NYSE-listed dry bulk shipping company Genco Shipping & Trading Limited has managed to significantly cut its net losses so far this year.
For the second quarter of 2017 ended June 30, the company’s net loss stood at USD 14.5 million, against a net loss of USD 110.6 million seen in the same period a year earlier.
The company’s revenues increased to USD 45.4 million in the quarter from USD 31.9 million reported for the three months ended June 30, 2016. The increase was primarily due to higher spot market rates achieved by the majority of the company’s vessels during the second quarter of 2017 versus the same period last year, partially offset by the operation of fewer vessels during the quarter.
The average daily time charter equivalent (TCE) rates obtained by the fleet was USD 8,439 per day, up from USD 4,618 earned a year earlier, primarily due to higher spot rates achieved by the majority of Genco’s vessels.
“During the second quarter, we took additional steps to strengthen our leading and sizeable drybulk platform as the market continues its recovery. Our ongoing success optimizing the profile and deployment of Genco’s diversified fleet provides us significant optionality in a rising market,” John C. Wobensmith, Chief Executive Officer, said.
“Our year-over-year results improved and reflected higher spot market rates achieved by the majority of the vessels in our fleet. This enabled Genco to increase its cash position to USD 181 million at the end of the second quarter, further enhancing our financial flexibility,” Apostolos Zafolias, Chief Financial Officer, said.
During the first six months of 2017, Genco shrunk its net loss to USD 30.1 million from USD 165.1 million seen in the first half of 2016.
Revenues increased to USD 83.6 million for the six-month period from USD 52.8 million reported in the same period a year earlier, mainly driven by higher spot market rates.
TCE rates increased to USD 7,458 per day for the first half of the year from USD 3,622 per day for the six months ended June 30, 2016.
As of August 7, 2017, Genco’s fleet consists of 13 Capesize, six Panamax, four Ultramax, 21 Supramax, one Handymax and 15 Handysize vessels with an aggregate capacity of around 4,68 million dwt.