Genco Slashes Nine-Month Loss
New York-based dry bulk shipping company Genco Shipping and Trading narrowed its net loss to USD 61.3 million in the first nine months of this year from USD 192.7 million reported in the same period a year earlier.
As explained, net loss for the nine months ended September 30, 2017, and 2016, includes non-cash vessel impairment charges of USD 22 million and USD 69.3 million, respectively. Net loss for the nine months of 2017 also includes the gain on sale of five vessels in the amount of USD 7.7 million.
During the aforementioned period, revenues increased to USD 134.8 million from USD 91.7 million seen in the nine months ended September 30, 2016. This was due to higher spot market rates achieved by the majority of the company’s vessels, partially offset by the operation of fewer vessels.
TCE rates rose to USD 7,829 per day for the nine months ended September 30, 2017, from USD 4,341 per day for the same period of 2016.
In the third quarter of this year, Genco widened its net loss which rose to USD 31.2 million from USD 27.5 million posted in the same quarter last year.
Revenues went up to USD 51.2 million for the three months ended September 30, 2017, from USD 38.9 million reported in Q3 2016 as a result of higher spot market rates.
“Heightened demand for seaborne iron ore, coal and minor bulks, combined with marginal net fleet growth, led to an improvement in the rate environment during the third quarter. We expect supply and demand fundamentals to further come into balance as we continue to implement initiatives to strengthen Genco’s commercial prospects. Following the steps taken earlier in the year to bolster our minor bulk operations, we recently established a Singapore presence and appointed an industry veteran to spearhead the employment of our major bulk fleet,” John C. Wobensmith, Chief Executive Officer of Genco, commented.
“Maintaining a strong balance sheet remains a priority for Genco and provides us with the appropriate foundation to capitalize on a market recovery. We increased our cash position to USD 185 million at the end of the third quarter, highlighting an improving rate environment and Genco’s leading drybulk platform. As the market continues to come into balance, we expect that our low breakeven levels and strong operating platform will continue to benefit the company,” Apostolos Zafolias, Chief Financial Officer of Genco, said.
As of November 1, 2017, Genco Shipping & Trading Limited’s fleet consisted of 13 Capesize, six Panamax, four Ultramax, 21 Supramax, one Handymax and 15 Handysize vessels with an aggregate capacity of approximately 4.7 million dwt.