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Genco Shipping & Trading Limited Announces Third Quarter Financial Results

NEW YORK, Nov. 04, 2020 (GLOBE NEWSWIRE) — Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the transportation of major and minor bulk commodities globally, today reported its financial results for the three months and nine months ended September 30, 2020.

The following financial review discusses the results for the three and nine months ended September 30, 2020 and September 30, 2019.

Third Quarter 2020 and Year-to-Date Highlights

  • Genco announced a regular quarterly cash dividend of $0.02 per share for the third quarter of 2020
    • Payable on or about November 25, 2020 to all shareholders of record as of November 17, 2020
    • We have now declared cumulative dividends totaling $0.735 per share over the last five quarters
  • Genco maintains a strong financial position with $160.8 million of cash, including $24.5 million of restricted cash, as of September 30, 2020
  • Voyage revenues totaled $87.5 million and net revenue1 (voyage revenues minus voyage expenses and charter hire expenses) totaled $53.0 million during Q3 2020
    • Our average daily fleet-wide time charter equivalent, or TCE1, for Q3 2020 was $11,456
    • We estimate our TCE to date for Q4 2020 to be $13,004 for 57% of our owned fleet available days, based on current fixtures
  • We recorded a net loss of $21.1 million for the third quarter of 2020
    • Basic and diluted loss per share of $0.50
    • Adjusted net income of $1.2 million or basic and diluted earnings per share of $0.03, excluding $21.9 million in non-cash vessel impairment charges and a $0.4 million loss on sale of vessels
  • Recorded adjusted EBITDA of $22.3 million during Q3 20201
  • In the second half of 2020 to date, we have completed the sale of four vessels
    • The Baltic Wind, a 2009-built Handysize, delivered to buyers on July 7, 2020
    • The Baltic Breeze, a 2010-built Handysize, delivered to buyers on July 31, 2020
    • The Genco Bay, a 2010-built Handysize, delivered to buyers on October 1, 2020
    • The Baltic Jaguar, a 2009-built Supramax, delivered to buyers on October 16, 2020
  • We have also agreed to sell the Genco Normandy, a 2007-built Supramax, the Genco Loire, a 2009-built Supramax, and the Baltic Panther, a 2009-built Supramax, which are part of our fleet renewal program and we expect to deliver to the respective buyers during Q4 2020 and Q1 2021
  • Genco’s focus remains on the health and safety of our crew members and our team onshore during this uncertain time
    • We have completed crew rotations on the majority of our fleet in the year-to-date, involving over 1,600 crew members, despite various travel and port restrictions and during a time in which seafarers globally have been onboard vessels well in excess of their original contract duration

John C. Wobensmith, Chief Executive Officer, commented, “During the third quarter, we generated a 71% increase in TCE relative to the prior quarter, capitalizing on a strengthening drybulk freight rate environment. In-line with our thesis of a second half recovery, we employed our vessels in the spot market in the third quarter and have continued implementing this approach to further capture the potential upside of a recovering market. Notably, our TCE to date has continued to improve, led by our Capesize bookings at nearly $20,000 per day thus far in the fourth quarter. Going forward, our outlook for the drybulk market remains favorable for the balance of the year and into 2021. Specifically, the orderbook as a percentage of the fleet is at an all-time low which limits net fleet growth, while the Brazilian iron ore recovery and growth story that has materialized since June is expected to continue. We believe that Genco is well-positioned to take advantage of these positive fundamentals due to our ownership of both major and minor bulk vessels, our world-class in-house commercial operating platform and our industry leading balance sheet.”

Mr. Wobensmith continued, “We are pleased to have declared our fifth consecutive quarterly dividend and now have declared dividends totaling $0.735 per share since we initiated our dividend policy in the third quarter of 2019. Effectively allocating capital for the benefit of shareholders remains a priority, as we have paid a quarterly dividend during a time of improved market conditions currently as well as in the market through earlier in the year. This success highlights our commitment to both returning capital to shareholders while maintaining our strong balance sheet which we view as a key differentiator of Genco.”

1 We believe the non-GAAP measure presented provides investors with a means of better evaluating and understanding the Company’s operating performance. Please see Summary Consolidated Financial and Other Data below for a further…

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