Genco Takes USD 98 Million Loan to Tackle Continuous Losses

NYSE-listed dry bulk shipping company Genco Shipping & Trading Limited has entered into a USD 98 million loan facility to alleviate the effects of continuous losses recorded throughout the financial year of 2015.

Genco Shipping, which merged with Baltic Trading Limited in July, posted USD 66.6 million net loss in the quarter ended September 30, a decrease in net loss of USD 803.2 million compared to the three months ended September 30, 2014, recorded while the company was undergoing a restructuring process.

The company’s revenues increased by USD 1.2 million to USD 50 million in 3Q2015, compared to the three months ended September 30, 2014. The rise was primarily due to the increase in the size of the fleet following the delivery of three Ultramax newbuilding vessels, offset by lower rates achieved by the majority of the company’s ships.

The average daily time charter equivalent (TCE) rate was USD 7,009 per day for the three months ended September 30, 2015 as compared to USD 7,696 for the three months ended September 30, 2014. The decrease in TCE was primarily due to lower spot rates, as well as an increase in voyage expenses during the third quarter of 2015 versus the third quarter of 2014.

Genco Shipping recorded a net loss of USD 145.4 million for the nine months ended September 30, 2015. Revenues decreased by USD 46.2 million to USD 119 million for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014 due to lower spot market rates achieved by the majority of the company’s vessels, partially offset by the addition of additional tonnage.

TCE rates obtained by the company decreased to USD 5,696 per day for the nine months ended September 30, 2015 from USD 8,947 per day for the first nine months of 2014.

“During the third quarter, we maintained our focus on strengthening Genco’s market presence and balance sheet,” John C. Wobensmith, President of Genco Shipping, said.

”In July, we completed our merger with Baltic Trading Limited, which increased the scale of our drybulk platform. In October, we took delivery of the last of four newbuilding Ultramax vessels, increasing our capacity to 70 vessels allowing us to continue to provide our customers with service that meets the highest operational standards. In November, we entered into a new credit facility in order to augment the company’s liquidity position during a challenging market period.”