In a client briefing Erik NikolaiStavseth of Arctic Securities warned that he still believes the US-quotedbulker operator will, however, turn in a loss for the three months to 31December.
The researcher expects Genco to reportrevenues of $87m, earnings before interest, taxes, depreciation andamortization (Ebitda) of $48.6m and a loss of $0.18 per share, which is notnearly as bad as the current consensus forecast.
“Based on our projected freight rateestimates we still see Genco requiring an additional $75m of equity to continueoperations, but see a potential restructuring of debt ahead of any fresh equity,”Stavseth continued.
Based on a bet that some of the Manhattan-basedbulker operator’s debt holders are keen on converting debt into equity theanalyst warned that the risk of dilution remains high for...
