Movers and SHAKERS
Genco Shipping (GNK)
Firm Dry Bulk Market Boosts 2022 Dividend Estimate
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.
Staying positive on dry bulk market. Even though dry bulk TCE rates remain volatile, the bias has been upward due to firm demand from infrastructure projects and global stimulus programs. Also, the order book remains muted, and the January 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply. Operating leverage has expanded, and a $1.0k/day change in TCE rates has ~$16 million impact, or ~7% of our 2022 EBITDA estimate.
Increasing 2021 EBITDA estimate to $223 million based on TCE rates of $22.1k/day from $204 million and TCE rates of $20.8k/day. Current TCE rates are above high 3Q2021 forward cover (Capes 66% booked at $31.3k/day and Ultras/Supras 75% booked at $25.3k/day) so positive bias to estimates. Six time charters in place, but visibility is limited beyond one quarter out ...
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.