US-based dry bulk specialist Genco Shipping and Trading widened its 2016 net loss to USD 217.2 million from a net loss of USD 194.9 million reported a year earlier.
Revenues for the full year dropped to USD 135.6 million from USD 154 million reported for the twelve months ended December 31, 2015 due to lower spot market rates achieved by the majority of the company’s vessels.
Average daily time charter equivalent (TCE) rates decreased to USD 4,907 per day in 2016, compared to USD 5,445 per day seen in 2015.
However, Genco managed to cut its quarterly losses as it posted a net loss of USD 24.5 million for the fourth quarter of 2016, less then USD 49.5 million of net loss seen in the same period in 2015.
The company’s fourth quarter revenues increased to USD 43.9 million from USD 35 million reported for the three months ended December 31, 2015. The increase was primarily due to higher spot market rates achieved by the majority of the vessels during the period.
TCE rates were at USD 6,659 per day for the quarter ended December 31, 2016 as compared to USD 4,711 earned in the same period a year earlier.
“During the fourth quarter and full-year 2016, Genco took important steps to further strengthen its leading drybulk platform and reposition the company to capitalize on a market recovery,” John C. Wobensmith, President, said.
Namely, the company completed a USD 125 million capital raise and closed on a USD 400 million credit facility, which “transformed our balance sheet and capital structure.”
Additionally, Genco continued to optimize the deployment, strategic positioning and profile of its diversified fleet.
“We enter 2017 in a strong position to utilize our modern fleet to serve leading charterers, while drawing upon our significant financial flexibility to take advantage of compelling growth opportunities,” Wobensmith said.