Investors

Genco Shipping & Trading Limited Takes Delivery of Three Drybulk Vessels

Dec 17, 2007
NEW YORK, Dec 17, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Charger, a 2005-built Handysize vessel, and the Genco Challenger, a 2003-built Handysize vessel, on December 14, 2007. The Company also announced it has taken delivery of the Genco Warrior, a 2005-built Supramax vessel, on December 17, 2007.

The Genco Charger, the Genco Challenger and the Genco Warrior are the first three vessels to be delivered to the Company under Genco's previously announced agreements on August 14, 2007 to acquire six drybulk vessels from affiliates of Evalend Shipping Co. S.A.

Peter C. Georgiopoulos, Chairman, commented, "We firmly believe in the ongoing strength of the drybulk market and are committed to continue seeking growth opportunities. As we have in the past, we intend to employ our differentiated and disciplined approach of solely entering into drybulk transactions that meet a set of stringent criteria that best serves all our shareholders."

Mr. Georgiopoulos continued, "In furthering our leadership in the industry, we will continue to differentiate ourselves from our peers. Our core differentiators include an experienced management team, majority independent board, commitment to transparency, focus on shareholder value and an exclusive concentration on the drybulk industry."

The Company has delivered the Genco Charger and the Genco Challenger to their charterer, Pacific Basin Chartering Ltd., on December 16, 2007 to commence a time charter for 35 to 37.5 months at a gross rate of $24,000 per day, less a 5% third party brokerage commission, per vessel. The Genco Warrior is expected to be delivered to its charterer, Hyundai Merchant Marine Co. Ltd., on December 19, 2007 to commence a time charter for 35 to 37.5 months at a gross rate of $38,750 per day, less a 5% third party brokerage commission.

With the addition of the Genco Charger, the Genco Challenger and the Genco Warrior, the Company's current fleet is comprised of 25 drybulk vessels with a total carrying capacity of approximately 1,766,000 dwt. Genco expects to take delivery of the three remaining drybulk vessels from affiliates of Evalend Shipping Co. S.A. by the end of the current fourth quarter. Genco also expects to take delivery of the five remaining Capesize newbuildings from companies within the Metrostar Management Corporation group from the second quarter of 2008 through the third quarter of 2009.

    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:



                                            Charter   Cash    Revenue Expected
               Year                       Expiration  Daily    Daily  Delivery
      Vessel   Built      Charterer           (1)     Rate(2)  Rate(3)     (4)

    Capesize
     Vessels
    Genco      2007    Cargill             December  45,263     62,750       -
     Augustus           International S.A.  2009
    Genco      2007    Cargill             January   45,263     62,750       -
     Tiberius           International S.A.  2010
    Genco      2007    SK Shipping Co.,    August    57,500     64,250
     London             Ltd                 2010
    Genco      2007    Cargill             November  45,000(5)  46,250       -
     Titus              International S.A.  2011
    Genco      2008(6) Cargill             54 to 62  52,750(7)         Q2 2008
     Constantine        International S.A.  months
                                            from
                                            delivery
                                            date
    Genco      2008(6) To be determined    TBD          TBD            Q4 2008
     Hadrian            ("TBD")
    Genco      2009(6) TBD                 TBD          TBD            Q2 2009
     Commodus
    Genco      2009(6) TBD                 TBD          TBD            Q2 2009
     Maximus
    Genco      2009(6) TBD                 TBD          TBD            Q3 2009
     Claudius

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

    Supramax
     Vessels
    Genco      2005(6) Intermare           January   22,500(11) 41,000 Q4 2007
     Predator           Transport GmbH      2008
    Genco      2005    Hyundai Merchant    November  38,750                  -
     Warrior            Marine Co. Ltd.     2010
    Genco      2007(6) Pacific Basin       3 to 5    65,000            Q4 2007
     Hunter             Chartering Ltd.     Months
                                            from
                                            delivery
                                            date

    Handymax
     Vessels
    Genco      1997    Korea Line          March     24,000/                 -
     Success            Corporation         2008/
                                           January   33,000(12)
                                            2011
    Genco      1998    Pacific Basin       February  24,000                  -
     Carrier            Chartering Ltd.     2008
    Genco      1997    Pacific Basin       April     26,000                  -
     Prosperity         Chartering Ltd.     2008
    Genco      1997    Hyundai Merchant    February  24,000                  -
     Wisdom             Marine Co. Ltd.     2008(13)
                                           January   34,500
                                            2011
    Genco      1996    NYK Bulkship        February  24,000                  -
     Marine             Europe S.A.         2008
    Genco Muse 2001    Oldendorff          March     58,000                  -
                        GmbH & Co. KG.      2008

    Handysize
     Vessels
    Genco      1999    Lauritzen           August    19,500                  -
     Explorer           Bulkers A/S         2009
    Genco      1999    Lauritzen           August    19,500                  -
     Pioneer            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      1998    Lauritzen           August    19,500                  -
     Sugar              Bulkers A/S         2009
    Genco      2005    Pacific Basin       November  24,000                  -
     Charger            Chartering Ltd.     2010
    Genco      2003    Pacific Basin       November  24,000                  -
     Challenger         Chartering Ltd.     2010
    Genco      2006(6) Pacific Basin       35 to     24,000            Q4 2007
     Champion           Chartering Ltd.     37.5
                                            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
         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 Daily 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 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.

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 25 drybulk vessels consisting of four Capesize, seven Panamax, one Supramax, six Handymax and seven Handysize vessels, with a carrying capacity of approximately 1,766,000 dwt. After the sale of the Genco Trader as well as the delivery of the three remaining 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 remaining three 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

http://www.gencoshipping.com/