Genco Shipping 1Q profit down 60%

Genco Shipping & Trading Ltd.'s first-quarter profit plunged a less-than-feared 60% as expenses surged, though revenue increased.


The shipper of drybulk cargoes such as iron ore, coal and grain has seen lower charter rates weigh on earnings in recent quarters. Low rates are expected to weigh on the industry in coming years as the industrywide fleet has been increasing.


Genco posted a profit of $13.4 million, or 38 cents a share, down from $33.5 million, or $1.06 a share, a year earlier. Revenue rose 7.1% to $101.4 million.


Analysts polled by Thomson Reuters had expected a profit of 35 cents a share on revenue of $104 million.


Operating expenses jumped 46% as vessel operating expenses and depreciation and amortization surged.


The average daily time-charter equivalent rate--a measure of the average performance of a vessel--plunged 32%. The average number of vessels rose to 49 from 35.


Total operating days jumped 41%, while fleet utilization dipped to 99.4% from 99.6%.


Shares closed Tuesday at $8.45, unchanged from a day earlier. The stock is down 65% in the past year.
(Source:http://en.portnews.ru)