Increases Time Charter Coverage to 75% for 2007
NEW YORK, March 13 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (Nasdaq: GSTL) today announced it has reached an agreement to enter
into a time charter for the Genco Vigour, a 1999-built Panamax vessel, with
STX Panocean (UK) Co. Ltd. The time charter will be for 23 to 25 months at an
average rate of approximately $29,000(1) per day, less a 5% third party
brokerage commission. Specifically, the time charter rate will be $33,000 per
day for the first 11 months, $25,000 per day for the following 11 months and
$29,000 per day thereafter. The time charter will commence following the
expiration of the vessel's current time charter.
Robert Gerald Buchanan, President, said, "Our two-year time charter for
the Genco Vigour further demonstrates management's expertise in locking away a
large portion of our fleet on time charters through a balanced portfolio
comprised of both medium-term and longer-term contracts at favorable rates
with top-tier charterers. With this agreement, we currently have approximately
75% of our fleet's available days secured on contracts for the year. We remain
committed to seeking to provide our shareholders with sizable dividends while
maintaining our financial flexibility as we continue to pursue our growth
strategy."
(1) For purposes of revenue recognition, the time charter contract will be
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 following table sets forth information about the employment of Genco's
fleet:
Vessel Charterer Charter Time Charter
Expiration (1) Rate (2)
Panamax Vessels
Genco Beauty Cargill April 2007 $29,000
Genco Knight BHP April 2007 29,000
Genco Leader AS 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) Co. Ltd. 23 to 25 months
from delivery to
new charterer 29,000(4)
Genco Acheron Global Maritime
Investments Ltd. March 2007 28,500
STX Panocean (UK) Co. Ltd. February 2008 30,000(5)
Genco Surprise Cosco Bulk Carrier
Co., Ltd. November 2007 25,000
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 January 2008 24,000(6)
Chartering Ltd.
Genco Prosperity DS Norden April 2007 23,000
A/C Pacific Basin
Chartering Ltd. 11 to 13 months
from delivery to
new charterer 26,000
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 July 2007 13,500
Genco Pioneer Lauritzen Bulkers August 2007 13,500
Genco Progress Lauritzen Bulkers August 2007 13,500
Genco Reliance Lauritzen Bulkers July 2007 13,500
Genco Sugar Lauritzen Bulkers July 2007 13,500
(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 STX Panocean (UK)
Co. Ltd. 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, our Quarterly Reports on Form 10-Q, and our
reports on Form 8-K.
SOURCE Genco Shipping & Trading Limited
CONTACT:
John C. Wobensmith
Chief Financial Officer
Genco Shipping &
Trading Limited
1-646-443-8555
Web site:
http://www.gencoshipping.com
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