Genco Shipping & Trading Ltd. (NYSE:GNK) Q3 2018 Earnings Conference Call - Final Transcript
Nov 08, 2018 • 08:30 am ET
Good morning, ladies and gentlemen, and welcome to the Genco Shipping & Trading Limited Third Quarter 2018 Earnings Conference Call and Presentation. Before we begin, please note that there will be a slide presentation accompanying today's conference call. That presentation can be obtained from Genco's website at www.gencoshipping.com.
To inform everyone, today's conference is being recorded and is now being webcast at the Company's website, www.gencoshipping.com. We will conduct a question-and-answer session after these opening remarks, instructions will follow at that time. A replay of the conference will be accessible anytime during the next two weeks by dialing toll free 888-203-1112 or area code 719-457-0820 and entering the pass code 8797872. At this time, I will turn the conference over to the Company. Please go ahead.
Good morning. (Forward-Looking Cautionary Statements).
For a discussion of factors that could cause results to differ, please see the Company's press release that was issued yesterday. The materials relating to this call posted on the Company's website and the Company's filings with the Securities and Exchange Commission, including without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2017, and the Company's report subsequently filed with the SEC.
At this time, I would like to introduce John Wobensmith, CEO of Genco Shipping & Trading Limited.
Good morning, everyone. Welcome to Genco's third quarter 2018 conference call. I will begin today's call by reviewing our third quarter highlights. We will then discuss our financial results for the quarter and the industry's current fundamentals and then open up the call up for questions.
Turning to Slide 5, we review Genco's third quarter highlights. During the third quarter, we made significant progress implementing our growth strategy, further strengthening our earnings power and position for capitalizing on the recovering drybulk market. Importantly, we completed the acquisition of six high specification fuel efficient Capesize and Ultramax vessels at an attractive point in the cycle given the earnings environment for both sectors.
Specifically in July, we took delivery of the Genco Weatherley, a 2014 built Ultramax Vessel. In August, we took delivery of two 2015 Capesize vessels, the Genco Endeavor and the Genco Resolute and in September, we took delivery of the Genco Columbia, a 2016 Ultramax vessel as well as two 2016 built Capesize vessels, the Genco Defender and the Genco Liberty. Furthermore, as part of our fleet renewal program, we have agreed to sell five vessels to date of which three vessels have been delivered to their respective buyers. These include two 1990s built vessels, the Genco Surprise and the Genco Progress, which delivered to buyers during the third quarter and the Genco Cavalier, a 2007 built Supermax vessel which delivered to buyers during the fourth quarter. The two remaining vessels agreed to be sold to date; the Genco Explorer and the Genco Muse are expected to be delivered later in the fourth quarter.
As a result of these sales, Genco expects to save anticipated drydocking and ballast water treatment system installation cost of