Genco heads for big profit
Resurrected Genco Shipping & Trading is expecting to post earnings of $870.7m for the third quarter thanks to its emergence from a $1.2bn Chapter 11 restructuring in July.
Genco chairman Peter Georgiopoulos
The New York bulker owner admitted the complexity of its accounts following its rebirth means it will not file its report within the required time limit.
But it provided guidance on its performance to 30 September in an SEC filing.
The huge profit compares to a net loss of $37m in the same period of 2013.
It is attributable to an estimated net gain of $901.2m from “reorganisation items,” it said.
Voyage revenues are expected to decrease to $48m from $58.6m in 2013, while voyage expenses will rise to $2.5m from $2.2m.
The operating loss will be $25m, compared to a loss of $13.4m a year ago.
Genco said earlier this year it was heading for a deficit of $65.6m for the three months to the end of June.
The restructuring allowed the company to reduce outstanding debt by approximately $1.2bn, cut annual interest obligations by over $40m and eliminate more than $192.8m worth of annual amortisation payments. This followed an infusion to the tune of $100m.
source:www.tradewindsnews.com
