Movers and SHAKERS
Genco Shipping & Trading Limited (GNK)
Two Acquisitions and New Time Charters
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.
Two acquisitions announced. Two Ultramaxes under construction will be acquired from a private seller. The Ultras are under construction at DACKS shipyard in China with scheduled delivery in 1Q2022. While the price was not disclosed, we estimate that the two Ultras cost a total of $58.0 million with a deposit of 20% this quarter and the remaining 80% paid on delivery. Combined with the pending Ultra acquisition, the two Ultras increase the Ultra count to 12 and the total fleet to 43, in addition to improving the age profile and carbon footprint of the fleet.
Two time charters announced. A Cape (Baltic Bear) will be time chartered out for 10-14 months from now at $32.0k/day, and an Ultra (Vigilant) will be time chartered out for 11-13 months from October at $17.8k/day. Two Capes, two Ultras and one Supra have been time chartered out and we expect that additional time charters will be signed to capture the move in rates ...
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.