Will A New Accountant Save Genco Shipping & Trading Limited (NYSE:GNK) From Disaster?


Genco Shipping & Trading Limited (NYSE: GNK)’s management recently preached the need for continued operational efficiency in the company in trying to show investors that the future is bright despite the prevailing dark clouds. During the recent annual general meeting (AGM), shareholders had the opportunity to vote for people to sit on the Genco’s board as the company works a turnaround. The shareholders also ratified the company’s public accountant, and you can guess it – Deloitte & Touche LLP.

In a recent regulatory filing, Genco Shipping & Trading Limited (NYSE:GNK) said that Deloitte will be its certified public accountant for fiscal 2016. The selection and subsequent ratification of Deloitte as Genco’s auditor should help boost shareholders confidence in management’s effort to turnaround the struggling shipper.

When investors are assured of transparency in the company’s dealings, they are likely to be supportive through all conditions to ensure that the company attains its long-term goal.

Voting for directors

During Genco’s AGM, shareholders voted for eight members to sit on the company’s board. About 96.8% of shares entitled to vote were represented in voting for the directors. It is worth pointing out that Genco couldn’t attain 100% of voting representation because of absenteeism of some voters.

Who’s Genco Shipping & Trading Limited (NYSE: GNK)’s board?

The eight directors approved by shareholders to sit on the board of Genco Shipping & Trading Limited (NYSE:GNK) are: Bao D. Truong, Peter C. Georgiopoulos,  James G. Dolphin, Eugene I. Davis, Peter Kirchof, Kevin Mahony, Basil G. Mavroleon and Arthur L. Regan.

1Q2016 in numbers

Genco Shipping & Trading Limited (NYSE: GNK)’s 1Q2016 reporting preceded the AGM. For the 1Q2016, the company generated revenue of $20.9 million, indicating a decline from $34.4 million in the same period in 2015. Lower spot market rate was primarily blamed for the massive pullback in topline numbers. But according to the management, 1Q2016 topline deterioration could have been worse had it not been for the increase in fleet size that helped lift revenue during the quarter.

Coming to bottom-line, Genco posted EPS loss of $0.75, wider than EPS loss of $0.64 in the like quarter a year ago.


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