NEW YORK, Aug. 28 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has taken delivery of the Genco
Tiberius, a January 2007-built 175,000 dwt Capesize vessel. The Genco Tiberius
is the second 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 Genco Tiberius is currently on charter with Cargill International S.A.
at a rate of $45,263 per day, less a 5% third party brokerage commission. The
charter is due to expire between January 2010 and May 2010.
The following table reflects the current employment of Genco's existing
fleet as well as the employment or other status of vessels expected to join
Genco's fleet:
Charter Time Expected
Expiration Charter Delivery
Vessel Charterer (1) Rate (2) (3)
----------------- -------------- ------------- -------------- ---------
Capesize Vessels
-----------------
Genco Augustus Cargill December 2009 $45,263(4) -
International
S.A.
Genco Tiberius Cargill January 2010 45,263(4) -
International
S.A.
Genco London SK Shipping September 2010 57,500(4)(5) Q4 2007
Co., Ltd
Genco Titus Cargill December 2011 45,000(4)(6) Q4 2007
International
S.A.
Genco Constantine To be TBD TBD Q2 2008
determined
("TBD")
Genco Hadrian TBD TBD TBD Q4 2008
Genco Commodus TBD TBD TBD Q2 2009
Genco Maximus TBD TBD TBD Q2 2009
Genco Claudius TBD TBD TBD Q3 2009
Panamax Vessels
-----------------
Genco Beauty Cargill May 2009 31,500 -
International
S.A.
Genco Knight SK Shipping May 2009 37,700 -
Ltd.
Genco Leader A/S Klaveness December 2008 25,650(7) -
Genco Trader Baumarine AS October 2007 25,750(7) -
Genco Vigour STX Panocean March 2009 29,000(8) -
(UK) Co. Ltd.
Genco Acheron STX Panocean February 2008 30,000 -
(UK) Co. Ltd.
Genco Surprise Cosco Bulk November 2007 25,000 -
Carrier Co.,
Ltd.
Supramax Vessels
-----------------
Genco Predator Intermare January 2008 22,500 (9) Q4 2007
Transport
Genco Warrior TBD TBD TBD Q4 2007
Genco Hunter TBD TBD TBD Q4 2007
Handymax Vessels
-----------------
Genco Success KLC January 2008 24,000 -
Genco Commander A/S Klaveness October 2007 19,750 -
Genco Carrier Pacific Basin February 2008 24,000 -
Chartering
Ltd.
Genco Prosperity A/C Pacific April 2008 26,000 -
Basin
Chartering
Ltd.
Genco Wisdom HMMC November 2007 24,000 -
Genco Marine NYK Bulkship February 2008 24,000 -
Europe S.A.
Genco Muse Qatar September 2007 26,500(10) -
Navigation
QSC
Handysize Vessels
-----------------
Genco Explorer Lauritzen September 2007 13,500 -
Bulkers A/S August 2009 19,500
Genco Pioneer Lauritzen September 2007 13,500 -
Bulkers A/S August 2009 19,500
Genco Progress Lauritzen September 2007 13,500 -
Bulkers A/S August 2009 19,500
Genco Reliance Lauritzen September 2007 13,500 -
Bulkers A/S August 2009 19,500
Genco Sugar Lauritzen September 2007 13,500 -
Bulkers A/S August 2009 19,500
Genco Charger Pacific Basin 35 to 37.5 24,000 Q4 2007
Chartering months from
Ltd. delivery
date
Genco Challenger Pacific Basin 35 to 37.5 24,000 Q4 2007
Chartering months from
Ltd. delivery
date
Genco Champion Pacific Basin 35 to 37.5 24,000 Q4 2007
Chartering months from
Ltd. delivery
date
(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) Dates for vessels delivering in the future are estimates based on
guidance received from the sellers and/or respective shipyards.
(4) 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.
(5) The Genco London is scheduled to be on charter with SK Shipping Co.,
Ltd. for 35 to 39 months at a gross rate of $57,500 per day. The charter is
due to expire between September 2010 and January 2011.
(6) The Genco Titus is scheduled to be on charter with Cargill
International S.A., for 48 months at a gross rate of $45,000 per day. The
charter, which is due to expire in December 2011, also includes a 50 percent
index-based profit sharing component. The charterer has the option to extend
the charter for a period of one year.
(7) 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.
(8) 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.
(9) 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. The rate is below current market rates and
therefore will result in a liability that will amortize as an increase to
revenue. See our Summary of Significant Accounting Policies under the caption
"Vessel acquisitions" in our footnotes in the June 30, 2007 Form 10-Q for
disclosure of our policy.
(10) 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 21 drybulk vessels
consisting of two Capesize, seven Panamax, seven Handymax and five Handysize
vessels, with a carrying capacity of approximately 1,343,000 dwt. After the
delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the
seven 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 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 nine 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, Genco Shipping &
Trading Limited,
+1-646-443-8555/
Web site: http://www.gencoshipping.com
(GNK)