues totaled $136.0 million, and net revenue totaled $89.8 million during Q3 2022.
Forward Guidance
The estimated TCE for Q4 2022 remains strong at $20,451 per day. The company expects low cash flow breakeven rates to continue to be a core differentiator.
Positive Outlook
- Estimated Q4 TCE based on fixtures to date remains strong at $20,451 per day.
- Low cash flow breakeven rates are expected to continue to be a core differentiator.
- Strong balance sheet supports continued execution under the three pillars of the value strategy.
- The company plans to continue to voluntarily pay down debt with the medium-term objective of reducing net debt to zero.
- Fleet deployment strategy remains weighted towards short-term fixtures, which provide optionality on our sizeable fleet.
Challenges Ahead
- Freight market has softened compared to the prior quarter due to COVID-related lockdowns in China and lower Brazilian iron ore export volumes.
- Bunker fuel and oil markets remain highly volatile and subject to significant fluctuations in fuel pricing.
- The potential impacts of COVID-19 and the war in Ukraine are unpredictable.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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