NEW YORK, Aug. 30 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has reached an agreement to enter
into a time charter for the Genco Surprise, a 1998-built Panamax vessel, with
Hanjin Shipping Co., Ltd. The time charter will be for 35 to 37 months at a
rate of $42,100 per day, less a 4.5% third party brokerage commission. The
time charter, which is subject to the completion of definitive documentation,
is expected to commence following the expiration of the vessel's current time
charter.
Robert Gerald Buchanan, President, commented, "We are pleased to secure
the Genco Surprise on a three-year time charter at a gross rate of more than
68% higher than the previous level. With this agreement, management has once
again demonstrated its expertise in capitalizing on a rate environment that
remains strong and signing vessels to contracts over the long term at
accretive levels. Currently, we have approximately 88% of our fleet's
estimated available days secured on contracts for the remainder of 2007 and
59% for 2008. As we continue to strengthen our significant time charter
coverage, we expect to further enhance our position to distribute sizable
dividends."
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:
Time
Charter Charter Expected
Vessel Charterer Expiration(1) Rate(2) Delivery(3)
Capesize
Vessels
Genco Cargill December
Augustus International S.A. 2009 $45,263(4) -
Genco Cargill January
Tiberius International S.A. 2010 45,263(4) -
Genco SK Shipping September
London Co., Ltd 2010 57,500(4)(5) Q4 2007
Genco Cargill December
Titus International S.A. 2011 45,000(4)(6) Q4 2007
Genco To be determined
Constantine ("TBD") TBD TBD Q2 2008
Genco
Hadrian TBD TBD TBD Q4 2008
Genco
Commodus TBD TBD TBD Q2 2009
Genco
Maximus TBD TBD TBD Q2 2009
Genco
Claudius TBD TBD TBD Q3 2009
Panamax
Vessels
Genco Cargill May
Beauty International S.A. 2009 31,500 -
Genco May
Knight SK Shipping Ltd. 2009 37,700 -
Genco December
Leader A/S Klaveness 2008 25,650(7) -
Genco October
Trader Baumarine AS 2007 25,750(7) -
Genco STX Panocean (UK) March
Vigour Co. Ltd. 2009 29,000(8) -
Genco STX Panocean (UK) February
Acheron Co. Ltd. 2008 30,000 -
Genco Cosco Bulk November
Surprise Carrier Co., Ltd. 2007 25,000 -
Hanjin Shipping 35 to 37
Co., Ltd. months from
delivery
to new
charterer 42,100
Supramax
Vessels
Genco Intermare
Predator Transport GmbH January
Genco
Warrior TBD TBD TBD Q4 2007
Genco
Hunter TBD TBD TBD Q4 2007
Handymax
Vessels
Genco January
Success KLC 2008 24,000 -
Genco October
Commander A/S Klaveness 2007 19,750 -
Genco Pacific Basin February
Carrier Chartering Ltd. 2008 24,000 -
Genco A/C Pacific Basin April
Prosperity Chartering Ltd. 2008 26,000 -
Genco November
Wisdom HMMC 2007 24,000 -
Genco NYK Bulkship February
Marine Europe S.A. 2008 24,000 -
Genco Qatar Navigation September
Muse QSC 2007 26,500(10) -
Handysize
Vessels
Genco Lauritzen September
Explorer Bulkers A/S 2007 13,500 -
August
2009 19,500
Genco Lauritzen September
Pioneer Bulkers A/S 2007 13,500 -
August
2009 19,500
Genco Lauritzen September
Progress Bulkers A/S 2007 13,500 -
August
2009 19,500
Genco Lauritzen September
Reliance Bulkers A/S 2007 13,500 -
August
2009 19,500
Genco Lauritzen September
Sugar Bulkers A/S 2007 13,500 -
August
2009 19,500
Genco Pacific Basin 35 to 37.5
Charger Chartering Ltd. months from
delivery
date 24,000 Q4 2007
Genco Pacific Basin 35 to 37.5
Challenger Chartering Ltd. months from
delivery
date 24,000 Q4 2007
Genco Pacific Basin 35 to 37.5
Champion Chartering Ltd. months from
delivery
date 24,000 Q4 2007
(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 6.25% to
third parties, except as indicated for the Genco Trader and the Genco Leader
in note 4 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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 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 1,343,000 dwt. After 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 34
drybulk vessels, consisting of nine Capesize, seven Panamax, three Supramax,
seven Handymax and eight Handysize vessels, with a carrying capacity of
approximately 2,814,000 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 with Hanjin Shipping
Co., Ltd. for the time charter described above; (ii) the fulfillment of the
closing conditions under the Company's agreements to acquire the six Evalend
drybulk vessels; (iii) the fulfillment of the closing conditions under the
Company's agreement to acquire the remaining seven Metrostar drybulk vessels;
(iv) increases in costs and expenses including but not limited to: crew wages,
insurance, provisions, repairs, maintenance and general and administrative
expenses; (v) 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
CONTACT:
John C. Wobensmith
Chief Financial Officer of Genco Shipping &
Trading Limited
+1-646-443-8555
Web site: http://www.gencoshipping.com