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b"John Wobbensmith, CEO of Genco Shipping (GNK), a dry bulk shipping company, joined J Mintzmyer's\\xa0Value Investor's Edge Live\\xa0on 25 June 2021 to discuss the strong market outlook and company specific plans for capital allocation and shareholder returns.
GNK is benefiting from surging rates and is expected to report a strong Q2 earnings report followed by an even stronger showing in Q3. Although market conditions can change and dry bulk is notoriously volatile, the supply side is the most bullish we have seen in 20-plus years and the signals from demand are also encouraging, particularly in the midsize and smaller segments, which are reviewed in detail in this update.
Perhaps of most interest to shareholders is Genco's plan to begin massive dividend payouts once target leverage is achieved. GNK's officially stated plan is to begin these large payouts after Q4-2021 results (i.e. in early-2022). However, market conditions have been very strong, so there's a potential for GNK to start to move even faster. With current market rates and GNK's stated dividend policy, we could theoretically see yields of 30% or higher against current share prices.
This interview contains relevant insights for investors in all other dry bulk companies, including 2020 Bulkers (Oslo: 2020), Diana Shipping (DSX), Eagle Bulk (EGLE), Eurodry (EDRY), Golden Ocean (GOGL), Grindrod Shipping (GRIN), Navios Partners (NMM), Pangaea Logistics (PANL), Safe Bulkers (SB), Seanergy Maritime (SHIP), and Star Bulk Carriers (SBLK).
Topics Covered


(2:00)\\xa0Dry bulk market overview


(8:00)\\xa0Differences between midsize and Capesize markets?


(12:30)\\xa0Any clear impact from upcoming environmental regulations?


(15:45)\\xa0Views on ammonia or LNG-dual fuel designs?


(17:15)\\xa0Any interest in newbuild assets or resale tonnage?


(19:15)\\xa0Any other growth potential?


(22:30)\\xa0Potential to raise the dividend sooner due to strong markets?


(25:15)\\xa0Dividend structure? Potential to pay even in weak markets?


(27:45)\\xa0Views on low leverage? Optionality to increase it?


(30:15)\\xa0Any desire to add time-charter coverage in this market?


(32:00)\\xa0Review of scrubber program and economics.


(34:30)\\xa0Why choose Genco Shipping (GNK) as the favored dry bulk play?


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