Genco Shipping & Trading Limited Completes Three Vessel Acquisition

Nov 20, 2006
Takes Delivery of Panamax Drybulk Vessel

NEW YORK, Nov 20, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (Nasdaq: GSTL) today announced that it has taken delivery of the Genco Surprise, a 1998-built Panamax vessel. The Company intends to commence a previously announced time charter for the Genco Surprise for twelve to fourteen months at a gross rate of $25,000 per day upon delivery of the vessel to the charterer on or about November 23, 2006.

The Genco Surprise is the final vessel delivered under the Company's previously announced agreement to acquire three drybulk vessels for an aggregate purchase price of $81.25 million. With the addition of its most recent Panamax vessel, Genco's fleet consists of seven Panamax, eight Handymax and five Handysize vessels with a carrying capacity of approximately 1,029,000 dwt and an average age of nine years.

Robert Gerald Buchanan, President, commented, "We are pleased to complete our three-vessel acquisition with the delivery of the Genco Surprise. This acquisition further demonstrates the disciplined approach employed by our Company in consolidating the drybulk industry. With pro forma liquidity of $388 million as of September 30, 2006, we will continue to seek opportunities to expand our fleet in a prudent manner with a focus on earnings and cash flow accretion as well as return on capital."

The following table reflects the employment of Genco's fleet after giving effect to the delivery of the Genco Surprise:

                                  Fleet List

          Vessel        Vessel Type  Expiration Date(1)  Time Charter Rates(2)
      1   Genco
           Beauty       Panamax      February 2007                    $29,000
      2   Genco
           Knight       Panamax      February 2007                    $29,000
      3   Genco
           Leader       Panamax      Spot(3)                           N/A
      4   Genco
           Trader       Panamax      Spot(3)                           N/A
      5   Genco
           Vigour       Panamax      December 2006                    $29,000
      6   Genco
           Acheron      Panamax      January 2007                     $28,500
      7   Genco                      12 to 14 months from
           Surprise     Panamax       charter delivery date           $25,000
      8   Genco
           Muse         Handymax     September 2007                $26,500 (4)
      9   Genco
           Marine       Handymax     March 2007                    $18,000 (5)
     10   Genco
           Prosperity   Handymax     March 2007                       $23,000
     11   Genco
           Carrier      Handymax     December 2006                    $24,000
     12   Genco
           Wisdom       Handymax     January 2007                     $24,000
     13   Genco
           Success      Handymax     January 2007                     $23,850
                                     January 2008                  $24,000 (6)
     14   Genco
           Glory        Handymax     December 2006                    $18,250
     15   Genco
           Commander    Handymax     October 2007                     $19,750
     16   Genco
           Explorer     Handysize    July 2007                        $13,500
     17   Genco
           Pioneer      Handysize    August 2007                      $13,500
     18   Genco
           Progress     Handysize    August 2007                      $13,500
     19   Genco
           Reliance     Handysize    July 2007                        $13,500
     20   Genco
           Sugar        Handysize    July 2007                        $13,500

    (1) The dates presented on this table represent the earliest dates that
        our charters may be terminated. Except with respect to the Genco
        Trader and Genco Leader charters, under the terms of the contracts,
        charterers are entitled to extend time charters from two to four
        months in order to complete the vessel's final voyage plus any time
        the vessel has been off-hire.
    (2) Time charter rates presented are the gross daily charterhire rates
        before the payments of brokerage commissions ranging from 1.25% to 5%
        to third parties. In a time charter, the charterer is responsible for
        voyage expenses such as bunkers, port expenses, agents' fees and canal
    (3) The Genco Trader and Genco Leader entered into the Baumarine Pool
        arrangement in December 2005 and February 2006, respectively.
    (4) Since this vessel was acquired with an existing time charter at an
        above market rate, the Company allocates the purchase price between
        the vessel and a deferred asset for the value assigned to the above
        market charterhire. This deferred asset is amortized as a reduction to
        voyage revenues over the remaining term of the charter, resulting in a
        daily rate of approximately $21,500 recognized as revenue. For cash
        flow purposes, the Company will continue to receive $26,500 per day
        less commissions.
    (5) The time charter rate was $26,000 until March 2006 and $18,000
        thereafter.  For purposes of revenue recognition, the charter contract
        is reflected on a straight-line basis in accordance with GAAP.
    (6) The Company extended the time charter for an additional eleven to
        thirteen months at a rate of $24,000 per day, less a 5% third party
        brokerage commission. The time charter would commence February 1, 2007
        following the expiration of the vessel's current time charter in
        January 2007. The extension is subject to completion of definitive
        agreements acceptable to both Genco and Korea Line Corporation.

    About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Currently, Genco Shipping & Trading Limited owns a fleet of 20 drybulk vessels, consisting of seven Panamax, eight Handymax and five Handysize vessels, with a carrying capacity of approximately 1,029,000 dwt.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following: (i) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2005, our Quarterly Reports on Form 10-Q, and our reports on Form 8-K. Our ability to pay dividends in any period will depend upon factors including the limitations under our loan agreements, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary.

The pro forma liquidity figure of $388 million, displayed above, consists of the undrawn amount of our credit facility of $338 million plus pro forma cash of $50.3 million which takes into effect the payment of dividends of $15.3 million on or about November 30, 2006 to all shareholders of record as of November 16, 2006 as well as the payment for our three new vessels of $81.25 million.

SOURCE Genco Shipping & Trading Limited

John C. Wobensmith, Chief Financial Officer of Genco Shipping & Trading Limited,