NYSE$GNK

Genco Shipping & Trading Limited · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported highest quarterly earnings per share since 2008 and increased quarterly dividend.

Genco Shipping & Trading Limited reported a net income of $57.1 million for the third quarter of 2021, with earnings per share of $1.36 and increased its regular quarterly cash dividend to $0.15 per share. The company's average daily TCE was $29,287, marking the highest quarterly TCE since 2010.

  • Closed $450 Million Credit Facility in August 2021.
  • Took delivery of four modern, fuel efficient Ultramax vessels in Q3 2021.
  • Increased its regular quarterly cash dividend to $0.15 per share for the third quarter of 2021.
  • Recorded net income of $57.1 million for the third quarter of 2021.

Headline financials

Total Revenue

$155M

Previous: $87.5M+77.4%
EPS (adj)

$1.44

Previous: $0.03+4700.0%
Time Charter Equivalent

$29.3K

No prior period
Capital Expenditures

-$901K

Previous: -$3.68M+75.5%
Free Cash Flow

$56.2M

Previous: -$24.8M+326.9%
Net Income

$57.1M

Previous: -$21.1M+370.8%
Operating Income

$65.4M

Previous: -$15.7M+517.3%
Gross Profit

$133M

Previous: $64.1M+108.3%
Cash & Equivalents

$80.2M

Previous: $136M-41.2%
Total Assets

$1.18B

Previous: $1.32B-10.7%
Stock-Based Comp

$597K

Previous: $534K+11.8%

Revenue & EPS history

Genco · Revenue · Quarterly

$155M

Q3 2021+77.4%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Genco anticipates normal seasonality in the coming months, but the overall fundamentals, including a historically low orderbook, remain supportive. The company expects to have $246 million of debt outstanding by year-end 2021.

Tailwinds

  • Opportunistically fixed various period time charterers to secure cash flows and de-risk recent acquisitions
  • New $450 million credit facility will further reduce cash flow break evens
  • Financial flexibility to continue to execute on all components of our comprehensive value strategy related to distributing sizeable dividends to shareholders
  • Focus remains on improving the strength of our balance sheet and shareholder returns
  • Continue to pay down debt with a medium-term objective of reducing our net debt to zero

Headwinds

  • The market has declined from the highs seen during the third quarter and early October
  • Anticipate the unfixed portion of our available days to be contracted at lower rates than those reflected above in our fixtures to date
  • Drydocking costs for Q4 2021 estimated at $2.9 million
  • Potential impacts of COVID-19 are beyond our control and are difficult to predict due to uncertainties surrounding the pandemic
  • Our ability to pay dividends in any period will depend upon various factors

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 Q3 2021

Historical avgQ3 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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