New York-listed Genco Shipping & Trading rampaged to its strongest quarter since 2008 and is guiding to even stronger rates in the current quarter, but warning of a weaker finish to 2021. The Manhattan-based company said its fleet of 42 capesize, ultramax and supramax bulkers had earned a time charter-equivalent (TCE) rate of $29,287 for the quarter past, its best since 2010. And Genco trumped that by fixing 71% of operating days at $36,879 in the current quarter, an improvement of 26%. But on a day when the Baltic Dry Index (BDI) slipped under 3,000 points for the first time since June, Genco also warned that it has about eight capesizes coming open in coming weeks, which it will ballast to the Atlantic Basin. “As the market has declined from the highs seen during the third quarter and early October, we anticipate the unfixed portion of our available days to be contracted at lower rates than those reflected above in our fixtures to date,” Genco said in an earnings statement filed after the close of trading in New York.

If that is a bit of a sobering note, there was plenty of good in the quarterly report from the John Wobensmith-led company. Genco came in line with analysts’ consensus earnings expectations of $1.44 per share, Genco raking in net income of $57.1m. This flipped a net loss of $21.1m, or $0.50 per share, in the third quarter of 2020. Measured on the basis of Ebitda – earnings before interest, taxes, depreciation and amortization – Genco brought in $79.8m for the quarter, which is more than its Ebitda for all of 2020. “Genco maintained its upward earnings trajectory posting its best quarter since 2008. We continue to capitalize on both our leading platform and the favorable dry bulk market, which has moved from strength-to-strength in recent quarters,” Wobensmith said on Wednesday.

On the cusp of implementing a high-payout dividend strategy beginning with earnings for the current quarter, Genco again made an incremental bump in the payout to $0.15 per share, up 50% from the $0.10 paid out last quarter. Genco also has paid down $144.2m in debt through the first nine months, or 32% of its balance at the start of 2021. It aims to slice debt to $246m, a 45% reduction, by year’s end. “While we anticipate normal seasonality in the coming months, the overall fundamentals, including a historically low orderbook, remain supportive of Genco further taking advantage of its strong earnings power for the benefit of shareholders,” Wobensmith said.

With an eye toward being able to maintain a dividend even in weaker markets, Genco has fixed seven vessels on period charters of between one and two years at rates between $23,375 and $32,000 per day. In the current quarter, Genco’s capesizes are 72% booked at an overall TCE of $43,708 per day. The breaks down into charter rates of $28,197 and spot fixtures of $51,288. In the ultramax/supramax category, Genco has fixed 71% of days at $32,143 per day. This includes charters at $23,109 per day and spot voyages at $37,620 per day.