Genco Shipping & Trading Limited Announces Q1 2025 Financial Results

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Declares Dividend of $0.15 per share for Q1 2025

Represents Genco's 23ʳᵈ Consecutive Quarterly Dividend

Announces a $50 Million Share Repurchase Program Building on Long-Standing Dividend Strategy

NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) ("Genco” or the "Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months ended March 31, 2025.

First Quarter 2025 and Year-to-Date Highlights

• Dividend
  • Declared a $0.15 per share dividend for Q1 2025
  • 23ʳᵈ consecutive quarterly dividend
    • Cumulative dividends of $6.765 per share or approximately 50% of our share price¹
  • Q1 2025 dividend is payable on or about May 30, 2025 to all shareholders of record as of May 22, 2025
• New share repurchase program
  • Board of Directors approved a $50 million share repurchase program
• Q1 2025 financial performance
  • Net loss of $11.9 million, or basic and diluted net loss per share of $0.28
  • EBITDA: $7.9 million²
  • Voyage revenues: $71.3 million
    • Net revenue²: $41.6 million
    • Average daily fleet-wide TCE²: $11,884 per day
• Estimated Q2 2025 TCE to date
  • $14,042 for 68% of our owned fleet available days²

John C. Wobensmith, Chief Executive Officer, commented, "Coming off a year of earnings growth and strong execution of our comprehensive value strategy, we have entered 2025 by declaring our 23ʳᵈ consecutive dividend despite a seasonally softer first quarter. Including the Q1 dividend, total dividends to shareholders will amount to $6.765 per share, or approximately 50% of our current stock price, highlighting our track record and commitment to dividends through market cycles.”

Mr. Wobensmith continued, "We are pleased to build upon our long-standing dividend policy by establishing a new share repurchase program. We believe that significant equity market volatility has resulted in a disconnect between our share valuation and the underlying fundamentals of our business. We have long held the view that when this extreme dynamic materializes it is the appropriate time to put in place a share repurchase program. This is a capital allocation tool that we have extensively evaluated throughout the cycle, and view this as a compelling and opportunistic way to capture shareholder value, particularly if we continue to experience downward volatility. Importantly, the share repurchase program is incremental to our quarterly dividend policy, which we intend to maintain as our primary method of returning cash to shareholders.

Mr. Wobensmith concluded, "Beginning in March 2025, and continuing into the second quarter thus far, drybulk freight rates have improved, which is reflected in our Q2 TCE to date which is 18% higher than Q1 levels. With our low financial leverage and cash flow breakeven rate, as well as significant access to capital, we are in a strong position to successfully operate in the current volatile geopolitical environment. Going forward, we remain focused on dividends, deleveraging and capitalizing on accretive growth opportunities, while supplementing these core tenets with an opportunistic share repurchase plan to create long-term shareholder value.”

^{¹ Genco share price as of May 6, 2025.}

^{² 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 further reconciliation. Regarding Q2 2025 TCE, this estimate is based on both period and current spot fixtures, actual results will vary from current estimates. Net revenue is defined as voyage revenues minus voyage expenses, charter hire expenses and realized gains or losses on fuel hedges.}

Share Repurchase Program

Our Board of Directors approved a $50 million share repurchase program. Pursuant to the authorized program, the Company may repurchase up to $50 million worth of its shares. Genco's potential repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions or in block trades, depending on market conditions and in accordance with applicable rules and regulations. This program may be suspended or discontinued at any time and does not obligate the Company to acquire any amount of common stock. The Board will review the share repurchase program periodically and may authorize adjustment of its terms and size.

Comprehensive Value Strategy

Genco's comprehensive value strategy is centered on three pillars:

• Dividends: paying sizeable quarterly cash dividends to shareholders
• Deleveraging: through voluntary debt repayments to maintain low financial leverage, and
• Growth: opportunistically renewing and growing our asset base

Key characteristics of our strategy include:

• Net loan-to-value of 6%³
• Strong liquidity position of $354.1 million at March 31, 2025, which consists of:
  • $30.6 million of cash on the balance sheet
  • $323.5 million of revolver availability
• High operating leverage with our scalable fleet across the major and minor bulk sectors

^{³ Represents the principal amount of our credit facility debt outstanding less our cash and cash equivalents as of March 31, 2025 divided by estimates of the market value of our fleet as of May 6, 2025 from VesselsValue.com. The actual market value of our vessels may vary.}

Financial Deleveraging

• Debt outstanding: $90.0 million as of March 31, 2025
• We plan to continue to voluntarily pay down debt with a goal of zero net debt in order to enhance our ability to pay meaningful dividends and take advantage of strategic opportunities throughout drybulk market cycles

Dividend Policy

Genco declared a cash dividend of $0.15 per share for the first quarter of 2025. Our dividend formula, including a voluntary quarterly reserve of $19.50 million, would not have produced a dividend for the first quarter. However, management recommended and our Board of Directors approved the reduction of the Q1 voluntary reserve from $19.50 million to $1.1 million. The Q1 2025 dividend is payable on or about May 30, 2025 to all shareholders of record as of May 22, 2025. Our share repurchase program announced above is intended to supplement dividends as a method of returning capital to shareholders.

Quarterly dividend policy: 100% of quarterly operating cash flow less a voluntary reserve.

Under the quarterly dividend policy adopted by our Board of Directors, the amount available for quarterly dividends is to be calculated based on the formula in the table below. The table includes the calculation of the actual Q1 2025 dividend and estimated amounts for the calculation of the dividend for Q2 2025:

Operating cash flow is defined as net revenue (consisting of voyage revenue less voyage expenses, charter hire expenses, and realized gains or losses on fuel hedges), less operating expenses (consisting of vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management expenses, and interest expense other than non-cash deferred financing costs), for purposes of the foregoing calculation. Estimated expenses for Q2 2025 are estimates and subject to change.

The voluntary quarterly reserve for the second quarter of 2025 under the Company's dividend formula is expected to be $19.50 million, which remains fully within our discretion. A key component of Genco's value strategy is maintaining a voluntary quarterly reserve, as well as the optionality for the use of the reserve as Genco seeks to pay sizeable dividends across the cyclicality of the drybulk market while continuing to invest in our fleet. Subject to the development of freight rates for the remainder of the second quarter and our assessment of our liquidity and forward outlook, we maintain flexibility to reduce the quarterly reserve to pay dividends or increase the amount of dividends otherwise payable under our formula. The reserve is set by our Board of Directors at its discretion, and our Board has generally allotted an amount for anticipated debt prepayments plus an additional amount. We plan to set the voluntary reserve on a quarterly basis for the subsequent quarter.

Anticipated uses for the voluntary reserve include, but are not limited to:

• Vessel acquisitions
• Debt repayments, and
• General corporate purposes

The Board expects to reassess the payment of dividends as appropriate from time to time. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facility) and the Board of Directors' determination that each declaration and payment is at the time in the best interests of the Company and its shareholders after its review of our financial performance.

Peter Allen, Chief Financial Officer, commented, "Given our significant access to capital with $324 million in undrawn revolver availability, we are in a strong position to further invest in our fleet to capture accretive growth opportunities, while providing meaningful shareholder returns in what remains a highly volatile freight rate environment. We believe in this type of market, Genco's capital structure serves as a key differentiator offering a solid risk-reward dynamic given our fleet's high operating leverage combined with our low financial leverage. Over the course of this drybulk market cycle, we have prioritized strengthening the balance sheet through voluntary debt repayments, modernizing our fleet and returning cash to shareholders through quarterly dividends, which have proven to be prudent strategies. Going forward, we remain committed to these three pillars while adding an additional capital allocation tool in the new share repurchase program, as we continuously evaluate various uses of capital to drive shareholder value.”

Genco's Active Commercial Operating Platform and Fleet Deployment Strategy

We utilize a portfolio approach towards revenue generation through a combination of:

• Short-term, spot market employment, and
• Opportunistically booking longer term coverage

Our fleet deployment strategy currently remains weighted towards short-term fixtures, which provide us with optionality on our sizeable fleet.

Based on current fixtures to date, our estimated TCE to date for the second quarter of 2025 on a load-to-discharge basis is presented below. Actual rates for the second quarter will vary based upon future fixtures. These estimates are based on time charter contracts entered by the Company as well as current spot fixtures on the load-to-discharge method, whereby revenue is recognized ratably over the voyage from the commencement of loading to the completion of discharge. The actual TCE rates to be earned will depend on the number of contracted days and the number of ballast days at the end of the period. According to the load-to-discharge accounting method, the Company does not recognize revenue for any ballast days or uncontracted days at the end of the second quarter of 2025. At the same time, expenses for uncontracted days will be recognized as incurred.

Financial Review: 2025 First Quarter

The Company recorded a net loss for the first quarter of 2025 of $11.9 million, or $0.28 basic and diluted net loss per share. Comparatively, for the three months ended March 31, 2024, the Company recorded net income of $18.8 million, or $0.44 and $0.43 basic and diluted earnings per share, respectively. Adjusted net income is $21.4 million, or $0.50 and $0.49 basic and diluted earnings per share, respectively, excluding other operating expense of $1.8 million, a loss on sale of vessels of $1.0 million and unrealized fuel gains of $0.2 million. 

Revenue / TCE

The Company's revenues decreased to $71.3 million for the three months ended March 31, 2025, as compared to $117.4 million recorded for the three months ended March 31, 2024, primarily due to lower rates earned by our major and minor bulk vessels as well as the operation of a smaller fleet. The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet was $11,884 per day for the three months ended March 31, 2025 as compared to $19,219 per day for the three months ended March 31, 2024.

Voyage expenses

Voyage expenses decreased to $27.4 million for the three months ended March 31, 2025 from $37.2 million during the prior year period. The decrease was primarily due to lower voyage expenses, including lower bunker consumption, for our major bulk vessels and our Ultramax vessels, part of our minor bulk fleet, as these vessels were fixed on fewer spot voyages.

Vessel operating expenses

Vessel operating expenses decreased to $24.9 million for the three months ended March 31, 2025 from $25.9 million for the three months ended March 31, 2024. Daily vessel operating expenses, or DVOE, amounted to $6,592 per vessel per day for the first quarter of 2025 compared to $6,275 per vessel per day for the first quarter of 2024. The increase in DVOE was primarily due to higher crew costs and higher repair and maintenance and insurance costs. Based on current estimates, our DVOE budget for Q2 2025 is $6,375 per vessel per day on a fleet-wide basis.

We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.

General and administrative expenses

General and administrative expenses decreased to $7.5 million for the first quarter of 2025 compared to $7.7 million for the first quarter of 2024.

Depreciation and amortization expenses

Depreciation and amortization expenses increased to $17.7 million for the three months ended March 31, 2025 from $17.2 million for the three months ended March 31, 2024.

Liquidity and Capital Resources

Cash Flow

Net cash provided by operating activities for the three months ended March 31, 2025 and 2024 was $2.9 million and $32.3 million, respectively. This decrease in cash provided by operating activities was primarily due to lower rates earned by our major and minor bulk vessels, as well as changes in working capital. Additionally, there was an increase in drydocking costs incurred during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Net cash (used in) provided by investing activities for the three months ended March 31, 2025 and 2024 was ($2.9) million and $17.5 million, respectively. This fluctuation was primarily a result of $18.5 million of proceeds from the sale of the Genco Commodus during the three months ended March 31, 2024.

Net cash used in financing activities during the three months ended March 31, 2025 and 2024 was $13.4 million and $47.9 million, respectively. The decrease is primarily due to a $30.0 million decrease in debt repayments made during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. There was also a $4.5 million decrease in the payment of dividends during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Capital Expenditures

Genco's fleet consists of 42 vessels with an average age of 12.4 years and an aggregate capacity of approximately 4,446,000 dwt as follows:

• 16 Capesizes
• 15 Ultramaxes
• 11 Supramaxes

In addition to acquisitions that we may undertake, we will incur additional capital expenditures due to special surveys and drydockings. Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems to our vessels in order to reduce fuel consumption and emissions.

We estimate our capital expenditures related to drydocking, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment system costs, fuel efficiency upgrades and scheduled off-hire days for our fleet for the balance of 2025 to be:

^{(1) Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses.}

^{(2) Estimated costs associated with the installation of ballast water treatment systems are expected to be funded with cash on hand.}

^{(3) Estimated costs associated with the installation of fuel efficiency upgrades are expected to be funded with cash on hand.}

^{(4) Actual length will vary based on the condition of the vessel, yard schedules and other factors. The estimated offhire days per sector scheduled for Q2 2025 consists of 240 days for seven Capesizes, 30 days for one Ultramax and 86 days for two Supramaxes.}

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.