Genco Shipping & Trading Limited Announces First Quarter 2013 Financial Results

Genco's voyage revenues decreased to $39.7 million for the three months ended March 31, 2013 versus $59.0 million for the three months ended March 31, 2012, mainly due to lower charter rates achieved by the majority of the vessels in our fleet. The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet decreased to $6,963 per day for the three months ended March 31, 2013 compared to $10,480 per day for the three months ended March 31, 2012. The decrease in TCE rates resulted from lower charter rates achieved in the first quarter of 2013 versus the same period in 2012 for the majority of the vessels in our fleet. The reduction of iron ore cargoes from Brazil combined with weather related disruptions in Australia, increased vessel supply and a prolonged strike in Colombian coal mines contributed to a weak freight rate environment for the first quarter of 2013.

Total operating expenses decreased to $71.0 million for the three months ended March 31, 2013 from $72.4 million for the three-month period ended March 31, 2012 as a result of slightly lower vessel operating expenses and general and administrative expenses. Vessel operating expenses were $27.1 million for the first quarter of 2013 compared to $27.8 million for the same period in 2012. The decrease in vessel operating expenses was primarily due to lower maintenance related expenses for the first quarter of 2013 versus the same period in 2012.  

Depreciation and amortization expenses were $34.4 million for both the first quarter of 2013 and the first quarter of 2012. General, administrative and management fees slightly decreased to $8.2 million in the first quarter of 2013 from $8.7 million in the first quarter of 2012.

Daily vessel operating expenses, or DVOE, decreased to $4,860 per vessel per day during the first quarter of 2013 as compared to $4,933 per vessel per day for the first quarter of 2012, mainly due to lower maintenance related expenses during the first quarter of 2013 compared to the same period of 2012. Our first quarter of 2013 DVOE is below our budget established at the beginning of the year. We believe daily vessel operating expenses are best measured for comparative purposes over a 12‑month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers and management's expectations, our DVOE budget for 2013 is $5,250 per vessel per day on a weighted average basis for the 53 vessels in our fleet, excluding vessels owned by Baltic Trading Limited.

John C. Wobensmith, Chief Financial Officer, commented, "Genco remains committed to effectively managing the Company through the current drybulk shipping cycle. While we continue to operate in a challenging drybulk market, management remains focused on employing a large majority of vessels on short-term or spot market-related contracts with creditworthy counterparties. Our opportunistic time charter approach provides the ability to benefit from a rising freight rate environment and capitalize on the positive long-term demand for the global transportation of essential drybulk commodities along worldwide shipping routes."

Liquidity and Capital Resources

Cash Flow

Net cash used in operating activities for the three months ended March 31, 2013 and 2012 was $17.4 million and $8.0 million, respectively. The decrease in cash provided by operating activities was primarily due to a net loss of $52.0 million for the three months ended March 31, 2013 compared to a net loss of $36.4 million for the three months ended March 31, 2012, which resulted from lower charter rates achieved in the first quarter of 2013 versus the same period in 2012 for the majority of the vessels in our fleet.

Net cash used in investing activities for the three months ended March 31, 2013 and 2012 was $13,000 and $1.5 million, respectively.  The decrease was due to the use of less funds for vessel related and fixed asset purchases during the first quarter of 2013 compared to 2012. For the three months ended March 31, 2013, cash used in investing activities consisted of the purchase of fixed assets in the amount of $13,000. For the three months ended March 31, 2012, cash used in investing activities was predominantly due to purchases of fixed assets in the amount of $1.2 million and vessel related purchases totaling $0.3 million.

Net cash used in financing activities was $0.2 million during the three months ended March 31, 2013 versus $28.2 million of net cash provided by financing activities during the three months ended March 31, 2012.  Cash used in financing activities for the three months ended March 31, 2013 consisted of the $0.2 million dividend payment of our subsidiary, Baltic Trading Limited, to its outside shareholders. Under amendments to all three of our credit facilities in July of 2012 Genco's scheduled amortization payments have been eliminated for each of the credit facilities through and including the quarter ending December 31, 2013. Cash used in financing activities for the three months ended March 31, 2012 mainly consisted of the following: $12.5 million repayment of debt under the 2007 Credit Facility, $5.1 million repayment of debt under the $253 Million Term Loan Facility, $1.9 million repayment of debt under the $100 Million Term Loan Facility, $0.1 million of deferred financing costs and the $2.2 million dividend payment of our subsidiary, Baltic Trading Limited, to its outside shareholders. Those uses partially offset $50.1 million of net proceeds provided by our follow-on offering in February 2012.

Given the current drybulk rate environment, the Company may be unable to maintain compliance with certain covenants under our credit facilities at measurement dates during the twelve months ending March 31, 2014. We have therefore reclassified Genco's long term financing arrangements as short term in our Consolidated Balance Sheet at March 31, 2013.

Capital Expenditures

We make capital expenditures from time to time in connection with vessel acquisitions. Excluding Baltic Trading Limited's vessels, we own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an aggregate carrying capacity of approximately 3,810,000 dwt. In addition, our subsidiary Baltic Trading Limited currently owns a fleet of nine drybulk vessels, consisting of two Capesize, four Supramax, and three Handysize vessels with an aggregate carrying capacity of approximately 672,000 dwt.

In addition to acquisitions that we may undertake in future periods, we will incur additional expenditures due to special surveys and drydockings for our fleet.  We estimate that one of our vessels will be drydocked during the second quarter of 2013. We further anticipate that one additional vessel will be drydocked during the remainder of 2013.

We estimate our drydocking costs for our fleet, excluding the vessels owned by Baltic Trading Limited, through 2014 to be:

(1) 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.  We expect to fund these costs with cash from operations.

(2) Assumes 20 days per drydocking per vessel.  Actual length will vary based on the condition of the vessel, yard schedules and other factors.  

The Genco Challenger and Genco Constantine completed their respective drydockings during the first quarter of 2013.  The vessels were on planned offhire for an aggregate of 31.8 days in connection with their scheduled drydockings at a cumulative cost of approximately $1.3 million for the first quarter of 2013.

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.  

				Three Months Ended
				March 31, 2013		March 31, 2012
				(Dollars in thousands, except share and per share data)
				(unaudited)
INCOME STATEMENT DATA:
Revenues:
	Voyage revenues			$                       39,676		$                       59,025
	Service revenues			810		819
	Total revenues			40,486		59,844
Operating expenses:
	Voyage expenses			1,272		1,410
	Vessel operating expenses			27,119		27,834
	General, administrative and management fees			8,191		8,696
	Depreciation and amortization			34,378		34,425
	Total operating expenses			70,960		72,365
Operating loss				(30,474)		(12,521)
Other income (expense):
	Other income (expense)			19		(16)
	Interest income			18		155
	Interest expense			(21,289)		(23,730)
	Other expense			(21,252)		(23,591)
Loss before income taxes				(51,726)		(36,112)
	Income tax expense			(224)		(271)
Net loss				(51,950)		(36,383) Werbung Mehr Nachrichten zur Genco Shipping & Trading Ltd Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 02:27 - Boersia.de Nvidia Aktie: Sturmwarnung an Bord! 00:00 - Boersia.de Amazon Aktie: Vertrauen zahlt sich aus! 14.12.24 - wallstreetONLINE ... Investmenttrends 2025: Nicht Nvidia & Super Micro: 3 China-Aktien, die Investoren gekauft haben 1000 EILMELDUNG    Der nächste MicroStrategy? Der Solana-Schachzug dieses Unternehmens ist UMWERFEND weiterlesen» Anzeige wo-site-teaser-box-18830_site-teaser-box_2024-12-14_09%253A00%253A00_2024-12-16_09%253A00%253A59