Genco Shipping reports $18.7m loss in H1 2025 due to lower bulk vessel rates
New York-based Genco Shipping and Trading recently published its financial results for the second quarter of 2025, during which it reported a net loss of US$6.8 million, or US$0.16 basic and diluted net loss per share.
The company recorded an adjusted net loss is US$6.2 million or US$0.14 basic and diluted net loss per share excluding a non-cash vessel impairment charge of US$0.7 million.
Comparatively, for the three months ended June 30, 2024, the Genco recorded net income of US$23.5 million, or US$0.54 basic and diluted earnings per share, respectively.
Adjusted net income amounted to US$19.9 million, or US$0.46 basic and diluted earnings per share, excluding other operating expense of US$3.9 million, a gain on sale of vessels of US$13.2 million, non-cash vessel impairment charges of US$5.6 million and unrealized fuel losses of US$0.1 million.
The company’s revenues decreased to US$80.9 million for the three months ended June 30, 2025 as compared to US$107.0 million recorded for the three months ended June 30, 2024, primarily due to lower rates earned by major and minor bulk vessels as well as the operation of a smaller fleet.
The average daily time charter equivalent (TCE) rates obtained by the company’s fleet was US$13,631 per day for the three months ended June 30, 2025 as compared to US$19,938 per day for the three months ended June 30, 2024.
Gross operating profit for the three months ended June 30, 2025 amounted to US$13.6 million compared to US$43.3 million during the prior year period. During the three months of 2025 and 2024, gross operating profit included non-cash impairment charges, other operating expenses, gains on sale of vessels as well as gains and losses on fuel hedges.
Excluding these items, Genco's adjusted gross operating profit amounted to US$14.3 million and US$39.8 million, for the respective periods.
The company recorded a net loss of US$18.7 million or US$0.43 basic and diluted net loss per share, for the six months ended June 30, 2025. This compares to net income of US$42.3 million or US$0.98 and US$0.97 basic and diluted earnings per share, respectively, for the six months ended June 30, 2024.
The company’s revenues decreased to US$152.2 million for the six months ended June 30, 2025 compared to US$224.5 million for the six months ended June 30, 2024, primarily due to lower rates earned by major and minor bulk vessels as well as the operation of a smaller fleet.
TCE rates obtained by the company decreased to US$12,750 per day for the six months ended June 30, 2025 from US$19,564 per day for the six months ended June 30, 2024.
Gross operating profit for the six months ended June 30, 2025 amounted to US$21.6 million compared to US$82.5 million during the prior year period. During the six months of 2025 and 2024, gross operating profit included non-cash impairment charges, other operating expenses, gains on sale of vessels as well as gains and losses on fuel hedges.
Excluding these items, Genco's adjusted gross operating profit amounted to US$22.2 million and US$81.6 million, for the respective periods.
Net cash provided by operating activities for the six months ended June 30, 2025 and 2024 was US$8.3 million and US$61.3 million, respectively. This decrease in cash provided by operating activities was primarily due to lower rates earned by major and minor bulk vessels, as well as changes in working capital.
Additionally, there was an increase in drydocking costs incurred during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Net cash provided by investing activities for the six months ended June 30, 2025 and 2024 was (US$6.7) million and US$65.1 million, respectively. This fluctuation was primarily a result of US$67.7 million of proceeds from the sale of three ships during the six months ended June 30, 2024.
Additionally, there was a $4.4 million increase in the purchase of vessel assets due to various upgrades during the drydocking of certain vessels in our fleet during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Net cash used in financing activities during the six months ended June 30, 2025 and 2024 was US$9.9 million and US$130.9 million, respectively. The decrease is primarily due to a US$95.0 million decrease in debt repayments made under the company's US$500 million revolver during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, as well as a US$10.0 million increase in drawdowns under the US$500 million revolver during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Lastly, there was a US$16.0 million decrease in the payment of dividends during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
