Investors

Genco Shipping & Trading Limited Announces Plan to Time Charter Three Newly Acquired Handysize Vessels

Aug 22, 2007
NEW YORK, Aug 22, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement with Pacific Basin Chartering Ltd. to time charter three of the six vessels that Genco has agreed to acquire from affiliates of Evalend Shipping Co. S.A. These vessels are to be renamed the Genco Charger, the Genco Challenger, and the Genco Champion and were built in 2005, 2003, and 2006, respectively. The time charter for each vessel will be for 35 to 37.5 months at a rate of $24,000 per day, less a 5% third party brokerage commission. The time charters will commence upon delivery of the three Handysize vessels, which are expected during the fourth quarter of 2007, and are subject to the completion of definitive documentation.

Robert Gerald Buchanan, President, commented, "Our time charters for the Genco Charger, the Genco Challenger and the Genco Champion are consistent with management's focus on taking advantage of the strong market conditions in the drybulk industry and locking in attractive rates for a large portion of our fleet over the long term. Following our recent acquisitions, we are pleased to have secured these vessels on three-year contracts at favorable rates prior to taking delivery of the ships. As we continue to seek opportunities to strengthen the considerable time charter coverage for our expanded fleet, we remain committed to seeking to distribute sizable dividends to our shareholders."

The following table reflects the employment of Genco's current fleet plus the three Handysize vessels to be acquired after giving effect to the new time charters:
                                                   Charter        Time Charter
    Vessel                Charterer              Expiration (1)      Rate (2)

    Capesize Vessel
    Genco Augustus   Cargill International S.A.  December 2009      $45,263(3)

    Panamax Vessels
    Genco Beauty     Cargill International S.A.  May 2009            31,500
    Genco Knight     SK Shipping Ltd.            May 2009            37,700(4)
    Genco Leader     A/S Klaveness               December 2008       25,650(5)
    Genco Trader     Baumarine AS                October 2007        25,750(5)
    Genco Vigour     STX Panocean (UK) Co. Ltd.  March 2009          29,000(6)
    Genco Acheron    STX Panocean (UK) Co. Ltd.  February 2008       30,000(7)
    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    Pacific Basin
                      Chartering Ltd.            February 2008       24,000
    Genco Prosperity A/C Pacific Basin
                      Chartering Ltd.            April 2008          26,000
    Genco Wisdom     HMMC                        November 2007       24,000
    Genco Marine     NYK Bulkship Europe S.A.    February 2008       24,000(8)
    Genco Muse       Qatar Navigation QSC        September 2007      26,500(9)

    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
    Genco Charger    Pacific Basin
                      Chartering Ltd.            35 to 37.5 months
                                                  from delivery date 24,000
    Genco Challenger Pacific Basin
                      Chartering Ltd.            35 to 37.5 months
                                                  from delivery date 24,000
    Genco Champion   Pacific Basin
                      Chartering Ltd.            35 to 37.5 months
                                                  from delivery date 24,000


    (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) 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.
    (4) A new time charter for 23 to 25 months at a rate of $37,700 per day
        less a 6.25% third party commission commenced following the expiration
        of the vessel's previous time charter on June 30, 2007.
    (5) 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.
    (6) 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.
    (7) The vessel was delivered to the charterer for the commencement of the
        time charter on March 20, 2007.
    (8) The vessel was delivered to the charterer for the commencement of the
        time charter on March 29, 2007.
    (9) 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 20 drybulk vessels consisting of one Capesize, seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 1,168,000 dwt. After the delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the eight 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.

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 20 drybulk vessels consisting of one Capesize, seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 1,168,000 dwt. After the delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the eight 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 Pacific Basin Chartering Ltd. for the time charters described above; (ii) execution of additional definitive documentation for the Company's agreements to acquire the six Evalend drybulk vessels; (iii) the fulfillment of the closing conditions under the Company's agreements to acquire the six Evalend drybulk vessels; (iv) the fulfillment of the closing conditions under the Company's agreement to acquire the nine Metrostar drybulk vessels; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) 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

John C. Wobensmith, Chief Financial Officer of Genco Shipping & Trading Limited, +1-646-443-8555

http://www.gencoshipping.com/