Investors

Genco Shipping & Trading Limited Announces Plan to Sign Time Charter for Panamax Vessel

Apr 30, 2007

Increases Time Charter Coverage to 92% for the Remainder of 2007 and 50% for 2008

NEW YORK, April 30 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced it has reached an agreement to enter into a time charter for the Genco Knight, a 1999-built Panamax vessel, with SK Shipping Co., Ltd. (Seoul). The time charter will be for 23 to 25 months at a rate of $37,700 per day, less a 6.25% third party brokerage commission. The time charter, 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, said, "We are pleased by management's ongoing ability to capitalize on the strong drybulk market and sign time charters at rates equal to or above previous levels. Specifically, our long- term time charter for the Genco Knight with SK Shipping, a leading international charterer, represents a 30% increase in the gross rate from the current time charter. With this agreement, we have approximately 92% of our fleet's available days secured on contracts for the remainder of 2007 and 50% for 2008. Going forward, we intend to continue to seek substantial time charter coverage at attractive rates while pursuing strategic vessel acquisitions that best serve the Company and its shareholders."

    The following table sets forth information about the employment of Genco's
fleet:


                                                                   Time
                                           Charter                 CharterRate
    Vessel          Charterer              Expiration (1)          (2)

    Panamax
     Vessels

    Genco           Cargill                June 2007                  $29,000
     Beauty         International          23 to 26                    31,500
                    S.A.                   months from
                                           delivery

    Genco           BHP                    May 2007                    29,000
     Knight         SK Shipping Co.,       23 to 25                    37,700
                    Ltd. (Seoul)           months from
                                           delivery to
                                           new charterer

    Genco           A/S Klaveness          December 2008             25,650(3)
     Leader

    Genco           Baumarine AS           October 2007              25,750(3)
     Trader

    Genco           BHP                    May 2007                    29,000
     Vigour         STX Panocean (UK)      March 2009                29,000(4)
                    Co. Ltd.

    Genco           STX Panocean (UK)      February 2008             30,000(5)
     Acheron         Co. Ltd.

    Genco           Cosco Bulk             November 2007               25,000
     Surprise        Carrier Co., Ltd.

    Handymax
     Vessels

    Genco           KLC                    January 2008                24,000
     Success

    Genco           A/S Klaveness          October 2007                19,750
     Commander

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

    Genco           DS Norden              June 2007                   23,000
     Prosperity      A/C Pacific Basin     11 to 13                    26,000
                     Chartering Ltd.       months from
                                           delivery to
                                           new charterer

    Genco           HMMC                   November 2007               24,000
     Wisdom

    Genco           NYK Bulkship           February 2008             24,000(6)
     Marine          Europe S.A.

    Genco Muse      Qatar Navigation       September 2007            26,500(7)
                     QSC
    Handysize
     Vessels

    Genco           Lauritzen Bulkers      September 2007              13,500
     Explorer        A/S                   August 2009                 19,500

    Genco           Lauritzen Bulkers      September 2007              13,500
     Pioneer         A/S                   August 2009                 19,500

    Genco           Lauritzen Bulkers      September 2007              13,500
     Progress        A/S                   August 2009                 19,500

    Genco           Lauritzen Bulkers      September 2007              13,500
     Reliance        A/S                   August 2009                 19,500

    Genco Sugar     Lauritzen Bulkers      September 2007              13,500
                     A/S                   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. 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.
  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. The time charter is expected to commence following the expiration of the vessel's current time charter on or about May 5, 2007.
  5. The vessel was delivered to the charterer for the commencement of the time charter on March 20, 2007.
  6. The vessel was delivered to the charterer for the commencement of the time charter on March 29, 2007.
  7. 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 SK Shipping for the time charter 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
CONTACT: John C. Wobensmith, Chief Financial Officer of Genco Shipping & Trading Limited,
+1-646-443-8555
Web site: http://www.gencoshipping.com
(GNK)