Investors

Genco Shipping & Trading Limited Announces Plan to Extend Time Charters for Five Handysize Vessels

Mar 19, 2007
Increases Time Charter Coverage to 84% for the Remainder of 2007 and 39% for 2008
NEW YORK, March 19, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (Nasdaq: GSTL) today announced it has reached agreements to extend the time charters for five Handysize vessels currently on charter with Lauritzen Bulkers A/S. The Company intends to extend the time charters for the 1999-built Genco Reliance, the 1999-built Genco Explorer, the 1999-built Genco Pioneer, the 1999-built Genco Progress, and the 1998-built Genco Sugar with Lauritzen Bulkers A/S for an additional 23 to 25 months at a rate of $19,500 per vessel per day, less a 5% third party brokerage commission. The time charters, subject to the completion of definitive agreements, are scheduled to commence on September 5, 2007 upon the expiration of the vessels' current time charters.

Robert Gerald Buchanan, President, said, "We are pleased to extend the time charters for our five Handysize vessels with Lauritzen Bulkers at a gross rate more than 44% higher than the previous level. These agreements are consistent with our strategy to capitalize on strong market conditions and lock in favorable rates over the long term. Currently, we have approximately 84% of our fleet's available days secured on contracts for the remainder of 2007 and 39% already for 2008. We believe our additional long-term time charter coverage enhances our revenue and earnings visibility and further strengthens our position to distribute significant dividends to our shareholders."

    The following table sets forth information about the employment of Genco's
fleet:
                                                                  Time Charter
    Vessel             Charterer          Charter Expiration (1)    Rate (2)

    Panamax Vessels
    Genco Beauty       Cargill                       April 2007      $29,000
    Genco Knight       BHP                           April 2007       29,000
    Genco Leader       A/S Klaveness              December 2008     25,650(3)
    Genco Trader       Baumarine AS                October 2007     25,750(3)
    Genco Vigour       BHP                           April 2007       29,000
                       STX Panocean (UK)   23 to 25 months from     29,000(4)
                        Co. Ltd.                delivery to new
                                                      charterer
    Genco Acheron      Global Maritime               March 2007       28,500
                        Investments  Ltd.
                       STX Panocean (UK)          February 2008     30,000(5)
                        Co. Ltd.
    Genco Surprise     Cosco Bulk Carrier         November 2007       25,000
                        Co., Ltd.

    Handymax Vessels
    Genco Success      KLC                         January 2008       24,000
    Genco Commander    A/S Klaveness               October 2007       19,750
    Genco Carrier      DBCN Corporation              March 2007       24,000
                       Pacific Basin              February 2008     24,000(6)
                        Chartering Ltd.
    Genco Prosperity   DS Norden                     April 2007       23,000
                       A/C Pacific Basin   11 to 13 months from       26,000
                        Chartering Ltd.         delivery to new
                                                      charterer
    Genco Wisdom       HMMC                       November 2007       24,000
    Genco Marine       NYK Europe                    March 2007     18,000(7)
                                                  February 2008       24,000
    Genco Muse         Qatar Navigation QSC      September 2007     26,500(8)

    Handysize Vessels
    Genco Explorer     Lauritzen Bulkers A/S     September 2007       13,500
                                                    August 2009       19,500
    Genco Pioneer      Lauritzen Bulkers A/S     September 2007       13,500
                                                    August 2009       19,500
    Genco Progress     Lauritzen Bulkers A/S     September 2007       13,500
                                                    August 2009       19,500
    Genco Reliance     Lauritzen Bulkers A/S     September 2007       13,500
                                                    August 2009       19,500
    Genco Sugar        Lauritzen Bulkers A/S     September 2007       13,500
                                                    August 2009       19,500

    (1) The charter expiration dates presented represent the earliest dates
        that our charters may be terminated in the ordinary course. 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 5%
        to third parties, except as indicated for the Genco Trader and the
        Genco Leader in note 3 below. In a time charter, the charterer is
        responsible for voyage expenses such as bunkers, port expenses,
        agents' fees and canal dues.
    (3) The Genco Leader and the Genco Trader were delivered to the charterer
        for the commencement of the time charter on January 15, 2007 and
        December 24, 2006, respectively. For each of these vessels, the time
        charter rate presented is the net daily charterhire rate. There are no
        payments of brokerage commissions associated with these time charters.
    (4) We have reached an agreement to commence 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.
    (5) We have reached an agreement to commence a time charter for 11 to 13
        months at a rate of $30,000 per day, less a 5% third-party brokerage
        commission. The estimated charter expiration is based on the time
        charter beginning in March 2007, the earliest possible termination of
        the previous charterer.
    (6) The estimated charter expiration is based on the time charter
        beginning in March 2007, the earliest possible termination of the
        previous charterer.
    (7) The time charter rate was $26,000 until March 2006 and $18,000
        thereafter until March 2007. For purposes of revenue recognition, the
        time charter contract through March 2007 is reflected on a straight-
        line basis in accordance with U.S. GAAP. Additionally, we have reached
        an agreement with the current charterer for an additional 11 to 13
        months at a rate of $24,000 per day, less a 5% third-party brokerage
        commission.
    (8) 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 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.

    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 owns a fleet of 19 drybulk vessels, consisting of seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 988,000 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 terms and conditions of any definitive documentation that the Company may execute with Lauritzen Bulkers A/S for the time charters described above or other charters for which definitive documentation has not yet been executed 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 and our reports on Form 8-K.

SOURCE Genco Shipping & Trading Limited

John C. Wobensmith
Chief Financial Officer
Genco Shipping & Trading Limited
1-646-443-8555
http://www.gencoshipping.com