Genco Shipping & Trading Ltd 8-K, filed Mar 14, 2025
Genco Shipping & Trading Ltd (GNK)
8-K
2025-03-14
For: 2025-03-14
View Original
Added on
April 12, 2026
About this 8-K
Genco Shipping & Trading Ltd filed this 8-K on March 14, 2025.
Items reported
- Item 7.01: Regulation FD disclosure
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 14, 2025
(Exact name of registrant as specified in its charter)
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Republic of the
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(Commission file number)
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(I.R.S. employer identification no.)
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(Address of principal executive offices)
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Registrant’s telephone number, including area code: (646 )
443-8550
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
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Securities registered pursuant to Section 12(b) of the Act:
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| Item 7.01 |
Regulation FD Disclosure.
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Q1 2025 Estimated TCE Update
On March 14, 2025, the Company provided an update to its estimated time charter equivalent (“TCE”) rate for the first quarter of 2025. On a fleet-wide basis, the Company
estimates its TCE rate for the first quarter of 2025 to be approximately $11,700 per day for approximately 95% of its owned available days for the quarter. The TCE figure is estimated based on both period and spot fixtures for the Company’s vessels
and is inclusive of scrubber premium. This figure is subject to change based on the closing of our financial results for the quarter, including rates obtained for fixtures for the remaining available days, the timing of voyage revenue and voyage
expense recognition in accordance with GAAP reporting standards. The Company also estimates a total of approximately 3,450 owned fleet available days for the first quarter of 2025.
Freight rates in March 2025 to date have increased meaningfully, particularly for Capesize vessels, relative to levels seen earlier in the first quarter. With the
majority of our fleet trading in the spot market, we have been able to benefit from this rise. Our estimated TCE rates reflect load-to-discharge voyage accounting in accordance with GAAP, under which revenue for all or a portion of a voyage that
was fixed in a given quarter may be recognized in a subsequent quarter. As a result, some revenue from certain fixtures we entered into in the first quarter, including certain Brazil to China voyages with long ballast periods, will be recognized
in the second quarter of 2025.
TCE is a non-GAAP measure presented to provide investors with a means of better evaluating and understanding the Company’s operating performance. We define TCE rates as
our voyage revenues less voyage expenses, charter hire expenses, and realized gain or losses on fuel hedges, divided by the number of the available days of our owned fleet during the period. TCE rate is a common shipping industry performance
measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day
amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. Our estimated TCE for the first quarter of 2025 is based on fixtures booked to date. Actual results may vary based on the actual duration of
voyages and other factors. Accordingly, we are unable to provide, without unreasonable efforts, a reconciliation of estimated TCE for the first quarter to the most comparable financial measures presented in accordance with GAAP. From time to time,
we may provide estimates of our TCE rate for a given quarter. Our vessel fixtures, owned available days, and TCE rate may all vary from those of prior estimates. We do not undertake any obligation to update, revise, or continue to provide such
estimates. Net revenue is calculated by multiplying TCE by owned available days.
Regarding daily vessel operating expenses (“DVOE”), we estimate approximately $6,500 per vessel per day for the first quarter of 2025 based on ownership days of 3,780.
The update reflects the currently anticipated timing of crew, spares, stores and maintenance related expenses. This figure remains subject to change based on timing of purchases and expense recognition.
The information set forth under this Item 7.01 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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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant 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 our 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 release are the following: (i) declines or sustained weakness in demand in the drybulk shipping industry; (ii) weakness or declines in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk
products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) increases in costs and expenses including but not limited to: crew
wages, insurance, provisions, lube oil, bunkers, repairs, maintenance, general and administrative expenses, and management fee expenses; (vi) changes in general domestic and international political conditions; (vii) acts of war, terrorism, or piracy,
including without limitation the ongoing war in Ukraine, the Israel-Hamas war, and attacks on vessels in the Red Sea; (viii) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among
other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (ix) the Company’s acquisition or disposition of vessels; (x) the completion of definitive documentation with respect to charters; (xi)
charterers’ compliance with the terms of their charters in the current market environment; (xii) the extent to which our operating results are affected by weakness in market conditions and freight and charter rates; (xiii) our ability to maintain
contracts that are critical to our operation, to obtain and maintain acceptable terms with our vendors, customers and service providers and to retain key executives, managers and employees; (xiv) completion of documentation for vessel transactions
and the performance of the terms thereof by buyers or sellers of vessels and us; (xv) the relative cost and availability of low sulfur and high sulfur fuel, worldwide compliance with sulfur emissions regulations that took effect on January 1, 2020
and our ability to realize the economic benefits or recover the cost of the scrubbers we have installed; (xiv) outbreaks of disease such as the COVID-19 pandemic; and (xv) other factors listed from time to time in our filings with the Securities and
Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports on Form 8-K and Form 10-Q). We do not undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Genco Shipping & Trading Limited has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
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GENCO SHIPPING & TRADING LIMITED
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DATE: March 14, 2025
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/s/ Peter Allen
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Peter Allen
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Chief Financial Officer
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