Genco Shipping & Trading Limited Q2 2013 Earnings Call August - PowerPoint PPT Presentation

Genco Shipping & Trading Limited Q2 2013 Earnings Call August 1, 2013

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. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this presentation are the following: (i) declines in demand or rates in the drybulk shipping industry; (ii) prolonged weakness in drybulk 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, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the Company’s acquisition or disposition of vessels; (xii) the amount of offhire time needed to complete repairs on vessels and the time 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 Company’s ability to obtain modifications or alternatives to its financing arrangements on acceptable terms; (xvi) the fulfillment of the closing conditions under, or the execution of additional documentation for, Baltic Trading Limited’s agreements to acquire vessels; and (xvii) completion of definitive documentation for and funding of financing for the vessel acquisitions on acceptable terms; 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, 2012 and its reports on Form 10-Q and Form 8-K. 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 08/01/2013

Agenda � Second Quarter and Year to Date 2013 Highlights � Financial Overview � Industry Overview 3 08/01/2013

Second Quarter 2013 and Year to Date Highlights

Second Quarter 2013 and Year to Date Highlights Net loss attributable to Genco Shipping & Trading Limited of $45.4 million for the second � quarter of 2013 Basic and diluted loss per share of $1.05 � Cash position of $79.7 million on a consolidated basis � Genco Shipping & Trading Limited: $56.0 million � Baltic Trading Limited: $23.7 million (1) � � Maintained short time charter strategy by fixing vessels on spot market-related time charters with the option to convert to a fixed rate and on short-term charters Includes $21.8 million of proceeds from Baltic Trading’s follow-on offering on May 22, 2013. 1) 5 08/01/2013

Genco Fleet List Vessel Name Year Built Dwt Vessel Name Year Built Dwt Capesize Handymax Genco Augustus 2007 180,151 Genco Muse 2001 48,913 Genco Tiberius 2007 175,874 Genco Marine 1996 45,222 Genco London 2007 177,833 Genco Wisdom 1997 47,180 Genco Titus 2007 177,729 Genco Carrier 1998 47,180 Genco Constantine 2008 180,183 Genco Success 1997 47,186 Genco Hadrian 2008 169,694 Genco Prosperity 1997 47,180 Genco Commodus 2009 169,025 Handysize Genco Maximus 2009 169,025 Genco Explorer 1999 29,952 Genco Claudius 2010 169,025 Genco Pioneer 1999 29,952 Panamax Genco Progress 1999 29,952 Genco Beauty 1999 73,941 Genco Reliance 1999 29,952 Genco Knight 1999 73,941 Genco Vigour 1999 73,941 Genco Sugar 1998 29,952 Genco Leader 1999 73,941 Genco Charger 2005 28,398 Genco Acheron 1999 72,495 Genco Challenger 2003 28,428 Genco Surprise 1998 72,495 Genco Champion 2006 28,445 Genco Thunder 2007 76,588 Genco Bay 2010 34,296 Genco Raptor 2007 76,499 Genco Ocean 2010 34,409 Supramax Genco Avra 2011 34,391 Genco Predator 2005 55,407 Genco Mare 2011 34,428 Genco Warrior 2005 55,435 Genco Spirit 2011 34,432 Genco Hunter 2007 58,729 Genco Cavalier 2007 53,617 Genco Aquitaine 2009 57,981 Genco Ardennes 2009 57,981 Modern, diversified fleet � Genco Auvergne 2009 57,981 9 Capesize � Genco Bourgogne 2010 57,981 8 Panamax � Genco Brittany 2010 57,981 17 Supramax � Genco Languedoc 2010 57,981 � 6 Handymax Genco Loire 2009 53,416 Genco Lorraine 2009 53,416 � 13 Handysize Genco Normandy 2007 53,596 Total capacity of approximately 3,810,000 DWT � Genco Picardy 2005 55,257 Genco Provence 2004 55,317 Genco Pyrenees 2010 57,981 Tables exclude vessels owned by Baltic Trading Limited Genco Rhone 2011 58,018 6 08/01/2013

Financial Overview

Second Quarter Earnings - Consolidated Three Months Ended Six Months Ended June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues: Voyage revenues $ 44,941 $ 62,112 $ 84,617 $ 121,137 Service revenues 819 819 1,629 1,638 Total revenues 45,760 62,931 86,246 122,775 Operating expenses: Voyage expenses 2,867 995 4,139 2,405 Vessel operating expenses 26,766 29,516 53,885 57,351 General, administrative and management fees 8,480 8,362 16,672 17,058 Depreciation and amortization 34,722 34,491 69,100 68,916 Total operating expenses 72,835 73,364 143,796 145,730 Operating loss (27,075) (10,433) (57,550) (22,955) Other (expense) income: Other (expense) income (33) 20 (13) 4 Interest income 16 148 34 303 Interest expense (21,554) (19,884) (42,843) (43,614) Other expense (21,571) (19,716) (42,822) (43,307) Loss before income taxes (48,646) (30,149) (100,372) (66,262) Income tax expense (294) (343) (518) (615) Net loss (48,940) (30,492) (100,890) (66,877) Less: Net loss attributable to noncontrolling interest (3,571) (2,751) (7,358) (6,037) Net loss attributable to Genco Shipping & Trading Limited $ (45,369) $ (27,741) $ (93,532) $ (60,840) Net loss per share - basic $ (1.05) $ (0.65) $ (2.17) $ (1.50) Net loss per share - diluted(1) $ (1.05) $ (0.65) $ (2.17) $ (1.50) Weighted average common shares outstanding - basic 43,196,895 42,878,228 43,179,300 40,484,409 Weighted average common shares outstanding - diluted(1) 43,196,895 42,878,228 43,179,300 40,484,409 1) The convertible notes were anti-dilutive for the quarter and year to date ended June 30, 2013 and June 30, 2012. 8 08/01/2013

Consolidating Income Statement Three Months Ended June 30, 2013 (Dollars in thousands, except share and per share data) (unaudited) Non Controlling Interest INCOME STATEMENT DATA: Genco Baltic Trading Elimination Total Revenues: Voyage revenues $ 38,562 $ 6,379 $ - $ - $ 44,941 Service revenues 1,515 - (696) - 819 Total revenues 40,077 6,379 (696) - 45,760 Operating expenses: Voyage expenses 2,710 239 (82) - 2,867 Vessel operating expenses 22,518 4,248 - - 26,766 General, administrative and technical management fees 7,296 1,798 (614) - 8,480 Depreciation and amortization 31,079 3,682 (39) - 34,722 Total operating expenses 63,603 9,967 (735) - 72,835 Operating loss (23,526) (3,588) 39 - (27,075) Other (expense) income: Other income (expense) 27 (3) (57) - (33) Interest income 14 2 - - 16 Interest expense (20,531) (1,023) - - (21,554) Other expense (20,490) (1,024) (57) - (21,571) Loss before income taxes (44,016) (4,612) (18) - (48,646) Income tax expense (281) (13) - - (294) Net loss (44,297) (4,625) (18) - (48,940) Less: Net loss attributable to noncontrolling interest - - - 3,571 3,571 Net loss attributable to Genco Shipping & Trading Limited $ (44,297) $ (4,625) $ (18) $ 3,571 $ (45,369) Net loss per share - basic $ (1.05) Net loss per share - diluted (1) $ (1.05) Weighted average common shares outstanding - basic 43,196,895 Weighted average common shares outstanding - diluted (1) 43,196,895 The convertible notes were anti-dilutive for the quarter ended June 30, 2013. 1) 9 08/01/2013