Increases Time Charter Coverage to 81% for 2008NEW YORK, March 31, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has reached an agreement to extend
the time charter for the Genco Marine, a 1996-built Handymax vessel currently
on charter with NYK Bulkship Europe S.A. The extended time charter will be for
an additional 11 to 13 months at a rate of $47,000 per day, less a 5% third
party brokerage commission. The extended time charter, subject to completion
of definitive documentation, is expected to commence following the expiration
of the vessel's current time charter on April 3, 2008.
Robert Gerald Buchanan, President, commented, "We are pleased to extend
our time charter for the Genco Marine at a very attractive rate that is 96%
higher than the previous level. Currently, we have approximately 81% of our
fleet's available days secured on contracts for the remainder of 2008, which
we believe strengthens our ability to distribute sizeable dividends to
shareholders. We will continue to seek to implement our strategy of locking
away our vessels on time charters with appropriate durations to provide
earnings stability and take advantage of the robust freight market."
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 Charter Daily Daily Delivery
Vessel Built Charterer Expiration(1) Rate(2) Rate(3) (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 57,500 64,250
Co., Ltd 2010
Genco Titus 2007 Cargill September 45,000(5) 46,250 -
International 2011
S.A.
Genco 2008 Cargill August 52,750(5) -
Constantine International 2012
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 2008 25,650(7) -
Genco Vigour 1999 STX Panocean March 2009 29,000(8) -
(UK) Co. Ltd.
Genco Acheron 1999 STX Panocean April 2008 30,000 -
(UK) Co. Ltd.
Genco Surprise 1998 Hanjin December 2010 42,100 -
Shipping Co.,
Ltd.
Supramax Vessels
Genco Predator 2005 Oldendorff May 2008 55,000 -
GmbH & Co.
KG.
Genco Warrior 2005 Hyundai November 2010 38,750 -
Merchant
Marine Co.
Ltd.
Genco Hunter 2007 Pacific Basin June 2008 60,000(9) -
Chartering
Ltd.
Handymax Vessels
Genco Success 1997 Korea Line February 2011 33,000(10) -
Corporation
Genco Carrier 1998 Pacific Basin April 2008 24,000 -
Chartering
Ltd.
Genco 1997 Pacific Basin April 2008 26,000 -
Prosperity Chartering
Ltd.
Genco Wisdom 1997 Hyundai February 2011 34,500(11) -
Merchant
Marine Co.
Ltd.
Genco Marine 1996 NYK Bulkship April 2008 24,000 -
Europe S.A. March 2009 47,000
Genco Muse 2001 Oldendorff April 2008 58,000 -
GmbH & Co.
KG.
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 2010 24,000 -
Chartering
Ltd.
Genco 2003 Pacific Basin November 2010 24,000 -
Challenger Chartering
Ltd.
Genco Champion 2006 Pacific Basin December 2010 24,000 -
Chartering
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 the payments of brokerage commissions ranging from 1.25% to
6.25% to third parties, 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 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) 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 brokerage commission. The new charter will commence
following the expiration of the previous charter on March 6, 2008.
(10)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 brokerage
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.
(11)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 brokerage
commission. The new charter commenced 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 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.
"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 remaining four
Metrostar drybulk vessels; (ii) increases in costs and expenses including but
not limited to: crew wages, insurance, provisions, repairs, maintenance and
general and administrative expenses; (iii) 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, 2007, our Quarterly Reports on Form 10-Q, and our
reports on Form 8-K.
SOURCE Genco Shipping & Trading Limited
http://www.gencoshipping.com