Investors

Genco Shipping & Trading Limited Announces Plan to Extend Time Charter for Handymax Vessel

Mar 31, 2008
Increases Time Charter Coverage to 81% for 2008
NEW 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