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Genco Shipping price target raised to $22 from $14 at B. Riley » 08:5105/0705/07/21
B. Riley analyst Liam…
B. Riley analyst Liam Burke raised the firm's price target on Genco Shipping to $22 from $14 and keeps a Buy rating on the shares following the Q1 results. The "strong" underlying cash flow and continued strength in the dry bulk market has moved the company to a revised capital allocation strategy that emphasizes accelerated debt repayment along with a "significant step up" in its dividend payout, Burke tells investors in a research note.
Genco Shipping increases quarterly dividend to 5c per share » 17:0605/0505/05/21
For Q1, Genco declared a…
For Q1, Genco declared a cash dividend of 5c per share, which is an increase from 2c per share paid under its policy in the previous four quarters. This quarterly dividend increase was attributable to Genco's strong financial position, the current freight rate environment as well as management's go-forward drybulk market expectations. The dividend will be payable on or about May 25 to all shareholders of record as of May 17.
Genco Shipping reports Q1 EPS 5c, consensus 2c » 17:0405/0505/05/21
Reports Q1 revenue…
Reports Q1 revenue $87.6M, consensus $51.64M.
Genco Shipping rises 8.0% » 10:0004/2104/21/21
Genco Shipping is up…
Genco Shipping is up 8.0%, or 99c to $13.44.
Genco Shipping upgraded to Buy from Hold at Fearnley » 09:3904/2104/21/21
Fearnley analyst Peder…
Fearnley analyst Peder Jarlsby upgraded Genco Shipping to Buy from Hold with a price target of $15, up from $9. The company's new capital allocation strategy targets low leverage and higher dividends, Fjermestad tells investors in a research note. The analyst sees Genco's share underperformance relative to peers ending should it execute well.
Genco Shipping to acquire modern Ultramax vessel » 08:3904/2104/21/21
Genco Shipping &…
Genco Shipping & Trading announced that it has entered into an agreement to acquire a 2016-built 64,000 dwt Ultramax vessel constructed at Zhejiang Yangfan shipyard in China. The vessel, to be renamed Genco Enterprise, is expected to be delivered to Genco between May and July. John Wobensmith, CEO, commented, "This latest Ultramax acquisition further grows our presence within the key Ultramax sector that we believe will seamlessly integrate with our strong in-house commercial operating platform. This represents an opportunistic purchase given the current freight rate environment together with our positive long-term outlook for the drybulk market. Importantly, this acquisition aligns with our new corporate strategy which allows for further debt reduction while enabling growth in a parallel path."
Genco Shipping to host business news update conference call » 08:2504/2004/20/21
Conference call to…
Genco Shipping to host business news update conference call » 04:5504/2004/20/21
Conference call to…
Genco Shipping to host business news update conference call » 17:5704/1904/19/21
Conference call to…
Genco Shipping announces new strategy in effort to grow shareholder value » 16:1004/1904/19/21
Genco Shipping announced…
Genco Shipping announced a new value strategy centered on paying quarterly cash dividends to shareholders based on cash flows after debt service less a reserve for the growth of the company's asset base, further debt reduction and general corporate purposes. Genco believes that a strategy based on low leverage and an dividend yield that includes a growth and deleveraging component will enable the company to create shareholder value and be a differentiator for Genco over the long-term. Genco intends to use a phased in approach to further reduce its debt and refinance its current credit facilities in order to lower its cash flow breakeven levels and position the company to pay a sizeable quarterly dividend across diverse market environments. We maintain flexibility to grow the fleet through accretive vessel acquisitions. Genco is targeting Q4 results for its anticipated first dividend under its new corporate strategy, which would be payable in Q1 of 2022. In implementing this strategy, the company will focus on the following specific priorities for the remainder of 2021: continue to pay down debt through regularly scheduled quarterly repayments and prepayments from a combination of cash flow generation and cash on the balance sheet; grow the fleet on a low levered basis utilizing proceeds from previous vessel sales and refinance credit facilities to increase flexibility, improve key terms and lower cash flow breakeven rates. Given the above action items, Genco's year-end targets for implementation of the strategy based on management's current estimates are net loan-to-value of 20% based on current market values, cash balance of approximately $75M, with cash above this level used to pay down debt. The company said, "The implementation of our new corporate strategy also aligns with our favorable view of drybulk supply and demand fundamentals in both the short and long term. The foundation of our outlook is based on the record low orderbook as a percentage of the fleet which will limit net fleet growth through the balance of 2021 and at least into 2022. We also believe that newbuilding ordering will be constrained despite the strong freight rate environment due to the lack of clarity with regards to future vessel propulsion and reduced availability of newbuilding yard space due to ordering in other sectors. Low net fleet growth in the coming years, provides a low threshold for demand growth to have to exceed in order to improve fleet-wide utilization. Demand catalysts include the unprecedented level of fiscal and monetary stimulus which the IMF anticipates resulting in global GDP growth of 6.0% in 2021 and 4.4% in 2022. Furthermore, we anticipate a continued improvement in global economic activity following the COVID-related lows of 2020 leading to increased steel production as well as augmented demand for iron ore and minor bulk commodities. Lastly, we anticipate growth in Brazilian iron ore exports to provide support to a key long-haul trade which we expect to be supportive for Capesize vessels. These catalysts coincide well with Genco's barbell approach to fleet composition which consists of the ownership of both Capesize and minor bulks vessels as well as with our new value strategy."