Investors

Genco Shipping & Trading Limited Takes Delivery of Third Capesize Vessel

Oct 01, 2007

NEW YORK, Oct. 1 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco London, a 177,000 dwt Capesize newbuilding. The Genco London is the third 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 has commenced a time charter upon delivery of the Genco London with SK Shipping Co., Ltd. for 35 to 39 months at a gross rate of $57,500 per day, less a 2.5% third party brokerage commission. The charter is due to expire between September 2010 and January 2011.

    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:


                 Year                     Charter         Charter   Expected
    Vessel       Built  Charterer         Expiration(1)   Rate(2)  Delivery(3)

    Capesize Vessels

    Genco         2007  Cargill           December 2009  $45,263(4)          -
     Augustus           International
                        S.A.
    Genco         2007  Cargill           January 2010    45,263(4)          -
     Tiberius           International
                        S.A.
    Genco       2007(5) SK Shipping Co.,  September 2010  57,500(4)          -
     London             Ltd
    Genco       2007(5) Cargill           48 to 62        45,000(4)(6) Q4 2007
     Titus              International     Months from
                        S.A.              delivery date
    Genco       2008(5) Cargill           54 to 62        52,750(7)    Q2 2008
     Constantine        International     Months from
                        S.A.              delivery date
    Genco       2008(5) To be determined  TBD             TBD          Q4 2008
     Hadrian            ("TBD")
    Genco       2009(5) TBD               TBD             TBD          Q2 2009
     Commodus
    Genco       2009(5) TBD               TBD             TBD          Q2 2009
     Maximus
    Genco       2009(5) TBD               TBD             TBD          Q3 2009
     Claudius


    Panamax Vessels

    Genco Beauty  1999  Cargill           May 2009        31,500             -
                        International
                        S.A.
    Genco Knight  1999  SK Shipping Ltd.  May 2009        37,700             -
    Genco Leader  1999  A/S Klaveness     December 2008   25,650(8)          -
    Genco         1990  Baumarine AS      October 2007    25,750(8)          -
     Trader(9)
    Genco Vigour  1999  STX Panocean      March 2009      29,000(10)         -
                        (UK) Co. Ltd.
    Genco Acheron 1999  STX Panocean      February 2008   30,000             -
                        (UK) Co. Ltd.
    Genco         1998  Cosco Bulk        November 2007   25,000             -
     Surprise           Carrier Co., Ltd.
                        Hanjin Shipping   35 to 37 months 42,100
                        Co., Ltd.         from delivery
                                          to new charterer


    Supramax Vessels

    Genco         2005  Intermare         January 2008    22,500(11)   Q4 2007
     Predator           Transport GmbH
    Genco Warrior 2005  Hyundai Merchant  35 to 37.5      38,750       Q4 2007
                        Marine            months from
                        Co. Ltd.          delivery date
    Genco Hunter  2007  TBD               TBD             TBD          Q4 2007


    Handymax Vessels

    Genco Success 1997  Korea Line        March 2008      24,000             -
                        Corporation       January 2011    33,000(12)
    Genco         1994  A/S Klaveness     October 2007    19,750             -
     Commander(13)
    Genco Carrier 1998  Pacific Basin     February 2008   24,000             -
                        Chartering Ltd.
    Genco         1997  Pacific Basin     April 2008      26,000             -
     Prosperity         Chartering Ltd.
    Genco Wisdom  1997  Hyundai Merchant  February 2008   24,000             -
                        Marine Co. Ltd.   February 2011   34,500(14)
    Genco Marine  1996  NYK Bulkship      February 2008   24,000             -
                        Europe S.A.
    Genco Muse    2001  Qatar Navigation  October 2007    26,500(15)         -
                        QSC


    Handysize Vessels

    Genco         1999  Lauritzen         August 2009     19,500             -
     Explorer           Bulkers A/S
    Genco Pioneer 1999  Lauritzen         August 2009     19,500             -
                        Bulkers A/S
    Genco         1999  Lauritzen         August 2009     19,500             -
     Progress           Bulkers A/S
    Genco         1999  Lauritzen         August 2009     19,500             -
     Reliance           Bulkers A/S
    Genco Sugar   1998  Lauritzen         August 2009     19,500             -
                        Bulkers A/S
    Genco Charger 2005  Pacific Basin     35 to 37.5      24,000       Q4 2007
                        Chartering Ltd.   months from
                                          delivery date
    Genco         2003  Pacific Basin     35 to 37.5      24,000       Q4 2007
     Challenger         Chartering Ltd.   months from
                                          delivery date
    Genco         2006  Pacific Basin     35 to 37.5      24,000       Q4 2007
     Champion           Chartering Ltd.   months from
                                          delivery date

    (1) The charter expiration dates presented represent the earliest dates
    that our charters may be terminated in the ordinary course.  Except as
    indicated for the Genco Titus in note 6 below, 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 8 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) Year built for vessels being delivered in the future are estimates
    based on guidance received from the sellers and/or the respective
    shipyards.
    (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) 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% 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 are considering the potential sale of the Genco Trader to a third
    party.
    (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.  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.
    (12) We intend to extend the time charter for an additional 35 to 37.5
    months at a rate of $33,000 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 is expected to 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 is amortized as a reduction to voyage
    revenues over the minimum 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, the Company will record the full
    $26,500 per day 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 22 drybulk vessels consisting of three Capesize, seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 1,521,000 dwt. After the sale of the Genco Commander, the delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the six remaining vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 33 drybulk vessels, consisting of nine Capesize, seven Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,768,000 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 of Genco Shipping & Trading Limited,
+1-646-443-8555

Web site: http://www.gencoshipping.com
(GNK)