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
- 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.
- 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.
- 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.
- 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.
- The vessel was delivered to the charterer for the commencement of the
time charter on March 20, 2007.
- The vessel was delivered to the charterer for the commencement of the
time charter on March 29, 2007.
- 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)