Thursday, April 15, 2010

Genco Trading Show Positive Signs For Bulk Shipping Lines

Final 2009 Profit Analysis Released
Shipping News Feature

US – New York based Genco Shipping & Trading Limited have today released their final figures for 2009. In a year which has been little short of disastrous for container carriers, bulk shippers and tankers alike there seems to be an optimistic note within the sixty nine page report. Genco currently owns a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize, with an aggregate carrying capacity of just under 3 million dead weight tonnes. The company carry all types of dry bulk product from agri grains to coal and iron ore.

The group generated net income of $148.6 million for the full year 2009 on total revenue of $379.5 million and say their success in a difficult market is a result of good relations with a diverse range of charterers. The group also launched a new venture in March, Baltic Trading Limited, a newly formed subsidiary of Genco, announced the completion of its initialpublic offering raising gross proceeds of $228.2 million. Baltic plans to use these proceeds along with a $75 millioncapital contribution received from Genco to acquire a start up fleet of six vessels. The company (Baltic) raised a $100 million senior secured revolving credit facility from with Nordea Bank Finland plc as bridging finance for future vessel acquisitions.

Genco itself amended its own $1.4 billion credit facility early last year, it claims on favourable terms, specifically the waiving temporarily of its collateral maintenance covenant which the company states protects it against volatile asset values. Despite the positive noises no dividend is shown as payable for the year.

Genco rely on long term charters which, once entered into, protect them in some measure from the vagaries of the market, they have 57% of available fleet days currently locked away on contracts with regular customers for the remainder of 2010. Genco acquired three new build Capesize vessels in the past year, all of which were already signed up for charters when ordered. They also picked upon the unsure status of the past years market by seizing upon any ad hoc short term charters which became available at short notice.

For a company only five years old, Genco are trading through some of the most difficult times historically for their particular sector of the market.