GENCO SHIPPING & TRADING LTD
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
GNK$25.95-0.2%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001558370-24-011391
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0001558370-24-014664
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 181 previous paragraphs and 185 current paragraphs.
111 unchanged; 52 reworded; 18 added; 13 removed; 5 previous and 4 current paragraphs rearranged.
Tables are not compared: 28 previous and 29 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
After a drawdown of $20.0 million on October 10, 2024 to partially fund the purchase of the Genco Intrepid, a 2016-built Capesize vessel that was delivered on October 23, 2024, our debt balance increased to $100.0 million.
Current report
On October 3, 2024, we entered into an agreement to acquire the Genco Intrepid, a 2016-built 180,000 dwt Capesize vessel, for a purchase price of $47.5 million. The vessel was delivered on October 23, 2024. We drew down $20 million on our $500 Million Revolver during the fourth quarter of 2024 and utilized cash on hand to finance the purchase.
Current report
Voyage expenses decreased from $34.3 million during the three months ended September 30, 2023 to $28.2 million during the three months ended September 30, 2024. The decrease was primarily due to lower voyage expenses for our major bulk vessels, including lower bunker consumption, as the major bulk vessels were fixed on fewer spot voyages during three months ended September 30, 2024 as compared to the three months ended September 30, 2023 .
Current report
Vessel operating expenses increased marginally by $0.1 million from $24.7 million during the three months ended September 30, 2023 to $24.8 million during the three months ended September 30, 2024.
Current report
During the three months ended September 30, 2024, we recorded $1.0 million of losses related to the disposal of replaced equipment on certain vessels. During the three months ended September 30, 2023, we recorded $28.1 million of impairment expense for three of our Capesize vessels. Refer to Note 2— Summary of Significant Accounting Policies in our Condensed Consolidated Financial Statements for further information regarding the impairment of these vessels.
Current report
OTHER EXPENSE –
Current report
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST –
Current report
Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023
Current report
Fleet utilization decreased from 97.3% during the nine months ended September 30, 2023 to 96.8% during the nine months ended September 30, 2024 primarily due to additionally offhire days for our Capesize vessels.
Current report
Voyage expenses were $95.7 million and $100.5 million during the nine months ended September 30, 2024 and 2023, respectively. The decrease in voyage expenses was primarily due to a decrease in voyage expenses for our Supramax vessels, part of our minor bulk vessels, including a decrease in bunker consumption as well as lower overall
Current report
Vessel operating expenses increased by $6.1 million from $71.7 million during the nine months ended September 30, 2023 to $77.8 million during the nine months ended September 30, 2024. The increase was primarily due to the timing of the purchase of stores and spares, higher crew costs, and higher repair and maintenance costs.
Current report
During the nine months ended September 30, 2024, we recorded $6.6 million of impairment of vessel assets. This includes $5.6 million impairment for the Genco Hadrian, a Capesize vessel, which was impaired during the second
Current report
quarter of 2024. Additionally, during the nine months ended September 30, 2024, we recorded $1.0 million of losses related to the disposal of replaced equipment on certain vessels.
Current report
During the nine months ended September 30, 2023, we recorded $28.1 million of impairment of vessel assets. This represented impairment for three of our Capesize vessels.
Current report
OTHER EXPENSE –
Current report
Other expense was $0.3 million during the nine months ended September 30, 2024 and 2023, respectively.
Current report
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST –
Removed paragraphs (13)
Previous report
Vessel operating expenses increased by $4.4 million from $22.6 million during the three months ended June 30, 2023 to $27.0 million during the three months ended June 30, 2024. The increase was primarily due to the timing of the purchase of stores and spares, higher crew costs, and higher repair and maintenance costs.
Previous report
OTHER INCOME (EXPENSE)-
Previous report
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST –
Previous report
Six months ended June 30, 2024 compared to the six months ended June 30, 2023
Previous report
Fleet utilization decreased marginally from 97.2% during the first half of 2023 to 96.3% during the first half of 2024.
Previous report
Voyage expenses were $67.5 million and $66.3 million during the six months ended June 30, 2024 and 2023, respectively. This marginal increase was primarily due to higher bunker consumption for our major bulk vessels partially
Previous report
offset by lower bunker consumption for our minor bulk vessels and third-party chartered-in vessels, as well as lower port expenses.
Previous report
Vessel operating expenses increased by $5.9 million from $47.0 million during the six months ended June 30, 2023 to $52.9 million during the six months ended June 30, 2024. The increase was primarily due to the timing of the purchase of stores and spares, higher crew costs, and higher repair and maintenance costs.
Previous report
During the six months ended June 30, 2024, we recorded $5.6 million of impairment of vessel assets. This represents impairment for the Genco Hadrian, a Capesize vessel. There was no vessel impairment recorded during the six months ended June 30, 2023. Refer to Note 2— Summary of Significant Accounting Policies in our Condensed Consolidated Financial Statements for further information regarding the impairment of this vessel.
Previous report
OTHER OPERATING EXPENSE-
Previous report
OTHER INCOME (EXPENSE)-
Previous report
Other income (expense) decreased by $0.2 million from $0.2 million of other expense during the six months ended June 30, 2023 to $0.02 million of other expense during the six months ended June 30, 2024. The fluctuation was primarily due to a change in the realized and unrealized gains (losses) related to our bunker swap and forward fuel purchase agreements.
Previous report
Less: Capital expenditures for drydocking
Reworded paragraphs (52)
Previous wording
We are a New York City-based company incorporated in the Marshall Islands that transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk vessels. After the anticipated sale of the Genco Hadrian in October 2024, our fleet will consist of 41 drybulk vessels, including 15 Capesize, 15 Ultramax and eleven Supramax vessels, with an aggregate carrying capacity of approximately 4,266,000 deadweight tons (“dwt”) and an average age of approximately 11.8 years. We seek to deploy our vessels on time charters, spot market voyage charters, spot market-related time charters or in vessel pools trading in the spot market, to reputable charterers.
Current wording
We are a New York City-based company incorporated in the Marshall Islands that transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk vessels. Our fleet currently consists of 42 drybulk vessels, including 16 Capesize, 15 Ultramax and eleven Supramax vessels, with an aggregate carrying capacity of approximately 4,446,000 deadweight tons (“dwt”) and an average age of approximately 11.9 years. We seek to deploy our vessels on time charters, spot market voyage charters, spot market-related time charters or in vessel pools trading in the spot market, to reputable charterers.
Previous wording
See pages 34 - 35 for a table of our current fleet.
Current wording
See pages 35 - 36 for a table of our current fleet.
Previous wording
Since 2021, we have executed this strategy by reducing our debt by $344.2 million cumulatively through June 30, 2024 while expanding our core Capesize and Ultramax fleet. This has resulted in a debt balance of $105.0 million as of June 30, 2024, a 78% reduction from January 1, 2021 levels. After a voluntary debt prepayment of $5.0 million on July 12, 2024, our debt balance was reduced to $100.0 million. These actions have enabled us to further reduce our cash flow breakeven rate positioning us to pay sizeable quarterly dividends across diverse market environments. In addition to the $42.3 million of cash on our balance sheet as of June 30, 2024, we have undrawn revolver availability of $327.7 million, bringing our total liquidity to $370.0 million. Furthermore, since the fourth quarter of 2021 through the second quarter of 2024, we have declared cumulative dividends under our value strategy of $4.86 per share.
Current wording
Since 2021, we have executed this strategy by reducing our debt by $369.2 million cumulatively through September 30, 2024 while expanding our core Capesize and Ultramax fleet. This has resulted in a debt balance of $80.0 million as of September 30, 2024, a 82% reduction from January 1, 2021 levels. These actions have enabled us to further reduce our cash flow breakeven rate positioning us to pay sizeable quarterly dividends across diverse market environments.
Previous wording
We have invested and plan to continue to invest in energy conservation programs to install various energy-saving devices, or ESDs, high performance paint systems, upgrade propellers among other initiatives on select vessels in
Current wording
We have invested and plan to continue to invest in energy conservation programs to install various energy-saving devices, or ESDs, high performance paint systems, upgrade propellers among other initiatives on select vessels in our fleet. We began installing these ESDs on certain ships that entered drydocking in 2022, and we plan to continue to invest in our fleet.
Previous wording
In order to opportunistically renew our fleet, in addition to the above vessel purchases, we agreed to divest three older, less fuel efficient vessels with their third special survey due in 2024. During the fourth quarter of 2023, we entered into agreements to sell three of our Capesize vessels, the Genco Claudius, Genco Commodus and Genco Maximus. The Genco Commodus was delivered to its third-party buyer on February 7, 2024. On February 24, 2024, we terminated the agreements to sell the Genco Claudius and the Genco Maximus due to the buyers’ breach of the agreements’ terms. During the first quarter of 2024 we commenced arbitration with the buyers, seeking a declaration that we validly terminated the agreements due to the buyers’ breach, and to retain the deposits paid by the buyers in connection with the sales, totaling approximately $3.7 million. During the second quarter of 2024, we and the buyers reached an agreement to settle this matter and concluded the arbitration proceeding in exchange for the buyers releasing the deposits to us. On May 13, 2024, we received the deposits and recorded the $3,650 as part of the net gain on sale of vessels in the Condensed Consolidated Statement of Operation during the three and six months ended June 30, 2024, closing the matter. On March 1, 2024, the Company entered into new agreements to sell the Genco Claudius and Genco Maximus to a separate unaffiliated third-party buyer for an aggregate purchase price of $47.0 million less a 2.0% commission payable to a third party. The sales of the Genco Claudius and Genco Maximus were completed on April 22, 2024 and April 2, 2024, respectively.
Current wording
In order to opportunistically renew our fleet, in addition to the above vessel purchases, we agreed to divest three older, less fuel efficient vessels with their third special survey due in 2024. During the fourth quarter of 2023, we entered into agreements to sell three of our Capesize vessels, the Genco Commodus, the Genco Claudius and the Genco Maximus. The sale of these vessels were completed on February 7, 2024, April 22, 2024 and April 2, 2024, respectively.
Previous wording
Additionally, on May 21, 2024, we entered into an agreement to sell the Genco Warrior, a 2005-built Supramax vessel, for $11.95 million less a 3.0% commission payable to a third-party and the sale was completed on July 5, 2024. Also, on July 16, 2024, we entered into an agreement to sell the Genco Hadrian, a 2008-built Capesize vessel, for $25.0 million less a 2.0% commission payable to a third-party. The sale of the Genco Hadrian is expected to be completed in October 2024.
Current wording
Additionally, on May 21, 2024, we entered into an agreement to sell the Genco Warrior, a 2005-built Supramax vessel, for $11.95 million less a 3.0% commission payable to a third-party and the sale was completed on July 5, 2024. Also, on July 16, 2024, we entered into an agreement to sell the Genco Hadrian, a 2008-built Capesize vessel, for $25.0 million less a 2.0% commission payable to a third-party and the sale was completed on October 4, 2024.
Previous wording
We believe that the following table reflects important measures for analyzing trends in our results of operations. The table reflects our ownership days, chartered-in days, available days, operating days, fleet utilization, TCE rates and daily vessel operating expenses for the three and six months ended June 30, 2024 and 2023 on a consolidated basis.
Current wording
We believe that the following table reflects important measures for analyzing trends in our results of operations. The table reflects our ownership days, chartered-in days, available days, operating days, fleet utilization, TCE rates and daily vessel operating expenses for the three and nine months ended September 30, 2024 and 2023 on a consolidated basis.
Previous wording
(7) Time charter equivalent. We define time charter equivalent (“TCE”) ratesas our voyage revenues less voyage expenses, charter-hire expenses and realized gains or losses on fuel hedges, divided by the number of the available days of our owned fleet during the period. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts.
Current wording
(7) Time charter equivalent. We define time charter equivalent (“TCE”) ratesas our voyage revenues less voyage expenses, charter-hire expenses and realized gains or losses on fuel hedges, divided by the number of the available days of our owned fleet during the period. TCE rate is not an item recognized by U.S. GAAP (i.e., it is a non-GAAP measure). However, it is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts.
Previous wording
The following tables represent the operating data for the three and six months ended June 30, 2024 and 2023 on a consolidated basis.
Current wording
The following tables represent the operating data for the three and nine months ended September 30, 2024 and 2023 on a consolidated basis.
Previous wording
For the three months ended June 30, 2024, voyage revenues increased by $16.5 million, or 18.2%, to $107.0 million as compared to $90.6 million for the three months ended June 30, 2023. The increase in voyage revenues was primarily due to higher rates earned by our major bulk vessels. In the second quarter of 2024, the drybulk market remained at firm levels following a strong start to 2024 led by increased Brazilian iron ore exports, as well as solid coal and bauxite trades together with continued commodity demand from China. In the first half of 2024, firm Chinese iron ore demand has led to import growth of 6% year-over-year, while also leading to growing iron ore port stockpiles.
Current wording
For the three months ended September 30, 2024, voyage revenues increased by $16.0 million, or 19.2%, to $99.3 million as compared to $83.4 million for the three months ended September 30, 2023. The increase in voyage revenues was primarily due to higher rates earned by our major and minor bulk vessels, partially offset by a decrease related to the operation of a smaller fleet. In the third quarter of 2024, the drybulk market remained at firm levels led by increased Brazilian iron ore exports, as well as solid coal and bauxite trades together with continued commodity demand from China.
Previous wording
The average TCE rate of our overall fleet increased 28.2% to $19,938 a day during the second quarter of 2024 from $15,556 a day during the second quarter of 2023. The TCE for our major bulk vessels increased by 49.7% from $19,468 a day during the second quarter of 2023 to $29,145 a day during the second quarter of 2024. This increase was primarily a result of higher rates achieved by our Capesize vessels. The TCE for our minor bulk vessels increased by 10.3% from $12,994 a day during the second quarter of 2023 to $14,337 a day during the second quarter of 2024 primarily a result of higher rates achieved by our Ultramax vessels.
Current wording
The average TCE rate of our overall fleet increased 59.4% to $19,260 a day during the third quarter of 2024 from $12,082 a day during the third quarter of 2023. The TCE for our major bulk vessels increased by 74.7% from $15,424 a day during the third quarter of 2023 to $26,951 a day during the third quarter of 2024. This increase was primarily a result of higher rates achieved by our Capesize vessels. The TCE for our minor bulk vessels increased by 41.9% from $10,296 a day during the third quarter of 2023 to $14,608 a day during the third quarter of 2024 primarily a result of higher rates achieved by our Ultramax and Supramax vessels.
Previous wording
Fleet utilization decreased marginally from 97.8% during the second quarter of 2023 to 96.5% during the second quarter of 2024 primarily due to additional offhire periods for some of our Capesize vessels. During the year ended December 31, 2025, we expect approximately 575 days of offhire related to scheduled drydockings and special surveys. Refer to “Capital Expenditures” section below for further details.
Current wording
Total ownership days decreased from 4,048.0 during the third quarter of 2023 to 3,868.3 during the third quarter of 2024 due to the sale of three Capesize vessels and one Supramax vessels during the nine months ended September 30, 2024, partially offset by the delivery of two Capesize vessels during the fourth quarter of 2023. Fleet utilization increased marginally from 97.7% during the third quarter of 2023 to 97.9% during the third quarter of 2024. During the year ended December 31, 2025, we expect approximately 580 days of offhire related to scheduled drydockings and special surveys. Refer to “Capital Expenditures” section below for further details.
Previous wording
Average daily vessel operating expenses (“DVOE”) for our fleet increased to $6,855 per vessel per day for the three months ended June 30, 2024 from $5,641 per day for the three months ended June 30, 2023. The increase in daily vessel operating expense was primarily due to the timing of the purchase of stores and spares, higher crew costs, and higher repair and maintenance costs. In addition, we recorded a lower level of expenditures relative to budgeted amounts in the second quarter of 2023, while in the second quarter of 2024, we incurred additional maintenance related expenses on our Capesize vessels. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.
Current wording
Average daily vessel operating expenses (“DVOE”) for our fleet increased to $6,423 per vessel per day for the three months ended September 30, 2024 from $6,113 per day for the three months ended September 30, 2023. The increase in daily vessel operating expense was primarily due to the timing of the purchase of stores and higher repair and maintenance costs. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.
Previous wording
The DVOE budget for the third quarter of 2024 is expected to be $6,150 per vessel per day on a fleet-wide basis. The potential impacts of various macroeconomic events, including but not limited to the war in Ukraine, the Israel-Hamas war and the Houthi conflict in the Red Sea, are unpredictable, and the actual amount of our DVOE could be higher or lower than budgeted as a result.
Current wording
The DVOE budget for the fourth quarter of 2024 is expected to be $6,200 per vessel per day on a fleet-wide basis. The potential impacts of various macroeconomic events, including but not limited to the war in Ukraine, the Israel-Hamas war and the Houthi conflict in the Red Sea, are unpredictable, and the actual amount of our DVOE could be higher or lower than budgeted as a result.
Previous wording
Charter hire expenses increased by $1.5 million from $1.0 million during the three months ended June 30, 2023 to $2.5 million during the three months ended June 30, 2024. The increase was primarily due to an increase in chartered-in days, as well as an increase in hire rates.
Current wording
Charter hire expenses decreased by $0.7 million from $2.0 million during the three months ended September 30, 2023 to $1.3 million during the three months ended September 30, 2024. The decrease was primarily due to a decrease in chartered-in days, partially offset by an increase in hire rates.
Previous wording
For the three months ended June 30, 2024 and 2023, general and administrative expenses decreased marginally from $6.9 million during the three months ended June 30, 2023 to $6.3 million during the three months ended June 30, 2024. This decrease was primarily due to lower legal and professional fees.
Current wording
For the three months ended September 30, 2024 and 2023, general and administrative expenses increased from $6.6 million during the three months ended September 30, 2023 to $6.8 million during the three months ended September 30, 2024. This increase was primarily due to higher nonvested stock amortization expense.
Previous wording
Technical management expenses include the direct costs incurred by GSSM for the technical management of the vessels under its management. Technical management expenses were $1.3 million during the three months ended June 30, 2024 and 2023.
Current wording
Technical management expenses include the direct costs incurred by GSSM for the technical management of the vessels under its management. Technical management expenses were $1.0 million during the three months ended September 30, 2024 and 2023.
Previous wording
Depreciation and amortization expense increased by $0.3 million to $17.1 million during the three months ended June 30, 2024 as compared to $16.8 million during the three months ended June 30, 2023. This increase was primarily due to an increase in drydocking amortization expense for certain vessels that completed their respective drydockings during 2023.
Current wording
Depreciation and amortization expense decreased by $0.4 million to $16.6 million during the three months ended September 30, 2024 as compared to $17.0 million during the three months ended September 30, 2023. This decrease was primarily due to a decrease in depreciation expense as a result of the operation of a smaller fleet during the third quarter of 2024 as compared to the third quarter of 2023. The decrease in vessel deprecation expense was partially offset by an increase in drydocking amortization expense for certain vessels that completed their respective drydockings during 2023.
Previous wording
During the second quarter of 2024, we recorded a net gain on sale of vessels of $13.2 million related primarily to the sale of the Genco Claudius and Genco Maximus during the second quarter of 2024. There were no vessels sold during the second quarter of 2023.
Current wording
During the third quarter of 2024, we recorded a net gain on sale of vessels of $4.5 million related primarily to the sale of the Genco Warrior during the third quarter of 2024. There were no vessels sold during the third quarter of 2023.
Previous wording
Interest expense increased from $2.1 million during the three months ended June 30, 2023 to $3.5 million during the three months ended June 30, 2024. Interest expense during the three months ended June 30, 2024 and 2023 consisted primarily of interest expense under our credit facilities and amortization of deferred financing costs for those facilities. The increase was primarily a result of lower settlement payments received under our interest rate cap agreements as a result of the expiration of these agreements. There were no interest rate cap agreements during the second quarter of 2024.
Current wording
Interest expense increased from $2.0 million during the three months ended September 30, 2023 to $3.0 million during the three months ended September 30, 2024. Interest expense during the three months ended September 30, 2024 and 2023 consisted primarily of interest expense under our credit facilities and amortization of deferred financing costs for those facilities. The increase was primarily a result of lower settlement payments received under our interest rate cap agreements as a result of the expiration of these agreements. There were no interest rate cap agreements during the third quarter of 2024. This increase was partially offset by a decrease due to lower outstanding debt during the third quarter of 2024 as compared to the third quarter of 2023.
Previous wording
Interest income increased by $0.2 million from $0.5 million during the three months ended June 30, 2023 to $0.7 million during the three months ended June 30, 2024 primarily due to higher interest income earned on our cash and cash equivalents.
Current wording
Interest income increased by $0.1 million from $0.6 million during the three months ended September 30, 2023 to $0.7 million during the three months ended September 30, 2024 primarily due to higher interest income earned on our cash and cash equivalents.
Previous wording
Other (expense) income fluctuated by $0.2 million from $0.1 million of other income during three months ended June 30, 2023 to $0.1 million of other expense during the three months ended June 30, 2024. The fluctuation was primarily due to an increase in tax related expenses related to our Denmark subsidiary.
Current wording
Other expense increased marginally by $0.1 million from $0.1 million during three months ended September 30, 2023 to $0.2 million during the three months ended September 30, 2024.
Previous wording
During the three months ended June 30, 2024 and 2023, net income (loss) attributable to noncontrolling interest was $0.03 million and ($0.02) million, respectively, which is associated with the net income (loss) attributable to the noncontrolling interest of GSSM.
Current wording
During the three months ended September 30, 2024 and 2023, net income attributable to noncontrolling interest was $0.1 million which is associated with the net income attributable to the noncontrolling interest of GSSM.
Previous wording
For the six months ended June 30, 2024, voyage revenues increased by $39.5 million, or 21.4%, to $224.5 million as compared to $184.9 million for the six months ended June 30, 2023. The increase in voyage revenues was primarily due to higher rates earned by our major bulk vessels. Refer to the discussion above included under the section “Three months ended June 30, 2024 compared to the three months ended June 30, 2023 – Voyage Revenues” for further information.
Current wording
For the nine months ended September 30, 2024, voyage revenues increased by $55.5 million, or 20.7%, to $323.8 million as compared to $268.3 million for the nine months ended September 30, 2023. The increase in voyage revenues was primarily due to higher rates earned by our major bulk vessels and our Ultramax vessels that are in the minor bulk fleet. Refer to the discussion above included under the section “Three months ended September 30, 2024 compared to the three months ended September 30, 2023 – Voyage Revenues” for further information.
Previous wording
The average TCE rate of our overall fleet increased 32.6% to $19,564 a day during the six months ended June 30, 2024 from $14,757 a day during the six months ended June 30, 2023. The TCE for our major bulk vessels increased by 53.4% from $17,759 a day during the first half of 2023 to $27,249 a day during the first half of 2024. This increase was primarily a result of higher rates achieved by our Capesize vessels. The TCE for our minor bulk vessels increased by 13.5% from $12,869 a day during the first half of 2023 to $14,607 a day during the first half of 2024 primarily a result of higher rates achieved by our Ultramax vessels.
Current wording
The average TCE rate of our overall fleet increased 40.4% to $19,458 a day during the nine months ended September 30, 2024 from $13,855 a day during the nine months ended September 30, 2023. The TCE for our major bulk vessels increased by 60.2% from $16,954 a day during the nine months ended September 30, 2023 to $27,160 a day during the nine months ended September 30, 2024. This increase was primarily a result of higher rates achieved by our Capesize vessels. The TCE for our minor bulk vessels increased by 22.9% from $11,872 a day during the nine months ended September 30, 2023 to $14,594 a day during the nine months ended September 30, 2024 primarily a result of higher rates achieved by our Ultramax and Supramax vessels.
Previous wording
Voyage expenses increased from $28.8 million during the three months ended June 30, 2023 to $30.3 million during the three months ended June 30, 2024. The increase was primarily due to higher bunker consumption for our major bulk vessels partially offset by lower bunker consumption for our minor bulk vessels and third-party chartered-in vessels, as well as increased fuel prices during the second quarter of 2024 as compared to the same period during 2023.
Current wording
voyage expenses primarily due to the vessels being fixed on fewer spot voyages during the nine month ended September 30, 2024 as compared to the same period during 2023 . This decrease was partially offset by an increase in voyage expenses for our major bulk vessels primarily due to higher bunker consumption resulting from the vessels being fixed on more spot voyages during the nine months ended September 30, 2024 as compared to the same period during 2023.
Previous wording
DVOE for our fleet increased to $6,558 per vessel per day for the six months ended June 30, 2024 from $5,899 per day for the six months ended June 30, 2023. The increase in daily vessel operating expense was primarily due to the timing of the purchase of stores and spares, higher crew costs, and higher repair and maintenance costs. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.
Current wording
DVOE for our fleet increased to $6,514 per vessel per day for the nine months ended September 30, 2024 from $5,971 per day for the nine months ended September 30, 2023. The increase in daily vessel operating expense was primarily due to the timing of the purchase of stores and spares, higher repair and maintenance costs and higher crew costs. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.
Previous wording
Charter hire expenses increased by $1.3 million from $4.7 million during the six months ended June 30, 2023 to $6.0 million during the six months ended June 30, 2024. The increase was primarily due to an increase in chartered-in days, as well as an increase in hire rates.
Current wording
Charter hire expenses increased by $0.5 million from $6.7 million during the nine months ended September 30, 2023 to $7.2 million during the nine months ended September 30, 2024. The increase was primarily due to an increase in hire rates, partially offset by a decrease in chartered-in days.
Previous wording
For the six months ended June 30, 2024 and 2023, general and administrative expenses were $14.0 million and $14.7 million, respectively. This decrease was primarily due to lower legal and professional fees.
Current wording
For the nine months ended September 30, 2024 and 2023, general and administrative expenses were $20.8 million and $21.3 million, respectively. This decrease was primarily due to lower legal and professional fees.
Previous wording
Technical management fees were $2.3 million and $2.1 million during the six months ended June 30, 2024 and 2023, respectively, with the variance due to timing of expenses during the year.
Current wording
Technical management fees were $3.3 million and $3.1 million during the nine months ended September 30, 2024 and 2023, respectively, with the variance due to timing of expenses during the year.
Previous wording
Depreciation and amortization expense increased by $1.6 million from $32.7 million during the six months ended June 30, 2023 to $34.3 million during the six months ended June 30, 2024. This increase was primarily due to an increase in drydocking amortization expense for certain vessels that completed their respective drydockings during 2023.
Current wording
Depreciation and amortization expense increased by $1.1 million from $49.8 million during the nine months ended September 30, 2023 to $50.9 million during the nine months ended September 30, 2024. This increase was primarily due to an increase in drydocking amortization expense for certain vessels that completed their respective drydockings during 2023. This increase was partially offset by a decrease in depreciation expense due to the operation of smaller fleet.
Previous wording
During the three months ended June 30, 2024, we recorded $5.6 million of impairment of vessel assets. This represents impairment for the Genco Hadrian, a Capesize vessel. There was no vessel impairment recorded during the three months ended June 30, 2023. Refer to Note 2— Summary of Significant Accounting Policies in our Condensed Consolidated Financial Statements for further information regarding the impairment of this vessel.
Current wording
Refer to Note 2— Summary of Significant Accounting Policies in our Condensed Consolidated Financial Statements for further information regarding the impairment of these vessels.
Previous wording
During the six months ended June 30, 2024, we recorded a net gain on sale of vessels of $12.2 million related primarily to the gains on the sale of the Genco Claudius and Genco Maximus during the second quarter of 2024, partially offset by losses on the sale of the Genco Commodus during the first quarter of 2024. There were no vessels sold during the six months ended June 30, 2023.
Current wording
During the nine months ended September 30, 2024, we recorded a net gain on sale of vessels of $16.7 million related primarily to the gains on the sale of the Genco Warrior during the third quarter of 2024 and the Genco Claudius and the Genco Maximus during the second quarter of 2024, partially offset by losses on the sale of the Genco Commodus during the first quarter of 2024. There were no vessels sold during the nine months ended September 30, 2023.
Previous wording
Other operating expense of $5.7 million recorded during the six months ended June 30, 2024 consists of costs incremental to routine expenses that were incurred related to our 2024 annual meeting held on May 23, 2024.
Current wording
Other operating expense of $5.7 million recorded during the nine months ended September 30, 2024 consists of costs incremental to routine expenses that were incurred related to our 2024 annual meeting held on May 23, 2024.
Previous wording
Interest expense increased by $3.3 million from $4.2 million during the six months ended June 30, 2023 to $7.5 million during the six months ended June 30, 2024. The increase was primarily a result of lower settlement payments received under our interest rate cap agreements during the first half of 2024 as compared to the same period during 2023 as a result of the expiration of these agreements, as well as higher interest rates.
Current wording
Interest expense increased by $4.3 million from $6.2 million during the nine months ended September 30, 2023 to $10.5 million during the nine months ended September 30, 2024. The increase was primarily a result of lower settlement payments received under our interest rate cap agreements during the nine months ended September 30, 2024 as compared to the same period during 2023 as a result of the expiration of these agreements. This increase was partially offset by a decrease due to lower outstanding debt during the nine months ended September 30, 2024 as compared to the same period during 2023.
Previous wording
Interest income increased by $0.2 million from $1.3 million during the six months ended June 30, 2023 to $1.5 million during the six months ended June 30, 2024 primarily due to higher interest income earned on our cash and cash equivalents.
Current wording
Interest income increased by $0.4 million from $1.9 million during the nine months ended September 30, 2023 to $2.3 million during the nine months ended September 30, 2024 primarily due to higher interest income earned on our cash and cash equivalents.
Previous wording
Our primary sources of liquidity are cash flow from operations, cash on hand, equity offerings and credit facility borrowings. We currently use our funds primarily for the acquisition of vessels, fleet renewal, drydocking for our vessels, payment of dividends, debt repayments and satisfying working capital requirements as may be needed to support our business. Our ability to continue to meet our liquidity needs is subject to and will be affected by cash utilized in operations, the economic or business environment in which we operate, shipping industry conditions, the financial condition of our customers, vendors and service providers, our ability to comply with the financial and other covenants of our indebtedness, and other factors.
Current wording
Our primary sources of liquidity are cash flow from operations, cash on hand, equity offerings and credit facility borrowings. We currently use our funds primarily for the acquisition of vessels, fleet renewal, drydocking for our vessels, payment of dividends, debt repayments and satisfying working capital requirements as may be needed to support our business. Our ability to continue to meet our liquidity needs is subject to and will be affected by cash utilized in operations, the economic or business environment in which we operate, shipping industry conditions, the financial
Previous wording
We believe, given our current cash holdings, if drybulk shipping rates do not decline significantly from current levels, our capital resources, including cash anticipated to be generated within the year, are sufficient to fund our operations for at least the next twelve months. Such resources include unrestricted cash and cash equivalents of $42.0 million as of June 30, 2024 in addition to the $327.7 million availability under the $500 Million Revolver as of June 30, 2024, which compares to a minimum liquidity requirement under our credit facility of approximately $21.5 million as of June 30, 2024, as well as the net proceeds from our agreed upon vessel sales of approximately $36 million. Given anticipated capital expenditures related to drydockings and fuel efficiency upgrade costs of $15.8 million and $41.2 million during the remainder of 2024 and 2025, respectively, as well as any quarterly dividend payments, we anticipate to continue to have significant cash expenditures. Refer to “Capital Expenditures” below for further details. However, if market conditions were to worsen significantly due to the war in Ukraine, the Houthi conflict in the Red Sea, the Israel-Hamas war, or other causes, then our cash resources may decline to a level that may put at risk our ability to pay dividends per our capital allocation strategy or at all.
Current wording
We believe, given our current cash holdings, if drybulk shipping rates do not decline significantly from current levels, our capital resources, including cash anticipated to be generated within the year, are sufficient to fund our operations for at least the next twelve months. Such resources include unrestricted cash and cash equivalents of $46.7 million as of September 30, 2024 in addition to the $333.0 million availability under the $500 Million Revolver as of September 30, 2024, which compares to a minimum liquidity requirement under our credit facility of approximately $21 million as of September 30, 2024, as well as the net proceeds from the sale of the Genco Hadrian of approximately $24 million, which was received in October 2024. Given anticipated capital expenditures related to vessel acquisitions, drydockings and fuel efficiency upgrade costs of $56.3 million and $47.7 million during the remainder of 2024 and 2025, respectively, as well as any quarterly dividend payments, we anticipate to continue to have significant cash expenditures. Refer to “Capital Expenditures” below for further details. However, if market conditions were to worsen significantly due to the war in Ukraine, the Houthi conflict in the Red Sea, the Israel-Hamas war, or other causes, then our cash resources may decline to a level that may put at risk our ability to pay dividends per our capital allocation strategy or at all.
Previous wording
fourth quarter of 2023. Going forward, given the nature of our new revolving credit facility, we plan to actively manage our debt balance to reduce interest expense and may also opportunistically draw down debt to assist in funding accretive growth opportunities. As of June 30, 2024, there are no mandatory debt repayments until we must repay $105.0 million in 2028. Although we do not have any mandatory debt repayments until 2028, we intend to continue to pay down debt on a voluntary basis with a medium-term goal of zero net debt.
Current wording
Throughout 2022, 2023 and the nine months ended September 30, 2024, the Company made a total of $231.0 million of voluntary debt prepayments, resulting in a reduced cash flow breakeven rate from previous levels. During the fourth quarter of 2023, partially offsetting this debt reduction, we opportunistically drew down $65 million under the revolver of the $450 Million Credit Facility to partially fund the purchase of two Capesize vessels that were delivered during the fourth quarter of 2023. Additionally, during the fourth quarter of 2024, we drew down $20 million under the $500 Million Revolver to partially fund the purchase of one Capesize vessel that was delivered during the fourth quarter of 2024. Going forward, given the nature of our revolving credit facility, we plan to actively manage our debt balance to reduce interest expense and may also opportunistically draw down debt to assist in funding accretive growth opportunities. As of September 30, 2024, there are no mandatory debt repayments until we must repay $80.0 million in 2028. Although we do not have any mandatory debt repayments until 2028, we intend to continue to pay down debt on a voluntary basis with a medium-term goal of zero net debt.
Previous wording
In the future, we may require capital to fund acquisitions or to improve or support our ongoing operations and debt structure, particularly in light of economic conditions resulting from the war in Ukraine, the Houthi conflict in the Red Sea, the Israel-Hamas war, and the trajectory of China’s economic recovery. We may from time to time seek to raise additional capital through equity or debt offerings, selling vessels or other assets, pursuing strategic opportunities, or otherwise. We may also from time to time seek to incur additional debt financing from private or public sector sources, refinance our indebtedness or obtain waivers or modifications to our credit agreements to obtain more favorable terms, enhance flexibility in conducting our business, or otherwise. We may also seek to manage our interest rate exposure through hedging transactions. We may seek to accomplish any of these independently or in conjunction with one or more of these actions. However, if market conditions are unfavorable, we may be unable to accomplish any of the foregoing on acceptable terms or at all.
Current wording
In the future, we may require capital to fund acquisitions or to improve or support our ongoing operations and debt structure, particularly in light of economic conditions resulting from the war in Ukraine, the Houthi conflict in the Red Sea, the Israel-Hamas war, and the trajectory of China’s economic recovery and stimulus measures. We may from time to time seek to raise additional capital through equity or debt offerings, selling vessels or other assets, pursuing strategic opportunities, or otherwise. We may also from time to time seek to incur additional debt financing from private or public sector sources, refinance our indebtedness or obtain waivers or modifications to our credit agreements to obtain more favorable terms, enhance flexibility in conducting our business, or otherwise. We may also seek to manage our interest rate exposure through hedging transactions. We may seek to accomplish any of these independently or in conjunction with one or more of these actions. However, if market conditions are unfavorable, we may be unable to accomplish any of the foregoing on acceptable terms or at all.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
In addition to the $47.0 million of cash on our balance sheet as of September 30, 2024, we currently have undrawn revolver availability after the $20.0 million drawdown of $313.0 million, bringing our current total liquidity to $360.0 million. Furthermore, since the fourth quarter of 2021 through the third quarter of 2024, we have declared cumulative dividends under our value strategy of $5.26 per share.
Current report — wording carried from elsewhere
During the nine months ended September 30, 2024 and 2023, net income attributable to noncontrolling interest was $0.3 million which is associated with the net income attributable to the noncontrolling interest of GSSM.
Current report — wording carried from elsewhere
condition of our customers, vendors and service providers, our ability to comply with the financial and other covenants of our indebtedness, and other factors.
Current report — wording carried from elsewhere
During the nine months ended September 30, 2024, we recorded an impairment loss for the Genco Hadrian, one of our Capesize vessels, and the vessel has been classified as held for sale as of September 30, 2024. The sale of the Genco Hadrian was completed on October 4, 2024. There were no impairment losses recorded during the three months
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
our fleet. We began installing these ESDs on certain ships that entered drydocking in 2022, and we plan to continue to invest in our fleet.
Previous report — wording carried elsewhere
Other operating expense of $3.9 million recorded during the three months ended June 30, 2024 consists of costs incremental to routine expenses that were incurred related to our 2024 annual meeting held on May 23, 2024.
Previous report — wording carried elsewhere
Throughout 2022, 2023 and the six months ended June 30, 2024, the Company made a total of $206.0 million of voluntary debt prepayments, resulting in a reduced cash flow breakeven rate from previous levels. During the fourth quarter of 2023, partially offsetting this debt reduction, we opportunistically drew down $65 million under the revolver of the $450 Million Credit Facility to partially fund the purchase of two Capesize vessels that were delivered during the
Previous report — wording carried elsewhere
substantially similar or related property. A non-corporate U.S. Holder will be able to take qualified dividend income into account in determining its deductible investment interest (which is generally limited to its net investment income) only if it elects to do so; in such case, the dividend will be taxed at ordinary income rates. Non-corporate U.S. Holders also may be required to pay a 3.8% surtax on all or part of such holder's "net investment income," which includes, among other items, dividends on our shares, subject to certain limitations and exceptions. Investors are encouraged to consult their own tax advisors regarding the effect, if any, of this surtax on their ownership of our shares.
Previous report — wording carried elsewhere
December 31, 2023. However, neither such valuation nor the carrying value in the table below reflects the value of long-term time charters, if any, related to some of our vessels.