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Thursday, January 30, 2020
Genco Shipping & Trading Limited (GNK)
Scrubbers Done, Quarterly Dividend Tempers 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 the full report for the price target, fundamental analysis, and rating.
Scrubber program completed and all 17 Cape scrubbers ready now. Last installation done in mid-January. Capes are capturing value from IMO2020 changes and cape volatility adds upside optionality to bar bell strategy.
Dry bulk market weakness accelerating into 1Q2020. The Baltic Capesize Index (BCI) average of 822 so far in 1Q2020 is down 71% from 2,837 in 4Q2019, and the Baltic Supramax Index (BSI) average of 578 so far in 1Q2020 is down 40% from 956 in 4Q2019. While IMO2020 adjustments to the indices are partially to blame, the dry bulk market has clearly been weaker than expected and…
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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