Genco Shipping reports Q2 adjusted EPS (14c), consensus (13c)

Reports revenue $80.9M vs. $107M last year. John C. Wobensmith, Chief Executive Officer, commented, “We continue to execute on our differentiated value strategy, as we position the Company to return capital to shareholders and expand our earnings power through drybulk market cycles. Declaration of our Q2 dividend marks our 24th consecutive dividend, representing the longest uninterrupted dividend period among our drybulk peer group. Including Q2, total dividends to shareholders will amount to $6.915 per share, or approximately 41% of our current share price.” Mr. Wobensmith continued, “Following our success expanding Genco’s borrowing capacity by 50% with the closing of our new $600 million revolving credit facility, we also acted decisively to grow our Capesize fleet. This latest agreement to acquire a high-specification Capesize vessel reflects the continued execution of Genco’s growth strategy to further modernize our asset base and improve our earnings capacity. As part of our value strategy, Genco has invested approximately $200 million in the Capesize sector over the last two years, with proceeds from the sale of older, less fuel-efficient vessels reinvested into modern eco ships, during a period of compelling supply and demand dynamics that underpin strong future prospects for the Capesize market.” Mr. Wobensmith concluded, “Building on our TCE improvement in Q2 over Q1, our estimated Q3 TCE to date is strong and we continue to see a pick-up in Capesize and Supramax rates. With our leading commercial platform and significant operating leverage, we remain in a strong position to capitalize on improving drybulk fundamentals. Looking forward, we also believe Genco’s significant financial strength will enable us to continue to capitalize on attractive growth opportunities while continuing to provide shareholders with returns.”