Movers and SHAKERS
Genco Shipping & Trading Limited (GNK)
A Solid Finish to 2020 and Good Start to 2021
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 4Q2020 EBITDA of $29.7 million in line with expectations. Strong finish to year with $5 million higher EBITDA and TCE rate move to $13.2k/day. The improvement that started in late 2Q2020 extended into 4Q2020 and operating results benefitted from the recovery in the dry bulk market. TCE rates more than doubled $13.2k/day from $6.7k/day in 2Q2020 and more than offset higher opex and G&A expenses. TCE rates extended the across the board rebound even in the midst of lingering uncertainty from COVID-19. The commercial management strategy generated TCE rate outperformance of $811/day, or incremental revenue of ~$15 million, in 2020 and the 4Q2020 TCE rate was the highest posted in two years.
Fine tuning 2021 EBITDA estimate of $133.8 million with higher TCE rate assumptions of $15.5k/day easily offsetting a smaller fleet. After a drop in 1Q2021, EBITDA should move higher this year as stronger TCE rates of $15.5k/day more than offsets the 3.7k drop in ownership days ...
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.