Genco Shipping & Trading Limited Enhances Dividend Policy to Increase Cash Distributable to Shareholders

Genco Shipping & Trading Limited, the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today announced the removal of the drydocking capex line item from its formula used to calculate its quarterly dividend. This will increase the amount of cash available for distribution to shareholders beginning in the third quarter of 2024.

The voluntary quarterly reserve for the third quarter of 2024 under the Company’s dividend formula is $19.50 million, which remains fully within the Company’s discretion. We plan to continue to review the voluntary reserve to further enhance shareholder value over the long-term.

For the balance of 2024 and 2025, drydocking capex is estimated to be as follows:

Q3 2024: $11 million or $0.25 per share

Q4 2024: $7 million or $0.16 per share

FY 2025: $41 million or $0.95 per share

Actual drydocking capex will vary based on various factors, including where the drydockings are actually performed.

John C. Wobensmith, Chief Executive Officer, commented, “Based on Genco’s notable achievements in executing its capital allocation strategy, we have enhanced our quarterly dividend formula by eliminating the drydocking capex line item within our calculation. As we approach our goal of net debt zero, we are pleased to take another important step to reward shareholders aimed at further strengthening shareholder returns. This enhancement to our dividend formula reflects our belief that our low leverage will support larger dividends to shareholders. At the same time, we continue to maintain significant financial strength to grow and renew our fleet and further improve our earnings power.”

Mr. Wobensmith continued, “Since implementing our comprehensive value strategy three years ago, we have made demonstrable progress executing on all three core pillars. Notably, Genco has distributed 20 consecutive quarterly dividends to shareholders, returning a total of $5.915 per share, or ~35% of our share price as of September 9, 2024. We have also further modernized our sizeable drybulk fleet, while lowering our debt nearly 80% since 2021, significantly reducing our net loan to value and cash flow breakeven to industry lows.”

Note: 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.
Source: Genco Shipping & Trading Limited