Expects Significantly Higher Q2 2026 Dividend
High Specification Scrubber-Fitted Capesize Vessel Expected to Deliver in Q2 2026, Further Enhancing Earnings Power and Dividend Capacity
NEW YORK, May 06, 2026 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) ("Genco" or the "Company"), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months ended March 31, 2026.
First Quarter 2026 and Year-to-Date Highlights
Dividend
Declared a $0.35 per share dividend for Q1 2026, 133% higher than Q1 2025
27th consecutive quarterly dividend
Cumulative dividends of $7.915 per share or approximately 31% of our current share price1
Q1 2026 dividend is payable on or about May 26, 2026 to all shareholders of record as of May 18, 2026
Q2 2026 projected dividend: $0.70 per share based on current fixtures and assuming the current FFA curve2
Growth
Took delivery of the Genco Stars and Stripes and the Genco Valkyrie, two 2020-built 208,000 dwt scrubber-fitted Newcastlemax vessels, in March 2026
Agreed to acquire a 2019 Imabari built 182,000 dwt scrubber-fitted Capesize vessel with prompt delivery expected in June 2026
Q1 2026 financial results
Net income of $9.3 million, or basic and diluted earnings per share of $0.21
Adjusted net income of $11.3 million or basic and diluted earnings per share of $0.262
Adjusted EBITDA: $36.2 million
Voyage revenues: $114.4 million
Net revenue2: $72.0 million
Average daily fleet-wide TCE2: $19,346 per day, strongest Q1 since 2022
Estimated Q2 2026 TCE to date
$23,939 for 66% of our owned fleet available days2
John C. Wobensmith, Chairman and Chief Executive Officer, commented, "Following a strong end to 2025, we are pleased to have continued our positive momentum in 2026. The first quarter marked another period of strong execution of our Comprehensive Value Strategy and significant progress increasing our earnings power and dividend capacity. During a seasonally softer period, we generated strong cash flows and declared a $0.35 per share dividend, representing a year-over-year increase of 133%. This also marked our 27th consecutive quarterly dividend, the longest uninterrupted period of dividends in our drybulk peer group. Including the Q1 payment, total dividends to shareholders over the past seven years will increase to $340 million, or $7.915 per share. Based on our significant operating leverage in a strengthening market, firm fixtures to date and assuming the current FFA curve, projections show a Q2 dividend of $0.70 per share, a 367% increase year-over-year."
Mr. Wobensmith added, "Consistent with our well-defined capital allocation strategy, we have continued to renew and grow our fleet with a focus on high specification, premium earning assets. We recently sold two older, non-core vessels at levels above broker estimates and plan to redeploy a portion of the proceeds into a modern, fuel-efficient Capesize vessel. We anticipate this vessel will earn a premium to benchmark indices in the spot market following its expected delivery next month. Building on our successful investments in our fleet totaling approximately $557 million since 2021 inclusive of this latest acquisition, we intend to draw on our industry-leading balance sheet and significant undrawn revolver availability to continue to capitalize on attractive growth opportunities ahead."
Mr. Wobensmith concluded, "Freight rates have continued to strengthen in 2026, reflected in our Q2 TCE to date, which is 24% higher than Q1 levels. We are confident that our premium earning assets, leading commercial operating platform, advantageous spot-focused commercial strategy, and sizeable operating leverage in a strengthening drybulk market put Genco in an ideal position to continue generating superior returns for shareholders in 2026 and beyond. Our business is strong, and we look forward to continuing to advance our low leverage high dividend payout model, while maintaining industry-leading governance standards."
1 Genco share price as of May 5, 2026.2 We believe the non-GAAP measure presented provides investors with a means of better evaluating and understanding the Company's operating performance. Please see Summary Consolidated Financial and Other Data below for further reconciliation. Regarding Q2 2026 TCE, this estimate is based on both period and current spot fixtures, actual results will vary from current estimates. Net revenue is defined as voyage revenues minus voyage expenses, charter hire expenses and realized gains or losses on fuel hedges. Q2 2026 projected dividend shown is based on fixtures to date, assuming the current FFA curve for the balance of the quarter and estimated expense levels and utilization as described in the appendix to our Q1 2026 earnings presentation posted on our website under "Investors, Events and Presentations." Given freight market volatility, the FFA curve is subject to change.
Comprehensive Value Strategy
Genco's consistent comprehensive value strategy is centered on three pillars:
Dividends: paying sizeable quarterly cash dividends to shareholders
Deleveraging: maintain low financial leverage and a low cash flow breakeven rate, and
Growth: opportunistically renewing and growing our asset base
Key characteristics of our strategy include:
Net loan-to-value of 20% at March 31, 20263
Strong liquidity position of $404.8 million at March 31, 2026, which consists of:
$54.8 million of cash on the balance sheet
$350.0 million of undrawn revolver availability
High operating leverage with our scalable fleet across the major and minor bulk sectors
3 Represents the principal amount of our credit facility debt outstanding less our cash and cash equivalents as of March 31, 2026 divided by estimates of the market value of our fleet based on the average of broker valuations received from two independent third-party firms as of April 15, 2026, shown for illustrative purposes only. The actual market value of our vessels may vary.
Fleet Renewal and Growth
We took delivery of two 2020-built 208,000 dwt scrubber-fitted Newcastlemax vessels, the Genco Stars and Stripes and the Genco Valkyrie, on March 5, 2026 and March 24, 2026, respectively.
The Company has agreed to acquire a 2019 Imabari built 182,000 dwt scrubber-fitted Capesize vessel with prompt delivery expected in June 2026.
Additionally, we sold two 2005-built Supramaxes, the two oldest and smallest vessels in our fleet. The Genco Picardy and the Genco Predator were delivered to their third-party buyers on March 30, 2026 and April 15, 2026, respectively.
The purchase price of the 2019 Imabari built scrubber-fitted Capesize vessel, to be renamed the Genco Volunteer, is $65.0 million while the gross sales price for the two 2005-built Supramaxes is $10.6 million each or $21.2 million in aggregate. We reported a gain on sale of the Genco Picardy of $2.1 million in Q1 2026 and expect to record a gain of a similar level in Q2 2026 relating to the sale of the Genco Predator.
Dividend Policy
Genco declared a cash dividend of $0.35 per share for the first quarter of 2026. The Q1 2026 dividend is payable on or about May 26, 2026 to all shareholders of record as of May 18, 2026.
Quarterly dividend policy: 100% of quarterly operating cash flow less a voluntary reserve.
Under the quarterly dividend policy adopted by our Board of Directors, the amount available for quarterly dividends is to be calculated based on the formula in the table below. The table includes the calculation of the actual Q1 2026 dividend:
Dividend calculation
Q1 2026 actual
Net revenue
$
72.0
Operating expenses
$
(36.8
)
Operating cash flow
$
35.2
Less: voluntary quarterly reserve
$
(19.5
)
Cash flow distributable as dividends
$
15.7
Dividend per share
$
0.35
Numbers in millions except per share amounts
Operating cash flow is defined as net revenue (consisting of voyage revenue less voyage expenses, charter hire expenses, and realized gains or losses on fuel hedges), less operating expenses (consisting of vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management expenses, and interest expense other than non-cash deferred financing costs), for purposes of the foregoing calculation.
The voluntary quarterly reserve for the second quarter of 2026 under the Company's dividend formula is targeted at $19.5 million, which remains fully within our discretion. A key component of Genco's value strategy is maintaining a voluntary quarterly reserve, as well as the optionality for the use of the reserve as Genco seeks to pay sizeable dividends across the cyclicality of the drybulk market while continuing to invest in our fleet. Subject to the development of freight rates for the remainder of the second quarter and our assessment of our liquidity and forward outlook, we maintain flexibility to reduce the quarterly reserve to pay dividends or increase the amount of dividends otherwise payable under our formula. The reserve is set by our Board of Directors at its discretion, and our Board has generally allotted an amount for anticipated debt prepayments plus an additional amount. We plan to set the voluntary reserve on a quarterly basis for the subsequent quarter.
Anticipated uses for the voluntary reserve include, but are not limited to:
Vessel acquisitions
Debt repayments, and
General corporate purposes
The Board expects to reassess the payment of dividends as appropriate from time to time. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facility) and the Board of Directors' determination that each declaration and payment is at the time in the best interests of the Company and its shareholders after its review of our financial performance.
Peter Allen, Chief Financial Officer, commented, "Our strong first quarter performance was a direct result of the strategic capital allocation actions we have taken to enhance our premium earning asset base, combined with our spot-focused revenue generation strategy. Notably, Q1 2026 TCE increased by 63% year-over-year, led by strong performance in the Capesize sector, which saw TCE increase by 104% to nearly $27,000 per day highlighting the operating leverage of the sector. Complementing our strong performance, we more than doubled our Q1 2026 dividend on a year-over-year basis and expect a significantly higher dividend in Q2 2026, as compared to both Q2 2025 and Q1 2026. We also continue to make strong progress renewing and growing our fleet, having entered into recent sale and purchase transactions that were immediately accretive to cash flow and net asset value. With significant balance sheet strength, Genco maintains the financial flexibility to capitalize on attractive growth opportunities that continue to expand our earnings power and dividend capacity in a strengthening drybulk market."
Genco's Active Commercial Operating Platform and Fleet Deployment Strategy
We utilize a portfolio approach towards revenue generation through a combination of:
Short-term, spot market employment, and
Strategically booking longer term fixed rate coverage based on market timing and management's outlook
Our fleet deployment strategy currently remains weighted towards short-term fixtures, which provide us with optionality on our sizeable fleet.
Based on current fixtures to date, our estimated TCE to date for the second quarter of 2026 on a load-to-discharge basis is presented below. Actual rates for the second quarter will vary based upon future fixtures. These estimates are based on time charter contracts entered by the Company as well as current spot fixtures on the load-to-discharge method, whereby revenue is recognized ratably over the voyage from the commencement of loading to the completion of discharge. The actual TCE rates to be earned will depend on the number of contracted days and the number of ballast days at the end of the period. According to the load-to-discharge accounting method, the Company does not recognize revenue for any ballast days or uncontracted days at the end of the second quarter of 2026. At the same time, expenses for uncontracted days will be recognized as incurred.
Estimated net TCE - Q2 2026 to Date
Vessel Type
TCE
% Fixed
Newc/Cape
$
33,553
67%
Ultra/Supra
$
16,315
65%
Total
$
23,939
66%
Our index-linked charters are listed below
Vessel
Type
DWT
Year Built
Rate
Duration
Min Expiration
Genco Wolf
Capesize
177,752
2010
100.5% of BCI + scrubber
13-16 months
Sep-26
Genco Lion
Capesize
179,185
2012
99.5% of BCI + scrubber
14-16 months
Mar-27
Genco Bear
Capesize
177,717
2010
100% of BCI + scrubber
14-17 months
May-27
Financial Review: 2026 First Quarter
The Company recorded net income for the first quarter of 2026 of $9.3 million, or $0.21 basic and diluted earnings per share. Adjusted net income of $11.3 million or basic and diluted earnings per share of $0.26, excluding a gain on sale of vessels of $2.1 million, impairment of vessel assets of $0.5 million, other operating expense of $3.8 million and unrealized gain on fuel hedges of $0.2 million. Comparatively, for the three months ended March 31, 2025, the Company recorded a net loss of $11.9 million, or $0.28 basic and diluted net loss per share.
Revenue / TCEThe Company's revenues increased to $114.4 million for the three months ended March 31, 2026 as compared to $71.3 million recorded for the three months ended March 31, 2025, primarily due to higher rates earned by our major and minor bulk vessels, the operation of a larger fleet, as well as less drydocking days during the first quarter of 2026 as compared to the first quarter of 2025. The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet was $19,346 per day for the three months ended March 31, 2026 as compared to $11,884 per day for the three months ended March 31, 2025.
Voyage expensesVoyage expenses increased to $36.3 million for the three months ended March 31, 2026 from $27.4 million during the prior year period.
Vessel operating expensesVessel operating expenses increased to $26.6 million for the three months ended March 31, 2026 from $24.9 million for the three months ended March 31, 2025. Daily vessel operating expenses, or DVOE, amounted to $6,805 per vessel per day for the first quarter of 2026 compared to $6,592 per vessel per day for the first quarter of 2025. The increase in DVOE was primarily due to higher crew costs partially offset by the timing of the purchase of spares.
We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on current estimates, our DVOE budget for Q2 2026 is $6,750 per vessel per day on a fleet-wide basis.
General and administrative expensesGeneral and administrative expenses increased to $8.1 million for the first quarter of 2026 compared to $7.5 million for the first quarter of 2025.
Depreciation and amortization expensesDepreciation and amortization expenses increased to $21.0 million for the three months ended March 31, 2026 from $17.7 million for the three months ended March 31, 2025 primarily due to an increase in drydocking amortization expense for certain vessels in our fleet, as well as an increase in vessel depreciation expenses for vessels delivered during the fourth quarter of 2025 and the first quarter of 2026.
EBITDAEBITDA for the three months ended March 31, 2026 amounted to $34.2 million compared to $7.9 million during the prior year period. During the three months of 2026 and 2025, EBITDA included a gain on sale of vessels, impairment of vessel assets, other operating expenses, as well as unrealized gains on fuel hedges. Excluding these items, our adjusted EBITDA amounted to $36.2 million and $7.9 million, for the respective periods.
Liquidity and Capital Resources
Cash Flow
Net cash provided by operating activities for the three months ended March 31, 2026 and 2025 was $15.7 million and $2.9 million, respectively. This increase in cash provided by operating activities was primarily due to higher rates earned by our major and minor bulk vessels, as well as changes in working capital. Additionally, there was a decrease in drydocking costs incurred during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.
Net cash used in investing activities for the three months ended March 31, 2026 and 2025 was $123.3 million and $2.9 million, respectively. This fluctuation was primarily a result of a $131.0 million increase in the purchase of vessel assets due to the purchase of the Genco Stars and Stripes and the Genco Valkyrie which were delivered on March 5, 2026 and on March 24, 2026, respectively. This increase in net cash used in investing activities was partially offset by $10.9 million net proceeds from the sale of the Genco Picardy on March 30, 2026.
Net cash provided by (used in) financing activities during the three months ended March 31, 2026 and 2025 was $106.9 million and ($13.4) million, respectively. On February 27, 2026, the $600 Million Revolver was refinanced with the $680 Million Revolver. As part of the debt modification, $4.3 million was settled net among the lenders of the $600 Million Revolver and $680 Million Revolver. The fluctuation is primarily due to drawdowns totaling $130.0 million on the $600 Million Revolver and the $680 Million Revolver made by the Company during the three months ended March 31, 2026. This increase in cash provided by financing activities was partially offset by a $9.2 million increase in the payment of dividends and a $0.5 million increase in the payment of deferred financing costs related to the $680 Million Revolver during the first quarter of 2026 as compared to the first quarter of 2025.
Capital Expenditures
Genco's current fleet consists of 43 vessels with an average age of 12.6 years and an aggregate capacity of approximately 4,935,000 dwt:
Two Newcastlemaxes and 17 Capesizes
15 Ultramaxes and 9 Supramaxes
In addition to acquisitions that we may undertake, we will incur additional capital expenditures due to special surveys and drydockings. Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems to our vessels in order to reduce fuel consumption and emissions.
We estimate our capital expenditures related to drydocking, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment system costs, fuel efficiency upgrades and scheduled off-hire days for our fleet for the balance of 2026 to be:
Estimated costs ($ in millions)
Q2 2026
Q3 2026
Q4 2026
Drydock Costs (1)
$
10.05
$
5.20
$
6.90
Estimated BWTS Costs (2)
$
2.84
$
-
$
-
Fuel Efficiency Upgrade Costs (3)
$
0.83
$
-
$
-
Total Costs
$
13.72
$
5.20
$
6.90
Estimated Offhire Days (4)
153
75
105
(1) Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses.(2) Estimated costs associated with the installation of ballast water treatment systems are expected to be funded with cash on hand.(3) Estimated costs associated with the installation of fuel efficiency upgrades are expected to be funded with cash on hand.(4) Actual length will vary based on the condition of the vessel, yard schedules and other factors. The estimated offhire days per sector scheduled for Q2 2026 consists of 134 days for three Capesizes and 19 days for one Supramax.
Summary Consolidated Financial and Other Data
The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.
Three Months Ended March 31, 2026
Three Months Ended March 31, 2025
(Dollars in thousands, except share and per share data)
(unaudited)
INCOME STATEMENT DATA:
Revenues:
Voyage revenues
$
114,429
$
71,269
Total revenues
114,429
71,269
Operating expenses:
Voyage expenses
36,276
27,354
Vessel operating expenses
26,560
24,916
Charter hire expenses
6,096
2,285
General and administrative expenses (inclusive of nonvested stock amortization
8,109
7,494
expense of $1,830 and $1,496, respectively)
Technical management expenses
760
1,325
Depreciation and amortization
21,038
17,665
Impairment of vessel assets
527
-
Net gain on sale of vessels
(2,075
)
-
Other operating expense
3,826
-
Total operating expenses
101,117
81,039
Operating income (loss)
13,312
(9,770
)
Other (expense) income:
Other income (expense)
96
(13
)
Interest income
665
370
Interest expense
(4,498
)
(2,549
)
Other expense, net
(3,737
)
(2,192
)
Net income (loss)
$
9,575
$
(11,962
)
Less: Net income (loss) attributable to noncontrolling interest
266
(39
)
Net income (loss) attributable to Genco Shipping & Trading Limited
$
9,309
$
(11,923
)
Net earnings (loss) per share - basic
$
0.21
$
(0.28
)
Net earnings (loss) per share - diluted
$
0.21
$
(0.28
)
Weighted average common shares outstanding - basic
43,706,069
43,201,941
Weighted average common shares outstanding - diluted
44,411,222
43,201,941
March 31, 2026
December 31, 2025
BALANCE SHEET DATA (Dollars in thousands):
(unaudited)
