Friday, May 06, 2022
Genco Shipping (GNK)
Reaping the benefits of a favorable environment
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.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Revenues benefit from a favorable shipping environment. Revenues rose 55% to $136.2 million, slightly above our forecast of $133.8 million. EBITDA of $58.0 million, up 181%, was slightly below our $60.4 million estimate due to higher operating costs. Net income for the quarter was $41.9 million ($0.97 per share) versus $2.0 million ($0.05) last year, slightly below our estimate of $44.0 million ($1.03).
Management is making good use of higher cash flow. The company took delivery of two vessels in the quarter, reduced debt by $48.75 million and raised the quarterly dividend 18% to $0.79 per share (14% yield). …
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.
