GENCO SHIPPING & TRADING LIMITED (NYSE:GNK) Files An 8-K Results of Operations and Financial Condition
Genco Shipping & Trading Limited (“Genco,” “we,” or the “Company”) today announced the following update regarding its comprehensive IMO 2020 strategy:
IMO 2020 and drydocking update
To date, we have installed scrubbers on 11 of our 17 Capesize vessels, representing a 65% completion rate. We currently have three other vessels in the shipyard being fitted with scrubbers and expect to have the remaining three Capesize vessels enter the shipyard to commence installation in the coming weeks. Therefore, we expect to complete our scrubber installation program ahead of the January 1, 2020 International Maritime Organization’s (“IMO”) compliance date limiting sulfur content in fuel consumed by vessels from 3.5% to 0.5% on a global basis. We expect that, in addition to meeting the compliance date, this will provide us with experience operating these systems prior to the regulations entering into force. We anticipate that our remaining fleet of minor bulk vessels will consume ultra-low sulfur compliant fuel following implementation of the IMO regulations.
The third quarter of 2019 marked our busiest quarter of drydocking of the year and a record for the Company. We had 22 vessels enter the shipyard for scrubber installations, ballast water treatment system installations, scheduled special surveys and other repairs. As a result, we have updated our associated offhire time for the quarter to 601 days as compared to the previous estimate provided in our second quarter earnings press release and presentation. The majority of these incremental days were attributable to our Capesize vessels due to scrubber installations, ballast water treatment system installations and scheduled special surveys. The total owned available days for our fleet during the third quarter was 4,735 days.
About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. As of October 25, 2019, Genco Shipping & Trading Limited’s fleet consists of 17 Capesize, two Panamax, six Ultramax, 20 Supramax and 11 Handysize vessels with an aggregate capacity of approximately 5,018,000 dwt and an average age of 9.5 years.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This presentation contains forward-looking statements made to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on management’s current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following: (i) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (ii) the amount
of offhire time needed to complete vessel drydockings in order to achieve compliance with IMO 2020 regulations; (iii) the terms of definitive documentation for the purchase and installation of scrubbers and our ability to have scrubbers installed within the price range and time frame anticipated; (iv) the relative cost and availability of low sulfur and high sulfur fuel or any additional scrubbers we may seek to install; and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and our subsequent reports on Form 10-Q and Form 8-K.
The information set forth under “Item 2.02 Results of Operations and Financial Condition” shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
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