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and end users directly.” This contrasts ing over the next three years.” Other general trend of ton mile trade increases tions that work effectively and reliably with a previous ? eet deployment strat- analysts agreed; for example, Jefferies- and global demand for commodities and for ballast water treatment.” egy of leaving chartering decisions with with a “Buy” on GNK shares, said: “We energy has been reliable and positive.” He stresses the importance of the hu- outside managers of pools. Regan adds believe GNK is very well positioned to Like the savviest of the market analysts, man element, telling Maritime Reporter: that technical management was also bene? t from the strengthening dry bulk Regan notes the importance of the sup- “Industry is always ready to adapt quick- tuned up: “…Genco directly manages shipping market via its large and diverse ply side, adding that: “It has been the in- ly and proactively when safety of life of selected key functions such as ? eet dry ? eet, 100% spot market exposure, & in- cremental vessel supply overhang bulges seafarers is the objective. And shipown- dockings, while leveraging the broad dustry-leading balance sheet.” Evercore that have disrupted the consistency of ers are always decisively supportive of scale of experienced outsourced manag- ISI also praised the company’s actions, shipping markets”. installing such safety improvements ers to administer crewing functions.” writing: “GNK further increases its op- even when that requires equipment ret-

By early 2018, as dry bulk prospects erational leverage to an improving dry ro? ts at their own cost without consider-New Fuel Rules had brightened signi? cantly, the com- bulk rate environment, while maintain- “Historically signi? cant regulatory ation of the vessels age.” And, ? nally, he pany was ready to move offensively ing modest ? nancial leverage.” changes in vessel operation have had views shipping in the context of broader and take advantage of its new strength. By mid-2018, a year and a half worth long lead times for the industry to pre- societal trends. He says:

Regan tells Maritime Reporter: “With of planning was now being converted pare,” said Regan. “The IMO 2020 fuel “The change in IMO marine fuel sulfur

Genco rebuilt, we were able to complete into actions, with Regan telling Mari- requirement change was initially being standards is essentially driving the inter- a debt re? nancing in June 2018 that al- time Reporter: “The new equity has discussed as a 2025 event, so the ac- national maritime industry to quickly lows Genco to seek growth initiatives as already been put to work as part of the celeration to 2020 has compounded the catch up with the universal industrial we see opportunities. Taking immediate funding to be used to take delivery of six dif? culty in shipowner considerations, trend towards air quality improvement. action according to this well-structured recently acquired vessels into the Genco especially as the shipping industry is The most natural and consistent expecta- strategic plan, Genco raised $114 million ? eet”. The vessels include four modern still trying to integrate the ballast water tion would therefore be the increase of of additional equity in June through is- Capesize Eco vessels and two modern treatment system costs and operation. supply of compliant fuels to match the suance of new primary common shares.” Ultramax Eco vessels which they ex- And we’ve seen how challenging it has demand. I think that will naturally occur

Speaking at the June 2018 Marine Mon- pect to take delivery of during the third been technically to ? nd equipment solu- in time.” ey conference, Genco President & CEO quarter this year. Genco are also selling

John Wobensmith, a company stalwart older vessels at attractive price levels. As who was previously its Chief Financial this article was going to press, Genco an-

Of? cer, said “The handcuffs are now nounced a new credit facility (along with off,” referring to previous ? nancings cash in its coffers) would be used to fund that had prohibited dividend payments these purchases. and vessel purchases.

The investment community was im- Smoothing Maritime Cycles

Benefits of Bardex pressed at Genco’s actions; analysts at Besides his ship chartering and ? -

Chain ShipLift &

Fearnley Securities, in a May 2018 re- nancial smarts, Regan has by necessity

Transfer Systems port, described Genco as “Joining the become an expert at reading the likely big boys club.” In their report, they twists and turns in shipping markets, pointed to 2018 Q1 results exceeding and building strategies around prog- expectations, and the new lower cash nostications developed with his teams.

Safety break evens as a result of the debt re? - Arlington’s mixed tanker ? eet of crude • The safest, most dependable ShipLift system in nancing package. After commenting on and product tankers, sold in 2008, and the world the signi? cant amounts of cash on hand Principal Maritime’s Suezmaxes, sold • Bardex Chain ShipLift systems never drop ships • Chains do not hide internal corrosion like wire rope (built up in 2017 into mid-2018, prior to in 2015, both came at times of upward • Chain ShipLift uses two chains at each lift point the equity raise), the analysts said: “The spikes, which by de? nition, don’t lin- for redundancy company is ideally positioned to capture ger. Regan told Maritime Reporter that • Chain ShipLifts offer simple, reliable on the upturn we expect to see unfold- “In the cyclical shipping industry the synchronization

Efficiency • Proven chain life of 15-20 years • Lower capital cost of lift equipment and associated civil works • Compact design, uses smaller diameter piles, and less concrete reinforcement means less pier & deck space requirements than wire rope winch systems • Lower maintenance costs — no annual destructive tests of wire ropes & no replacement requirement of all ropes every 5 years

Experience • 50+ year history providing ShipLift systems • Strong engineering team with over 100 years combined experience with ShipLifts • In-house lifecycle support — experienced field service engineers supporting from concept, construction, and installation to end-of-life +1 805 964 7747 [email protected] www.bardex.com www.marinelink.com 73

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