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Genco Shipping updates Q4 TCE rate estimate

EditorLina Guerrero
Published 12/20/2024, 04:59 PM
GNK
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NEW YORK – Genco Shipping (NYSE:GNK) & Trading Limited (NYSE:GNK) disclosed in a recent SEC filing that for the fourth quarter of 2024, it estimates a time charter equivalent (TCE) rate of approximately $18,300 per day. This rate is projected to cover about 95% of its owned fleet's available days during the quarter.

The New York-based drybulk shipper, which transports iron ore, coal, grain, steel products, and other drybulk cargoes worldwide, provided this update today, based on its current bookings and performance.

The TCE rate, a non-GAAP financial measure commonly used in the shipping industry, assists in comparing the performance of time charter and voyage charter vessels by converting voyage revenues minus voyage expenses into a daily earning metric. Genco Shipping anticipates around 3,675 owned available fleet days for the final quarter of the year.

The company maintains a strong financial position with a healthy current ratio of 3.09 and operates with a moderate debt-to-equity ratio of 0.08. InvestingPro subscribers can access 14 additional investment tips and comprehensive financial metrics for deeper analysis.

The company cautioned that the estimated TCE is subject to change and will be finalized upon the closing of their financial results for the quarter. The final figures will adhere to GAAP reporting standards, taking into account the timing of voyage revenue and expense recognition. Despite trading at an attractive P/E ratio of 8.67, analysts anticipate a 22% revenue decline for the current fiscal year, according to InvestingPro data.

Genco Shipping's forward-looking statements are subject to various factors that could cause actual results to differ materially. These include market demand, shipping rates, supply and demand for drybulk carriers, operating costs, geopolitical conditions, regulatory changes, and the ongoing impact of the COVID-19 pandemic, among others.

Today's announcement by Genco Shipping is based on the company's current fixtures and operational data. It is important to note that the information provided is not filed for purposes of the Securities Act of 1934, as amended, and will not be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

In other recent news, Genco Shipping and Trading Limited reported a robust third-quarter performance, with a net income of $21.5 million, or $0.50 per share, and an adjusted EBITDA of $36.9 million. This strong performance was accompanied by an 18% increase in the quarterly dividend to $0.40 per share.

The company's strategic growth initiatives included the acquisition of a fuel-efficient Capesize vessel, bringing the total acquisitions to three in the past year. In terms of financial management, Genco reduced its debt by a significant 82% since 2020, aiming for net debt zero. The company's outlook for the dry bulk market remains positive, with low supply growth and potential increases in ton miles.

In response to recent developments, Genco maintains a focus on financial strength and fleet renewal for future growth, expecting Q4 to be a peak season with stable Ukrainian grain shipments. However, the company is also aware of bearish factors such as recent pullbacks in freight rates due to oversupply concerns and a 4% year-over-year decrease in China's steel production.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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