Genco Shipping & Trading Limited (GNK) saw its loss narrow to $27.51 million, or $3.80 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $66.62 million, or $9.54 a share. Revenue during the quarter dropped 22.22 percent to $38.89 million from $50 million in the previous year period. Gross margin for the quarter contracted 263 basis points over the previous year period to 21 percent. Operating margin for the quarter stood at negative 51.73 percent as compared to a negative 70.60 percent for the previous year period.
Operating loss for the quarter was $20.12 million, compared with an operating loss of $35.29 million in the previous year period.
John C. Wobensmith, president, commented, "Genco has taken important steps to strengthen its balance sheet and enhance its long-term prospects in the third quarter. The proposed $400 million facility provides us with a more favorable amortization schedule through 2020, a reduction in the minimum liquidity requirements and significant relief under the collateral maintenance covenants which is expected to provide the company with increased financial flexibility upon closing. The commitment for the proposed $400 million credit facility highlights the Company’s industry leadership and is expected to better position the Company to capitalize on our leading drybulk platform during a potential market recovery. We thank our lenders for their strong and ongoing support."
Operating cash flow remains negative
Genco Shipping & Trading Limited has spent $45.91 million cash to meet operating activities during the nine month period as against cash outgo of $39.39 million in the last year period. Cash flow from investing activities was $5.12 million for the nine month period as against cash outgo of $26.40 million in the last year period.
The company has spent $40.26 million cash to carry out financing activities during the nine month period as against cash inflow of $26.85 million in the last year period.
Working capital turns negative
Working capital of Genco Shipping & Trading Limited has turned negative to $475.81 million on Sep. 30, 2016 from positive $11.72 million on Sep. 30, 2015. Current ratio was at 0.16 as on Sep. 30, 2016, down from 1.15 on Sep. 30, 2015.
Days sales outstanding went down to 17 days for the quarter compared with 26 days for the same period last year.
Debt moves up
Genco Shipping & Trading Limited has witnessed an increase in total debt over the last one year. It stood at $540.46 million as on Sep. 30, 2016, up 16.91 percent or $78.18 million from $462.28 million on Sep. 30, 2015. Total debt was 36.19 percent of total assets as on Sep. 30, 2016, compared with 28.05 percent on Sep. 30, 2015. Debt to equity ratio was at 0.58 as on Sep. 30, 2016, up from 0.40 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
