NYSE$GNK

Genco Shipping & Trading Limited · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Genco Shipping & Trading Limited reported strong earnings driven by high TCE and lower expense levels.

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.

Headline financials

Total Revenue

$136M

Previous: $155M-12.4%
EPS (adj)

$1.00

Previous: $1.44-30.6%
Fleet utilization

97.6%

No prior period
Capital Expenditures

-$2.93M

Previous: -$901K-225.1%
Free Cash Flow

$37.9M

Previous: $56.2M-32.6%
Net Income

$40.8M

Previous: $57.1M-28.5%
Operating Income

$45.2M

Previous: $65.4M-30.9%
Gross Profit

$114M

Previous: $133M-14.7%
Cash & Equivalents

$65.5M

Previous: $80.2M-18.3%
Total Assets

$1.21B

Previous: $1.18B+2.5%
Stock-Based Comp

$840K

Previous: $597K+40.7%

Revenue & EPS history

Genco · Revenue · Quarterly

$136M

Q3 2022-12.4%vs Q3 2021
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Operating environment with regards to costs remains challenging given various macroeconomic factors.
  • The actual amount of our DVOE could be higher or lower than budgeted as a result of COVID-19 and the war in Ukraine.

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 2022

Historical avgQ3 2022

-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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