Do not look for New York-listed Genco Shipping & Trading to enter into deferral negotiations with its lenders any time soon as some of its dry bulk peers have already done.

Genco boasts what is considered the strongest balance sheet in dry bulk and that came across as chief executive John Wobensmith fielded the deferral question from Clarksons Platou analyst Omar Nokta on the owner's second-quarter earnings call on Thursday.

"I see no point in even talking to banks about deferrals right now," Wobensmith told Nokta, referring to discussions that could push back either loan maturities or amortisation payments.

"We're in a very fortunate position from a liquidity standpoint. We certainly didn't predict a second quarter that would include the coronavirus pandemic, but several years ago we put in place a strategy of keeping a strong balance sheet, low leverage and plenty of cash. That's obviously paid off."

So no, Genco will not be following New York-listed peers like Diana Shipping and Scorpio Bulkers into bank talks anytime soon.

In a client note on Thursday, Nokta explained why the diversified bulker owner does not need to.

"Genco continues to sit with a meaningful amount of cash on hand at $127.7m, plus $15.2m of restricted cash. Included in its cash position is $24m, drawn under its recently-signed $25m revolver," Nokta wrote.

It had $495m in debt at the end of the second quarter, but this is against a fleet value of $728m.

"Thus its net LTV [loan-to-value] stands around a very healthy 45%, especially considering asset values are generally at depressed levels," Nokta wrote.

Genco is expected to add a further $23m in cash to its coffers in the third quarter from the previously disclosed sale of three handysize vessels, with seven more scheduled to be sold in the coming months in a planned programme.

So while Genco appears to be sitting pretty as it is guided to improved capesize earnings booked thus far in the third quarter, Wobensmith is not getting overconfident either.

Jefferies analyst Randy Giveans tried to draw him out into a discussion of "capital allocation" — that is, increased dividends or share buybacks — but the cautious chief executive was not having any of that talk either.

"We have amortising debt. We're going to continue paying our quarterly amortisation," he told Giveans.

"Our thoughts have not changed since last quarter. We're in a little 'wait and see' phase. We do still have the backdrop of Covid-19. We want to get on the other side of Covid-19."

Wobensmith did note that Genco is paying its reduced quarterly dividend of two cents per share and will continue to review the outlay with its board of directors each quarter.