Genco Shipping Declares 133% Higher $0.35 Q1 Dividend, Forecasts 367% Higher $0.70 Q2 Payout
Genco Shipping & Trading declared a $0.35 per share Q1 dividend, up 133% year-over-year, marking its 27th consecutive quarterly payout. The company generated $36.2 million of adjusted EBITDA on $114.4 million voyage revenues, net income of $9.3 million, and projects a $0.70 dividend for Q2 based on current fixtures.
1. Q1 Financial Results
Genco reported net income of $9.3 million (EPS $0.21), adjusted net income of $11.3 million (EPS $0.26), adjusted EBITDA of $36.2 million and voyage revenues of $114.4 million. Net revenue reached $72.0 million and average daily fleet-wide TCE was $19,346, the strongest Q1 performance since 2022.
2. Dividend Increase and Outlook
The board declared a $0.35 per share Q1 dividend, up 133% year-over-year, marking the 27th consecutive quarterly payout with a May 18 record date and May 26 payment date. Based on current fixtures and the FFA curve, management projects a $0.70 per share dividend for Q2, reflecting a 367% year-over-year increase.
3. Fleet Renewal and Growth
In March, Genco took delivery of two 2020-built, 208,000 dwt scrubber-fitted Newcastlemax vessels, the Genco Stars and Stripes and Genco Valkyrie. The company also agreed to acquire a 2019-built, 182,000 dwt scrubber-fitted Capesize vessel with expected delivery in June, enhancing its premium earnings asset base.
4. Financial Position and Liquidity
As of March 31, Genco maintained a net loan-to-value ratio of 20% and total liquidity of $404.8 million, including $54.8 million cash and $350 million undrawn revolver availability. The strong balance sheet supports ongoing dividend payments and opportunistic fleet investments.