NYSE$GNK

Genco Shipping & Trading Limited · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Genco achieved its highest quarterly earnings per share since 2010

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.

Headline financials

Total Revenue

$121M

Previous: $74.2M+63.1%
EPS (adj)

$0.75

Previous: -$0.43+274.4%
Capital Expenditures

-$431K

Previous: -$2.72M+84.1%
Free Cash Flow

$31.6M

Previous: -$20.9M+251.1%
Net Income

$32M

Previous: -$18.2M+276.0%
Operating Income

$36.2M

Previous: -$13.1M+376.6%
Gross Profit

$102M

Previous: $53.1M+92.3%
Cash & Equivalents

$116M

Previous: $128M-9.0%
Total Assets

$1.18B

Previous: $1.35B-12.7%
Stock-Based Comp

$551K

Previous: $476K+15.8%

Revenue & EPS history

Genco · Revenue · Quarterly

$121M

Q2 2021+63.1%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed.
  • Actual length will vary based on the condition of the vessel, yard schedules and other factors.
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.6%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

51%

24 / 47 earnings

Positive

+8.8%

Q4 2023

Best reaction

-22.1%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%+6.1%-3.2%
Q4 2025+3.6%+4.8%-4.2%
Q3 2025+1.0%+3.9%+15.3%
Q1 2025+0.5%+8.2%+0.1%
Q4 2024+0.6%-2.9%-6.7%
Q3 2024+7.1%+8.6%-8.3%
Q2 2024-2.7%-1.3%-7.0%
Q1 2024+1.2%+2.3%-3.1%
Q4 2023+8.8%+8.6%+14.0%
Q3 2023+4.7%+4.7%+9.4%
Q2 2023-3.8%-1.4%-5.2%
Q1 2023-8.3%-1.8%-4.8%
Q4 2022+8.3%+6.7%-14.0%
Q3 2022+3.1%+9.6%-0.3%
Q2 2022-8.7%-9.3%-27.0%
Q1 2022+1.9%-9.6%+15.3%
Q4 2021+1.7%+1.7%+22.0%
Q3 2021+2.7%-0.9%-7.4%
Q2 2021+2.4%-3.6%+14.7%
Q1 2021-0.5%+0.4%-3.3%
Q4 2020+6.7%+3.3%+6.0%
Q3 2020-1.2%+7.0%+21.3%
Q2 2020+7.9%+11.9%-4.1%
Q1 2020-7.8%-7.6%+31.2%
Q4 2019-7.8%+2.0%-23.5%
Q3 2019+4.4%+7.0%-2.0%
Q2 2019-3.2%-8.7%+14.5%
Q1 2019-1.4%-4.8%-12.2%
Q4 2018+2.6%-6.4%-3.5%
Q3 2018-6.5%-8.0%-26.3%
Q2 2018-5.8%-10.5%-15.3%
Q1 2018+4.5%+5.6%+15.5%
Q4 2017+0.1%+4.2%+3.4%
Q3 2017-3.7%-1.3%-1.9%
Q2 2017+6.2%+15.5%+35.2%
Q1 2017+4.3%+0.4%-6.2%
Q4 2016+0.4%-4.7%+7.9%
Q3 2016-6.3%-5.3%+42.6%
Q2 2016-11.8%-12.2%-26.1%
Q1 2016-22.1%
Q4 2015-9.9%
Q3 2015+7.0%
Q2 2015-0.6%
Q1 2015-0.7%
Q4 2014-2.0%
Q3 2014+0.0%
Q2 2014-2.3%
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2010
Q1 2011
Q4 2008
Q4 2010
Q3 2010
Q3 2009
Q2 2009
Q2 2010
Q4 2009

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