Friday, August 06, 2021

Genco Shipping (GNK)
Fine Tuning EBITDA Estimates Following 2Q2021 Earnings Call

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Fine tuning 2021 EBITDA estimate to $203 million on TCE rate assumptions of $20.7k/day. Forward cover remains high at 71% of 3Q2021 available days booked at TCE rates that are much higher at $27.6k/day. Three new time charters signed, but visibility is limited beyond one quarter out.

Our FY2022 dividend estimate has moved up to $3.05/share from our original estimate of $2.25/share, or a potential yield of ~17%.  The dividend estimate increase is driven by our higher 2022 EBITDA estimate of $226 million and higher TCE rates of $21.6k/day ...

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.