Genco Shipping & Trading Limited (GNK) saw its loss narrow to $15.60 million, or $0.47 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $54.48 million, or $7.55 a share. Revenue during the quarter surged 82.64 percent to $38.25 million from $20.94 million in the previous year period. Gross margin for the quarter period stood at positive 26.47 percent as compared to a negative 57.69 percent for the previous year period.
Operating loss for the quarter was $8.57 million, compared with an operating loss of $46.96 million in the previous year period.
John C. Wobensmith, chief executive officer, commented, "During the first quarter, our focus remained on further enhancing the Company’s commercial strategy and advancing Genco’s position as a leading low-cost operator. Specifically, we have taken steps during the quarter to strengthen our chartering team to further enhance our commercial prospects focusing on both major and minor bulks, improve the age profile of our fleet and maintain a low breakeven level. As supply and demand fundamentals continue to come into balance, we believe Genco is well positioned to take advantage of a market recovery due to our improved platform and significant operating leverage. Our financial flexibility also provides the Company the potential to pursue compelling growth opportunities for shareholders."
Operating cash flow remains negative
Genco Shipping & Trading Limited has spent $5.98 million cash to meet operating activities during the quarter as against cash outgo of $27.30 million in the last year period. Cash flow from investing activities was $13.19 million for the quarter, up 3,289.97 percent or $12.80 million, when compared with the last year period.
The company has spent $1.73 million cash to carry out financing activities during the quarter as against cash outgo of $18.56 million in the last year period.
Working capital turns positive
Working capital of Genco Shipping & Trading Limited has turned positive to $146.32 million on Mar. 31, 2017 from negative $460.97 million on Mar. 31, 2016. Current ratio was at 6.35 as on Mar. 31, 2017, up from 0.21 on Mar. 31, 2016.
Days sales outstanding went down to 12 days for the quarter compared with 41 days for the same period last year.
Debt comes down
Genco Shipping & Trading Limited has recorded a decline in total debt over the last one year. It stood at $514.32 million as on Mar. 31, 2017, down 8.34 percent or $46.78 million from $561.10 million on Mar. 31, 2016. Long-term debt stood at $507.24 million as on Mar. 31, 2017. Total debt was 33.15 percent of total assets as on Mar. 31, 2017, compared with 34.13 percent on Mar. 31, 2016. Debt to equity ratio was at 0.51 as on Mar. 31, 2017, down from 0.53 as on Mar. 31, 2016. 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: [email protected]
