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No. of Recommendations: 3
A month later (11/4)

Genco (GNK) reported Q3 2021 results yesterday.
- Voyage revenue of $155.3M
- Net Income of $57.1M
- Dividend hiked to 15c/sh
- With reduced debt, GNK have announced plans for a dividend value strategy.

In terms of Q3 results, based on mid-quarter evaluation, I was thinking that dry bulk shippers will generally have a good quarter. Still, GNK's Q3 revenue numbers did surprise me. In the OP, I had suggested a revenue of $425M for the full year. That's somewhere near a mid-point in my range of $415M - $440M. GNK have generated rev of $363.8M for the first 9M of 2021.

In the OP, I had suggested the dry bulk shipping market can be quite volatile. Oct 2021 is a perfectly good example of this. The first half of the month, the Baltic Dry Index (BDI) managed to regain highs not seen in 13 years. The second half of the month, the BDI and its primary component, BCI (Baltic Cape Index), both took major dives. Cape rates that had seen levels above $85K daily dropped to around $64K daily, => $51K daily => $33K daily within 2-3 weeks. The good news, $33K is still a very profitable Cape rate.

On a more positive note, the Supramax/Ultramax vessel category has not seen such dramatic plunges. Maybe I should add, ... yet. Still, if fleet mix is part of company strategy, then Genco's strategy still seems to be working. The smaller vessels have buffered the company from more spiky revenue trends. More charter coverage would help there too. But taking charter coverage during a rate downtrend has its own issues.

Overall debt load still makes Genco an interesting shipping idea.
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