GNK - Earnings call transcript Q1 2018 | Genco Shipping & Trading Limited

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Operator

Good morning, ladies and gentlemen, and welcome to the Genco Shipping & Trading Limited First Quarter 2018 Earnings Conference Call and Presentation.

Before we begin, please note that there will be a slide presentation accompanying today's conference call. That presentation can be obtained from Genco's website at www.gencoshipping.com. To inform everyone, today's conference is being recorded and is now being webcast at the Company's website, www.gencoshipping.com.

We will conduct a question-and-answer session after the opening remarks, instructions will follow at that time. conference by accessible and dialing passcode the next during entering of XXXXXXX. weeks two XXX-XXX-XXXX replay will anytime be the the A or XXX-XXX-XXXX Company. the time, over will this turn At to I the conference Please go ahead.

Unidentified Company Representative

morning. Good

forward-looking Before as Securities call, plan, will to Litigation of conference the Reform we in Harbor anticipate, provisions statements Such certain we begin Act note be presentation, that statements our of such this forward-looking Safe believe making use pursuant words I the XXXX. similar statements Private intend, or other words with budget, discussion expectations of project, estimate, These future are operating and and terms management's current or and meaning the forward-looking expect, on financial performance. future connection observations. in based events, of potential circumstances

could materials Exchange Securities limitation, relating filed website this the discussion to Executive year XXXX, press and & report filings factors results the Company's the on John like the Chief ended introduce without a Company's differ, to XX-K The Genco that and and of At see the of the December was subsequently yesterday. Company's Commission, Company's release including that cause call posted issued please For for the to on Trading Annual the time, I Limited. XX, SEC. Wobensmith, this would Company's Shipping Officer with Form Report with

John Wobensmith

will quarter quarter, and we call conference will the questions. begin I current highlights, fundamentals call. discuss today's results Welcome XXXX reviewing up everyone. then quarter morning by our first the industries Good first Genco's to our for ending call open for then financial

quarter first Genco's review we X, Slide to Turning highlights.

specifications as Capesize minor we strong as of was our the from bulk first of prepare our Baltic our vessel the implemented strategic waited for We're commissions seasonally have lean less quarter, adjusted consisting Dry fleet we commercial transforming success the initiatives and to benefited our and pleased performance first outperformed This driven the of by indices quarter. for and average softer to vessel by benchmark our deployment strengthening class. well platform fleet. During

effectively first seasonally strong drop lower company the of freight off was environment able to a Specifically rate navigate marginal XXXX. from the fourth with a quarter quarter

progressed capitalize significant the year, have ongoing maintained as recovery on we we Dry to Bulk leverage in operating the through the Importantly, market.

the Before $XXX our shareholders new into oversubscribed be market facility I The of entering commitments a providing for in restrictions through the performance like will during to highlight facility in a ability loan acquisitions are expected million. additional facility discussing ability and credit on current with our for the believe senior quarter the letter would We new to removal recovery success up strengthen more by to the dividends. secured commitment for vessel create to pay while recent value detail, our company the XX%. to approximately indebtedness

on at favorable Specifically lead SEB, Genco's banking Nordea Crédit are this appreciate DVB, to the which We industry support leading the mandated arrangers strong Agricole XXXX. least leadership Bank, facility prospects group for Danish and ABN and Finance. and for capitalizing our position throughout highlighting expect ongoing Ship of bookrunners continue we fundamentals, AMRO,

reflecting Moving position revenues cash the in million of quarter highest ended onto we net one industry the XX% year-on-year. cash with our nearly results, representing the and positions success $XXX.X our growing

earnings considerable the and leadership power our cost of Our fleet.

basic recorded earnings share basic and impairment and we or non-cash million net or a loss diluted adjusted $X.X income net net per charges loss $X.XX For the share per was of million diluted $X.XX. first of $XX.X excluding quarter, adjusted

commodity provide and producers scale Dry Our our a logistic Bulk leading our ability with strong in quarter charters operating solution. of the direct performance a and first full initiatives result to was commercial

quarters first XXXX of charter increasing year-on-year. success have time equivalent XXXX by time rate equivalent we're charter rate in quarter our each pleased Following increased our XX% to

Turning to our market X, Slide we've leading position. outlined

quarter continue our continue to and initiatives improve technical commercial, drive to first results operating we and the expect margins to During going forward.

addition of time unique over approximately been three vessel up $XX,XXX for equivalent per per in which will the quarter. our market to available capturing day, day fixed XX% wide days On of components. outperforming Slide have first I the $XXX upside in is X, fleet for charter made per discuss forward In second Genco's of quarter our by position benchmarks a going main

increase liftings benchmark. further voyage drive our have our to incorporate voyage on and growth of currently deployment the almost cargo fleet and revenue and as as service differentiator major focused year. well on to transportation charters half last is the and First, compared business we this minor full logistic outperform we Notably, part positioned of mix our into to margin We're company. fixed continue direct both provides based important commodities Genco bulk minor none, of for bulk time vessels solution.

to fleet Specifically ore us to strong trades significant an Supramax fleet short-term while bulk and focus a our in provides stability. we direct enables us to iron fleet ensure a maintain effort of exposure upside various with to rising to deployment continue maintain transferred level grain Capesize and our exposure strategy. market, potential optionality Genco In achieve or in our Handysize minor with a our the commodities

market our now positioning of the of the second and Capesize Genco come quarter vessels improved from benefit between several the conditions. open will Importantly, end

recently we Singapore we to generation by our trading customer as vessel. base. in customers to generate finally, well key with office Second, as year, Copenhagen. we active directly maintain established will last cargo identifying strategy commercial business leveraging tangible results approach our This with increased our our presence enter expertise since continues strengthened into lanes global while footprint relationship an in substantially revenue in-house to have have our And

allowing prospects Capesize New the While company's and interest backhaul for augment to profile complements the our XX-hour a call focus us operations strengthens discuss Zafolias our further earnings the East closer to of I'll Singapore minor Far gaining and Officer expanding office operation on market bulk Chief bulk York provides margins. our and of to order Genco minor Together an The better fleet. Copenhagen the the our European in presence on the Far network employment vessel and East trades active create to clients financials. our in over to to now Apostolos our presence turn the company while Financial cargo fleet.

Apostolos Zafolias

John. you, Thank

to financial represented. results X, Turning Slide our

For the by for million. were of more our by fewer the higher increased first employment partially XXXX voyage revenues year compared XXXX primarily as XXXX quarter ended the the vessels revenues first increases The offset compared of operation were with to $XX.X vessels the company's quarter These million first to $XX.X revenues the rates in doubled March as of quarter XX, achieved during due to the market spot spot markets the period. of majority fleet and of prior vessels charters. of the on than

the of impairment $XX.X adjusted loss or share for the or compares For charges. first $X.XX. income basic per loss and $XX.X $XX.X XXXX, a net for $X.XX first diluted XXXX, to share basic was share This million million $XXX,XXX net per loss earnings XXXX. quarter Adjusted basic per excluding first of a diluted share net quarter recorded of the or diluted million of and company $X.XX of non-cash of per the and of of loss quarter

XX, items Slide XX, balance key to represent sheet March XXXX. out of Turning

Our was cash position including million. restricted $XXX.X cash

fleet consist vessels in and billion cash. $X.X were of assets total the primarily our which Our

Our of of debt million $XXX.X cost, total March gross XXXX. $X.X unamortized million XX, of issuance debt was outstanding as

first Slide rate XX.X% to XXXX. the were utilization Moving our XX, for quarter of

vessel vessel Daily $X,XXX TCE per Our per which increase due per months were vessel $XX,XXX to per $X,XXX per quarter in $X,XXX of by progress quarter day day compared the of day our vessels fleet The made budget The primarily first per $X,XXX in in vessel first was expenses operating vessel for per TCE we've the our XXX. per of for and compares take higher per vessel and day our to of same in XXXX. three per purposes achieved all commercial the lower our managers on the views to best rate the weighted into quarter in vessel expenses expenses XXXX of implementing was recorded over of measured operation. year the XXXX. initiatives. first vessel fleet day the a entire our for of vessels. per provided year for per management to over is year are We full order for $X,XXX vessel estimates basis technical the XX the Based in by average on budget each DVOE incur a of for believe and period account daily fleet will operating for that our XX-month day comparative

enable into objectives. facility outlined as John Slide a facility secured senior XX. believe the accomplish we five-year, credit us entered mentioned, commitment million to $XXX for We As in important will letter

seven into for wells by consolidating expect we paying capital Specifically structure down on our one facilities and simplify debt sale. existing our identified

The will credit addition approximately maturities. a and vessels recalculated per and the amortization based quarterly $XX can our our be collateral quarter facility new to upon under in expect interest expense request. In be we reduce is million changes facility on new expected extend

closing, Importantly, LIBOR December date subject facility for growth to a eliminated LIBOR The XXX expected is which under net it and XX, interest is facility at be credit will enhancing XXXX quarter five definitive on to our plus number restricted capitalize total through will to the in in the basis conditions the second EBITDA. opportunities and thereafter years flexibility indebtedness months upon to terms under ability points facility Borrowings standard be of covenants basis points the the are dependent and of following plus XXX bear XX range of XXX new of attractive to maturity last and the final potential documentation. providing of XXXX dividends.

XX, select expected of respectively. facilities. of million $XXX for balances cash Turning credit be $XXX.X the XX, debt refinancing would forma XXXX items as and to our and million we refinancing, sheet Slide the reflecting March our Pro balance provide

Turning second outline XX, now Slide quarter breakeven rates. to we cash our

quarter last maintenance safety company's the industry among cost per in of provided in Genco's the remain is in expense initiatives, several your those lowest levels operating optimization the further to breakeven be reference. implemented rate we the rates the We per details cash We've the breakeven result and Reducing operating presentation Our appendix also anticipate direct without for vessel, for vessel of the a day $X,XXX standards. high our second XXXX. over sacrificing years. which

our the for expect which of In quarter. is vessels of addition we on to second have We provided of XXXX. to schedule during drybulk of currently three one be remainder occur XXXX, bottom a scheduled during the the slide, drydocking the

updated the to new Following plan facility analyst million breakeven now will we over discuss industry of provide reflect the Allen, market call the Peter credit to drybulk our turn rate to $XXX I fundamentals. to closing structure.

Peter Allen

XX, represents I'll which begin Thank you, the with Apostolos. Slide Index. Dry Baltic

average two-week is nearly increased was New nature which the Year This which sector the the three front that primarily Capsize due than is in of in under during the strong XX% occurrence fourth celebration led well which increases Subsequently, multi-year quarter of first year-over-year quarter weather of were and the of XXXX included building order pressure higher deliveries period which days X,XXX in a XX. in consecutive came by Of over availability reached, XXXX basis. book to together as second the seasonal XX leading January to Australia, highs XXXX. X,XXX increase of a in Chinese the in to February. hampering XX% from the Brazil BTI's the new April to April Following the more disruptions note, doubled loaded quarter BTI a as XX% over with QX, rapidly BTI on related cargo

to following ore Slide This year-over-year. in essentially million imports of thereafter in China's reaching some to freight We to believe construction peak originally iron last in impacted a is Turning of of flat for near ore influencing ease demand weeks Northern rates. months to overall impact To QX have record trend had volume market as to reversed the iron performance going the spring of on half materials market over the sector. positive the into that increase in lifted developments negatively this three mid-March of sign feel raw extended that the point, recent second we XXX After onset key for critical reaction for activity. the restrictions restrictions iron China season rates which Capsize few tonnes the April. several forward. January. is Brazilian the of ore are Capsize lifting the during remain in of XX, and be were onwards seen output in supposed increased weeks outline buying healthy shipments these

ore During which million X% quarter the exports of first iron the Brazilian produced during year-over-year. was by time decline fell Also X%. of year-over-year only tonnes Vale XX

guidance will this and the cease production given output that operations ore iron This Brazil weighted XXXX. the higher due as concentration made it's Brazilian growth iron of QX, year, reiterated historical XXX the development, QX towards in mine is mine of Vale million to Minas-Rio XX a of implies which exports still tonnes Importantly, announcement XXXX to balance of pipeline second we're year-over-year in the represents by American approximately rupture. tonnes million recent for further in Anglo ore trend the SXX the the for D with half of of be Vale will line view ramps the up. as year Despite important

inventories that highlight year-to-date in steel several output XXXX the having steel QX, balance restocked year. by during increased strong a during global down has March. has the highs for significant low we year-over-year. After been QX built XX, in Slide materialized has multi-year and the China's throughout production. which was the inventory to firm steel Steel the XXXX China. of A X% inventory to rise, development years Despite Turning steel been traditionally rapid in drawn build remained

strong from highest rose March, led its fallen point XX% peak high inventory over to March Following also steel which since aggressive [ph] the as production, due the tonnes [Indiscernible] been increased steel demand has as has destock XXXX. XX stockpiles million by firming to prices. is to

of production India, in the strong South the for of In global highlight This steel rest economy. the led addition remains EU. and and is the important the in solid in been output market the strengthening Korea China, drybulk to year-to-date by world

another basis. drybulk primarily nearly lack to coal power domestic market the located four and of XXXX tight the India's strength factor with many to of remain during coal for the XX% imports been coal due to industry to China's infrastructure This combined impacting first plant seaborne year-over-year the has of demand. cost trade. the relative steel addition the coal rose that, In stockpiles peak was plants coal seasons. supply developed Chinese heating regard power by well on months a near With the fact India, bode are low the

to In trends minor and we certain the the on Slide trades, XX. iron addition global ore global bulk coal highlight grain and

for With beneficial global a particularly overall landscape, economic catalyst believe will we be growth minor the this positive improved for be vessels. trade bulk will our and

crop relative soybeans expect primary now following destination Specifically, to middle until producers. South are from we're in exported. as the and deceleration current side third Brazilian strong the to content remains in the outline protein be US during we spike currently right the in then slow of seasonally China of the XX, Slide end saw but other high American momentum deliveries season their grain that seasonally a We a case. soybean soybean given supply soybeans Brazilian shipments significant which newbuilding for On We note traditionally from in don't the period a we in months. a the get January fundamentals quarter. the

also over the period. by however down down by XX% approximately Newbuilding strapping same is year-over-year, are deliveries over XX%

have world fleet equal in The new On the the order is XXXX, after as fleet old, fleet potentially on this the the could the X% from to do tonnage with as has the placed percentage current than orders of that also year. entered XX in great front the over at book percentage book current compares year-to-date. offset time line last of years a book where to fleet. some order was in is which as over since water, been X.X% it of or the pushed XX the as order note We X.X% the of This mid-XXXX. the newbuilding low in that XXX to

order much approximately happy rate of considering the slippage remains We that deliver take is This also we to will actually that be be seen presentation point and would our XX%. your to how concludes book out now questions.

Operator

question first from [Operator our go Instructions] and from Chappell ahead. Evercore. comes Jon today Please

line open. Your is

Jon Chappell

some plan of much for of the unencumbered you. question passed to three update kind John, non-core you renewal and months sell has plan, ago on the months three Is there. reported these vessels not older fleet

from you now with you is that prior on how was kind your much quicker, that. is So it from move proceeding S&P pretty vessel sales prices, what's I plan? sales of that for higher up massive maybe values sideline liquid, the just of we kind process holding executing holding wondering, should the think been market seasonality remember about

John Wobensmith

I think execute see on shortly. you'll start to us that relatively

You're correct.

have softer We the of moved of see with side more now. quarter probably what be being Capsize I beginning want rate market on terms that a it, again where is First in the think into we the the and prices which there bit side, so and of freight the the we up year, since right obviously to fixtures. a sales can obviously getting predicted did you firmer little we're liquidity asset executing window in something

Jon Chappell

naturally that side leads too. purchase to then the and Okay of it,

an the building dividend. for return to window trying to is that cyclical it's just really that want before area are of cost there a debt about how about be, some now time there is you benefits think cash there's get of a side out not be to reintroduction that or generation from a dividend. I healthy at point ask paid And and So buy act I versus this question, versus and to recovering this of on the in debt, cash whether financial and the a yet big right the we about out of cycle strong now, potential debate the lower industry should laid flow a do you a one, as great fleet acceleration adding you is, closely flexibility think to balance, about the already kind flexibility shareholders leverage quickly think thinking market your capital reason now to versus all you in like lot the and target in refinancing, the pretty

So super helpful? question, any long be that would insights on

John Wobensmith

Look could may this have you, the it I opportunities been we we one historical year We get I'll still thing a both call, quarter mean conference good Ultramax's and of values last period least tell we think still in until XXXX. fourth I numbers. asset low as on quarterly third, stands today, think where, this in asset significantly said entering still values the the we move case, the I've at relatively into - that are year, prices not at year are flat next there the believe be the

So take getting numbers. some capital that, be able you to wind up outsized advantage of could on return real

If you're so able - to today, to speak.

So I in did, there. structuring we by company obviously the have dividends. the an what facility right there. still terms think as to strategy is way conversations credit there's it as pertains of opportunity the a Clearly We those

John think is right having I you're paid think, put a if a argument big I overall in a place the is in dividend you Do this for place? sustainable a you can that, question. there dividend now that would the have is there, that cycle hopeful going a would into that taken valuation equity be be that of can would forward. you the valuation, any that throughout market I be get

But something I quarter, dividend think variable that, becomes no that way think It a you're little to unpredictability difficult. I dividend in place decisions a I each structure at paying you out obviously where a problem is made and the think be more we've if necessarily go. ability going - to forward, could in on look something it. it's certainly that we're the stable going we'll put

Jon Chappell

All agree one in prior last lost question. that. was because with I then the And it right, just

you've cycle with this long This this Does - mean little refinancing this place. facility that, place? comfortable like forbid, for if with deleveraging if a focused reasons. were right a point worsen now in the know the feel for I this at kind god in been and time $XXX both things bit. Now to million you're I on does obvious

John Wobensmith

the XX% thought there be to to will company demand managing Yes, We basis look sort XX you at and softer way be softer and I XX% Unfortunately least and but market leverage think. take process think next obviously is advantage and again. we be in want months I changed. able going period to of for fundamentals, Again is supply that your be the invariably our don't leverage. of relatively think this a we to that strong do to the period that want has

Jon Chappell

John. All right, helpful. very Thanks

Operator

Thank you.

today ahead. Please from go question next from Our Bank. comes Mehrotra Amit Deutsche

Chris Snyder

is on Amit. Snyder This Chris for

of So to are side. the on fleets kind follows Obviously on the potential my question up smaller targeted I the pretty think acquisitions. you vessels your diverse, XX have first but guys seller

of on on. will guys kind you what in, be opportunistic will specific very you're have it class asset prices you guys will there, at just when be So focusing looking based vessels kind of, be interested

John Wobensmith

Panamaxes, ton that then the we've XX,XXX Supramaxes. first all are the two older for identified vessels and older So sale of the of deadweight Handysize the

we then it's Ultramax's So which Again, the a capes our way sectors ton. the the company to as Handysize. around vessels of in not sense team strong well sector combination a built are strategy bulk the the changed has the all Capsize XX,XXX of have older the at as down the deadweight the minor that and commercial

box In to be it's side terms growing want the again opportunistic the on going the bulks, trades. basis see growth side, where minor of around the the Capsize iron to trades the we demand say we we the see then on in would what growth because grain growth I and well but also grow, the in where is ore and focus on growth of side GDP

trade to margins particularly year have year fleet increase a your trade the to have flow. iron Brazil. the which the volatile on, [indiscernible] all that's upside come to stable next are mid-range, on an from and significant we've we'll what of minor equity having [indiscernible] the volumes providing be revenue the like on for the focus bulk in little of and and team the having then going But while. We more ore the So can telling this a From focus the been but idea a clearly fleet, less that very predicted and can with use the strategy, Panamax's. story that this commercial strong a that capes, we're or efficient

Chris Snyder

the Yes, asking that's have I a healthy reason cash inflect are And sheet. breakeven flows well the very you Cash balance was higher helpful. guys starting above of to so part because risk just given seem you could capes, of almost handle it healthy of you kind of in after kind business the know more company. the kind like by going the does of status more obviously

John Wobensmith

I but you risk be will and with that for Capesize think that. we do that's right, want just any paid to sector it think

Chris Snyder

then And just you. thank question. next Okay,

you mentioned the As that oversubscribed, your low. I at think guys the current facility was still LTV is very XX% moment

I kind below XX% range. guys you're XX%, that have said to you think we of you targeting

that So do to and facility you more to range that down the of kind to this have on into ability transaction kind future or of take is XX% of a kind the road. get be leverage upsize XX%

Apostolos Zafolias

at if of credit that off available adding road, facility be to this think upsize advantage capacity I not point. we will that anything us additional we is this take an the will down

Chris Snyder

for me. does thanks. it time for Okay, Thanks your That guys.

Operator

you. Thank

Please from ahead. Gibbons Our next Randy question from comes Jefferies. go

Randy Gibbons

in quick One, of you versus your the spot of more sounds spot of getting questions. in it kind to the quarters on quarters, exposure months, time strategy that short-term charters know I little for of a contracts coming mentioned you're kind expire Few in ahead. true so kind the like is kind of coming accurate? allowing looking the some focused at your

John Wobensmith

in we doing seasonal to not standpoint, sense short-term to of year. year as liftings, entire short-term again we're has that fleet bulk for will move middle last a of standpoint believe also the and Yes, trip demand the the Capesize the but been again, doing changed days think up. XX direct cargo year believe the spot, since that do anywhere that go because really voyage, minor charters then voyages supply but on I from through from this on the we we've most half XX even sector we part continue and is that have a short-term second both from we been focused

Randy Gibbons

kind rate. EBITDA to using margin looking kind points, facility the new last future then XX-month XXX XXX that and run kind to at tied I current EBITDA. is of the know Okay is basis of of

- would that kind what using is going XXX, trying just XXX be XXX lower of current move? what to So equate around some to after would that that what driving closer forward sensitivity to

John Wobensmith

to of XXX it XXXX. mark in first expect to beginning closer Yes, the quarter

Randy Gibbons

in million Chinese see Excellent. and on announced that one XX imports production quick impact continued kind kind with drybulk tonnes. market have affecting of XXXX mandated basically of months then at restrictions All months? line government some Do XX, you iron any ore the in that last market coming parts China were right question. Recently of in

Peter Allen

in approximately earlier saw really we really and think I spiking half $XX,XX in second a Capes Well [indiscernible] April up in that pick from with the saw of particular you April. today $X,XXX

see stronger Chinese we as pick up. So imports ore season seasonally we'll steel of and think year, and I peak now construction into the seasonally iron a second continues half right as that we get

John Wobensmith

biggest which inventories in actually think what I push down and was from it sales, earlier in to their what I I is, call mentioned means thing product. that least Peter mean that Randy, below drew think is, Allen the Vale's that is they at production we order takeaway the

second going year, we SXXD. the there's forward new will from that's second up tonne So pent their from you've wasn't growth Vale the particularly then million that, see and why think half here half in of from XX that shipped in produced of volume of got on first the appearing in and quarter coming this and top the that we wasn't

steel seen the ever a only few really few is in come about seen inventories front, iron there China than is half the down the add half. lot a so that strong. does know, you growth I was second in construction this industry we first the tell the in I'll steel of and is, thing that, lot that, in faster margins a bearing think the industry of on months quite expect steel the decade and you strong. over And ore The strong, this we've of ago we've are inventories talk the year industry

into plays this ore attached trade of So born higher again quality the to and that. iron growth kind it sea

Randy Gibbons

All and asked, are my other thanks so questions again congrats. Appreciate.

Operator

comes today from [indiscernible]. Aspen go [indiscernible] Please question next Our from ahead.

Unidentified Analyst

where Just is by guidance going essentially the prices you following rate the which your segment know a the [indiscernible] this to historically the has what's see for [indiscernible] I part also I as in the calling coal Chinese back for XXXX. of flat going. for confirm down take April, you remainder portfolio longer to up vessels May of off now prone mean, up on are will is rates taper been term, smaller on for for super comment substantially, your XQ. good but indicator outlook [indiscernible] be seasonally the and Panama this have

John Wobensmith

in one. a coal is general Well difficult

think coal general in into imports China I be flat. will

saw growth you think think tampered, the it's very the of Chinese maybe I some the closed to of first coal ports year, of sell government that has difficult China. part in import, in I of some the to lot but a

from side and transportation have around country. coal thermal infrastructure the India in to optimistic of and I Taiwan turned imports growing particular. inefficiencies of the turned it as standpoint Philippines, coal on imports, think support production coal black coking an What domestic on, I see coal coal they box I'm off. it's into the when the well moving terms their side both more industry growth also imported on gets as And is, because on in a it it in in on gets Vietnam when steel the

said, difficult some the Taiwan. India such the but coal lesser I very say this as policies think industry, Vietnam as of is on and more well in of of China again optimistic countries growth well I as year as on I'm the Philippines, because government the Asian So

Unidentified Analyst

a - the you're you and side, you've market knowledge the office you commercial in through then the know gained far any All fleet right, these positioning talk new about doing you've maybe on feel Denmark and bit whether can measures. so progress

John Wobensmith

Well there's real-time we've an no everyday information. knowledge, market flow it's doubt, of gained

piece the trades can operator, and few we another there's What our have with for ourselves. charter the one out been and more also someone cargo that cheaper, business we and I have keeping and quarters when in think do cutting ship where of that cargo with of doing cutting else and begun for to that the direct cargo ships the more and doing it we've for is cargo, performing capture margin booked comes then the a piece situation spread. middleman ship that's now that [indiscernible] last take there's arbitrage our that it and move from maybe we ship where time of something take we out

well office the we've trades as So few of opening arbitrage the the Europe more for position those up grow trades to of been doing that's York of trades one main presence up be lot take in and gets going. Copenhagen those a cargo and as in before and of those New to reasons place

that want market. grain a market to we're make that sure attached side. we So It's definitely to the on big

Unidentified Analyst

this Supra on are able mean this And in mentioned going you you, interesting. that's is time the voyage I among you that's downplay. of to me, I the think the industry. then XX-XX correct then now I wrong highest do split Yes, or the but kind across the charter cape How [indiscernible] if feed? lump and potentially still sum mean that I'm does

John Wobensmith

we've majors. been capes with - the actually we've started the charters directly No, voyage doing

We a tender somebody have been coal on outperform also us charters maybe market. trip particularly to with partnering the which and doing allows actually short-term

are so So but but is based well. except it's strategy cape, as smaller we're doing the in happening minor in the it's the everything a as bulk much doing not reason. capes capes definitely obvious for in same yes fleet, as minor on bulks, we're so as There XX the Singapore it's

Unidentified Analyst

guys. Perfect. That's good color. Thank you

Operator

come from ahead. Global. [Operator Instructions] Fyhr question Please go from Seaport Magnus next our

Magnus Fyhr

Just left. one question

any far guidance on to what cost down days you're as the do [indiscernible] going ballast system you base? treatment on good XXXX. drydocking thoughts gave given installations as the water Have XXXX and for You and

John Wobensmith

Magnus that in we sales some [ph]. already candidates. dry-docking treatment are $XX.X the have put includes including In that total Q our we'll to vessels updated the we guidance expect guidance XXXX some ballast last in systems some water be but million of this and

be those, ballast treatment systems would that water excluding year So for again included. of full it million the dry-docking about XXXX would $XX and be and

Magnus Fyhr

about And should $X vessels about a assume we per down? that's million or vessel XX

John Wobensmith

or so. would XX vessels It be

Magnus Fyhr

guidance. Okay, Thanks great. that for

John Wobensmith

because plan be the Yes executed. as fleet focus renewal XX you the would Magnus will I know on

Magnus Fyhr

Yes, all Thank right very you good. guys.

Operator

from Capital [ph] next comes question ahead. Noble Markets. Paul go from Our Frat Please

Unidentified Analyst

the loose facility, done? at ends left expect much the on Not to you but talk you be tying credit to up when do new look that when about,

John Wobensmith

We quarter. the second expect that to be within

Unidentified Analyst

the forward? allude timing that a a about look facility And credit talk you first and and special John then - factor is dividend that the dividend, the that regular renewal program gone sort about will you when getting stay decision? then gaining you at to of of executing And you're thinking whether fleet on moving tuned, a this versus is

John Wobensmith

about we been right, of Again dividend take forward credit All did, of again the any in dividend not structure this talk that's point. look first. the a have terms we facility board but no why let taken obviously dividend the we going has - so as at the idea made me and decision by we

commitment keep the has place. In of that letter is to bank in you terms on facility, fleet in the renewal, mind, signed have so been

said just is it second far in too the of So quarter, the documentation. not that's Apostolos by away. end

So this - terms fleet and relatively believe of up us plan. quickly this setting will it's renewal in I the is happen holding not up no

it months you still a MLA As from physical takes couple get usually when to you to sell in ship know executing delivery. a

will that. fleet very credit facilities actively on now. those we're So before clear, get closed we program renewal to be to just be Meaning working

Unidentified Analyst

changes? you at as Can working working on Apostolos capital for then first walk the as through of the year least and clarification pretty the we or is quarter rest for the of Thanks far use capital negative the cash.

Apostolos Zafolias

$XXX of is think movements went going our Yes seasonally but payments million like a the you the refinancing. capital usually for first the XX, it debt pro towards first mean I other of million weighted million. quarter paid because of the working half quarter and end last terms balance of that, at $XX.X are first amount And the cash to the that, payments insurance for heavier was in of March mean quarter I year. I quarter, the on balance credit $XXX from anything the the majority gives beyond cash forma down will of of of pro be pro the indication forma but the facilities that first as Slide sheet the include year, balance an or forma forward it doesn't presentation sales what provided after I vessel any think of the we of XX so have

Unidentified Analyst

Great what's a there. just the bit and of success best about we talked it. talk could you then, opening about Copenhagen, the commercial if But measure little office in strategy

last sort I me mentioned direct call that that and focus quarter success. you you a customers, that number were of doing the in the measure that on give of is sort on is XX second with how to think business to into commercial color expanded

John Wobensmith

plus the so with Yes, grow. number get over continue I would dealing that XX to now nine expect to and it expect up to six to we're customers of I sort to I new months. next XXX mean,

indices. and think best doing this office company how the is how the the but I to adjusted that measure way compared we was doing about talked earlier, to

that's continue and the one a going by day, we we if the of fleet this adjust something you indices probably biggest report For that's think outperformed judges. will to I that forward, $XXX our quarter, specifications to

Unidentified Analyst

lot. a Thanks Great.

Operator

Thank gentlemen, and conference conclude that participation today's your for Ladies today. very much you will call.

disconnect. now may You

Genco Shipping & Trading Limited (GNK) 9 May 182018 Q1 Earnings call transcript