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Gener8 Maritime Partners: Second-Best Performing Stock

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Gener8 Maritime Partners’ performance

Gener8 Maritime Partners (GNRT) YTD (year-to-date) returns were -0.89% as of December 18, 2017. It was the second-best performer among its peers in 2017 behind Euronav (EURN), which had a YTD return of 3.7%. Gener8 Maritime Partners has underperformed the shipping ETF and the broad equity market indexes. Since December 30, 2016, the Guggenheim Shipping ETF (SEA) has risen 1.14%. Oil and gas transportation companies account for 47.7% of SEA. The Dow Jones Industrial Average (DIA) has risen 25.4% YTD as of December 18, 2017. The SPDR S&P 500 ETF (SPY) has risen 19.9% during the same period. The last six months haven’t been good for Gener8 Maritime Partners. The stock has fallen more than 20% during this period.

About Gener8 Maritime Partners

Gener8 Maritime Partners is a pure-play crude tanker company. As of November 2017, it has a fleet of 30 wholly owned vessels including 21 VLCCs (very large crude carriers), six Suezmaxes, one Aframax, and two Panamax tankers. It operates its vessels in the spot market and the time charter market.

Performance in 9M17

Gener8 Maritime Partners earned revenue of $248 million in the first nine months of 2017. It fell 17.8% from its revenue of $302 million in the same period last year. The company’s EBITDA during this period fell significantly to $20 million from $153 million in the first nine months of 2016. The company has sold 12 vessels with an average age of 12.5 years since the beginning of the year. Gener8 Maritime Partners has taken several steps to enhance its liquidity profile. The company’s cash and cash equivalents as of September 30, 2017, were $184 million—up from $95 million at the beginning of the year.

In the rest of this series, we’ll look at the stock performances of the other top crude tanker stocks including Navios Maritime Midstream Partners (NAP), DHT Holdings (DHT), and Tsakos Energy Navigation (TNP).

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