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Genco Shipping (GNK) – Strong 3Q2021 Results and High 4Q2021 Forward Cover

Transportation
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Thursday, November 04, 2021

Genco Shipping (GNK)
Strong 3Q2021 Results and High 4Q2021 Forward Cover

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.

    Adjusted 3Q2021 EBITDA of $80.3 million ahead of our estimate of $78.0 million. TCE rates of $29.3k/day were $0.8k higher driven by Cape TCE rates of $30.8k/day and Supramax TCE rates of $32.0k/day which more than offset Ultramax TCE rates of $23.3k/day. Based on ownership days of 3,715, cash costs were slightly higher at $7,707/day, or opex of $5,775/day, G&A expenses of $1,500/day and management fees of $432/day.

    High forward cover boosts EBITDA estimates to $107.5 million in 4Q2021 based on TCE rates of $36.0k/day and EBITDA to $259.4 million based on TCE rates of $23.7k/day.  2022 EBITDA also moves up to $261.4 million based on TCE rates of $23.9k/day. 4Q2021 forward cover of 71% of available days booked at $36.9k/day is favorable. Eight time charters in place, but visibility is limited beyond one quarter …



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. 

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