NEW YORK, Dec. 21 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has taken delivery of the Genco
Predator, a 2005-built Supramax vessel, and the Genco Hunter, a 2007-built
Supramax vessel, on December 20, 2007.
The Genco Predator and the Genco Hunter represent the fourth and fifth
vessels, respectively, 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. The remaining vessel, the Genco
Champion, is expected to be delivered by the first half of January 2008.
The Genco Predator is currently on charter with Intermare Transport GmbH
at a rate of $22,500 per day, less a 4.5% third party brokerage commission,
and is expected to be delivered to the charterer by December 22, 2007. The
charter is due to expire between January 2008 and March 2008. The Genco Hunter
is expected to be delivered to its charterer, Pacific Basin Chartering Ltd.,
by December 22, 2007 to commence a time charter for 2.5 to 5 months at a rate
of $65,000 per day, less a 5% third party brokerage commission.
Genco's current fleet is comprised of 27 drybulk vessels with a total
carrying capacity of approximately 1,880,000 dwt. In addition to the remaining
drybulk vessel that Genco expects to take delivery from an affiliate of
Evalend Shipping Co. S.A., Genco plans 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:
Cash Revenue Expected
Year Charterer Daily Daily Delivery
Vessel Built Charter Expiration(1) Rate(2) Rate(3) (4)
Capesize Vessels
Genco Augustus 2007 Cargill December 45,263 62,750 -
Inter- 2009
national
S.A.
Genco Tiberius 2007 Cargill January 45,263 62,750 -
Inter- 2010
national
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 -
Inter- 2011
national
S.A.
Genco
Constantine 2008(6) Cargill 54 to 62
Inter- months from 52,750(7) Q2 2008
national delivery date
S.A.
Genco Hadrian 2008(6) To be TBD TBD Q4 2008
determined
("TBD")
Genco Commodus 2009(6) TBD TBD TBD Q2 2009
Genco Maximus 2009(6) TBD TBD TBD Q2 2009
Genco Claudius 2009(6) TBD TBD TBD Q3 2009
Panamax Vessels
Genco Beauty 1999 Cargill May 31,500 -
Inter- 2009
national
S.A.
Genco Knight 1999 SK Shipping May 37,700 -
Ltd. 2009
Genco Leader 1999 A/S Klaveness December 25,650(8) -
2008
Genco Trader(9) 1990 Baumarine AS January 25,750(8) -
2008
Genco Vigour 1999 STX Panocean March 29,000(10) -
(UK) Co. Ltd. 2009
Genco Acheron 1999 STX Panocean February 30,000 -
(UK) Co. Ltd. 2008
Genco Surprise 1998 Cosco Bulk January 25,000 -
Carrier 2008
Co., Ltd.
Hanjin Shipping 35 to 37 42,100 -
Co., Ltd. months from
delivery to
new charterer
Supramax Vessels
Genco Predator 2005 Intermare
Transport GmbH January 22,500(11) 41,000 -
2008
Genco Warrior 2005 Hyundai November 38,750 -
Merchant 2010
Marine
Co. Ltd.
Genco Hunter 2007 Pacific March 65,000 -
Basin 2008
Chartering
Ltd.
Handymax Vessels
Genco Success 1997 Korea Line March 2008/ 24,000/ -
Corporation January 2011 33,000(12)
Genco Carrier 1998 Pacific February 24,000 -
Basin 2008
Chartering
Ltd.
Genco
Prosperity 1997 Pacific April 26,000 -
Basin 2008
Chartering
Ltd.
Genco Wisdom 1997 Hyundai February 24,000 -
Merchant 2008(13)
Marine January 34,500
Co. Ltd. 2011
Genco Marine 1996 NYK February 24,000 -
Bulkship 2008
Europe S.A.
Genco Muse 2001 Oldendorff March 58,000 -
GmbH & Co. 2008
KG.
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 Progress 1999 Lauritzen August 19,500 -
Bulkers A/S 2009
Genco Reliance 1999 Lauritzen August 19,500 -
Bulkers A/S 2009
Genco Sugar 1998 Lauritzen August 19,500 -
Bulkers A/S
2009
Genco Charger 2005 Pacific November 24,000 -
Basin 2010
Chartering
Ltd.
Genco
Challenger 2003 Pacific November 24,000 -
Basin 2010
Chartering
Ltd.
Genco Champion 2006 Pacific 35 to 37.5 24,000 Q1 2008
Basin months from
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 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 27 drybulk vessels
consisting of four Capesize, seven Panamax, three Supramax, six Handymax and
seven Handysize vessels, with a carrying capacity of approximately 1,880,000
dwt. After the sale of the Genco Trader as well as the delivery of the one
remaining vessel from an affiliate 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 agreement to acquire the one remaining
Evalend drybulk vessel; (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/