Genco Shipping and Trading Limited – Press Release.
Genco Shipping GNK has released their 3rd quarter results, full report linked above. The company’s results look significantly better than those for Dry Ships earlier this week. Genco reported a net income for the quarter of $1.10 per share. This is compared to $2.00 per share in the 3rd quarter of 2008, before everything fell apart for the shipping industry. The company earned $1.20 in the 2nd quarter of 2008.
Good news:
- GNK manages to bring an impressive 37% of their $93 million in revenues all the way to the bottom line.
- Depreciation and amortization work out to another 70ยข per share, giving Genco a nice cushion of free cash flow.
- There is only one more Capesize vessel on the order book to be delivered in the 4th quarter of 2009.
- There has been no share dilution over the last year.
Negatives:
- The company has a significant portion of their contracts expiring in 2010 at what are currently above market rates.
- Quarter to quarter net income is still decreasing.
- No dividends being paid.
GNK is attractive trading at about 5 times net income and 3 times free cash flow if those numbers can be stabilized at current levels. The shares have tripled off the 52 week low and are up 30%+ year-to-date. I think Genco is one of the better managed dry bulk companies, but I would be looking for either another share price pull back to the mid-teens or a stabilization of net income and a resumption of the dividend.
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Genco Shipping and Trading Limited earnings
Genco Shipping and Trading Limited – Press Release.
Genco Shipping GNK has released their 3rd quarter results, full report linked above. The company’s results look significantly better than those for Dry Ships earlier this week. Genco reported a net income for the quarter of $1.10 per share. This is compared to $2.00 per share in the 3rd quarter of 2008, before everything fell apart for the shipping industry. The company earned $1.20 in the 2nd quarter of 2008.
Good news:
Negatives:
GNK is attractive trading at about 5 times net income and 3 times free cash flow if those numbers can be stabilized at current levels. The shares have tripled off the 52 week low and are up 30%+ year-to-date. I think Genco is one of the better managed dry bulk companies, but I would be looking for either another share price pull back to the mid-teens or a stabilization of net income and a resumption of the dividend.