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Genco Shipping & Trading Limited (NYSE:GNK), a global provider of maritime transportation services in the drybulk sector, announced today an update on its Time Charter Equivalent (TCE) rate for the first quarter of 2025. The company estimates a TCE rate of approximately $11,700 per day for about 95% of its owned available days within the quarter. InvestingPro data shows the company maintains strong financial health with a current ratio of 2.41, indicating robust liquidity to meet short-term obligations. Discover 8 more key financial insights about GNK with an InvestingPro subscription.
The TCE figure, which is subject to change upon closing of financial results, includes both period and spot fixtures for the company’s vessels, incorporating scrubber premiums. Genco Shipping highlighted that freight rates have seen a significant uptick in March, particularly for Capesize vessels, with most of its fleet benefiting from the spot market’s rise.
The company’s estimated TCE rates are based on load-to-discharge voyage accounting, compliant with Generally Accepted Accounting Principles (GAAP), which may lead to revenue recognition from certain voyages in subsequent quarters. For instance, some revenue from fixtures entered in the first quarter may be recognized in the second quarter due to long ballast periods, such as Brazil to China voyages.
TCE, a non-GAAP measure, is calculated by subtracting voyage expenses, charter hire expenses, and realized gains or losses on fuel hedges from voyage revenues, then dividing by the number of available days of the owned fleet. Genco Shipping uses TCE to provide investors with a standard to evaluate and understand the company’s operating performance.
In addition to TCE, Genco Shipping estimates the daily vessel operating expenses (DVOE) to be approximately $6,500 per vessel for the first quarter of 2025, based on 3,780 ownership days. This estimate is also subject to change based on the timing of crew, spares, stores, and maintenance-related expenses.
The information provided in this announcement is based on a press release statement and is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it incorporated by reference in any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such a filing.
This forward-looking statement is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and it includes factors that could cause actual results to differ materially from those in the forward-looking statements. While analysts project a revenue decline for the current year, InvestingPro’s comprehensive analysis, available in the Pro Research Report, provides detailed insights into the company’s future prospects, including expert analysis of key growth drivers and risk factors. Genco Shipping does not undertake any obligation to update or revise these statements, whether as a result of new information, future events, or otherwise.
In other recent news, Genco Shipping & Trading Ltd reported its Q4 2024 financial results, showing a notable increase in EBITDA but missing earnings per share (EPS) forecasts. The company posted an EPS of $0.29, falling short of the anticipated $0.42, while revenue surpassed expectations, reaching $99.2 million against a forecast of $69.87 million. Despite the EPS miss, Genco’s revenue beat highlights strong operational performance. The company continues its fleet renewal strategy with significant investments in modern vessels, including the acquisition of the Genco Intrepid, a Capesize vessel. Genco has also reduced its debt significantly, enhancing financial stability. Analysts have noted the company’s commitment to maintaining its quarterly dividend strategy, even amid market softness. Looking ahead, Genco plans to acquire eco-type Capesize and Ultramax vessels to capitalize on anticipated growth in iron ore and bauxite trade from 2026 to 2028.
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