Genco Shipping & Trading Limited Announces Q2 2025 Financial Results
Declares Dividend of $0.15 per share for Q2 2025Represents Genco's 24th Consecutive Quarterly Dividend
Announces Acquisition of High-Specification Capesize Vessel
NEW YORK, Aug. 06, 2025 (GLOBE NEWSWIRE) -- 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.
Second Quarter 2025 and Year-to-Date Highlights
Dividend
Declared a $0.15 per share dividend for Q2 2025
24th consecutive quarterly dividend
Cumulative dividends of $6.915 per share or approximately 41% of our current share price1
Q2 2025 dividend is payable on or about August 25, 2025 to all shareholders of record as of August 18, 2025
Growth
Agreed to purchase a 2020-Imabari built scrubber-fitted 182,000 dwt Capesize vessel, to be renamed the Genco Courageous, with expected delivery between September and October 2025
$600 million revolving credit facility (RCF)
In July, we amended our credit facility to establish a $600 million RCF to provide significant borrowing capacity to pursue growth opportunities among other uses
Q2 2025 financial results
Net loss of $6.8 million, or basic and diluted net loss per share of $0.16 per share
Adjusted net loss of $6.2 million or basic and diluted loss per share of $0.14, excluding non-cash vessel impairment charges of $0.7 million
Adjusted EBITDA: $14.3 million2
Voyage revenues: $80.9 million
Net revenue2: $46.9 million
Average daily fleet-wide TCE2: $13,631 per day
Estimated Q3 2025 TCE to date
$15,926 for 70% of our owned fleet available days2
John C. Wobensmith, Chief Executive Officer, commented, "We continue to execute on our differentiated value strategy, as we position the Company to return capital to shareholders and expand our earnings power through drybulk market cycles. Declaration of our Q2 dividend marks our 24th consecutive dividend, representing the longest uninterrupted dividend period among our drybulk peer group. Including Q2, total dividends to shareholders will amount to $6.915 per share, or approximately 41% of our current share price."
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.
Comprehensive Value Strategy
Genco's comprehensive value strategy is centered on three pillars:
Dividends: paying sizeable quarterly cash dividends to shareholders
Deleveraging: through voluntary debt repayments to maintain low financial leverage, and
Growth: opportunistically renewing and growing our asset base
Key characteristics of our strategy include:
Net loan-to-value (LTV) of 7%3
13% net LTV pro forma for the agreed upon vessel acquisition3
Strong liquidity position of $335.6 million at June 30, 2025, which consists of:
$35.8 million of cash on the balance sheet
$299.8 million of revolver availability or $500.0 million following the closing of the $600 million RCF in July 2025
High operating leverage with our scalable fleet across the major and minor bulk sectors
3 Represents 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.
Growth
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.
New $600 Million 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:
Increased borrowing capacity by 50% or $200 million to $600 million in aggregate
Repayment profile of 20 years with no commitment reductions until March 31, 2027 based on covenant compliance
Improved pricing: margin reduced to 1.75% and commitment fees on undrawn amounts reduced to 0.61%*
100% revolving credit facility structure provides flexibility for Genco to continue to pay down debt while maintaining the ability to opportunistically draw down capital
Extended maturity to July 2030
Accordion feature allows for additional borrowing capacity potential of $300 million
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.
Dividend Policy
Genco declared a cash dividend of $0.15 per share for the second quarter of 2025. Our dividend formula, including a voluntary quarterly reserve of $19.50 million, would not have produced a dividend for the second quarter. However, management recommended and our Board of Directors approved the reduction of the Q2 voluntary reserve from $19.50 million to $7.91 million. The Q2 2025 dividend is payable on or about August 25, 2025 to all shareholders of record as of August 18, 2025.
Quarterly dividend policy: 100% of quarterly operating cash flow less a voluntary reserve.
Under the quarterly dividend policy adopted by our Board of Directors, the amount available for quarterly dividends is to be calculated based on the formula in the table below. The table includes the calculation of the actual Q2 2025 dividend and estimated amounts for the calculation of the dividend for Q3 2025:
Dividend calculation
Q2 2025 actual
Q3 2025 estimates
Net revenue
$
46.90
Fixtures + market
Operating expenses
(32.41
)
(34.30
)
Operating cash flow
$
14.49
Sum of the above
Less: voluntary quarterly reserve
(7.91
)
(19.50
)
Cash flow distributable as dividends
$
6.58
Sum of the above
Dividend per share
$
0.15
Numbers in millions except per share amounts
Operating cash flow is defined as net revenue (consisting of voyage revenue less voyage expenses, charter hire expenses, and realized gains or losses on fuel hedges), less operating expenses (consisting of vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management expenses, and interest expense other than non-cash deferred financing costs), for purposes of the foregoing calculation. Estimated expenses for Q3 2025 are estimates and subject to change.
The voluntary quarterly reserve for the third quarter of 2025 under the Company's dividend formula is expected to be $19.50 million, which remains fully within our discretion. A key component of Genco's value strategy is maintaining a voluntary quarterly reserve, as well as the optionality for the use of the reserve as Genco seeks to pay sizeable dividends across the cyclicality of the drybulk market while continuing to invest in our fleet. Subject to the development of freight rates for the remainder of the third quarter and our assessment of our liquidity and forward outlook, we maintain flexibility to reduce the quarterly reserve to pay dividends or increase the amount of dividends otherwise payable under our formula. The reserve is set by our Board of Directors at its discretion, and our Board has generally allotted an amount for anticipated debt prepayments plus an additional amount. We plan to set the voluntary reserve on a quarterly basis for the subsequent quarter.
Anticipated uses for the voluntary reserve include, but are not limited to:
Vessel acquisitions
Debt repayments, and
General corporate purposes
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.
Peter Allen, Chief Financial Officer, commented, "Our recent success closing on a $600 million credit facility underscores the continued support of our existing bank group and further strengthens our ability to pursue accretive growth opportunities for the benefit of shareholders. In addition to significantly upsizing our borrowing capacity, other favorable terms of the credit facility include improved pricing, extended maturity to 2030, and a repayment profile of 20 years with no scheduled commitment reductions until March 2027. The 100% revolving structure also enables us to continue to voluntarily pay down debt while maintaining access to growth capital. Genco has built a differentiated capital structure that offers a solid risk-reward dynamic given our fleet's high operating leverage combined with our low financial leverage."
Genco's Active Commercial Operating Platform and Fleet Deployment Strategy
We utilize a portfolio approach towards revenue generation through a combination of:
Short-term, spot market employment, and
Opportunistically booking longer term coverage
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.
Estimated net TCE - Q3 2025 to Date
Vessel Type
TCE
% Fixed
Capesize
$
20,951
69%
Ultra/Supra
$
13,326
70%
Total
$
15,926
70%
Our index-linked and period time charters are listed below:
Vessel
Type
DWT
Year Built
Rate
Duration
Min Expiration
Genco Endeavour
Capesize
181,057
2015
$
30,565
12-15 months
Oct-25
Genco Lion
Capesize
179,185
2012
99.5% of BCI + scrubber
14-16 months
Mar-26
Genco Resolute
Capesize
181,060
2015
120% of BCI + scrubber
11-14 months
Apr-26
Genco Defender
Capesize
180,021
2016
120% of BCI + scrubber
11-14 months
Apr-26
Financial Review: 2025 Second Quarter
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 / TCEThe 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 expensesVoyage 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 expensesVessel 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 expensesGeneral 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 expensesDepreciation 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.
EBITDAEBITDA 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.
Financial Review: Six Months 2025
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 / TCEThe 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 expensesVoyage 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 expensesVessel 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 expensesGeneral 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 expensesDepreciation 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.
EBITDAEBITDA 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.
Liquidity and Capital Resources
Cash Flow
Net cash provided by operating activities for the six months ended June 30, 2025 and 2024 was $8.3 million and $61.3 million, respectively. This decrease in cash provided by operating activities was primarily due to lower rates earned by our major and minor bulk vessels, as well as changes in working capital. Additionally, there was an increase in drydocking costs incurred during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Net cash (used in) provided by investing activities for the six months ended June 30, 2025 and 2024 was ($6.7) million and $65.1 million, respectively. This fluctuation was primarily a result of $67.7 million of proceeds from the sale of the Genco Commodus, the Genco Claudius and the Genco Maximus during the six months ended June 30, 2024. Additionally, there was a $4.4 million increase in the purchase of vessel assets due to various upgrades during the drydocking of certain vessels in our fleet during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Net cash used in financing activities during the six months ended June 30, 2025 and 2024 was $9.9 million and $130.9 million, respectively. The decrease is primarily due to a $95.0 million decrease in debt repayments made under our $500 Million Revolver during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, as well as a $10.0 million increase in drawdowns under the $500 Million Revolver during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Lastly, there was a $16.0 million decrease in the payment of dividends during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Capital Expenditures
Genco's current fleet consists of 42 vessels with an average age of 12.7 years and an aggregate capacity of approximately 4,446,000 dwt as follows:
16 Capesizes
15 Ultramaxes
11 Supramaxes
Following the anticipated acquisition of the vessel to be renamed the Genco Courageous, our fleet is to expand to 43 vessels, of which 17 are Capesize vessels, and the average age of our fleet will be reduced to 12.5 years on average.
In addition to acquisitions that we may undertake, we will incur additional capital expenditures due to special surveys and drydockings. Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems to our vessels in order to reduce fuel consumption and emissions.
We estimate our capital expenditures related to drydocking, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment system costs, fuel efficiency upgrades and scheduled off-hire days for our fleet for the balance of 2025 and 2026 to be:
Estimated costs ($ in millions)
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Q3 2026
Q4 2026
Drydock Costs (1)
$
18.70
$
3.10
$
7.80
$
-
$
7.50
$
5.15
Estimated BWTS Costs (2)
$
-
$
-
$
2.22
$
-
$
2.22
$
-
Fuel Efficiency Upgrade Costs (3)
$
2.82
$
0.14
$
1.10
$
-
$
0.55
$
-
Total Costs
$
21.52
$
3.24
$
11.12
$
-
$
10.27
$
5.15
Estimated Offhire Days (4)
228
55
100
-
100
68
(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.
Summary Consolidated Financial and Other Data
The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.
Three Months Ended June 30, 2025
Three Months Ended June 30, 2024
Six Months Ended June 30, 2025
Six Months Ended June 30, 2024
(Dollars in thousands, except share and per share data)
(Dollars in thousands, except share and per share data)
(unaudited)
(unaudited)
INCOME STATEMENT DATA:
Revenues:
Voyage revenues
$
80,939
$
107,047
$
152,208
$
224,482
Total revenues
80,939
107,047
152,208
224,482
Operating expenses:
Voyage expenses
32,005
30,273
59,359
67,473
Vessel operating expenses
23,747
26,977
48,663
52,909
Charter hire expenses
2,035
2,455
4,320
5,965
General and administrative expenses (inclusive of nonvested stock amortization
7,399
6,320
14,893
13,984
expense of $1,780, $1,451, $3,276 and $2,833, respectively)
Technical management expenses
1,231
1,260
2,556
2,291
Depreciation and amortization
18,133
17,096
35,797
34,319
Impairment of vessel assets
651
5,634
651
5,634
Net gain on sale of vessels
-
(13,206
)
-
(12,228
)
Other operating expense
-
3,924
-
5,728
Total operating expenses
85,201
80,733
166,239
176,075
Operating (loss) income
(4,262
)
26,314
(14,031
)
48,407
Other (expense) income:
Other expense
(232
)
(90
)
(245
)
(24
)
Interest income
243
721
612
1,545
Interest expense
(2,558
)
(3,452
)
(5,107
)
(7,492
)
Other expense, net
(2,547
)
(2,821
)
(4,740
)
(5,971
)
Net (loss) income
$
(6,809
)
$
23,493
$
(18,771
)
$
42,436
Less: Net (loss) income attributable to noncontrolling interest
(8
)
26
(47
)
$
171
Net (loss) income attributable to Genco Shipping & Trading Limited
$
(6,801
)
$
23,467
$
(18,724
)
$
42,265
Net (loss) earnings per share - basic
$
(0.16
)
$
0.54
$
(0.43
)
$
0.98
Net (loss) earnings per share - diluted
$
(0.16
)
$
0.54
