Genco Shipping & Trading Limited (NYSE: GNK) reported Q4 EPS of $0.07, $0.01 worse than the analyst estimate of $0.08. Revenue for the quarter came in at $108.71 million versus the consensus estimate of $60.41 million.

Fourth Quarter 2019 and Year-to-Date Highlights

• Announced a regular quarterly cash dividend of $0.175 per share for the fourth quarter of 2019 -- Payable on or about March 16, 2020 to all shareholders of record as of March 6, 2020
• Completed our exhaust gas cleaning systems (“scrubbers”) installation program for our 17 Capesize vessels
• Recorded net income of $0.9 million for the fourth quarter of 2019 -- Basic and diluted earnings per share of $0.02 -- Adjusted net income of $3.0 million or basic and diluted earnings per share of $0.07, excluding $1.3 million in non-cash vessel impairment charges and a $0.8 million loss on sale of vessels
• Recorded adjusted EBITDA of $27.9 million during Q4 20191
• In Q4 2019 and the year-to-date, we have completed the sale of our three oldest Handysize vessels, as well as one of our two remaining Panamaxes -- Genco Challenger, 2003-built Handysize, delivered to buyers on October 10, 2019 -- Genco Champion, 2006-built Handysize, delivered to buyers on October 21, 2019 -- Genco Raptor, 2007-built Panamax, delivered to buyers on December 11, 2019 -- Genco Charger, 2005-built Handysize, delivered to buyers on February 24, 2020 -- We have also agreed to sell the Genco Thunder, 2007-built Panamax, which is expected to be delivered to buyers in Q1 2020

John C. Wobensmith, Chief Executive Officer, commented, “During 2019, we executed several key initiatives to further strengthen Genco’s drybulk platform, enhance the fleet’s earnings power and return capital to shareholders. Specifically, we implemented a regular quarterly cash dividend policy as a part of our broader capital allocation strategy, highlighting Genco’s solid balance sheet, strong liquidity position and compelling long-term prospects. Including a one-time special dividend, we have now declared total dividends of $0.675 per share over the past two quarters. Despite an unprecedented period of disruption at shipyards in the Far East, we are pleased to have completed our 17 Capesize vessel scrubber program on time, which is a testament to the hard work and dedication of our entire team. Importantly, we have complied with IMO 2020 regulations in a manner that significantly reduces sulfur emissions and improves air quality, while enabling Genco to capitalize on higher rates for scrubber-installed Capesize vessels. During the year, we also took steps to continue to optimize our asset base through the sale of older, less fuel-efficient vessels, creating a more modern and focused fleet that closely aligns with the strengths of our active commercial strategy.”

Mr. Wobensmith continued, “We are currently experiencing a short-term, seasonal decline in overall drybulk freight rates, which has been further impacted by the onset of the Covid-19 novel coronavirus. In anticipation of the seasonal freight rate pullback in the first quarter, we have fixed vessel revenues for a portion of the quarter, providing Genco with a degree of insulation from current market conditions. As the year progresses, we expect our strong liquidity position and industry leading balance sheet will continue to serve us well. With a sizeable, diverse fleet and leading drybulk platform, we believe we are well positioned to take advantage of an expected increase in demand for both major and minor bulk commodities once current market pressures subside, against a backdrop of low net fleet growth.”

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