Genco Shipping & Trading Limited Company Presentation NYSE:GNK November 2018
Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward- looking statements are based on management’s current expectations and observations. Include d among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following: (i) declines or sustained weakness in demand in the drybulk shipping industry; (ii) continuation of weakness or declines in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube, oil, bunkers, repairs, maintenance and general, administrative, and management fee expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) acts of war, terrorism, or piracy; (x) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, o ur anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the Company’s acquisition or disposi tion of vessels; (xii) the amount of offhire time needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xiii) the completion of definitive documentation with respect to charters; (xiv) charterers’ compliance with the terms of their charters in the current market environment; (xv) the extent to which our operating results continue to be affected by weakness in market conditions and charter rates; (xvi) our ability to maintain contracts that are critical to our operation, to obtain and maintain acceptable terms with our vendors, customers and service providers and to retain key executives, managers and employees; (xvii) the completion of documentation for vessel transactions and the performance of the terms thereof by buyers or sellers of vessels and us; (xviii) the terms of definitive documentation for the purchase and installation of scrubbers and our ability to have scrubbers installed within the price range and time frame anticipated; (xix) our ability to obtain financing for scrubbers on acceptable terms; (xx) the relative cost and availability of low sulphur and high sulphur fuel; (xxi) worldwide compliance with IMO 2020 regulations and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, the Company’s Annual Report on Form 10 -K for the year ended December 31, 2017 and its subsequent reports on Form 10-Q and Form 8-K. Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2
Executive Summary
Genco Shipping & Trading Limited: Who We Are… Over 20 years of experience in the shipping industry Over 30 years of experience in the shipping industry Significant experience in John C. Wobensmith Ivo Kempenaer managing all aspects of a Formerly a Senior Broker on drybulk shipping company Chief Executive Officer Head of Major Bulks the Capesize desk at SSY including commercial, technical Spearheading Singapore and finance operations Holds CFA designation Over 10 years of experience Over 13 years of experience in the shipping industry in the shipping industry Formerly Director, Head of Significant experience in Apostolos Zafolias Jesper Christensen Chartering Stamford at M&A, commercial bank Chief Financial Officer Head of Minor Bulks Clipper financing and capital market Extensive experience transactions managing Handysizes to Holds CFA designation Panamaxes Over 10 years of experience in the shipping industry Over 10 years of experience in the shipping industry Sune Linne Fladberg Formerly Vice President, Peter Allen Chartering at Clipper Bulk A/S in Commercial Director Also serves as the Company’s Senior Vice President, Copenhagen focused on Minor Bulk Fleet, drybulk market analyst Strategy & Finance Handysize to Panamax chartering Europe Holds CFA designation and corporate strategy To lead Copenhagen operations 4
Genco is Attractively Positioned to Capture Market Upside Primary Differentiators of the Genco Platform Key Company Developments ✓ Commercial platform investments driving revenue growth and margin expansion Experienced U.S. High corporate based management governance ✓ Short duration contracts to capture market upside team standards ✓ Genco’s fleet is directly aligned with global commodity flows through major and minor bulk strategy > Efficient Full service ✓ New credit facilities simplify balance sheet and cost operating improve flexibility to grow and return capital to structure platform shareholders ✓ Completed two separate acquisition transactions, taking delivery of a total of four Capesize and two Ultramax vessels Access to high High operating ✓ Acquisitions and fleet renewal program aimed at quality commercial leverage to bank financing improving fleet modernizing and increasing fuel efficiency fundamentals ✓ Portfolio approach to IMO 2020 focuses on maximizing returns and maintaining optionality in evolving fuel market 5
Since the beginning of 2017, Genco has executed on its strategic plan At the end of 2016, management began the transition from a tonnage provider to an active commercial strategy This encompassed investing in repositioning vessels to the Atlantic basin At the same time, Genco has been executing on its fleet renewal and growth strategy Revamped commercial platform to drive margin expansion beginning in Q4 2016 Q2 2017 Q2 2018 Q1 2017 Q3 2017 Q4 2017 Q1 2018 Q3 2018 Strategic plan in place during Q4 2016 1 st wave of minor Final wave of minor Entered into a 2 nd wave of minor bulk repositioning Entered into a new bulk repositioning new $460m bulk repositioning $108m credit facility credit facility and agreed to Provided notice of Provided notice of Fully withdrawn acquire two withdrawal to withdrawal to Clipper from Clipper / additional Capesize Agreed to acquire Clipper Sapphire Logger Pool Klaveness pools vessels two Capesize and Pool two Ultramax vessels Provided notice of John C. Wobensmith Established Completed a $116m withdrawal to Klaveness named CEO Singapore presence equity offering to Bulkhandling Pool acquire new vessels Hired VP and Head of Agreed to sell Major Bulks Established five older Hired VP and Head of Copenhagen presence vessels Minor Bulks Implementation of commercial platform opportunistically positions Genco for a strong 2H 2018 6
Where Genco Is Today… Following the execution of two new credit facilities, the equity offering and the acquisitions, Genco’s improved fleet and balance sheet is as follows Pro Forma Fleet Distribution Key Metrics Base Fleet Vessels Sold September 30, 2018 balances: Major 22 Minor 39 Cash: $166 million ― Bulk Bulk Vessels Vessels 25 Debt: $568 million ― 1 Number of Vessels 20 15 Q3 2018 net income: $5.7 million or $0.14 per share 2 10 20 17 Q3 2018 EBITDA: $29.6 million 13 1 5 6 5 Current debt structure: 1 - Cape Pana Ultra Supra Hmax Handy Vessel Type 2 credit facilities ― Pro Forma Previous ― Weighted average interest expense: L + 3.11% 60 61 Total Fleet Size Vessels Vessels 100bps decline Previous debt structure: in borrowing 9.3 10.6 costs post Avg Age Years refinancing or Years 4 credit facilities ― ~$5m per year 4.7 5.3 Carrying Capacity ― Weighted average interest expense: L + 4.11% mdwt mdwt 78k 87k Avg Vessel Size dwt dwt Note: Please see the appendix for further detail. 7
Recommend
More recommend
