Genco Shipping & Trading Limited Q3 FY2025 earnings call

• John Wobensmith reviewed Q3 2025 and year-to-date highlights, advanced value strategy with dividend declaration, completed 90% drydocking schedule, took delivery of a 2020-built Capesize vessel. - Peter Allen discussed Q3 financial results: net loss, adjusted EBITDA, cash and debt positions, dividend policy targeting 100% of operating cash flow less a voluntary reserve. - Michael Orr discussed industry fundamentals including strong freight rates in Q3, China's iron ore imports, long-haul trade growth, grain trade, and fleet growth dynamics.

No detailed segment-wise financial performance with revenue contribution % provided. Genco recorded a net loss of $1.1 million or $0.02 basic and diluted net loss per share for Q3 2025. Adjusted EBITDA for Q3 totaled $21.7 million, an increase of 52% from Q2. Cash position as of September 30 was $90 million, debt outstanding increased to $170 million.

• Optimistic for remainder of 2025 and into 2026. - Q4 TCE estimated up over 25% to over $20,000 per day fleet-wide, with Capesize at ~$27,000 per day and minor bulk at ~$16,000 per day. - Dividend of $0.15 per share declared for Q3 based on cash flow. - Pro forma for acquisition, net loan-to-value ~12% with undrawn revolver availability $430 million.

• Potential return of USTR port fees, but Genco is prepared to adjust strategy if needed. - Drybulk market volatility remains a risk despite favorable supply-demand fundamentals.

Q: Just wanted to get a sense, in terms of what we're seeing in the freight market, is this seasonality or something bigger?

A: Yes, it's a combination of seasonality, record Brazilian iron ore exports, increased coal trades, strong grain trade, and USTR impact.

Q: On the USTR China fees postponed for 12 months, how did it affect Genco?

A: Affected management team briefly with diverting ships, but now U.S. companies can come in without port fees, and impact on Genco is immaterial as vessels can be rerouted.

Q: Do you have a look at the non-Capesize? Or is it just the asset coming online that's attractive?

A: Have a strong minor bulk fleet, no plans to divest, but Capesize sector has better supply dynamics and demand growth.

Q: Regarding Chinese demand for coal, have you seen signs of switching sources?

A: Less U.S. coal, but expect U.S. coal exports to tick up in next 6 months due to USTR going away.

Q: Can you just give a reason for adopting a poison pill in early October?

A: Due to a shareholder quickly accumulating a ~15% position, to slow things down to maximize value for all shareholders, put in place for less than a year in a shareholder-friendly way.