Genco Shipping (GNK) – Model Fine Tuned To Reflect Lower Shipping Rates

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Friday, October 21, 2022

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.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

We are adjusting in response to lower third-quarter shipping rates. Our third-quarter and 2022 revenues estimates for Genco have been modestly reduced to $130.6 million and $535.2 million. Our third-quarter and 2022 EBITDA estimates are now $68.7 million and $258.0 million, down from $70.8 million and $264.3 million. Our third-quarter and 2022 EPS estimates are now $1.21 and $4.52, down from $1.25 and $4.66.

Our rating on the shares of Genco remains Outperform with a $28 price target. Lower shipping rates will adversely affect near-term results but does not change our long-term positive view of the shipping industry and Genco, in specific.

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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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