Genco Shipping & Trading Limited Takes Delivery of Two Drybulk Vessels

Nov 08, 2006

NEW YORK, Nov. 8 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (Nasdaq: GSTL) today announced that it has taken delivery of the Genco Commander, a 1994-built Handymax vessel, and the Genco Acheron, a 1999-built Panamax vessel.

The Company has commenced a previously announced time charter for the Genco Commander for eleven to thirteen months at a gross rate of $19,750 per day upon delivery of the vessel. The Company also intends to commence a previously announced time charter for the Genco Acheron for 55 to 135 days at a gross rate of $28,500 per day, on or about November 9, 2006.

The Genco Commander and Genco Acheron were delivered under the Company's previously announced agreements entered into in July 2006 to acquire three drybulk vessels from affiliates of Franco Compania Naviera S.A., for an aggregate purchase price of $81.25 million. The third vessel, the Genco Surprise, a 1998-built Panamax vessel, is expected to be delivered on or about November 16, 2006, upon which it will commence a time charter for twelve to fourteen months at a gross rate of $25,000 per day.

Robert Gerald Buchanan, President, commented, "We are pleased to take delivery of these two vessels and commence attractive time charters for both. With the delivery of the Genco Surprise expected in mid-November, our three- vessel acquisition will expand our quality fleet by 23 percent on a tonnage basis and strengthen our leading industry position. We will maintain our strict criteria in pursuing future growth opportunities while seeking to distribute sizable dividends to our shareholders."

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

                                  Fleet List

                                                                 Time Charter
         Vessel        Vessel Type   Expiration Date (1)           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      55 to 135 days from charter
                                       delivery date               $28,500
    7  Genco Surprise(4) Panamax      12 to 14 months from charter
                                       delivery date               $25,000
    8  Genco Muse        Handymax     September 2007               $26,500 (5)

    9  Genco Marine      Handymax     March 2007                   $18,000 (6)
    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 (7)
    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) On July 10, 2006, the Company agreed to acquire this drybulk vessel
        from an affiliate of Franco Compania Naviera S.A. The acquisition is
        subject to customary closing conditions and the vessel is expected to
        be delivered on or about November 16, 2006.

    (5) 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.

    (6) 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.

    (7) 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. Assuming the acquisition of the three vessels, Genco Shipping & Trading Limited will own 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; (ix) the fulfillment of the closing conditions under the Company's agreement to acquire the Genco Surprise; 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.

SOURCE Genco Shipping & Trading Limited

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