Genco Shipping Report Net Loss in Q1 2012 Results

The Company recorded net loss of US$27.7-million by Genco in the second quarter of 2012

Extracts from the Genco financial report follow:

The financial report showed a loss attributable to Genco for the second quarter of 2012 of $27.7 million, or $0.65 basic and diluted loss per share. Comparatively, for the three months ended June 30, 2011, net income attributable to Genco was $10.1 million, or $0.29 basic and diluted earnings per share.

EBITDA was $26.8 million for the three months ended June 30, 2012 versus $65.8 million for the three months ended June 30, 2011.

Robert Gerald Buchanan, President, commented, "During the second quarter, we maintained an opportunistic time charter approach in a challenging drybulk market. By preserving the ability to benefit from a rising freight rate environment combined with a large and modern fleet, we intend to drive future performance when market conditions improve while continuing to provide our leading customers with the highest quality service."

Genco's voyage revenues decreased to $62.1 million for the three months ended June 30, 2012 versus $98.5 million for the three months ended June 30, 2011. The decrease was due to lower charter rates achieved by the majority of its vessels as well as a higher number of days that they were on planned offhire to complete drydockings during the second quarter of 2012 compared to the second quarter of 2011.

John C. Wobensmith, Chief Financial Officer, commented, "Genco ended the second quarter with a sizeable cash balance of $251.4 million, enhancing the Company's ability to operate in a soft rate environment. Consistent with our objective to preserve the Company's financial strength and flexibility, we entered into agreements in August to amend our three credit facilities under favorable terms.