NEW YORK, Nov. 15 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has taken delivery of the Genco
Titus, a 177,000 dwt Capesize newbuilding. The Genco Titus is the fourth
vessel to be delivered to the Company under Genco's previously announced
agreement on July 18, 2007 to acquire nine Capesize vessels from companies
within the Metrostar Management Corporation group.
The Company expects to deliver the Genco Titus to its charterer, Cargill
International S.A., on November 17, 2007 to commence a time charter for 48
months at a gross rate of $45,000 per day, less a 5% third party brokerage
commission. The charter, which is due to expire in November 2011, also
includes a 50 percent index-based profit sharing component based on the daily
BCI index. The charterer has the option to extend the charter for a period of
one year.
Robert Gerald Buchanan, President, said, "We are pleased to take delivery
of the Genco Titus. With this vessel, we have once again expanded the
Company's earnings power and we expect to take delivery of six additional
drybulk vessels by the end of the year. Our time charter for the Genco Titus
includes an index-based profit sharing component that provides the opportunity
to benefit from a strong rate environment without sacrificing the stability of
the base rate."
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:
Vessel Charterer Charter Cash Daily Revenue Expected
Year Expiration Rate Daily Delivery
Built (1) (2) Rate(3) (4)
Capesize Vessels
Genco 2007 Cargill December 45,263 62,750 -
Augustus International 2009
S.A.
Genco 2007 Cargill January 45,263 62,750 -
Tiberius International 2010
S.A.
Genco London 2007 SK Shipping August 57,500 64,250
Co., Ltd 2010
Genco Titus 2007 Cargill November 45,000(5) 46,250 -
International 2011
S.A.
Genco 2008(6) Cargill 54 to 62 52,750(7) Q2
Constantine International months from 2008
S.A. delivery
date
Genco Hadrian 2008(6) To be TBD TBD Q4
determined 2008
("TBD")
Genco 2009(6) TBD TBD TBD Q2
Commodus 2009
Genco Maximus 2009(6) TBD TBD TBD Q2
2009
Genco 2009(6) TBD TBD TBD Q3
Claudius 2009
Panamax Vessels
Genco Beauty 1999 Cargill May 2009 31,500 -
International
S.A.
Genco Knight 1999 SK Shipping May 2009 37,700 -
Ltd.
Genco Leader 1999 A/S December 25,650(8)
Klaveness 2008 -
Genco Trader(9)1990 Baumarine AS November 25,750(8)
2007 -
Genco Vigour 1999 STX Panocean March 2009 29,000(10) -
(UK) Co. Ltd.
Genco Acheron 1999 STX Panocean February 30,000 -
(UK) Co. Ltd. 2008
Genco Surprise 1998 Cosco Bulk November 25,000 -
Carrier Co., 2007
Ltd.
Hanjin 35 to 37 42,100 -
Shipping months
Co., Ltd. from
delivery
to new
charterer
Supramax Vessels
Genco Predator 2005(6) Intermare January 22,500(11) 41,000 Q4
Transport 2008 2007
GmbH
Genco Warrior 2005(6) Hyundai 35 to 37.5 38,750 Q4
Merchant months from 2007
Marine Co. delivery
Ltd. date
Genco Hunter 2007(6) TBD TBD TBD Q4
2007
Handymax Vessels
Genco Success 1997 Korea Line March 24,000/ -
Corporation 2008/ 33,000(12)
January
2011
Genco 1994 A/S November 19,750 -
Commander(13) Klaveness 2007
Genco Carrier 1998 Pacific February 24,000 -
Basin 2008
Chartering
Ltd.
Genco 1997 Pacific April 2008 26,000 -
Prosperity Basin
Chartering
Ltd.
Genco Wisdom 1997 Hyundai February 24,000 -
Merchant 2008(14) 34,500
Marine Co. January
Ltd. 2011
Genco Marine 1996 NYK Bulkship February 24,000 -
Europe S.A. 2008
Genco Muse 2001 Qatar November 26,500(15) -
Navigation 2007
QSC
Handysize Vessels
Genco Explorer 1999 Lauritzen August 19,500 -
Bulkers A/S 2009
Genco Pioneer 1999 Lauritzen August 19,500 -
Bulkers A/S 2009
Genco 1999 Lauritzen August 19,500 -
Progress Bulkers A/S 2009
Genco 1999 Lauritzen August 19,500 -
Reliance Bulkers A/S 2009
Genco Sugar 1998 Lauritzen August 19,500 -
Bulkers A/S 2009
Genco Charger 2005(6) Pacific 35 to 37.5 24,000 Q4
Basin months from 2007
Chartering delivery
Ltd. date
Genco Pacific 35 to 37.5 24,000 Q4
Challenger 2003(6) Basin months from 2007
Chartering delivery
Ltd. date
Genco Pacific 35 to 37.5 24,000 Q4
Champion 2006(6) Basin months from 2007
Chartering delivery
Ltd. date
(1) The charter expiration dates presented represent the earliest dates
that our charters may be terminated in the ordinary course. Except for the
Genco Titus, 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. The charterer of the
Genco Titus has the option to extend the charter for a period of one year.
(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 8 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 vessels acquired with a below-market time charter rate, the
approximate amount of revenue on a daily basis to be recognized as revenues is
displayed in the column named "Revenue Daily Rate" and is net of any third-
party commissions. Since these vessels were acquired with existing time
charters with below-market rates, we allocated the purchase price between the
respective vessel and an intangible liability for the value assigned to the
below-market charterhire. This intangible liability is amortized as an
increase to voyage revenues over the minimum remaining term of the charter.
For cash flow purposes, we will continue to receive the rate presented in the
"Cash Rate" column until the charter expires.
(4) Dates for vessels being delivered in the future are estimates based on
guidance received from the sellers and/or the respective shipyards.
(5) The charter includes a 50 percent index-based profit sharing
component.
(6) Year built for vessels being delivered in the future are estimates
based on guidance received from the sellers and/or the respective shipyards.
(7) The Genco Constantine is scheduled to be on charter with Cargill
International S.A., for 54 to 62 months at a gross rate of $52,750 per day,
less a 5% third party brokerage commission. The charter also includes a 50
percent index-based profit sharing component.
(8) 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.
(9) We have entered into an agreement to sell the Genco Trader to SW
Shipping Co., Ltd. for approximately $44 million, less a 2% brokerage
commission. The delivery is expected to occur in the first quarter of 2008.
(10) 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.
(11) 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.
(12) We intend to extend the time charter for an additional 35 to 37.5
months at a rate of $33,000 per day less a 5% third party brokerage
commission. The new charter will commence following the expiration of the
previous charter on March 1, 2008.
(13) We have entered into an agreement to sell the Genco Commander to Dan
Sung Shipping Co. Ltd for approximately $44.5 million, less a 2% brokerage
commission. The delivery is expected to occur in the fourth quarter of 2007.
(14) We have reached an agreement to extend the time charter for an
additional 35 to 37.5 months at a rate of $34,500 per day less a 5% third
party brokerage commission. The new charter will commence following the
expiration of the previous charter on March 1, 2008.
(15) 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 was being 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. Effective September 3,
2007, we will record the full $26,500 per day as revenue, since the
amortization period has ended.
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 23 drybulk vessels
consisting of four Capesize, seven Panamax, seven Handymax and five Handysize
vessels, with a carrying capacity of approximately 1,700,000 dwt. After the
sale of the Genco Trader and the Genco Commander as well as the delivery of
six vessels from affiliates of Evalend Shipping Co. S.A. and the five
remaining vessels from companies within the Metrostar Management Corporation
group, Genco Shipping & Trading Limited will own a fleet of 32 drybulk
vessels, consisting of nine Capesize, six Panamax, three Supramax, six
Handymax and eight Handysize vessels, with a carrying capacity of
approximately 2,700,000 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 fulfillment of the
closing conditions under the Company's agreements to acquire the six Evalend
drybulk vessels; (ii) the fulfillment of the closing conditions under the
Company's agreement to acquire the remaining five Metrostar drybulk vessels;
(iii) increases in costs and expenses including but not limited to: crew
wages, insurance, provisions, repairs, maintenance and general and
administrative expenses; (iv) 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.
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)