GNK - Genco Shipping slides after second quarter earnings TCE outlook

Genco Shipping ( NYSE: GNK ) shares fell 6% in post-earnings move after the company posted soft guidance on average daily revenue of its vessels.

Outlook: The dry bulk carrier said it estimates average daily fleet-wide time charter equivalent, or TCE, to date for Q3 2022 to be $25,059 for 79% of its owned fleet available days, based on both period and current spot fixtures.

While in the second quarter's earnings , the shipowner reported average daily fleet-wide time charter equivalent, or TCE, of $28,756 (+36% Y/Y).

Q2 Voyage revenue rose to $137.76M, up from year-ago $121M, as higher rates achieved by the company's minor vessels help partially offset the decline in major bulk vessels resulting from the decrease in available days on scheduled drydockings.

Available days of owned fleet declined 2.4% Y/Y to 3,509.8 in Q2 2022, where capesize fell from 1,514.4 to 1,108.5 days on year-ago comparison.

"We have approximately six Capesize vessels coming open in the coming weeks, a portion of which we plan to ballast to the Atlantic basin," the company said.

EBITDA for the period was $64.2M.

Net Income reached $47.4M, translating a GAAP EPS of $1.10.

The company said it has prepaid $8.75M of debt on a voluntary basis during the second quarter, to reduce its debt to $188.5M.

Liquidity position stood at $269.5M at the quarter-end which comprises of $50.6M in cash and $218.9M of revolver availability.

Vessels and Capacity Update: As of August 2, 2022, Genco Shipping & Trading Limited’s fleet consists of 17 Capesize, 15 Ultramax and 12 Supramax vessels with an aggregate capacity of approximately 4,636,000 dwt and an average age of 10.4 years.

At Buy Rating, Seeking Alpha author Ben Alaimo wrote "Genco: Shipping A Monster 17% Dividend And Undervalued"

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