Good morning, ladies and gentlemen, and welcome to the Genco Shipping & Trading Limited Second Quarter 2015 Earnings Conference Call and Presentation. Before we begin, please note that there will be a slide presentation accompanying today's conference call. That presentation can be obtained from Genco's website at www.gencoshipping.com. To inform everyone, today's conference is being recorded and is now being webcast at the company's website, www.gencoshipping.com. We will conduct a question-and-answer session after the opening remarks and introductions will follow at that time. A replay of the conference will be accessible at any time during the next two weeks by dialing toll free, (888) 203-1112 or area code (719) 457-0820 and entering the passcode of, 6828962. At this time I will turn the conference over to the company. Please go ahead.

Good morning. Before we begin our presentation, I note that in this conference call, we’ll be making certain forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as anticipate, budget, estimate, expect, project, intend, plan, believe and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on management's current expectations and observations. For a discussion of factors that could cause results to differ, please see the company's press release that was issued yesterday, the materials relating to this call posted on the company's website and the company's filings with the Securities and Exchange Commission, including, without limitation, the company's Annual Report on Form 10-K for the year ended December 31, 2014, and the company's subsequent reports filed with the SEC. At this time, I would like to introduce John Wobensmith, the President of Genco Shipping & Trading Management.

Good morning. Welcome to Genco’s second quarter 2015 conference call. With me today is our Chairman, Peter Georgiopoulos; and our Chief Financial Officer, Apostolos Zafolias. As outlined on slide three of the presentation, I will begin today's call previewing our second quarter highlights, followed by a review of our recently completed merger with Baltic Trading limited. We will then discuss our financial results for quarter and the industry's current fundamentals and finally open up the call for questions. Beginning on slide five, we review Genco’s second quarter and year to date highlights. During the second quarter, we continued to operate in a challenging drybulk market and recorded a net loss of $40.3 million or $0.67 basic and diluted loss per share for the period ended June 30, 2015. During the second quarter, we took several steps to enhance our liquidity position. In April we entered into a new $60 million revolving credit facility with ABN AMRO. The revolving facility, which can be used for general corporate purposes, including working capital and potential vessel acquisition, has the maturity date of April 7, 20120. Following a drawdown of $10 million on July 10, 2015, Genco has $35 million in borrowings outstanding under the facility. In April we completed amendments and waivers for both Genco’s $253 million and $100 million credit facilities obtaining relief for certain cash flow measurement covenants. Additionally, in July we completed amendments under each of Baltic Trading’s credit facilities, obtaining relief under the collateral maintenance covenant and relevant consents for the merger. In terms of our cash position as of June 30, 2015, we had $71.7 million in cash on a consolidated basis. Turning to slide six and seven, we provide an overview of our fleet. Upon the expected delivery of the two remaining Ultramax vessels, Genco’s fleet will…

Thank you, John. Turning to slide 12, our financial results are presented, which are shown on a consolidated basis, including Baltic Trading Limited. We also present a consolidated income statement, breaking up the contribution of Baltic Trading on slide 13. Before I discuss the results I would like to note that as of July 9, 2014, following the completion of the company’s restructuring, Genco adopted and applied fresh start reporting provisions to its financial statements. The company’s assets and liabilities were recorded at their fair value as of the fresh start reporting date, which deferred materially from the recorded value that’s reflected in the historical consolidated financial statements. As a result of the adoption of fresh start reporting, the company’s consolidated balance sheets and consolidated statements of operations subsequent to July 9, 2014 will not be comparable in many respects to our consolidated balance sheets and consolidated statements of operations prior to July 9, 2014, as further discussed in our SEC filing of forms 10-K and 10-Q. For the second quarter and six month period ended June 30, 2015, the company generated revenues of $34.6 million and $69 million respectively. This compares with revenues for the second quarter of 2014, and the six months ended June 30, 2014, of $52.4 million and $116.4 million respectively. The decrease in revenues for the second quarter of 2015 compared to the prior year period is primarily due to lower rates achieved by the vessels in our fleet during the second quarter of 2015 versus the same period last year, partially offset by the increase in the size of our fleet following the delivery of Baltic Trading’s two Ultramax new building vessels. For the second quarter of 2015, the company recorded a net loss of $40.3 million or $0.67 basic and diluted loss per…

So I will start with slide 17 which represents the Baltic Dry Index. Throughout most of the quarter, the BDI remained under sustained pressure, mainly range bound between 573 and 637. During the second quarter of 2015, excess vessel supply continue to weigh on the drybulk market. Continued destocking of iron ore inventories at Chinese ports and coal inventories at Chinese power plants, along with seasonally reduced iron ore exports out of Brazil, adversely affected the earnings of Capesize vessels through the majority of the second quarter. However, during the second half of June, the BDI exceeded the 800 mark for the first time since December of 2014. This positive momentum has since carried over into the start of the third quarter as the BDI has exceeded 1200. This rise in freight rates has been predominantly led by the Capesize sector as Capesize spot earnings have increased from a quarter two 2015 low of just under $3,000 per day in early April to surpass $19,000 a day currently. On slide 18, we outline some of the recent market develops driving the improved freight rate environment. We believe that the two most important drivers propelling Capesize rates to current levels are first, firm iron ore fixture activity originating in mid-June and continuing into July, which has led to the employment of idle Capesize vessels. And second, the contraction of the Capesize fleet today which has led to an improved supply and demand balance. Looking at the reasons behind the increase in iron ore fixtures, we know the combination of low inventory levels during a time of increasing iron ore and declining commodity prices. Iron ore inventories at Chinese ports specifically had been steadily decreasing since November of 2014 and are currently 22% below their level at this time last year due…

[Operator Instructions]. We'll take our first question from Doug Mavrinac of Jefferies. Your line is open.

Thank you, operator. Good morning guys. I just had a handful of follow up questions, just a couple of market-related questions and then a couple of company specific question. First on the market, John you alluded to the fact that cape rights have really been rallying here with return of minor cargos amongst other things after a period, a significant period of Iron ore inventory destocking. You also highlighted how coal inventories at some of the Chinese power plants are down 30% from the beginning of the year. My question is, do you think we could see something similar play out over the course of the next handful of months where the inventories have just gotten so low that you just can’t keep destocking? At some point you have to bring more in just to sustain your currently levels. Do you think the coal market can actually find a bottom here because of that?

Look Doug, we don’t count Chinese coal out or Chinese imports coal out. We do think that overall, we are down almost 40% this year. I think that’s probably a more normalized number. I do think just like on the iron ore side, you’re going to have volatility on the coal and there most likely will be some sort of restock that occurs in the third and fourth quarter. I just don’t think it’s going to be to the same extent that we’ve seen in years, past but any volume increase is obviously helpful.

Yeah. See, that’s the thing that I was curious about was because even if we find a floor in the Chinese coal imports, India now imports more cock and coal and thermal coal in China in both measures. If you get China finding a floor and India is now picking up the slack, I just wonder how that dynamic may play out? Do you think that we should continue to see India being a source of strength for coal imports based on what's going on there?

Yeah. I think on the India side short term, because of monsoon season and hydroelectric production, I think you could see a little bit of a pullback on India coal imports, but medium term, yeah, I think India looks positive.

Got you. Thanks John. And then just for a couple of company specific questions. First, with the merger now completed, how do you guys think strategically about the combined company going forward? You are sitting with one of the strongest balance sheets of the US listed peers. Is your mentally that hey look, this is a bumpy market. We need to maintain a balance sheet strength? Or do you sit there and say look, fleet growth is hardly anything and demand can only get better from here so maybe we should start putting that balance sheet to work. How do you balance retaining your strength with utilizing that strength?

Doug, it is a balancing act. You’re correct in that the balance sheet, from a leverage profile, I think you still need to assume that we’re going to have little bit of a bumpy ride over the next 12 months and so you need to make sure that you can withstand that. You’re going to be very concentrated on to your cash flow break even rates. Having said that, you look at where vessel values are and they are at historical lows. You take a 15 year old cape season and they’re trading at 1.6 times scrap value on the market and even five year old case just sort of rough numbers. I think you need, I don’t know, $10,000 $11,000 a day over the next 15 years to break even on a cash on cash basis. There are some compelling values out there for assets. You also have to have somewhat of a focus on that, but again it needs to be done with a conservative approach and paying attention to your cash flow break even.

Got you. Very helpful. And then just final question and this is more of a modeling question. When we think about the combined company, when we think about the income statement line items, et cetera, what should we think about in terms of just your typical guidance that you guys provide around OpEx per vessel per day, G&A per vessel per day? Should we think about what Genco was pre the merger or should we just go off of to the combined figure for TQ and extrapolate that out?

Right. So we’ve actually had a lot of conversations internally about putting out break even numbers and it's our intention to do that. We are still getting our hands around the combined company, meaning Genco and Baltics budget particularly for G&A, as well as making sure we’re accounting for all merger-related expenses going forward. Our intention is over the next say two to three weeks, we will put out guidance for the rest of the year in terms of cash flow break evens and net income break even.

Perfect. That would be very helpful. Thanks for the time guys.

[Operator Instructions] and it appears that at this time there are no more questions. This concludes the Genco Shipping conference call. Thank you and have a good day.