Genco Shipping (GNK) – Results Slightly Short of Estimates But Positive Outlook Intact

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Friday, February 25, 2022

Genco Shipping (GNK)
Results Slightly Short of Estimates But Positive Outlook Intact

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.

    Robust 4Q2021 Results and Dividend Slightly Short of Estimates Due to Higher Costs. Reported EBITDA of $102.3 million was short of our EBITDA estimate of $109.2 million due to lower TCE rates and higher operating expenses. TCE rates of $35.2k/day were $800 below our estimate of $36.0k/day. Based on total ownership days and versus our estimates, operating costs of $5,766k/day were $666 higher and G&A expenses of $1,755/day were $417 higher. As a result, the 4Q2021 dividend of $0.67/share was below our estimate of $0.80/share.

    Fine tuning 2022 EBITDA and dividend estimates.  Forward cover of 87% of 4Q2021 days booked at ~$24.2k/day creates a solid base and the quarter should be solid even though the BCI and BSI weakened over the past quarter before rebounding ahead of Chinese New Year. Our 2022 EBITDA estimate increases to $261.5 million from $249.4 million based on TCE rates of $24.5k/day, but our 2022 dividend estimate …



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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