Movers and SHAKERS
Genco Shipping & Trading Limited (GNK)
Upward Bias Due to Favorable Market Fundamentals
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.
2Q2021 Results out AMC on August 4th and Investor Call at 8:30am EST on August 5th. The call number is 800-430-8332 and code is 8885406. Our 2Q2021 EBITDA estimate is $50.1 million based on TCE rates of $21.0k. We will look for color on: 1) Lagging Cape market and impact of efforts by China to curb inflation; 2) Visibility and tone of Supra/Ultra market; 3) Time charter opportunities; 4) Hedging activity; 5) M&A activity and the cost/timing of recent acquisitions; and 6) Variable dividend policy.
Increasing 2021 EBITDA estimate to $200 million based on TCE rates of $20.2k/day, up from $184 million and TCE rates of $19.1k/day. 2Q2021 forward cover was high with Capes 72% booked at $24.9k/day and Ultras/Supras 76% booked at $17.8k/day so weighted toward 2H2021 estimates. Five time charters signed, but visibility limited ...
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.