Genco Shipping & Trading handed out its largest dividend in a year and is guiding to improved rates in this quarter after reporting in-line earnings for the last three months of 2023.
The Manhattan-based bulker owner also confirmed the sale of two older capesizes — the 169,000-dwt Genco Maximus (built 2009) and Genco Claudius (built 2010) — to an unnamed buyer, as TradeWinds reported on 14 February.
New York-listed Genco reported fleetwide time charter equivalent earnings for the current quarter of just over $18,700 per day with 81% of days fixed — up nearly 8% from the $17,400 per day earned for the previous quarter.
The current quarter’s guidance includes a range of $23,504 for capesize units with 76% of days fixed and $15,798 for ultramaxes with 84% committed.
“Our performance in the fourth quarter was strong,” said chief executive John Wobensmith in an earnings statement.
“Importantly, we capitalised on our industry-leading commercial platform and our significant operating leverage to once again outperform benchmarks and increase TCE by 44% from third-quarter levels. We expect the first quarter to be solid.”
Genco reported adjusted net income of $18.6m or $0.43 per share, which included a non-cash vessel impairment charge of $13.6m on three older capesizes that have been sold.
These included the Genco Maximus and Genco Claudius, as well as the 169,100-dwt Genco Commodus (built 2009), which has previously been reported as sold. Genco said it received aggregate gross proceeds of $56m from the sales and avoided $10m in dry-docking expenses tied to the trio’s third special surveys.
It took delivery of two 2016-built capesizes of 181,000 dwt in November, as has been previously disclosed and reported. The Chinese-built duo has been renamed Genco Reliance and Genco Ranger.
Adjusted net income was in line with the consensus estimates of Wall Street analysts, which came in at $0.42 per share. Adjusted Ebitda of $37.1m was slightly below analyst bets of $37.5m.
Genco’s results for the quarter were down on net income from a year ago, which was not adjusted, of $28.7m or $0.67 per share. Revenue fell to $115.5m from $127m, which it attributed primarily to lower rates achieved by its minor bulk vessels in the ultramax and supramax categories.
The dividend of $0.41 per share was its largest since the $0.50 paid in the fourth quarter of 2022. Genco paid $0.15 per share in each of the first three quarters of 2023, all assisted by contributions from a special capital reserve fund. It did not tap the fund for the current payout.
The earnings statement makes no mention of the recent 5.4% investment stake taken by Greek shipping magnate George Economou, who has nominated two candidates for the board.
