Movers and SHAKERS
Genco Shipping & Trading Limited (GNK)
Softer Cape Market Offset by Firm Ultra/Supra Markets
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.
Cape market softness contrasts Ultra/Supra market firmness. Since 1Q2021 operating results were released in early May, the Baltic Cape Index (BCI) has dropped from 5,405 to 3,346 on June 11th, with a low of 3,089 on May 28th. The recent rebound, combined with FFA curves that indicate higher rates, is encouraging and we look for Cape rates to rebound in 2H2021. In contrast, the Baltic Supramax Index (BSI) has moved consistently up from 2,135 to 2,592 on June 11th, mainly due the higher degree of cargo diversity.
Fine tuning 2021 EBITDA estimate of $183.9 million on TCE rate assumptions of $19.1k/day. Forward cover is higher in 2Q2021 versus 1Q2021 with 72% booked at $24.9k/day for Capes and 76% booked at $17.8k/day for Ultra/Supramaxes. Also, five time charters have been signed, which implies that visibility might improve over time ...
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.