(MENAFNEditorial) iCrowdNewswire - Aug 4, 2017
NEW YORK —Gener8 Maritime, Inc. (NYSE:) ("Gener8 Maritime" or the "Company"), a leading U.S.-based provider of international seaborne crude oil transportation services, today announced its financial results for the three months and six endedJune 30, 2017.
Highlights
Including a non-cash loss of$67.9 milliondue to ships held for sale, recorded net loss of$82.5 million, or$0.99basic and diluted loss per share, for the three months endedJune 30, 2017, compared to net income of$38.0 million, or$0.46basic and diluted earnings per share for the same period in the prior year.Recorded adjusted net loss of$8.9 million, or$0.11basic and diluted adjusted loss per share, for the three months endedJune 30, 2017, compared to adjusted net income of$42.0 millionor$0.51basic and diluted adjusted earnings per share for the same period in the prior year.Increased vessel operating days by 18.0% to 3,352 in the three months endedJune 30, 2017compared to 2,841 in the same period in the prior year. Increased full fleet "ECO" operating days to 54.2% in the three months endedJune 30, 2017, compared to 30.8% in the same period in the prior year.Entered into a series of transactions that are expected to increase cash on the balance sheet by more than$87 millionand reduce total indebtedness by approximately$144 million. These include:Modified the Company's interest rate swap agreements, resulting in aggregate net cash proceeds of$18.2 millioninApril 2017.Sold the following vessels for net cash proceeds of$65.4 millionafter debt repayment of$119.7 million:A 2002-built Aframax (Gener8 Daphne), two 2016-built VLCCs (Gener8 NobleandGener8 Theseus), and a 2002-built Suezmax (Gener8 Orion).Entered into agreements inJuly 2017to sell the following vessels for expected net cash proceeds of$3.4 millionafter debt repayment of$24.1 million:Two 1999-built Suezmax tankers,Gener8Horn andGener8Phoenix, for demolition prior to the vessels' special surveys, and the 2002-built AframaxGener8 Elektra
"We continue to take important steps to strengthen our platform and balance sheet" saidPeter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime. "In this seasonally weaker rate environment, we remain focused on maximizing our financial flexibility in order to manage our business for the near- and long-term. We continue to dispose of older vessels, streamlining our fleet and focusing on high quality tonnage with the best return profile. This strengthens our competitive position in the market. We believe the strategy we are pursuing is prudent and reflects our approach to managing our balance sheet and market exposure."
Leo Vrondissis, Chief Financial Officer, added, "Our balance sheet is expected to be further strengthened during the second quarter, by our agreeing to transactions that are expected to provide over$87.0 millionof additional liquidity. The sales of our older vessels have also been timely, as several have come before the vessels' 2017 special surveys, which according to budgeted amounts will preserve an additional$18 millionof liquidity."
Fleet Performance
The average TCE rates earned by Gener8 Maritime's vessels are detailed below:
Gener8 Maritime Average Daily TCE Rates(1)
Three Months Ended
Jun-17
Jun-16
VLCC
Average Spot TCE Rate
$26,961
$44,806
Average Time Charter TC Rate
-
$48,399
SUEZMAX
Average Spot TCE Rate
$15,361
$31,500
Average Time Charter TC Rate
-
-
AFRAMAX
Average Spot TCE Rate
$9,858
$20,477
Average Time Charter TC Rate
-
-
PANAMAX
Average Spot TCE Rate
$4,647
$15,071
Average Time Charter TC Rate
-
-
FULL FLEET
Average Spot TCE Rate
$21,713
$35,635
Average Time Charter TC Rate
-
$48,399
(1)
Time Charter Equivalent, or "TCE," is a measure of the average daily revenue performance of a vessel. The Company calculates TCE by dividing net voyage revenue by total operating days for its fleet. Net voyage revenues are voyage revenues minus voyage expenses. The Company evaluates its performance using net voyage revenues. The Company believes that presenting voyage revenues, net of voyage expenses, neutralizes the variability created by unique costs associated with particular voyages or deployment of vessels on time charter or on the spot market and presents a more accurate representation of the revenues generated by its vessels. Please refer to the tables at the end of this release for a reconciliation of TCE and net voyage revenues to voyage revenues. Spot TCEs include all spot voyages for the Company's vessels, including those that were in Navig8 pools.
Second Quarter 2017 Results Summary
The Company recorded net loss for the three months endedJune 30, 2017of$82.5 million, or$0.99basic and diluted loss per share, compared to net income of$38.0 million, or$0.46basic and diluted earnings per share, for the prior year period.
Adjusted net loss was$8.9 million, or$0.11basic and diluted adjusted loss per share, for the three months endedJune 30, 2017, compared to adjusted net income of$42.0 million, or$0.51basic and diluted adjusted earnings per share, for the prior year period.
Adjusted EBITDA for the three months endedJune 30, 2017was$38.2 million, compared to$71.0 millionfor the prior year period. Please refer to the tables at the end of this press release for a reconciliation of adjusted net income and adjusted EBITDA to net income.
The average daily spot TCE rate obtained by the Company's VLCC fleet, including its vessels that were deployed in the Navig8 pools, was$26,961for the three months endedJune 30, 2017. During the three months endedJune 30, 2017, the Company's "ECO" VLCC fleet earned an average daily TCE rate of$27,920, and the Company's non-"ECO" VLCC fleet earned an average daily TCE rate of$20,670. The average daily TCE rate obtained by the Company on a full-fleet basis was$21,713during the three months endedJune 30, 2017, compared to$35,825for the prior year period.
Net voyage revenues decreased by$29.0 million, or 28.5%, to$72.8 millionfor the three months endedJune 30, 2017compared to$101.8 million dollarsfor the prior year period. The decrease in net voyage revenues was primarily attributable to the decrease in the Company's average daily fleet TCE rate by$14,112, or 39.4%, to$21,713for the three months endedJune 30, 2017compared to$35,825for the prior year period. The decrease in the Company's average daily fleet TCE rate resulted in a decrease in net voyage revenue of approximately$40.1 millionduring the three months endedJune 30, 2017compared to the prior year period. The decrease in net voyage revenues was partially offset by an increase in the Company's vessel operating days of 512 days, or 18.0%, to 3,352 days, for the three months endedJune 30, 2017compared to 2,841 days for the prior year period. The increase in the Company's vessel operating days resulted in an increase in net voyage revenue of approximately$11.1 millionfor the three months endedJune 30, 2017compared to the prior year period. The increase in the Company's vessel operating days was primarily the result of the deployment of 9 additional VLCC newbuilding vessels since the end of the prior year period.
Direct vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, and maintenance and repairs for owned vessels increased by$2.4 million, or 9.2%, to$27.9 millionfor the three months endedJune 30, 2017compared to$25.5 millionfor the prior year period. The increase was primarily due to increases in the Company's average fleet size to 39.2 vessels for the three months endedJune 30, 2017from 33.4 vessels for the prior year period and associated increases in crew costs and other costs. The increase in direct vessel operating expenses was partially offset by a decrease in daily direct vessel operating expenses per vessel of$601, or 7.1%, to$7,807per day for the three months endedJune 30, 2017compared to$8,408per day for the prior year period, primarily as a result of lower operating costs, including crew cost, repair and maintenance and other costs, associated with the Company's newly delivered vessels.
General and administrative expenses increased by$2.6 million, or 37.0%, to$9.6 millionfor the three months endedJune 30, 2017, compared to$7.0 millionin the prior year period. During the three months endedJune 30, 2017, we recorded as general and administrative expenses a write-off of assets of$1.5 millionand litigation loss of$0.4 million, both of which are related to aMay 2017arbitration tribunal decision regarding a 2013 charter dispute submitted by a vessel owning subsidiary of the Company.
Depreciation and amortization increased by$6.7 million, or 33.8%, to$26.7 millionfor the three months endedJune 30, 2017compared to$20.0 millionfor the prior year period. The increase in depreciation and amortization was primarily due to an increase in vessel depreciation of$6.7 million, or 37.3%, to$25.0 millionfor the three months endedJune 30, 2017compared to$18.3 millionin the prior year period. The increase in vessel depreciation was primarily due to an increase in the Company's fleet size during the three months endedJune 30, 2017compared to the prior year period.
Loss on disposal of vessels, net increased by$68.6 million, to$67.9 millionfor the three months endedJune 30, 2017compared to a gain of$0.7 millionfor the prior year period. The increase in loss on disposal of vessels, net was primarily due to non-cash losses associated with the disposal of vessels and certain vessel equipment of$66.8 millionrelated to the potential sale of the Gener8 Noble and Gener8 Theseus, which were moved to assets held for sale, and the sale of the Gener8 Orion, which was completed inJune 2017.
Net interest expense increased by$10.0 millionto$20.4 millionfor the three months endedJune 30, 2017compared to$10.4 millionfor the prior year period. The increase was primarily attributable to the decrease in capitalized interest of$7.0 million, or 89.1%, to$0.8 millionfor the three months endedJune 30, 2017compared to$7.8 millionin the prior year period related to the capitalization of interest expense associated with vessels under construction as a result of the funding of the acquisition of the Company's VLCC newbuildings. Also contributing to the increase during the three months endedJune 30, 2017, was an increase in interest expense associated with the Company's senior secured credit facilities of$3.5 million, or 37.4%, to$12.8 millioncompared to$9.3in the prior year period due to an increase in the Company's outstanding borrowings under its senior secured credit facilities and senior notes, which totaled$1.6 billionand$1.3 billionas ofJune 30, 2017and 2016, respectively. The increase in net interest expense was partially offset by a reduction in net interest expense of$1.1 millionrelated to the modification of the interest rate swaps agreements that were entered into onApril 10, 2017, which included changes to the notional amounts, maturity dates, and an increase in the fixed rates payable under the interest rate swaps.
During the three months endedJune 30, 2017, the Company's interest rate swap agreements were ineffective, and the Company recorded$2.8 millionof expenses related to the impact of the interest rate swap agreements.
As ofJune 30, 2017, the Company's cash balance was$160.1 million, compared to$94.7 millionas ofDecember 31, 2016. As ofJune 30, 2017, the Company's total debt was$1.6 billionand net debt was$1.4 billion.
As ofJune 30, 2017, there were 82,988,946 shares of the Company's common stock outstanding.
Gener8 Maritime Fleet Profile (as ofJuly 31, 2017)
Vessels on the Water
Type
Vessel Name
DWT
Year Built
Employment
1
VLCC
Gener8 Ethos
298,991
2017
VL8 Pool
2
VLCC
Gener8 Hector
297,363
2017
VL8 Pool
3
VLCC
Gener8 Theseus(1)
299,392
2016
VL8 Pool
4
VLCC
Gener8 Noble(1)
298,991
2016
VL8 Pool
5
VLCC
Gener8 Miltiades
301,038
2016
VL8 Pool
6
VLCC
Gener8 Oceanus
299,011
2016
VL8 Pool
7
VLCC
Gener8 Perseus
299,392
2016
VL8 Pool
8
VLCC
Gener8 Macedon
298,991
2016
VL8 Pool
9
VLCC
Gener8 Chiotis
300,973
2016
VL8 Pool
10
VLCC
Gener8 Constantine
299,011
2016
VL8 Pool
11
VLCC
Gener8 Andriotis
301,014
2016
VL8 Pool
12
VLCC
Gener8 Apollo
301,417
2016
VL8 Pool
13
VLCC
Gener8 Ares
301,587
2016
VL8 Pool
14
VLCC
Gener8 Hera
301,619
2016
VL8 Pool
15
VLCC
Gener8 Nautilus
298,991
2016
VL8 Pool
16
VLCC
Gener8 Success
300,932
2016
VL8 Pool
17
VLCC
Gener8 Supreme
300,933
2016
VL8 Pool
18
VLCC
Gener8 Athena
299,999
2015
VL8 Pool
19
VLCC
Gener8 Strength
300,960
2015
VL8 Pool
20
VLCC
Gener8 Neptune
299,999
2015
VL8 Pool
21
VLCC
Genmar Zeus
318,325
2010
VL8 Pool
22
VLCC
Gener8 Atlas
306,005
2007
VL8 Pool
23
VLCC
Gener8 Hercules
306,543
2007
VL8 Pool
24
VLCC
Gener8 Poseidon
305,795
2002
VL8 Pool
25
Suezmax
Gener8 Spartiate
164,925
2011
Suez8 Pool
26
Suezmax
Gener8 Maniate
164,715
2010
Suez8 Pool
27
Suezmax
Gener8 St. Nikolas
149,876
2008
Suez8 Pool
28
Suezmax
Gener8 Kara G
150,296
2007
Suez8 Pool
29
Suezmax
Gener8 George T
149,847
2007
Suez8 Pool
30
Suezmax
Gener8 Harriet G
150,296
2006
Suez8 Pool
31
Suezmax
Gener8 Argus
159,999
2000
Suez8 Pool
32
Suezmax
Gener8 Horn(1)
159,475
1999
Suez8 Pool
33
Suezmax
Gener8 Phoenix(1)
153,015
1999
Suez8 Pool
34
Aframax
Gener8 Pericles
105,674
2003
V8 Pool
35
Aframax
Gener8 Elektra(1)
106,560
2002
Spot
36
Aframax
Gener8 Defiance
105,538
2002
Spot
37
Panamax
Gener8 Companion
72,749
2004
Spot
38
Panamax
Genmar Compatriot
72,749
2004
Spot
Vessels on the Water Total
9,102,986
Newbuildings
Type
Vessel Name
DWT
Yard
Delivery Date
VLCC
Gener8 Nestor
300,000
HAN
Sep-17
(1)
Subject to contract for sale
Financial Information
Consolidated Statements of Operations for the Three and Six Months endedJune 30, 2017
For the Three Months
For the Six Months
(Dollars in thousands, except per share data)
Ended June 30,
Ended June 30,
2017
2016
2017
2016
VOYAGE REVENUES:
Navig8 pool revenues
$ 72,317
$ 92,400
$ 190,686
$ 205,431
Time charter revenues
-
2,047
-
9,278
Spot charter revenues
2,628
11,511
7,275
15,293
Total voyage revenues
74,945
105,958
197,961
230,002
Voyage expenses
2,152
4,194
3,854
6,551
Net voyage revenues
72,793
101,764
194,107
223,451
OPERATING EXPENSES:
Direct vessel operating expenses
27,881
25,532
56,901
50,061
Navig8charterhireexpenses
(6)
(49)
-
3,221
General and administrative
9,626
7,024
18,052
15,112
Depreciation and amortization
26,780
20,023
54,474
37,504
Loss (gain) on disposal of vessels, net
67,860
(714)
77,703
(579)
Total operating expenses
132,141
51,816
207,130
105,319
OPERATING (LOSS) INCOME
$ (59,348)
$ 49,948
$ (13,023)
$ 118,132
OTHER EXPENSES:
Interest expense, net
(20,447)
(10,361)
(40,498)
(17,656)
Other financing costs
(3)
(4)
(55)
(6)
Other income (expense), net
(2,747)
(1,588)
(2,105)
(1,617)
Total other expenses
(23,197)
(11,953)
(42,658)
(19,279)
NET (LOSS) INCOME
$ (82,545)
$ 37,995
$ (55,681)
$ 98,853
(LOSS) INCOME PER COMMON SHARE
Basic
$ (0.99)
$ 0.46
$ (0.67)
$ 1.20
Diluted
$ (0.99)
$ 0.46
$ (0.67)
$ 1.20
Selected Balance Sheet Data
June 30,
December 31,
BALANCE SHEET DATA, at end of period
2017
2016
(Dollars in thousands)
Cash & cash equivalents
$ 160,146
$ 94,681
Current assets, including cash
403,228
215,285
Total assets
2,938,234
2,992,669
Current liabilities, incl. current portion of LTD
197,850
216,566
Current portion of LTD
160,446
181,023
Total LTD, incl. current portion & discount
1,576,212
1,581,951
Shareholders' equity
1,381,118
1,437,411
Reconciliation Tables
EBITDA represents net income (loss) plus net interest expense and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted to exclude the items set forth in the table below, which represent certain non-cash, one-time and other items that the Company's believes are not indicative of the ongoing performance of its core operations. Adjusted Net Income represents Net Income adjusted to exclude the same non-cash, one-time and other items, as well as commitment fees. EBITDA, Adjusted EBITDA and Adjusted Net Income are included in this presentation because they are used by management and certain investors as measures of operating performance. EBITDA, Adjusted EBITDA and Adjusted Net Income are used by analysts in the shipping industry as common performance measures to compare results across peers. EBITDA, Adjusted EBITDA and Adjusted Net Income are not items recognized by accounting principles generally accepted inthe United States of America("GAAP"), and should not be considered in isolation or used as alternatives to net income, operating income, cash flow from operating activity or any other indicator of the Company's operating performance or liquidity required by GAAP. The Company's presentation of EBITDA, Adjusted EBITDA and Adjusted Net Income is intended to supplement investors' understanding of its operating performance by providing information regarding its ongoing performance that exclude items the Company believes do not directly affect its core operations and enhancing the comparability of its ongoing performance across periods. The Company presents Adjusted EBITDA and Adjusted Net Income in addition to EBITDA and Net Income because Adjusted EBITDA and Adjusted Net Income eliminate the impact of additional non-cash, one-time and other items not associated with the ongoing performance of its core operations, including charges associated with stock-based compensation, gains and losses on the sale of vessels and costs associated with its financing activities, that the Company believes further reduce the comparability of the ongoing performance of its core operations across periods. The Company's management considers EBITDA, Adjusted EBITDA and Adjusted Net Income to be useful to investors because such performance measures provide information regarding the profitability of its core operations and facilitate comparison of its operating performance to the operating performance of the Company's peers. Additionally, the Company's management uses EBITDA, Adjusted EBITDA and Adjusted Net Income as performance measures and they are also presented for review at the Company's board meetings. While the Company believes these measures are useful to investors, the definitions of EBITDA, Adjusted EBITDA and Adjusted Net Income used here may not be comparable to similar measures used by other companies. In addition, these definitions are also not the same as the definition of EBITDA, Adjusted EBITDA and Adjusted Net Income used in the financial covenants in the Company's debt instruments. During the three and six months endedJune 30, 2017we included in Adjusted EBITDA Loss on litigation due to aMay 2017arbitration tribunal decision regarding a 2013 charter dispute submitted by a vessel owning subsidiary of the Company.
Please see below for a reconciliation of the following adjusted amounts to Net Income (dollars in thousands)
Three Months Ended
Six Months Ended
Jun-17
Jun-16
Jun-17
Jun-16
Net (Loss) Income
$ (82,545)
$ 37,995
$ (55,681)
$ 98,853
+ Stock-based compensation expense
758
1,427
2,835
2,855
+ Loss on disposal of vessels, net
67,860
(714)
77,703
(579)
+ Other financing costs
3
4
55
6
+ Professional fees related to interest rate swaps
-
327
260
327
+ Commitment Fees
175
1,391
450
3,312
+ Impact of interest rate swaps fair value
2,771
1,560
2,109
1,560
+ Non-cash G & A expenses, excluding stock-based compensation
1,711
-
1,488
-
+ Loss on litigation
400
-
400
-
Net (Loss) Income, adjusted
$ (8,867)
$ 41,990
$ 29,619
$ 106,334
Weighted average shares outstanding, basic, in thousands
82,979
82,681
82,970
82,681
Weighted average shares outstanding, diluted, in thousands
82,979
82,681
82,970
82,681
Basic net (loss) income per share, adjusted
$ (0.11)
$ 0.51
$ 0.36
$ 1.29
Diluted net (loss) income per share, adjusted
$ (0.11)
$ 0.51
$ 0.36
$ 1.29
Three Months Ended
Six Months Ended
Jun-17
Jun-16
Jun-17
Jun-16
Net (Loss) Income
$ (82,545)
$ 37,995
$ (55,681)
$ 98,853
+ Interest expense, net
20,447
10,361
40,498
17,656
+ Depreciation and amortization
26,780
20,023
54,474
37,504
EBITDA
$ (35,318)
$ 68,379
$ 39,291
$ 154,013
+ Stock-based compensation expense
758
1,427
2,835
2,855
+ Loss on disposal of vessels, net
67,860
(714)
77,703
(579)
+ Other financing costs
3
4
55
6
+ Professional fees related to interest rate swaps
-
327
260
327
+ Impact of interest rate swaps fair value
2,771
1,560
2,109
1,560
+ Non-cash G & A expenses, excluding stock-based compensation
1,711
-
1,488
-
+ Loss on litigation
400
-
400
-
EBITDA, adjusted
$ 38,185
$ 70,983
$ 124,141
$ 158,182
(1)
Non-cash G & A expenses, excluding stock-based compensation expense, include accounts receivable reserves (including revenue offsets), amortization of lease assets that were recorded in connection with fresh start accounting and amortization of straight line rent expense. The presentation of prior year amounts have been conformed to the current year presentation.
Net debt represents total debt less cash, discounts and deferred financing costs. Net debt is included is this presentation because it is used by management and certain investors as a measure of the Company's overall liquidity, financial flexibility and leverage. Furthermore, certain investors, creditors, and credit analysts monitor the Company's net debt as part of their assessments of its business. Net debt is not recognized by GAAP, and should not be considered in isolation or used as alternatives financial condition or liquidity required by GAAP. In particular, the Company typically needs a portion of its cash for purposes other than debt reduction. The deduction of these items from total debt in the calculation of net debt should thus not be understood to mean that any of these items are available exclusively for debt reduction at any given time.
Long-term debt reconciliation table
Please see below for a reconciliation of the following adjusted amounts to long-term debt (dollars in thousands)
Reconciliation of total long-term debt
June 30,
December 31,
2017
2016
Long-term debt
$ 1,415,766
$ 1,400,928
Current portion of long-term debt
160,446
181,023
Total long-term debt, incl. current portion,
$ 1,576,212
$ 1,581,951
discount and deferred financing costs
Net Voyage Revenue & Operating Days Reconciliation Tables
Gener8 Maritime Net Voyage Revenue & Operating Days
(Dollars in thousands, except Operating Days data)
Three Months Ended
Jun-17
Jun-16
VLCC
ECO Fleet Net Voyage Revenue (1)
$ 50,762
$ 39,450
ECO Fleet Operating Days (1)
1,818
852
Non-ECO Fleet Net Voyage Revenue (1)
$ 5,680
$ 22,248
Non-ECO Fleet Operating Days (1)
275
526
Spot Charter & Navig8 Pool Net Voyage Revenues
$ 56,442
$ 61,698
Spot Charter & Navig8 Pool Operating Days
2,093
1,378
Time Charter Revenue
$ -
$ 2,047
Time Charter Operating Days
-
42
SUEZMAX
Spot Charter & Navig8 Pool Net Voyage Revenues
$ 12,826
$ 28,293
Spot Charter & Navig8 Pool Operating Days
835
898
Time Charter Revenue
$ -
$ -
Time Charter Operating Days
-
-
AFRAMAX
Spot Charter & Navig8 Pool Net Voyage Revenues
$ 2,963
$ 6,984
Spot Charter & Navig8 Pool Operating Days
301
341
PANAMAX
Spot Charter Revenue
$ 576
$ 2,743
Spot Operating Days
123
182
Gener8 Maritime Full Fleet Net Voyage Revenues
(Dollars in thousands)
Three Months Ended
Jun-17
Jun-16
Total Voyage Revenues
$ 74,945
$ 105,958
Total Voyage Expenses
2,152
4,194
Total Net Voyage Revenues
$ 72,793
$ 101,764
(1)
Includes all spot voyages for the Company's vessels, including those that were in the Navig8 Pools.
Conference Call Information
A conference call to discuss the results will be held today,August 1, 2017at8:00 a.m. ET. The conference call can be accessed live by dialing 1-844-802-2435, or for international callers, 1-412-317-5128, and requesting to be joined into the Gener8 Maritime call. A replay will be available at11:00 a.m. ETand can be accessed by dialing 1-877-344-7529 or for international callers, 1-412-317-0088. The pass code for the replay is 10110903. The replay will be available untilAugust 8, 2017.
A live webcast of the conference call will also be available under the Investor Relations section at. The Company plans to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.
About Gener8 Maritime
As ofJuly 31, 2017, Gener8 Maritime has a fleet of 39 wholly-owned vessels comprised of 25 VLCCs, including one newbuilding, 9 Suezmaxes, three Aframaxes, and two Panamax tankers. On a fully-delivered basis, Gener8 Maritime's fleet has a total carrying capacity of approximately 9.4 million deadweight tons ("DWT") and an average age of approximately 4.5 years on a DWT basis. Gener8 Maritime is incorporated under the laws of theMarshall Islandsand headquartered inNew York.
Website Information
The Company intends to use its website,, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in its website's Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company's website, in addition to following its press releases, filings with the Securities and Exchange Commission (the "SEC"), public conference calls, and webcasts. To subscribe to the Company's e-mail alert service, please click the "Investor Alerts" link in the Investors section of the Company's website and submit your email address. The information contained in, or that may be accessed through, the Company's website is not incorporated by reference into or a part of this document or any other report or document the Company files with or furnish to the SEC, and any references to the Company's website are intended to be inactive textual references only.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not historical facts and are based on management's current beliefs, expectations, estimates and projections about future events, many of which, by their nature, are inherently uncertain and beyond the Company's control. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: (i) loss or reduction in business from the significant customers of the Company's or of the commercial pools in which the Company participates; (ii) changes in the values of the Company's vessels, newbuildings or other assets; (iii) the failure of the Company's significant customers, shipyards, pool managers or technical managers to perform their obligations owed to the Company; (iv) the loss or material downtime of significant vendors and service providers; (v) the Company's failure, or the failure of the commercial managers of any pools in which the Company's vessels participate, to successfully implement a profitable chartering strategy; (vi) termination or change in the nature of the Company's relationship with any of the commercial pools in which it participates; (vii) changes in demand for the Company's services; (viii) a material decline or prolonged weakness in rates in the tanker market; (ix)changes in production of or demand for oil and petroleum products, generally or in particular regions; (x)greater than anticipated levels of tanker newbuilding orders or lower than anticipated rates of tanker scrapping; (xi) adverse weather and natural disasters, acts of piracy, terrorist attacks and international hostilities and instability; (xii) changes in rules and regulations applicable to the tanker industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; (xiii) actions taken by regulatory authorities; (xiv) actions by the courts, the U.S. Coast Guard, the U.S. Department of Justice or other governmental authorities and the results of the legal proceedings to which the Company or any of its vessels may be subject; (xv) changes in trading patterns significantly impacting overall tanker tonnage requirements; (xvi) any non-compliance with the U.S. Foreign Corrupt Practices Act of 1977 or other applicable regulations relating to bribery; (xvii) the highly cyclical nature of the oil-shipping industry; (xviii) changes in the typical seasonal variations in tanker charter rates; (xix) changes in the cost of other modes of oil transportation; (xx) changes in oil transportation technology; (xxi) increases in costs including without limitation: crew wages, insurance, provisions, repairs and maintenance; (xxii) changes in general political conditions; (xxiii) the adequacy of insurance to cover the Company's losses, including in connection with maritime accidents or spill events; (xxiv) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, the Company's anticipated drydocking or maintenance and repair costs); (xxv) changes in the itineraries of the Company's vessels; (xxvi) adverse changes in foreign currency exchange rates affecting the Company's expenses; (xxvii) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire or sell vessels and borrow under its existing financing arrangements; (xxviii) the effect of the Company's indebtedness on its ability to finance operations, pursue desirable business operations and successfully run its business in the future; (xxix) financial market conditions; (xxx) sourcing, completion and funding of financing on acceptable terms; (xxxi) the Company's ability to generate sufficient cash to service its indebtedness and comply with the covenants and conditions under the Company's debt obligations; (xxxii) the impact of electing to take advantage of certain exemptions applicable to emerging growth companies; and (xxxiii) other factors listed from time to time in the Company's filings with SEC, including, without limitation, the Company's Annual Report on Form 10-K for the fiscal year ended December31, 2016 and its subsequent reports on Form 10-Q and Form 8-K. Accordingly the reader is cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
SOURCE Gener8 Maritime, Inc.
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