New York-listed dry bulk owner Genco Shipping & Trading slightly beat analyst expectations for both its quarterly profit and shareholder dividend in a difficult fourth quarter that was followed by a further weakening of rates into the start of 2023.

Manhattan-based Genco recorded net income of $28.7m, or $0.67 per share, topping the Wall Street analyst consensus of $0.65.

The company also continued to pay its high-priority dividend with a distribution of $0.50 that was a penny above analyst estimates.

Genco’s fleetwide time-charter equivalent earnings for the quarter were at $19,300 per day, but they have weakened to $14,200 with 84% of days booked this quarter.

The current period is typically the weakest part of the year for the dry bulk market and has been especially bad in 2023, with benchmark rates seeing lows not found since the dark days of Covid-19 in 2020.

But Genco chief executive John Wobensmith was looking past the current weakness toward more positive fundamentals later in the year.

“As we look through what we believe to be temporary seasonal factors currently impacting dry bulk rates, we remain optimistic on the go-forward outlook based on favorable fundamentals that continue to be in place,” Wobensmith said in the report.

“Specifically, we currently see a number of compelling catalysts, including the reopening of China together with a historically low orderbook, which bode well for a strengthening market throughout 2023. We believe Genco is in a strong position to capitalize on these market dynamics due to our sizable fleet, best-in-class commercial platform and barbell approach to fleet deployment.”

The company's fourth-quarter performance was well down on the $90.9m profit, or $2.16 per share, recorded in the final three months of 2021.

Revenue fell to $127m from $183.3m for the same periods, mostly ascribed to lower rates across the fleet.

The decline continues into the current quarter.

Tugs assist the 58,020-dwt supramax Genco Auvergne (built 2009) in 2020. Photo: US Coast Guard

Genco has booked 82% of capesize days at a blended average of $15,300 per day, with $13,200 as a spot figure, so far in the first quarter. Its ultramaxes and supramaxes have earned $13,600 per day or $11,500 on the spot market, with 85% of days booked.

Genco has embarked on a strategy of debt reduction, fleet expansion and payment of a sustainable dividend.

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While cash from operations appears to be headed lower for the shareholder payout in the current quarter, Genco noted in its release that the company has a cash reserve of nearly $10.8m that can be tapped to “smooth out” dividend payments in lean periods.

Genco voluntarily pre-paid $8.75m of debt in the fourth quarter, reducing its overall debt to $171m. This puts its leverage at just 11% on a net loan-to-value basis.

The company had overall liquidity of $277m at 31 December, including $64.1m of cash on the balance sheet.

Genco’s fleet consists of 17 capesize, 15 ultramax and 12 supramax vessels with an aggregate capacity of 4.6m dwt and an average age of 11 years.