Genco Q3 Profits Plunge

29 October 2009 (Last Updated October 29th, 2009 18:30)

Genco Shipping & Trading has reported a 46% fall in its third quarter revenue due to lower charter rates affecting marine business. The US cargo transporting firm reported a net income of $34.3m, or $1.09 per share compared to $63m, or $1.99 per share in 2008. The compan

Genco Shipping & Trading has reported a 46% fall in its third quarter revenue due to lower charter rates affecting marine business.

The US cargo transporting firm reported a net income of $34.3m, or $1.09 per share compared to $63m, or $1.99 per share in 2008.

The company’s EBITDA was $72.5m for the three months ended 30 September 2009, compared to $93.2m during the same period in 2008.

The shipping firm’s revenues decreased 13.7% to $92.9m due to lower charter rates, Genco said.

The average daily time charter equivalent (TCE) rates decreased by 21.9% to $30,743 per day for the three months ending 30 September 2009, compared to $39,349 in 2008.

According to Genco, the decrease in TCE rates resulted from lower charter rates for five of the Panamax vessels, six Supramax and Handymax vessels, and five Handysize vessels.

The lower TCE rates were due to the comparatively lower revenue from the profit sharing agreements on two of the company’s Capesize vessels.