Good morning ladies and gentlemen and welcome to the Genco Shipping & Trading Limited Third Quarter 2016 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 Web site at www.gencoshipping.com. To inform everyone, today’s conference is being recorded and is now being webcast at the Company’s Web site www.gencoshipping.com. We will conduct a question-and-answer session after the opening remarks. Instructions will be follow at that time. A replay of the conference will be accessible anytime during the next two weeks by dialing 888-203-1112 or 719-457-0820 and entering the passcode 1253233. At this time, I'll 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 will 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, expects, projects, 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 Web site 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, 2015, and the company’s reports subsequently filed with the SEC. At this time, I'd like to introduce John Wobensmith, President of Genco Shipping & Trading Limited. John Wobensmith Good morning. Welcome to Genco’s third quarter 2016 conference call. As outlined on Slide 3 of the presentation, I will begin today’s call by reviewing our third quarter highlights. We will then discuss our financial results for the quarter and the industry's current fundamentals, and then open-up the call for questions. Moving to Slide 5, we review Genco's third quarter highlights. During the third quarter, the drybulk market remained challenging and we recorded a net loss of $27.5 million or $3.80 basic and diluted loss per share for the period ended September 30, 2016. Basic and diluted net loss per share for both periods has been adjusted for the one-for-ten reverse stock split of Genco's common stock affected on July 7, 2016. In terms of our cash…

Thank you, John. Turning to Slide 8, our financial results are presented. For the third quarter and nine-months period ended September 30, 2016, the Company generated revenues of $38.9 million, and $91.7 million, respectively. This compares to revenues for the third quarter of 2015 and the nine-months ended September 30, 2015 of $50 million and $119 million, respectively. The decrease in revenues is primarily due to lower spot market rates achieved by the majority of the vessels in our fleet during the first nine-months of 2016 versus the same period last year, partially offset by the increase in the size of our fleet. For the third quarter of 2016, the Company recorded a net loss of $27.5 million, or $3.80 basic and diluted loss per share. Basic and diluted net loss per share amounts have been adjusted for the one-for-ten reverse stock split of Genco's common stock affected on July 7, 2016. Turning to Slide 9, we present key balance sheet items as of September 30, 2016. Our cash position including restricted cash was $59.8 million as of September 30. Our total assets were $1.5 billion, which consisted primarily of the vessels in our fleet and cash. Our total debt outstanding including $7.8 million of unamortized debt issuance costs was $548.3 million as of September 30, 2016. As John mentioned earlier, this year the Company entered into a commitment letter for a new $400 million credit facility, and certain amendments for the Company's existing $98 million credit facility, which are intended to address the Company's liquidity and covenant compliance issues and to refinance the majority of its credit facilities on more favorable terms. During the third quarter, Genco and its lenders entered into an amendment to the commitment letter that extended the covenant waivers under the existing credit facility through…

Thank you, Apostolos. I will begin with Slide 12, which represents the Baltic Dry Index. During the third quarter, the BDI continued on an upward trajectory with periods of volatility, while rebounding from all-time low as witnessed earlier in the year. Specifically, in September, the BDI was able to find support pass the 900 point threshold for the first time in 2016 to reach a year-to-date high of 941 on September 23 before concluding the quarter at 875. Turning to Slide 13, we outlined some of the market developments influencing recent freight rate volatility. We believe that the relative rate improvement experienced as of late has been due to the following factors. First, the pickup in Chinese steel production since March, stack in the stabilization and partial return of the Chinese coal trade so far this year after large declines witnessed during 2014 and 2015. And third, annualized fleet growth of only 2.5% through the first nine months of 2016. The rise of Chinese steel output has resulted in augmented demand for both iron ore and coal cargoes. Through September China's iron ore imports rose by 9% year-on-year. During the -- during eight of the first nine-months of this year, China's iron ore imports have exceeded 80 million tons and exceeded 90 million tons during September for only the second time on record. This concluded a three-month stretch in which China imported 269.1 million tons of iron ore, the most ever for any quarter. Iron ore demand in China has been satisfied by augmented volumes out of Australia and Brazil. Australia's iron ore exports through August have increased by 5% year-on-year, while Brazilian iron ore exports are up by 5% through the first nine-months of 2016. Specifically in September, Brazilian iron ore exports reached 35.3 million tons representing the most…

[Operator Instructions] And we will take our first question from Magnus Fyhr with Seaport Global. Please go ahead.

Hey, good morning.

Good morning, Magnus.

Just you guys done a lot of here in the last few months, trying to sure up liquidity. Still though rates are below daily cash breakeven, I think you stated $7,200 a day. Are you -- I guess, not in the fourth quarter, are you sort of above that level? I mean, I know rates have moved up here in the fourth quarter, but can you comment on that, where you currently are or what you think you’re with the October behind you?

Magnus, I mean, we typically we don’t comment on forward numbers on the revenue side. I think that you’re correct, our breakeven rate will be going forward from around $7,200 per day. I think we’ve done a pretty good job of putting the fleet out there in terms of what the employment side is. So hopefully you can take a look at that and then do your calculations.

Right. And I guess, you still have -- what else can you do, I mean, the daily OpEx have come down 10% in the last year. You’re trying to sell some of the older ships, I guess, as far as the CapEx you state about $15.6 million in 2017. Is that all -- I mean, this has some wiggle room in that or is that pretty firm number? And then, I guess on the G&A side, what else can you do?

Yes, actually -- I actually think there's still some work to be done on the operating expense side and we're finalizing those budgets right now for 2017. But I would expect to see that number continue to come down somewhat. The G&A side, particularly, because we're reducing the size of the fleet. There should be some efficiencies that come out of that as well. And we will try to get that guidance out to you, hopefully towards the end of the year.

And as far as the sale of the older ships, I think you reported three, I think you also talked about maybe selling 10 ships as part of the refinancing?

Yes, that’s correct. There is a total 10 ships and as you said, we’ve disposed the Marine, the Sugar, the Pioneer, the Leader, and then there will be six to go after that. And that’s …

I know it’s a small amount, but of the five, I guess, $5 million plus in proceeds from the two ships, how much of that is net proceeds? I mean, these older ships, do they have any debt associated with them?

Some of them do, some of them don’t, but keep in mind that -- in the credit facility that we negotiated, as we sell these 10 ships, those proceeds actually will be going on to the balance sheet for liquidity purposes.

Okay. And lastly on the CapEx for next year, can you comment at all on that number? Does that include, I mean, what’s the stance now on the water ballast treatment systems? The ships that going in next year, are they going to be quick with that and maybe you can give us an update?

Yes, so the 2017 number does not include ballast water treatment systems. You know we’ve gotten a lot of these pushed out. We have some that have had extensions now through January 1, 2018 where we're hopeful that we will have extensions granted by the U.S Coast Guard on those as well. And on the IMO side, we think there is some room to again push these things out. I think we’re -- at least at this point targeting, so again there are some things that still need to happen, but we're targeting probably installing our first ballast water treatment system sometime maybe 2019 at this point.

Okay. Well, thank you.

Thanks, Magnus.

This does conclude today’s conference. You may disconnect at anytime and have a wonderful day.