Genco Shipping announces fourth quarter 2023 results

Fourth quarter 2023 and year-to-date highlights

Dividend

• Declared a US$0.41 per share dividend for 4Q23 18th consecutive quarterly payout.
• Cumulative dividends of US$5.155 per share or 29% of its share price.
• 4Q23 dividend is payable on or about 13 March 2024 to all shareholders of record as of 6 March 2024.

Global refinancing

• Closed a US$500 million revolving credit facility providing additional capital allocation flexibility and improved terms compared to its previous facility.
• 100% revolver structure with increased borrowing capacity by $156 million, maturity is extended by over two years to the end of 2028 and margin is reduced to a grid of 1.85% to 2.15% from 2.15% to 2.75%.

Fleet renewal

• Acquired two 2016-built scrubber-fitted capesize vessels, the Genco Ranger and the Genco Reliance, for US$86.1 million, in 4Q23.
• Agreed to sell three 2009-2010-built 169 000 DWT capesize vessels.
• Saved nearly US$10 million in 2024 dry docking capex for these vessels which had upcoming third special surveys due.

Financial performance

• Net income of US$4.9 million for 4Q23, including a non-cash vessel impairment charge of US$13.6 million, or basic and diluted earnings per share of US$0.12 and US$0.11, respectively.
• Adjusted net income of US$18.6 million or basic and diluted earnings per share of US$0.43, excluding the non-cash vessel impairment charge of US$13.6 million.
• Adjusted EBITDA of $37.1 million for 4Q23 and US$101.5 million for FY 2023.

Voyage revenues

• Totalled US$115.5 million in 4Q23.
• Net revenue was US$70.6 million during 4Q23.
• Average daily fleet-wide TCE was US$17 373 for 4Q23.

Fleet-wide TCE for FY 2023: US$14 766, which outperformed our scrubber-adjusted internal benchmark by approximately US$1300 per day.

Estimated TCE to date for 1Q24: US$18 724 for 81% of our owned fleet available days, based on both period and current spot fixtures.

John C. Wobensmith, CEO, commented: “2023 marked another strong year for Genco, as we continued to take concrete steps to drive sustainable long-term shareholder value while remaining the number one shipping company for the third consecutive year in the Webber Research ESG Scorecard. Notably, we further executed on all three pillars of our comprehensive value strategy focused on dividends, deleveraging and growth. We declared our 18th consecutive dividend, increasing cumulative dividends to shareholders to US$5.155 per share over this period. We also continued to enhance our financial strength, lowering our debt by 55% since 2021 and reducing our cash flow breakeven rate to the lowest in the peer group. In terms of growth, including the two high-specification scrubber-fitted capesize vessels we acquired in 2023 to advance our fleet renewal strategy, we have invested US$520 million over the past 5 years. We also enhanced our ability to opportunistically drive growth with the closing of our US$500 million revolving credit facility.”

Mr Wobensmith continued: “Our performance in the fourth quarter was strong. Importantly, we capitalised on our industry leading commercial platform and our significant operating leverage to once again outperform benchmarks and increase TCE by 44% from third quarter levels. We expect the first quarter to be solid as 81% of our Q1 days are fixed at over US$18 700 per day.”

Mr Wobensmith concluded: “Since implementing our value strategy in early 2021, we have taken important steps to position Genco to drive value through dry bulk shipping market cycles. Going forward, we continue to focus on providing significant returns to shareholders, reducing our financial risk and maximising our ability to pursue accretive growth opportunities. At the same time, we remain committed to maintaining high corporate governance standards for the benefit of shareholders.”

Read the article online at: https://www.drybulkmagazine.com/shipping/23022024/genco-shipping-announces-fourth-quarter-2023-results/