GENCO SHIPPING & TRADING LTD [GNK] Filings

10-Q 1 gnk-20240930x10q.htm 10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

⌧

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

◻

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-33393

GENCO SHIPPING & TRADING LIMITED

(Exact name of registrant as specified in its charter)

Republic of the Marshall Islands

98-0439758

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

299 Park Avenue, 12th Floor, New York, New York 10171

(Address of principal executive offices) (Zip Code)

(646) 443-8550

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common stock, par value $0.01 per share	GNK	New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ⌧	Accelerated filer ◻	Non-accelerated filer ◻	Smaller reporting company ☐
			Emerging growth company ◻

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ⌧ No ◻

The number of shares outstanding of each of the issuer’s classes of common stock, as of November 6, 2024: Common stock, par value $0.01 per share — 42,757,895 shares.

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Genco Shipping & Trading Limited

			Page

	PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)		4

	a)	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	4

	b)	Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2024 and 2023	5

	c)	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months ended September 30, 2024 and 2023	6

	d)	Condensed Consolidated Statements of Equity for the Three and Nine Months ended September 30, 2024 and 2023	7

	e)	Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2024 and 2023	9

	f)	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		50

Item 4.	Controls and Procedures		52

	PART II —OTHER INFORMATION

Item 6.	Exhibits		52

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Website Information

We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor section. Accordingly, investors should monitor the Investor portion of our website, in addition to following our press releases, filings with the U.S. Securities and Exchange Commission (the “SEC”), public conference calls, and webcasts. To subscribe to our e-mail alert service, please submit your e-mail address at the Investor Relations Home page of the Investor section of our website. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Genco Shipping & Trading Limited

Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023

(U.S. Dollars in thousands, except for share and per share data)

(Unaudited)


	September 30,		December 31,
	2024		2023

Assets
Current assets:
Cash and cash equivalents	$	46,665	$	46,542
Due from charterers, net of a reserve of $2,236 and $3,257, respectively		20,434		17,815
Prepaid expenses and other current assets		10,860		10,154
Inventories		24,918		26,749
Fair value of derivative instruments		—		572
Vessels held for sale		24,594		55,440
Total current assets		127,471		157,272

Noncurrent assets:
Vessels, net of accumulated depreciation of $310,626 and $296,452, respectively		877,837		945,114
Deferred drydock, net of accumulated amortization of $30,741 and $23,047 respectively		30,132		29,502
Fixed assets, net of accumulated depreciation and amortization of $9,159 and $8,063, respectively		7,227		7,071
Operating lease right-of-use assets		1,516		2,628
Restricted cash		315		315
Total noncurrent assets		917,027		984,630

Total assets	$	1,044,498	$	1,141,902

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	32,937	$	24,245
Deferred revenue		5,886		8,746
Current operating lease liabilities		2,386		2,295
Total current liabilities:		41,209		35,286

Noncurrent liabilities:
Long-term operating lease liabilities		—		1,801
Long-term debt, net of deferred financing costs of $8,330 and $9,831, respectively		71,670		190,169
Total noncurrent liabilities		71,670		191,970

Total liabilities		112,879		227,256

Commitments and contingencies (Note 14)

Equity:
Common stock, par value $0.01; 500,000,000 shares authorized; 42,757,895 and 42,546,959 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		427		425
Additional paid-in capital		1,506,909		1,553,421
Accumulated other comprehensive income		—		527
Accumulated deficit		(577,393)		(641,117)
Total Genco Shipping & Trading Limited shareholders’ equity		929,943		913,256
Noncontrolling interest		1,676		1,390
Total equity		931,619		914,646
Total liabilities and equity	$	1,044,498	$	1,141,902

See accompanying notes to Condensed Consolidated Financial Statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023

(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)

(Unaudited)


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenues:
Voyage revenues	$	99,332	$	83,361	$	323,814	$	268,309

Total revenues		99,332		83,361		323,814		268,309

Operating expenses:
Voyage expenses		28,232		34,256		95,705		100,522
Vessel operating expenses		24,847		24,746		77,756		71,725
Charter hire expenses		1,267		2,026		7,232		6,731
General and administrative expenses (inclusive of nonvested stock amortization expense of $1,508, $1,397, $4,341 and $4,175, respectively)		6,831		6,585		20,815		21,267
Technical management expenses		1,005		973		3,296		3,084
Depreciation and amortization		16,620		17,026		50,939		49,762
Impairment of vessel assets		961		28,102		6,595		28,102
Net gain on sale of vessels		(4,465)		—		(16,693)		—
Other operating expense		—		—		5,728		—

Total operating expenses		75,298		113,714		251,373		281,193

Operating income (loss)		24,034		(30,353)		72,441		(12,884)

Other (expense) income:
Other expense		(239)		(100)		(263)		(298)
Interest income		749		588		2,294		1,877
Interest expense		(2,970)		(1,999)		(10,462)		(6,158)

Other expense, net		(2,460)		(1,511)		(8,431)		(4,579)

Net income (loss)		21,574		(31,864)		64,010		(17,463)
Less: Net income attributable to noncontrolling interest		115		140		286		345
Net income (loss) attributable to Genco Shipping & Trading Limited	$	21,459	$	(32,004)	$	63,724	$	(17,808)

Net earnings (loss) per share-basic	$	0.50	$	(0.75)	$	1.48	$	(0.42)
Net earnings (loss) per share-diluted	$	0.49	$	(0.75)	$	1.46	$	(0.42)
Weighted average common shares outstanding-basic		43,108,844		42,816,045		43,033,786		42,745,681
Weighted average common shares outstanding-diluted		43,656,385		42,816,045		43,642,521		42,745,681

See accompanying notes to Condensed Consolidated Financial Statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Three and Nine Months Ended September 30, 2024 and 2023

(U.S. Dollars in Thousands)

(Unaudited)


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

Net income (loss)	$	21,574	$	(31,864)	$	64,010	$	(17,463)

Other comprehensive loss		—		(1,602)		(527)		(4,223)

Comprehensive income (loss)		21,574		(33,466)		63,483		(21,686)
Less: Comprehensive income attributable to noncontrolling interest		115		140		286		345
Comprehensive income (loss) attributable to Genco Shipping & Trading Limited	$	21,459	$	(33,606)	$	63,197	$	(22,031)

See accompanying notes to Condensed Consolidated Financial Statements.

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Genco Shipping & Trading Limited

Condensed Consolidated Statements of Equity

For the Three and Nine Months Ended September 30, 2024 and 2023

(U.S. Dollars in Thousands)


									Genco
									Shipping &
					Accumulated				Trading
			Additional		Other				Limited
	Common		Paid-in		Comprehensive		Accumulated		Shareholders'		Noncontrolling
	Stock		Capital		Income		Deficit		Equity		Interest		Total Equity
Balance — January 1, 2024	$	425	$	1,553,421	$	527	$	(641,117)	$	913,256	$	1,390	$	914,646

Net income								18,798		18,798		145		18,943

Other comprehensive loss						(527)				(527)				(527)

Issuance of shares due to vesting of RSUs and exercise of options		2		(2)						—				—

Cash dividends declared ($0.41 per share)				(17,814)						(17,814)				(17,814)

Nonvested stock amortization				1,382						1,382				1,382

Balance — March 31, 2024	$	427	$	1,536,987	$	—	$	(622,319)	$	915,095	$	1,535	$	916,630

Net income								23,467		23,467		26		23,493

Issuance of shares due to vesting of RSUs		—		—						—				—

Cash dividends declared ($0.42 per share)				(18,259)						(18,259)				(18,259)

Nonvested stock amortization				1,451						1,451				1,451

Balance — June 30, 2024	$	427	$	1,520,179	$	—	$	(598,852)	$	921,754	$	1,561	$	923,315

Net income								21,459		21,459		115		21,574

Cash dividends declared ($0.34 per share)				(14,778)						(14,778)				(14,778)

Nonvested stock amortization				1,508						1,508				1,508

Balance — September 30, 2024	$	427	$	1,506,909	$	—	$	(577,393)	$	929,943	$	1,676	$	931,619

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									Genco
									Shipping &
					Accumulated				Trading
			Additional		Other				Limited
	Common		Paid-in		Comprehensive		Accumulated		Shareholders'		Noncontrolling
	Stock		Capital		Income		Deficit		Equity		Interest		Total Equity
Balance — January 1, 2023	$	423	$	1,588,777	$	6,480	$	(628,247)	$	967,433	$	876	$	968,309

Net income								2,634		2,634		226		2,860

Other comprehensive loss						(1,628)				(1,628)				(1,628)

Issuance of shares due to vesting of RSUs and exercise of options		2		(2)						—				—

Cash dividends declared ($0.50 per share)				(21,516)						(21,516)				(21,516)

Nonvested stock amortization				1,559						1,559				1,559

Balance — March 31, 2023	$	425	$	1,568,818	$	4,852	$	(625,613)	$	948,482	$	1,102	$	949,584

GENCO SHIPPING & TRADING LTD [GNK] Filings
10-Q	[2024-11]
10-Q	[2024-08]
10-Q	[2024-05-08]
10-K	[2024-02-27]
10-Q	[2023-11-08]
10-Q	[2023-08-08]
10-Q	[2023-05-03]
10-K	[2023-02-22]
10-Q	[2022-11-09]
10-Q	[2022-08-03]
10-Q	[2022-05-04]
10-K	[2022-02-24]
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-Q	[2021-05-05]
10-K	[2021-02-24]
10-Q	[2020-11-04]
10-Q	[2020-08-05]
10-Q	[2020-05-06]
10-K	[2020-02-27]
10-Q	[2019-11-07]
10-Q	[2019-08-09]
10-Q	[2019-05-09]
10-K	[2019-03-05]
10-Q	[2018-11-07]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-02-28]
10-Q	[2017-11-07]
10-Q	[2017-08-10]
10-Q	[2017-05-11]
10-K	[2017-03-28]
10-Q	[2016-11-04]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-13]
10-Q	[2015-08-10]
10-Q	[2015-05-08]
10-K	[2015-03-02]
10-Q	[2014-11-17]
10-Q	[2014-08-15]
10-Q	[2014-05-19]
10-K	[2014-04-07]
10-Q	[2013-11-08]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-01]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-02-22]