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Wednesday, October 23, 2019
Genco Shipping & Trading Limited (GNK)
2H2019 Recovery Intact Despite Recent Weakness
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 full report for price target, fundamental analysis and rating.
- Dry bulk market recovered in 3Q2019 after weak 1H2019. 4Q2019 is off to a slow start, but dry bulk market fundamentals look good. Despite the continued overhang of global trade tensions and sluggish global economic growth, higher iron ore shipments and other factors, like scrubber installations in advance of IOM2020 and low supply growth, remain positive for the dry bulk market outlook.
- 2Q2019 weakness in rear view mirror. Modest 2019 EBITDA estimate change to $79.2 million based on 2019 TCE rate estimate of $11,387/day. Shipyard activity peaks in 3Q2019, but EBITDA should be way up sequentially. In late July, almost 65% of available days were covered at $11,640/day, or well above the 2Q2019 average of $7,412/day….
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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 full report.
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