Genco Shipping Stays in Red

NYSE-listed dry bulk shipping company Genco Shipping & Trading Limited recorded USD 40.3 million net loss for the second quarter of 2015, a USD 20.3 million improvement compared to USD 60.5 million loss the company reported for the three months ended June 30, 2014.

Genco Shipping, which recently merged with Baltic Trading Limited, saw its revenue decrease to USD 34.6 million for the three months ended June 30, 2015, compared to USD 52.4 million for the three months ended June 30, 2014.

The decrease was primarily due to lower rates achieved by the vessels in the fleet during the second quarter of 2015 versus the same period last year, partially offset by the increase in the size of Genco’s fleet following the delivery of Baltic Trading’s two Ultramax newbuilding vessels.

The average daily time charter equivalent, or TCE, rates obtained by the company’s fleet in the second quarter was USD 5,065 per day, as compared to USD 8,452 for the three months ended June 30, 2014.

During the second quarter of 2015, excess vessel supply continued to weigh on the drybulk market, Genco said. Several other factors also contributed towards a weakened rate environment across all vessel classes. Destocking of iron ore inventories at Chinese ports and coal inventories at Chinese power plants, along with seasonally reduced iron ore exports out of Brazil, adversely affected the earnings of Capesize vessels through the majority of the second quarter.

Beginning in the middle of June, however, an increase in iron ore fixtures combined with a reduction of available Capesize vessels in the Atlantic has led to substantial increases in the Baltic Dry Index, which reached as high as 1,131 by the end of July.

“We are excited to have recently achieved major milestones for shareholders that have significantly strengthened the prospects of our business. Our merger with Baltic Trading Limited has established an industry leader with a simplified ownership structure and enhanced scale,” said John C. Wobensmith, Genco Shipping’s President.

”By operating under a larger and more efficient platform, we are well positioned to build on our position as a leader in the drybulk shipping market and create significant value for shareholders. Additionally, we are proud to once again be listed on the NYSE, providing shareholders with a liquid and visible market for our shares.”