GENCO SHIPPING & TRADING LIMITED ANNOUNCES

Q2 2025 FINANCIAL RESULTS

Declares Dividend of $0.15 per share for Q2 2025

Represents Genco’s 24^th Consecutive Quarterly Dividend

Announces Acquisition of High-Specification Capesize Vessel

New York, New York, August 6, 2025 – Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months and six months ended June 30, 2025.

 

 

 

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.”

¹ Genco share price as of August 5, 2025.

 

² We believe the non-GAAP measure presented provides investors with a means of better evaluating and understanding the Company’s operating performance. Please see Summary Consolidated Financial and Other Data below for further reconciliation. Regarding Q3 2025 TCE, this estimate is based on both period and current spot fixtures, actual results will vary from current estimates. Net revenue is defined as voyage revenues minus voyage expenses, charter hire expenses and realized gains or losses on fuel hedges.

 

Genco’s comprehensive value strategy is centered on three pillars:

Key characteristics of our strategy include:

 

³Represents the principal amount of our credit facility debt outstanding less our cash and cash equivalents as of June 30, 2025 divided by estimates of the market value of our fleet (and, for the pro forma amount, the vessel we have agreed to acquire) as of August 5, 2025 from VesselsValue.com. The actual market value of our vessels may vary.

 

Agreed to acquire a 2020-Imabari built 182,000 dwt scrubber-fitted Capesize vessel for a purchase price of $63.6 million. Genco expects to take delivery of the vessel, to be renamed the Genco Courageous, between September and October 2025.

 

This purchase marks the fourth high specification, fuel efficient Capesize vessel that Genco has agreed to acquire since October 2023, further expanding the Company’s presence in a key sector. Genco intends to fund the acquisition through a combination of cash on hand and a drawdown from its revolving credit facility.

 

In July, Genco closed on a $600 million revolving credit facility, amending, extending and upsizing its existing facility to provide significant borrowing capacity to pursue accretive growth opportunities among other uses.

 

Key terms of the $600 million revolving credit facility include:

Genco has $100 million of debt outstanding and $500 million of undrawn revolver availability as of the date of this press release.

 

*Margin is based on a grid of 1.75% to 2.15% over the Secured Overnight Financing Rate (SOFR) depending on total net indebtedness to EBITDA. This is down from 1.85% to 2.15% previously. The commitment fee on undrawn amounts is reduced from 40% of margin to 35% of margin.

 

 

The Board expects to reassess the payment of dividends as appropriate from time to time. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facility) and the Board of Directors’ determination that each declaration and payment is at the time in the best interests of the Company and its shareholders after its review of our financial performance.

 

Our fleet deployment strategy currently remains weighted towards short-term fixtures, which provide us with optionality on our sizeable fleet.

Based on current fixtures to date, our estimated TCE to date for the third quarter of 2025 on a load-to-discharge basis is presented below. Actual rates for the third quarter will vary based upon future fixtures. These estimates are based on time charter contracts entered by the Company as well as current spot fixtures on the load-to-discharge method, whereby revenue is recognized ratably over the voyage from the commencement of loading to the completion of discharge. The actual TCE rates to be earned will depend on the number of contracted days and the number of ballast days at the end of the period. According to the load-to-discharge accounting method, the Company does not recognize revenue for any ballast days or uncontracted days at the end of the third quarter of 2025. At the same time, expenses for uncontracted days will be recognized as incurred.

Our index-linked and period time charters are listed below:

 

The Company recorded a net loss for the second quarter of 2025 of $6.8 million, or $0.16 basic and diluted net loss per share. Adjusted net loss is $6.2 million or $0.14 basic and diluted net loss per share excluding a non-cash vessel impairment charge of $0.7 million. Comparatively, for the three months ended June 30, 2024, the Company recorded net income of $23.5 million, or $0.54 basic and diluted earnings per share, respectively. Adjusted net income amounted to $19.9 million, or $0.46 basic and diluted earnings per share, excluding other operating expense of $3.9 million, a gain on sale of vessels of $13.2 million, non-cash vessel impairment charges of $5.6 million and unrealized fuel losses of $0.1 million.

Revenue / TCE

The Company’s revenues decreased to $80.9 million for the three months ended June 30, 2025 as compared to $107.0 million recorded for the three months ended June 30, 2024, primarily due to lower rates earned by our major and minor bulk vessels as well as the operation of a smaller fleet. The average daily time charter equivalent, or TCE, rates obtained by the Company’s fleet was $13,631 per day for the three months ended June 30, 2025 as compared to $19,938 per day for the three months ended June 30, 2024.

 

Voyage expenses

Voyage expenses increased to $32.0 million for the three months ended June 30, 2025 from $30.3 million during the prior year period. The increase was primarily due to operating a greater number of third party chartered-in vessels and higher bunker consumption on our Ultramax vessels. These increases were partially offset by the operation of a smaller fleet.

Vessel operating expenses

Vessel operating expenses decreased to $23.7 million for the three months ended June 30, 2025 from $27.0 million for the three months ended June 30, 2024. Daily vessel operating expenses, or DVOE, amounted to $6,213 per vessel per day for the second quarter of 2025 compared to $6,855 per vessel per day for the second quarter of 2024. The decrease in DVOE was primarily due to the timing of the purchase of stores and spares, as well as lower repair and maintenance and insurance 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. Based on current estimates, our DVOE budget for Q3 2025 is $6,375 per vessel per day on a fleet-wide basis.

General and administrative expenses

General and administrative expenses increased to $7.4 million for the second quarter of 2025 compared to $6.3 million for the second quarter of 2024 due to higher legal and professional fees in addition to higher nonvested stock amortization expense.

Depreciation and amortization expenses

Depreciation and amortization expenses increased to $18.1 million for the three months ended June 30, 2025 from $17.1 million for the three months ended June 30, 2024 due to an increase in drydocking amortization expense for certain vessels in our fleet.

EBITDA

EBITDA for the three months ended June 30, 2025 amounted to $13.6 million compared to $43.3 million during the prior year period. During the three months of 2025 and 2024, EBITDA included non-cash impairment charges, other operating expenses, gains on sale of vessels as well as gains and losses on fuel hedges. Excluding these items, our adjusted EBITDA amounted to $14.3 million and $39.8 million, for the respective periods.

 

The Company recorded a net loss of $18.7 million or $0.43 basic and diluted net loss per share, for the six months ended June 30, 2025. This compares to net income of $42.3 million or $0.98 and $0.97 basic and diluted earnings per share, respectively, for the six months ended June 30, 2024.

Revenue / TCE

The Company’s revenues decreased to $152.2 million for the six months ended June 30, 2025 compared to $224.5 million for the six months ended June 30, 2024, primarily due to lower rates earned by our major and minor bulk vessels as well as the operation of a smaller fleet. TCE rates obtained by the Company decreased to $12,750 per day for the six months ended June 30, 2025 from $19,564 per day for the six months ended June 30, 2024.

 

Voyage expenses

Voyage expenses decreased to $59.4 million for the six months ended June 30, 2025 from $67.5 million for the same period in 2024 primarily due to lower bunker consumption on our Capesize vessels.

Vessel operating expenses

Vessel operating expenses decreased to $48.7 million for the six months ended June 30, 2025 from $52.9 million for the six months ended June 30, 2024. DVOE was $6,401 for the first half of 2025 versus $6,558 in the first half of 2024. The decrease in DVOE was primarily due to the timing of the purchase of stores and spares.

General and administrative expenses

General and administrative expenses for the six months ended June 30, 2025 increased to $14.9 million as compared to $14.0 million in the same period of 2024 primarily due to higher nonvested stock amortization expense and higher legal and professional fees.

Depreciation and amortization expenses

Depreciation and amortization expenses increased to $35.8 million for the six months ended June 30, 2025 from $34.3 million for the six months ended June 30, 2024 due to an increase in drydocking amortization expense for certain vessels in our fleet.

EBITDA

EBITDA for the six months ended June 30, 2025 amounted to $21.6 million compared to $82.5 million during the prior year period. During the six months of 2025 and 2024, EBITDA included non-cash impairment charges, other operating expenses, gains on sale of vessels as well as gains and losses on fuel hedges. Excluding these items, our adjusted EBITDA amounted to $22.2 million and $81.6 million, for the respective periods.

Genco’s current fleet consists of 42 vessels with an average age of 12.7 years and an aggregate capacity of approximately 4,446,000 dwt as follows:

Following the anticipated acquisition of the vessel to be renamed the Genco Courageous, our fleet is to expand to 43 vessels, of which 17 are Capesize vessels, and the average age of our fleet will be reduced to 12.5 years on average.

In addition to acquisitions that we may undertake, we will incur additional capital expenditures due to special surveys and drydockings. Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems to our vessels in order to reduce fuel consumption and emissions.

We estimate our capital expenditures related to drydocking, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment system costs, fuel efficiency upgrades and scheduled off-hire days for our fleet for the balance of 2025 and 2026 to be:

(1) Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses.

 

(2) Estimated costs associated with the installation of ballast water treatment systems are expected to be funded with cash on hand.

 

(3) Estimated costs associated with the installation of fuel efficiency upgrades are expected to be funded with cash on hand.

 

(4) Actual length will vary based on the condition of the vessel, yard schedules and other factors. The estimated offhire days per sector scheduled for Q3 2025 consists of 173 days for six Capesizes, 25 days for one Ultramax and 30 days for one Supramax.

 

The following table summarizes Genco Shipping & Trading Limited’s selected consolidated financial and other data for the periods indicated below.

 

Genco Shipping & Trading Limited is a U.S. based drybulk ship owning company focused on the seaborne transportation of commodities globally. We transport key cargoes such as iron ore, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes. Our wholly owned high quality, modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk) enabling us to carry a wide range of cargoes. Genco’s fleet consists of 42 vessels with an average age of 12.7 years and an aggregate capacity of approximately 4,446,000 dwt.

 

Genco Shipping & Trading Limited will hold a conference call on Thursday, August 7, 2025 at 8:30 a.m. Eastern Time to discuss its 2025 second quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company’s website, www.GencoShipping.com. To access the call by phone, please register via the live call registration link, https://registrations.events/direct/Q4I91061357, and you will be provided with dial-in instructions and details. Please dial in at least 10 minutes prior to 8:30 a.m. Eastern Time to ensure a prompt start to the call. The conference call will be broadcast live and available for replay on the Company’s website: http://www.gencoshipping.com.

 

 

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 Relations section. Accordingly, investors should monitor the Investor Relations portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. To subscribe to our e-mail alert service, please click the “Receive E-mail Alerts” link in the Investor Relations section of our website and submit your email address.  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.

 

 

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance.  These forward-looking statements are based on our management’s current expectations and observations.  Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this release are the following: (i) declines or sustained weakness in demand in the drybulk shipping industry; (ii) weakness or declines in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube oil, bunkers, repairs, maintenance, general and administrative expenses, and management expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) acts of war, terrorism, or piracy, including without limitation the ongoing war in Ukraine, the Israel-Hamas war, and attacks on vessels in the Red Sea; (x) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the Company’s acquisition or disposition of vessels; (xii) the amount of offhire time needed to complete maintenance, repairs, and installation of equipment to comply with applicable regulations on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xiii) the completion of definitive documentation with respect to charters; (xiv) charterers’ compliance with the terms of their charters in the current market environment; (xv) the extent to which our operating results are affected by weakness in market conditions and freight and charter rates; (xvi) our ability to maintain contracts that are critical to our operation, to obtain and maintain acceptable terms with our vendors, customers and service providers and to retain key executives, managers and employees; (xvii) completion of documentation for vessel transactions and the performance of the terms thereof by buyers or sellers of vessels and us; (xviii) the relative cost and availability of low sulfur and high sulfur fuel,

worldwide compliance with sulfur emissions regulations that took effect on January 1, 2020 and our ability to  realize the economic benefits or recover the cost of the scrubbers we have installed; (xix) our financial results for the year ending December 31, 2024 and other factors relating to determination of the tax treatment of dividends we have declared; (xx) the financial results we achieve for each quarter that apply to the formula under our new dividend policy, including without limitation the actual amounts earned by our vessels and the amounts of various expenses we incur, as a significant decrease in such earnings or a significant increase in such expenses may affect our ability to carry out our new value strategy; (xxi) the exercise of the discretion of our Board regarding the declaration of dividends, including without limitation the amount that our Board determines to set aside for reserves under our dividend policy; (xxii) outbreaks of disease such as the COVID-19 pandemic; (xxiii) trade conflicts and the imposition of port fees, tariffs and other import restrictions; and (xxiv) other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports on Form 8-K and Form 10-Q). Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance, market developments, and the best interests of the Company and its shareholders. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves.  As a result, the amount of dividends actually paid may vary.  We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:

Peter Allen

Chief Financial Officer

Genco Shipping & Trading Limited

(646) 443-8550

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