Investors

Genco Shipping & Trading Limited Announces Plan to Extend Time Charter for Handymax Vessel

Sep 21, 2007

NEW YORK, Sept. 21 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement to extend the time charter for the Genco Wisdom, a 1997-built Handymax vessel currently on charter with Hyundai Merchant Marine Co. Ltd. The extended time charter will be for an additional 35 to 37.5 months at a rate of $34,500 per day, less a 5% third party brokerage commission. The extended time charter, subject to the completion of definitive agreements, is expected to commence on March 1, 2008, upon the expiration of the current time charter.

Robert Gerald Buchanan, President, commented, "We are pleased to extend our time charter for the Genco Wisdom over the long term at a rate more than 43% higher than the previous level. Management's expertise in capitalizing on a strong freight market has enabled Genco to enter into a total of 13 time charters at accretive levels to date in 2007. Currently, we have approximately 89% of our fleet's estimated available days secured on contracts for the remainder of 2007 and 71% for 2008. By expanding our time charter coverage at attractive rates, we have further enhanced our ability to distribute sizable dividends to our shareholders."

    The following table reflects the current employment of Genco's current
fleet as well as the employment or other status of vessels expected to join
Genco's fleet:


                                     Charter        Time Charter   Expected
    Vessel     Charterer          Expiration (1)      Rate (2)    Delivery (3)

    Capesize
    Vessels

    Genco       Cargill              December 2009      $45,263(4)           -
    Augustus    International S.A.

    Genco       Cargill              January 2010        45,263(4)           -
    Tiberius    International S.A.

    Genco       SK Shipping Co.,     35 to 39 Months  57,500(4)(5)     Q4 2007
    London      Ltd                  from delivery
                                     date

    Genco       Cargill              48 to 62 Months  45,000(4)(6)     Q4 2007
    Titus       International S.A.   from delivery
                                     date

    Genco       Cargill              54 to 62 Months     52,750(7)     Q2 2008
    Constantine International S.A.   from delivery
                                     date

    Genco       To be determined     TBD                       TBD     Q4 2008
    Hadrian     ("TBD")

    Genco       TBD                  TBD                       TBD     Q2 2009
    Commodus

    Genco       TBD                  TBD                       TBD     Q2 2009

    Genco       TBD                  TBD                       TBD     Q3 2009
    Claudius

    Panamax
    Vessels

    Genco       Cargill              May 2009               31,500           -
    Beauty      International S.A.

    Genco       SK Shipping Ltd.     May 2009               37,700           -
    Knight

    Genco       A/S Klaveness        December 2008       25,650(8)           -
    Leader

    Genco       Baumarine AS         October 2007        25,750(8)           -
    Trader

    Genco       STX Panocean (UK)    March 2009          29,000(9)           -
    Vigour      Co. Ltd.

    Genco       STX Panocean (UK)    February 2008
    Acheron     Co. Ltd.                                    30,000           -

    Genco       Cosco Bulk Carrier   November 2007          25,000           -
    Surprise    Co., Ltd.
                Hanjin Shipping      35 to 37 months        42,100
                Co., Ltd.            from delivery
                                     to new
                                     charterer

    Supramax
    Vessels

    Genco       Intermare            January 2008       22,500(10)     Q4 2007
    Predator    Transport GmbH

    Genco       Hyundai Merchant     35 to 37.5             38,750     Q4 2007
    Warrior     Marine Co. Ltd.      months from
                                     delivery date

    Genco       TBD                  TBD                       TBD     Q4 2007
    Hunter

    Handymax
    Vessels

    Genco       KLC                  March 2008/           24,000/           -
    Success                          January 2011      33,000 (11)

    Genco       A/S Klaveness        October 2007           19,750           -
    Commander
    (12)

    Genco       Pacific Basin        February 2008          24,000           -
    Carrier     Chartering Ltd.

    Genco       A/C Pacific Basin    April 2008             26,000           -
    Prosperity  Chartering Ltd.

    Genco       Hyundai Merchant     February 2008          24,000           -
    Wisdom      Marine Co. Ltd.      February 2011          34,500

    Genco       NYK Bulkship         February 2008          24,000           -
    Marine      Europe S.A.

    Genco       Qatar                October 2007       26,500(13)           -
    Muse        Navigation QSC

    Handysize
    Vessels

    Genco       Lauritzen Bulkers    August 2009            19,500           -
    Explorer    A/S

    Genco       Lauritzen Bulkers    August 2009            19,500           -
    Pioneer     A/S

    Genco       Lauritzen Bulkers    August 2009            19,500           -
    Progress    A/S

    Genco       Lauritzen Bulkers    August 2009            19,500           -
    Reliance    A/S

    Genco       Lauritzen Bulkers    August 2009            19,500           -
    Sugar       A/S

    Genco       Pacific Basin        35 to 37.5             24,000     Q4 2007
    Charger     Chartering Ltd.      months from

                                     delivery date
    Genco       Pacific Basin        35 to 37.5             24,000     Q4 2007
    Challenger  Chartering Ltd.      months from
                                     delivery date

    Genco       Pacific Basin        35 to 37.5             24,000     Q4 2007
    Champion    Chartering Ltd.      months from
                                     delivery date

(1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Except as indicated for the Genco Titus in note 6 below, under the terms of each contract, the charterer is 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 6.25% to third parties, except as indicated for the Genco Trader and the Genco Leader in note 8 below. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues.

(3) Dates for vessels delivering in the future are estimates based on guidance received from the sellers and/or respective shipyards.

(4) The time charter rate is below current market rates and therefore will result in a liability that will amortize as an increase to revenue. See Note 2, Summary of Significant Accounting Policies under the caption "Vessel acquisitions" in the footnotes to our financial statements in our Form 10-Q for the quarterly period ended June 30, 2007 for disclosure of our policy.

(5) The Genco London is scheduled to be on charter with SK Shipping Co., Ltd. for 35 to 39 months at a gross rate of $57,500 per day. The charter is due to expire between September 2010 and January 2011.

(6) The Genco Titus is scheduled to be on charter with Cargill International S.A., for 48 months at a gross rate of $45,000 per day. The charter, which is due to expire in December 2011, also includes a 50 percent index-based profit sharing component. The charterer has the option to extend the charter for a period of one year with 2 months more or less on the optional year.

(7) The Genco Constantine is scheduled to be on charter with Cargill International S.A., for 54 to 62 months at a gross rate of $52,750 per day less a 5% third party brokerage commission. The charter also includes a 50 percent index-based profit sharing component.

(8) For the Genco Leader and the Genco Trader, the time charter rate presented is the net daily charterhire rate. There are no payments of brokerage commissions associated with these time charters.

(9) We have entered into a time charter for 23 to 25 months at a rate of $33,000 per day for the first 11 months, $25,000 per day for the following 11 months and $29,000 per day thereafter, less a 5% third-party brokerage commission. For purposes of revenue recognition, the time charter contract is reflected on a straight-line basis at approximately $29,000 per day for 23 to 25 months in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. The time charter, commenced following the expiration of the vessel's previous time charter on May 5, 2007.

(10) The Genco Predator is currently on charter with Intermare Transport GmbH at a gross rate of $22,500 per day. The charter is due to expire between January 2008 and March 2008. The rate is below current market rates and therefore will result in a liability that will amortize as an increase to revenue. See our Summary of Significant Accounting Policies under the caption "Vessel acquisitions" in our footnotes in the June 30, 2007 Form 10-Q for disclosure of our policy.

(11) The Company intends to extend the time charter for an additional 35 to 37.5 months at a rate of $33,000 less a 5% third party brokerage commission. The new charter will commence following the expiration of the previous charter on March 1, 2008.

(12) We have entered into an agreement to sell the Genco Commander to Dan Sung Shipping Co. Ltd for approximately $44.5 million, less a 2% brokerage commission. The delivery is expected to occur in the fourth quarter of 2007.

(13) Since this vessel was acquired with an existing time charter at an above-market rate, we allocated the purchase price between the vessel and an intangible asset for the value assigned to the above-market charterhire. This intangible asset is amortized as a reduction to voyage revenues over the minimum remaining term of the charter, resulting in a daily rate of approximately $22,000 recognized as revenues. For cash flow purposes, we will continue to receive $26,500 per day until the charter expires. Effective September 3, 2007, the Company will record the full $26,500 per day since the amortization period has ended.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited currently owns a fleet of 21 drybulk vessels consisting of two Capesize, seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 1,344,000 dwt. After the sale of the Genco Commander and the delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the seven remaining vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 33 drybulk vessels, consisting of nine Capesize, seven Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,768,000 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 press release are (i) the terms and conditions of any definitive documentation that the Company may execute for the time charter described above; (ii) the fulfillment of the closing conditions under the Company's agreement to sell the Genco Commander; (iii) the fulfillment of the closing conditions under the Company's agreements to acquire the six Evalend drybulk vessels; (iv) the fulfillment of the closing conditions under the Company's agreement to acquire the remaining seven Metrostar drybulk vessels; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) 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, 2006, 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
    -0-                             09/21/2007
    /CONTACT:  John C. Wobensmith, Chief Financial Officer of Genco Shipping &
Trading Limited, +1-646-443-8555/
    /Web site:  http://www.gencoshipping.com/
    (GNK)

CO:  Genco Shipping & Trading Limited
ST:  New York
IN:  MAR TRN
SU:

DK-JK
-- NYF071 --
4530 09/21/2007 17:19 EDT http://www.prnewswire.com