Investors

Genco Shipping & Trading Limited Announces First Quarter 2008 Financial Results

Apr 30, 2008

Declares Increased Dividend of $1.00 per Share for Q1 2008 Increases 2008 Quarterly Dividend Target Rate to $1.00 per Share Repays $73 Million of Debt

NEW YORK, April 30 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today reported its financial results for the three months ended March 31, 2008.

The following financial review discusses the results for the three months ended March 31, 2008 and March 31, 2007.

First Quarter 2008 and Year-to-Date Highlights

  • Declared a dividend at a new quarterly target rate of $1.00 per share, an increase of $0.15 over the previous target of $0.85 per share, based on Q1 2008 results, payable on or about May 30, 2008 to all shareholders of record as of May 16, 2008;
  • Excluding the $26.2 million gain on the sale of the Genco Trader, recorded net income of $47.8 million, or $1.66 basic and $1.65 diluted earnings per share;
  • Recorded net income of $74.0 million, or $2.57 basic and $2.56 diluted earnings per share;
  • Took delivery of the Genco Champion, completing the acquisition of the six drybulk vessels from affiliates of Evalend Shipping Co. S.A. for an aggregate purchase price of $336 million;
  • Took delivery of the Genco Constantine, the fifth of nine vessels from the Metrostar transaction;
  • Completed the sale of the Genco Trader, realized a gain on the sale of assets of $26.2 million and repaid $43 million of debt from the sales proceeds;
  • Repaid $30 million of debt with cash flow from operations;
  • Paid an $0.85 per share dividend on March 7, 2008 based on Q4 2007 results;
  • Increased our ownership of the outstanding stock of Jinhui Shipping and Transportation Limited to 19.4% through April 30, 2008; and
  • Entered into an agreement to time charter the Genco Carrier at a gross rate of $37,000 per day for 34 to 37.5 months, a 54% increase over its current rate of $24,000.

Financial Review: 2008 First Quarter

Excluding the $26.2 million gain on the sale of the Genco Trader, the Company recorded net income for the first quarter of 2008 of $47.8 million, or $1.66 basic and $1.65 diluted earnings per share. Net income was $74.0 million or $2.57 basic and $2.56 diluted earnings per share for the three months ended March 31, 2008. Comparatively, for the three months ended March 31, 2007 net income was $19.8 million or $0.78 basic and diluted earnings per share.

EBITDA was $95.8 million for the three months ended March 31, 2008 versus $30.5 million for the three months ended March 31, 2007.

Robert Gerald Buchanan, President, commented, "During the first quarter, we continued to take advantage of the strong drybulk market while further growing our fleet of modern vessels. Specifically, we signed time charters at significantly higher rates with staggered durations, enabling the Company to increase its sizeable contracted revenue stream and maintain the ability to benefit from future rate increases. We also completed the acquisition of six drybulk vessels from affiliates of Evalend Shipping Co. S.A. and have taken delivery of our fifth Capesize vessel acquired from companies within the Metrostar Management Corporation group. With four additional Capesize vessels expected to be delivered in 2008 and 2009, Genco is in a strong position to further improve the age of its fleet and continue to benefit from the positive demand for the global transportation of essential commodities."

Genco Shipping & Trading Limited revenues increased 146% to $91.7 million for the three months ended March 31, 2008 versus $37.2 million for the three months ended March 31, 2007, due to the operation of a larger fleet as well as the renewal of time charters at higher charter rates than those contracted previously.

The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet increased 73.5% to $35,891 per day for the three months ended March 31, 2008 compared to $20,683 for the three months ended March 31, 2007. The increase in TCE rates was due to higher charter rates achieved in the first quarter of 2008 versus the first quarter of 2007 for five of the Panamax vessels, five of the Handymax vessels, and five of the Handysize vessels in our current fleet. Furthermore, higher TCE rates were achieved in the first quarter of 2008 versus the same period last year due to the operation of five Capesize vessels acquired as part of the Metrostar acquisition.

Total operating expenses decreased to $6.4 million for the three months ended March 31, 2008 from $15.0 million for the three-month period ended March 31, 2007 due to the gain on the sale of the Genco Trader, off-set by higher vessel operating expenses, general and administrative expenses and depreciation and amortization related to the operation of a larger fleet. Vessel operating expenses were $10.9 million for the first quarter of 2008 compared to $6.4 million for the same period last year. The increase in vessel operating expenses was due to the operation of a larger fleet, as well as higher crewing and lube expenses. We expect our vessel operating expenses, which generally represent variable costs, to further increase as a result of the expansion of our fleet. Depreciation and amortization expenses increased to $15.9 million for the first quarter of 2008 from $7.2 million for the first quarter of 2007 related to the growth of our fleet. General and administrative expenses increased to $4.4 million from $3.2 million during the comparative periods due to higher legal expenses, costs associated with higher employee non-cash compensation and other employee related costs. Management fees were $0.7 million for the three months ended March 31, 2008 and $0.4 million for the three months ended March 31, 2007, respectively, and relate to fees paid to our independent technical managers.

Daily vessel operating expenses grew to $4,278 per vessel per day during the first quarter of 2008 from $3,627 for the same quarter last year as a result of higher crew and lube expenses as well as the operation of five Capesize vessels. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers and management's expectations, we expect our 2008 DVOE budget to be $4,700 per vessel per day. As previously announced the increased budget reflects the anticipated increased cost for crewing and lubes as well as the operation of our Capesize vessels.

Liquidity and Capital Resources Cash Flow

Net cash provided by operating activities for the three months ended March 31, 2008 and 2007, was $55.7 million and $23.3 million, respectively. The increase was primarily due to the operation of a larger fleet, which contributed to increases in net income, depreciation, and deferred revenues. Adjustments to operating cash flows include Jinhui investment activities of $11.5 million of realized losses on forward currency contracts offset by $9.7 million of unrealized gains on hedged short-term investments and $1.7 million of unrealized gains on forward currency contracts. The increases were offset by a $26.2 million gain related to the sale of the Genco Trader, and $6.8 million of amortization of value of the time charters acquired as part of the Metrostar and Evalend acquisitions. Net cash provided by operating activities for the three months ended March 31, 2007 was primarily a result of recorded net income of $19.8 million, less the gain from the sale of the Genco Glory of $3.6 million, plus depreciation and amortization charges of $7.2 million.

Net cash (used in) provided by investing activities was ($132.4) million for the three months ended March 31, 2008 as compared to $12.8 provided by investing activities for the three months ended March 31, 2007. For the quarter ended March 31, 2008, cash used in investing activities related primarily to the purchase of vessels in the amount of $153.3 million, the purchase of $10.3 million of Jinhui stock, and payments on forward currency contracts of $11.4 million. The increases were offset by total proceeds received from the sale of the Genco Trader of $43.1 million. For the three months ended March 31, 2007 the cash provided by investing activities related primarily to the proceeds from the sale of the Genco Glory of $13.0 million.

Net cash provided by (used in) financing activities for the three months ended March 31, 2008 was $53.4 million as compared to ($22.5) million of cash used in investing activities for the three months ended March 31, 2007. For the quarter ended March 31, 2008, net cash provided by financing activities consisted of the drawdown of $151.5 million related to the purchase of vessels and was offset by the repayment of $73.0 million under the 2007 credit facility and the payment of cash dividends of $24.7 million. For the same period last year, net cash used in financing activities consisted of the payment of cash dividends of $16.8 million and of the repayment of $5.7 million of our credit facility.

Capital Expenditures

We make capital expenditures from time to time in connection with vessel acquisitions. Our current fleet consists of five Capesize drybulk carriers, six Panamax drybulk carriers, three Supramax drybulk carriers, six Handymax drybulk carriers and eight Handysize drybulk carriers. After the delivery of the four 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.

In addition to acquisitions that we may undertake in future periods, we will incur additional capital expenditures due to special surveys and drydockings for our fleet. We estimate that one vessel will be drydocked during the second quarter of 2008.

An additional five vessels are estimated to be drydocked in 2008 and five in 2009. We estimate our drydocking costs for our fleet through 2009 to be:

                                   Q2 2008      Q3 - Q4 2008        2009
    Estimated Costs (1)          $0.7 million   $3.5 million   $3.7 million
    Estimated Offhire Days (2)        20             100            100


     (1) Estimates are based on our budgeted cost of drydocking our vessels
         in China.  Actual costs will vary based on various factors, including
         where the drydockings are actually performed.  We expect to fund
         these costs with cash from operations.
     (2) Assumes 20 days per drydocking per vessel.  Actual length will vary
         based on the condition of the vessel, yard schedules and other
         factors.

The Genco Challenger completed its drydocking during the first quarter of 2008 at a cost of approximately $0.5 million. The vessel was on planned offhire for 12 days in connection with this scheduled drydocking.

Update on Share Repurchase Program

The Company recently announced that its Board of Directors has approved a share repurchase program for up to a total of $50 million of the Company's common stock. During the first quarter of 2008 the Company did not buy back any shares. As of April 30, 2008 the Company has 29,078,309 shares of its common stock outstanding.

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.

                                                    Three Months Ended
                                            March 31, 2008     March 31, 2007
                                          (Dollars in thousands, except share
                                                  and per share data)
                                                       (unaudited)
    INCOME STATEMENT DATA:
     Revenues                                    $91,669           $37,220

     Operating expenses:
      Voyage expenses                                744             1,413
      Vessel operating expenses                   10,919             6,389
      General and administrative expenses          4,411             3,195
      Management fees                                672               351
      Depreciation and amortization               15,864             7,186
      Gain on sale of vessel                     (26,227)           (3,575)
        Total operating expenses                   6,383            14,959

     Operating income                             85,286            22,261

     Other (expense) income:
      (Loss) Gain from derivative
       instruments                                   (64)              -
      Interest income                                552             1,066
      Interest expense                           (11,787)           (3,490)
        Other (expense) income:                  (11,299)           (2,424)


     Net income                                  $73,987           $19,837

     Earnings per share - basic                    $2.57             $0.78

     Earnings per share - diluted                  $2.56             $0.78

     Weighted average shares
      outstanding - basic                     28,733,928        25,308,953

     Weighted average shares
      outstanding - diluted                   28,914,350        25,421,480



                                            March 31, 2008   December 31, 2007
    BALANCE SHEET DATA:                       (unaudited)
     Cash                                        $48,295           $71,496
     Current assets, including cash              221,803           267,594
     Total assets                              1,746,773         1,653,272
     Current liabilities, including current
      portion of long-term debt                   24,788            70,364
     Total long-term debt, including
      current portion                          1,014,500           936,000
     Shareholders' equity                        622,346           622,185



                                                   Three Months Ended
                                            March 31, 2008    March 31, 2007
                                                        (unaudited)

    Net cash provided by operating
     activities                                  $55,711           $23,329
    Net cash (used in) provided by
     investing activities                       (132,351)           12,817
    Net cash provided by (used in)
     financing activities                         53,439           (22,542)



                                                      Three Months Ended
                                              March 31, 2008    March 31, 2007
    FLEET DATA:                                          (unaudited)
     Total number of vessels at end of
      period                                          28                19
     Average number of vessels (1)                  28.0              19.6
     Total ownership days for fleet (2)            2,552             1,762
     Total available days for fleet (3)            2,533             1,731
     Total operating days for fleet (4)            2,528             1,703
     Fleet utilization (5)                          99.8%             98.3%


    AVERAGE DAILY RESULTS:
     Time charter equivalent (6)                 $35,891           $20,683
     Daily vessel operating expenses per
      vessel (7)                                   4,278             3,627



                                                   Three Months Ended
                                            March 31, 2008    March 31, 2007
                                                 (Dollars in thousands)
    EBITDA Reconciliation:                            (unaudited)
      Net Income                                 $73,987           $19,837
      +   Net interest expense                    11,235             2,424
      +   Depreciation and amortization           15,864             7,186
      +   Amortization of nonvested stock
           compensation                            1,588               586
      +   Amortization of value of time
           charters acquired                      (6,849)              456
           EBITDA(8)                              95,825            30,489


     (1) Average number of vessels is the number of vessels that constituted
         our fleet for the relevant period, as measured by the sum of the
         number of days each vessel was part of our fleet during the period
         divided by the number of calendar days in that period.
     (2) We define ownership days as the aggregate number of days in a period
         during which each vessel in our fleet has been owned by us. Ownership
         days are an indicator of the size of our fleet over a period and
         affect both the amount of revenues and the amount of expenses that we
         record during a period.
     (3) We define available days as the number of our ownership days less the
         aggregate number of days that our vessels are off-hire due to
         scheduled repairs or repairs under guarantee, vessel upgrades or
         special surveys and the aggregate amount of time that we spend
         positioning our vessels. Companies in the shipping industry generally
         use available days to measure the number of days in a period during
         which vessels should be capable of generating revenues.
     (4) We define operating days as the number of our available days in a
         period less the aggregate number of days that our vessels are
         off-hire due to unforeseen circumstances. The shipping industry uses
         operating days to measure the aggregate number of days in a period
         during which vessels actually generate revenues.
     (5) We calculate fleet utilization by dividing the number of our
         operating days during a period by the number of our available days
         during the period. The shipping industry uses fleet utilization to
         measure a company's efficiency in finding suitable employment for its
         vessels and minimizing the number of days that its vessels are
         off-hire for reasons other than scheduled repairs or repairs under
         guarantee, vessel upgrades, special surveys or vessel positioning.
     (6) We define TCE rates as our net voyage revenue (voyage revenues less
         voyage expenses) divided by the number of our available days during
         the period, which is consistent with industry standards. TCE rate is
         a common shipping industry performance measure used primarily to
         compare daily earnings generated by vessels on time charters with
         daily earnings generated by vessels on voyage charters, because
         charterhire rates for vessels on voyage charters are generally not
         expressed in per-day amounts while charterhire rates for vessels on
         time charters generally are expressed in such amounts. Since some
         vessels were acquired with an existing time charter at a below-market
         rate, we allocated the purchase price between the 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.
     (7) We define daily vessel operating expenses to include crew wages and
         related costs, the cost of insurance expenses relating to repairs and
         maintenance (excluding drydocking), the costs of spares and
         consumable stores, tonnage taxes and other miscellaneous expenses.
         Daily vessel operating expenses are calculated by dividing vessel
         operating expenses by ownership days for the relevant period.
     (8) EBITDA represents net income plus net interest expense, income tax
         expense, depreciation and amortization, amortization of nonvested
         stock compensation, and amortization of the value of time charter
         acquired. EBITDA is included because it is used by management and
         certain investors as a measure of operating performance. EBITDA is
         used by analysts in the shipping industry as a common performance
         measure to compare results across peers. Our management uses EBITDA
         as a performance measure in consolidating internal financial
         statements and it is presented for review at our board meetings.
         EBITDA is also used by our lenders in certain loan covenants. For
         these reasons, we believe that EBITDA is a useful measure to present
         to our investors. EBITDA is not an item recognized by U.S. GAAP and
         should not be considered as an alternative to net income, operating
         income or any other indicator of a company's operating performance
         required by U.S. GAAP. EBITDA is not a source of liquidity or cash
         flows as shown in our consolidated statement of cash flows. The
         definition of EBITDA used here may not be comparable to that used by
         other companies.


                   Genco Shipping & Trading Limited's Fleet

Our current fleet consists of five Capesize, six Panamax, three Supramax, six Handymax and eight Handysize drybulk carriers with an aggregate carrying capacity of approximately 2,020,000 dwt. Our current fleet contains six groups of sister ships, which are vessels of virtually identical sizes and specifications. We believe that maintaining a fleet that includes sister ships reduces costs by creating economies of scale in the maintenance, supply and crewing of our vessels. As of March 31, 2008, the average age of our current fleet was 6.5 years, as compared to the average age for the world fleet of approximately 16 years for the drybulk shipping segments in which we compete. All of the vessels in our current fleet are currently on long-term time charters with an average remaining life of approximately 19.5 months as of March 31, 2008.

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:

                                                                Rev-   Expect-
                                           Charter     Cash     enue    ed
                   Year                    Expir-      Daily    Daily   Deliv-
    Vessel         Built    Charterer      ation(1)    Rate(2)  Rate(3) ery(4)

    Capesize Vessels

    Genco Augustus 2007     Cargill       December     45,263    62,750     -
                            International   2009
                            S.A.

    Genco Tiberius 2007     Cargill       January      45,263    62,750     -
                            International   2010
                            S.A.

    Genco London   2007     SK Shipping   August 2010  57,500    64,250
                            Co., Ltd

    Genco Titus    2007     Cargill       September    45,000(5) 46,250     -
                            International   2011
                            S.A.

    Genco          2008     Cargill       August 2012  52,750(5)            -
     Constantine            International
                            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 2009     31,500               -
                            International
                            S.A.

    Genco Knight   1999     SK Shipping   May 2009     37,700               -
                            Ltd.

    Genco Leader   1999     A/S Klaveness December     25,650(7)            -
                                            2008

    Genco Vigour   1999     STX Panocean  March 2009   29,000(8)            -
                            (UK) Co. Ltd.

    Genco Acheron  1999     Armada        June 2008    74,500(9)            -
                            Shipping S.A.

    Genco Surprise 1998     Hanjin        December     42,100               -
                            Shipping        2010
                            Co., Ltd.

    Supramax Vessels

    Genco Predator 2005     Oldendorff    May 2008     55,000               -
                            GmbH
                            & Co. KG.

    Genco Warrior  2005     Hyundai       November     38,750               -
                            Merchant        2010
                            Marine
                            Co. Ltd.

    Genco Hunter   2007     Pacific Basin June 2008    60,000(10)           -
                            Chartering
                            Ltd.

    Handymax Vessels

    Genco Success  1997     Korea Line    February     33,000(11)           -
                            Corporation     2011

    Genco Carrier  1998     Pacific Basin May 2008     24,000               -
                            Chartering
                            Ltd.

                            Louis Dreyfus March 2011   37,000(12)
                            Corporation

    Genco          1997     Pacific Basin May 2008     26,000               -
     Prosperity             Chartering
                            Ltd.

    Genco Wisdom   1997     Hyundai       February     34,500(13)           -
                            Merchant        2011
                            Marine
                            Co. Ltd.

    Genco Marine   1996     NYK Bulkship  March 2009   47,000               -
                            Europe S.A.

    Genco Muse     2001     Norden A/S    July 2008    47,650               -

    Handysize Vessels

    Genco Explorer 1999     Lauritzen     August 2009  19,500               -
                            Bulkers A/S

    Genco Pioneer  1999     Lauritzen     August 2009  19,500               -
                            Bulkers A/S

    Genco Progress 1999     Lauritzen     August 2009  19,500               -
                            Bulkers A/S

    Genco Reliance 1999     Lauritzen     August 2009  19,500               -
                            Bulkers A/S

    Genco Sugar    1998     Lauritzen     August 2009  19,500               -
                            Bulkers A/S

    Genco Charger  2005     Pacific Basin  November
                            Chartering       2010      24,000               -
                            Ltd.

    Genco          2003     Pacific Basin  November
     Challenger             Chartering       2010      24,000               -
                            Ltd.

    Genco          2006     Pacific Basin  December
     Champion               Chartering       2010      24,000               -
                            Ltd.

      (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 third party commissions ranging from 1.25% to 6.25%, except
          as indicated for the Genco Leader in note 7 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) For the Genco Leader, the time charter rate presented is the net
          daily charterhire rate. There are no payments of 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 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) We have entered into a short-term time charter for 1 trip at a rate
          of $74,500 per day less a 5% third-party commission. The new charter
          has commenced following the expiration of the previous charter on
          April 18, 2008 and is expected to be completed in the middle of June
          2008. Upon the completion of its time charter with Armada Shipping
          S.A., the vessel is expected to complete its drydocking before
          commencing subsequent time charters.
     (10) We have reached an agreement to extend the time charter for an
          additional 3 to 5.5 months at a rate of $60,000 per day less a 5%
          third party commission.  The new charter commenced following the
          expiration of the previous charter on March 6, 2008.
     (11) We recently extended the time charter for an additional 35 to 37.5
          months at a rate of $40,000 per day for the first 12 months, $33,000
          per day for the following 12 months and $26,000 per day for the next
          12 months and $33,000 thereafter less a 5% third-party commission.
          In all cases the rate for the duration of the time charter will
          average $33,000.  For purposes of revenue recognition, the time
          charter contract is reflected on a straight-line basis at
          approximately $33,000 per day for 35 to 37.5 months in accordance
          with generally accepted accounting principles in the United States,
          or U.S. GAAP.  The new charter commenced following the expiration of
          the previous charter on March 1, 2008.
     (12) We have reached an agreement to commence a time charter for 34 to
          37.5 months at a rate of $37,000 per day less a 5% third party
          commission.  The new charter is expected to commence following the
          expiration of the previous charter on or about May 10, 2008.
     (13) We recently extended the time charter for an additional 35 to 37.5
          months at a rate of $34,500 per day less a 5% third party
          commission.  The new charter commenced following the expiration of
          the previous charter on March 1, 2008.

Q1 2008 Dividend Announcement

The Company's Board of Directors declared a first quarter 2008 dividend of $1.00 per share payable on or about May 30, 2008 to all shareholders of record as of May 16, 2008. As previously announced, the Company plans to declare quarterly dividends to shareholders by each February, May, August and November, in amounts substantially equal to its available cash from operations during the previous quarter, less cash expenses for that quarter (principally vessel operating expenses and debt service) and any reserves the Board of Directors determines the Company should maintain. These reserves may cover, among other things: drydocking, repairs, claims, liabilities and other obligations, interest expense and debt amortization, acquisitions of additional assets and working capital. The Q1 2008 dividend of $1.00 equates to an annualized yield of 6.1% based on the closing price of Genco Shipping & Trading's common stock as of April 29, 2008 at $65.67.

John C. Wobensmith, Chief Financial Officer, commented, "During the first quarter, we posted strong results, highlighting our fleet's significant earnings power. Complementing this success, we once again increased our quarterly dividend target rate, representing the third time since going public. We are pleased to have declared a dividend of $1.00 per share for the quarter, an increase over our first quarter 2007 and 2006 dividends of approximately 52% and 67%, respectively. During the quarter, we also drew upon our strong cash flow from our increased fleet and the proceeds from the sale of the oldest vessel in our fleet to pay down $73 million in debt, readying the Company for future growth. As we have done in the past, we will seek to consolidate the industry with a focus on earnings and cash flow accretion as well as return on capital while seeking to distribute sizeable dividends to shareholders."

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 28 drybulk vessels consisting of five Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,020,000 dwt. After the delivery of the four remaining Capesize 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.

Conference Call Announcement

Genco Shipping & Trading Limited announced that it will hold a conference call on Thursday, May 1, 2008 at 8:30 a.m. Eastern Time, to discuss its 2008 first quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company's website, www.GencoShipping.com. To access the conference call, dial (877) 874-1589 or (719) 325-4837 and enter passcode 4047163. A replay of the conference call can also be accessed through May 15, 2008 by dialing (888) 203-1112 or (719) 457-0820 and entering the passcode 4047163. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.

"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 report are the following: (i) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) 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; (ix) the number of offhire days needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (x) the Company's acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under the Company's agreement to acquire the remaining four drybulk vessels from companies within the Metrostar Management Corporation group; and other factors listed from time to time in our public filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and its reports on Form 8-K. The timing and amount of purchases under the Company's share repurchase program will be determined by management based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities and Exchange Act. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company's discretion and without notice. Repurchases will be subject to restrictions under the Company's existing credit facility. Our ability to pay dividends in any period will depend upon factors, including the limitations under our loan agreements, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary.

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)