Genco Cuts Quarterly Loss
Image Courtesy: Genco Shipping and Trading US-based dry bulk shipping company Genco Shipping and Trading managed to narrow its quarterly net loss to USD 15.6 million from USD 54.5 million recorded in the same period of 2016.
“We have taken steps during the quarter to strengthen our chartering team to further enhance our commercial prospects focusing on both major and minor bulks, improve the age profile of our fleet and maintain a low breakeven level,” John C. Wobensmith, Genco’s Chief Executive Officer, commented.
“As supply and demand fundamentals continue to come into balance, we believe Genco is well positioned to take advantage of a market recovery due to our improved platform and significant operating leverage,” Wobensmith added.
The company’s revenues rose to USD 38.2 million for the three months ended March 31, 2017, from USD 20.9 million seen in the same quarter last year. The increase was primarily due to higher spot market rates achieved by the majority of the vessels in Genco’s fleet, partially offset by the operation of fewer ships during 1Q 2017 as compared to 1Q 2016.
The average daily time charter equivalent (TCE) rate obtained by the company’s fleet was USD 6,498 per day for the three-month period this year as compared to USD 2,629 for the quarter March 31, 2016.
During the quarter, Genco sold four bulkers including Genco Wisdom, Genco Carrier, Genco Reliance and Genco Success for a total of USD 12.7 million.
In addition, the company expects to sell Genco Prosperity, the last of the ten vessels planned for sale, for USD 2.9 million. The ship will be delivered to its buyer by May 20, 2017, with net proceeds to be recorded as cash on the balance sheet, according to Genco.
As of May 8, Genco’s fleet consists of 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize vessels with a total capacity of around 4.7 million dwt.
In addition to acquisitions the company may undertake in future periods, Genco said it is likely to incur additional capital expenditures due to special surveys and drydockings for its fleet. Six of its vessels were drydocked during the first quarter of 2017 and Genco expects nine of its vessels to be drydocked during the remainder of this year.
