Expands Time Charter Coverage to 86% for 2008 and 62% for 2009
NEW YORK, May 29 /PRNewswire-FirstCall/ - Genco Shipping & Trading Limited
(NYSE: GNK) today announced that it has reached an agreement to commence a
time charter for the Genco Hadrian, a Capesize newbuilding, with Cargill
International S.A. for 46 to 62 months at a rate of $65,000 per day, less a 5%
third party brokerage commission. The time charter for the Genco Hadrian
includes a 50% index-based profit sharing component. The profit sharing
between the charterer and Genco for each 15-day period is calculated by taking
the average over that period of the published Baltic Cape Index of the four
time charter routes, as reflected in daily reports. The time charter will
commence upon delivery of the vessel, which is expected during the fourth
quarter of 2008, and is subject to the completion of definitive documentation.
Robert Gerald Buchanan, President, commented, "Our attractive time charter
for the Genco Hadrian demonstrates our ongoing success in capitalizing on the
positive long-term fundamentals in the drybulk industry. Including this
agreement, we have three vessels on time charters with profit-sharing
arrangements, which enable Genco to benefit from future rate increases without
sacrificing the stability of the base rate. Currently, we have approximately
86% of our fleet's available days locked away on contracts for the remainder
of 2008 and 62% for 2009. By further expanding the significant time charter
coverage for our fleet, we expect to enhance our position to continue to
distribute sizeable dividends."
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
Charter Daily Daily Expected
Year Expiration Rate Rate Delivery
Vessel Built Charterer (1) (2) (3) (4)
Capesize
Vessels
Cargill
Genco International December
Augustus 2007 S.A. 2009 45,263 62,750 -
Cargill
Genco International January
Tiberius 2007 S.A. 2010 45,263 62,750 -
Genco SK Shipping August
London 2007 Co., Ltd 2010 57,500 64,250 -
Cargill
Genco International September
Titus 2007 S.A. 2011 45,000(5) 46,250 -
Genco Cargill
Constant- International August
ine 2008 S.A. 2012 52,750(5) -
Cargill 46 to 62
Genco International months from
Hadrian 2008(6) S.A. delivery 65,000(5) Q4 2008
To be
Genco determined
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
Cargill
Genco International May
Beauty 1999 S.A. 2009 31,500 -
Genco SK Shipping May
Knight 1999 co., Ltd. 2009 37,700 -
Genco December
Leader 1999 A/S Klaveness 2008 25,650(7) -
Genco STX Panocean March
Vigour 1999 (UK) Co. Ltd. 2009 29,000(8) -
Armada
Genco Shipping S.A. July 2008 74,500(9)
Acheron 1999 ArcelorMittal August 2011 55,250 -
Genco Hanjin Shipping December
Surprise 1998 Co., Ltd. 2010 42,100 -
Genco
Raptor 2007 TBD TBD TBD Q3 2008
Genco
Thunder 2007 TBD TBD TBD Q4 2008
Supramax
Vessels
Genco Oldendorff June
Predator 2005 GmbH & Co. KG. 2008 55,000 -
Hyundai
Genco Merchant November
Warrior 2005 Marine Co. Ltd. 2010 38,750 -
Genco Pacific Basin June
Hunter 2007 Chartering Ltd. 2008 60,000(10) -
24 to 26.5
Genco Samsun Logix months from
Cavalier 2007 Corporation delivery 50,500(11) Q3 2008
Handymax
Vessels
Genco Korea Line February
Success 1997 Corporation 2011 33,000(12) -
Genco Louis Dreyfus March
Carrier 1998 Corporation 2011 37,000(13)
-
Pacific Basin
Genco Chartering Ltd. July 2008 26,000
Prosper- Pacific Basin
ity 1997 Chartering Ltd. June 2011 37,000(14) -
Genco Hyundai Merchant February
Wisdom 1997 Marine Co. Ltd. 2011 34,500(15) -
Genco NYK Bulkship March
Marine 1996 Europe S.A. 2009 47,000 -
Genco July
Muse 2001 Norden A/S 2008 47,650 -
Handysize
Vessels
Genco Lauritzen August
Explorer 1999 Bulkers A/S 2009 19,500 -
Genco Lauritzen August
Pioneer 1999 Bulkers A/S 2009 19,500 -
Genco Lauritzen August
Progress 1999 Bulkers A/S 2009 19,500 -
Genco Lauritzen August
Reliance 1999 Bulkers A/S 2009 19,500 -
Genco Lauritzen August
Sugar 1998 Bulkers A/S 2009 19,500 -
Genco Pacific Basin November
Charger 2005 Chartering Ltd. 2010 24,000 -
Genco
Challeng- Pacific Basin November
er 2003 Chartering Ltd. 2010 24,000 -
Genco Pacific Basin December
Champion 2006 Chartering Ltd. 2010 24,000 -
(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) These charters include a 50% index-based profit sharing component
above the respective base rates listed in the table. The profit
sharing between the charterer and us for each 15-day period is
calculated by taking the average over that period of the published
Baltic Cape Index of the four time charter routes, as reflected in
daily reports. If such average is more than the base rate payable
under the charter, the excess amount is allocable 50% to each of the
charterer and us. A third-party brokerage commission of 3.75% based on
the profit sharing amount due to us is payable out of our share.
(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 time charter rate presented is the net daily charterhire rate.
There are no payments of commissions associated with this time
charter.
(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 on May 5, 2007, following the
expiration of the vessel's previous time charter.
(9) We have entered into a short-term time charter with Armada Shipping
S.A. for one trip at a rate of $74,500 per day less a 5% third-party
commission. The new charter commenced on April 18, 2008, following the
expiration of the previous charter, and is expected to be completed at
the middle of July 2008. Upon the completion of the new time charter,
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 three to 5.5 months at a rate of $60,000 per day, less a 5%
third-party commission. The new charter commenced on March 6, 2008,
following the expiration of the previous charter.
(11) We intend to acquire this vessel from Bocimar International N.V., and
Delphis N.V. with an at-market time charter for 24 to 26.5 months at
a rate of $50,500 per day less a 5% third-party commission. The time
charter is expected to commence upon delivery to us, which is
estimated to occur in the third quarter of 2008. The acquisition is
subject to the completion of customary additional documentation,
including a novation of the existing charter for this vessel, and
closing conditions. We are currently negotiating certain changes to
the existing charter. If we cannot reach an agreement on these
changes, we may exercise our right to cancel the acquisition of this
vessel.
(12) 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, $26,000 per day for the next 12
months and $33,000 per day thereafter less a 5% third-party
commission. In all cases, the rate for the duration of the time
charter will average $33,000 per day. 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 U.S. GAAP. The new charter commenced on March 1,
2008, following the expiration of the previous charter.
(13) 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 commenced on May 17, 2008, following the
expiration of the previous charter.
(14) We recently extended the time charter for an additional 35 to 37.5
months at a rate of $37,000 per day less a 5% third-party commission.
The new charter is scheduled to commence on July 10, 2008, following
the expiration of the previous charter.
(15) 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 on March 1, 2008, following the expiration
of the previous charter.
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 an aggregate carrying capacity of approximately
2,020,000 dwt. After the expected delivery of the four remaining Capesize
vessels from companies within the Metrostar Management Corporation group and
three drybulk vessels from Bocimar International N.V. and Delphis N.V., Genco
Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting
of nine Capesize, eight Panamax, four Supramax, six Handymax and eight
Handysize vessels, with an aggregate carrying capacity of approximately
2,910,000 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 terms and conditions of
any definitive documentation that the Company may execute with its charterers
for the time charters for the Genco Hadrian, the Genco Acheron, and the Genco
Prosperity;; (ii) 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; (iii) the
execution of customary additional documentation for the Company's agreements
to acquire the three Bocimar International N.V. and Delphis N.V. drybulk
vessels, including a novation of the existing charter for the Supramax vessel;
(iv) the fulfillment of the closing conditions under the Company's agreement
to acquire the three Bocimar International N.V. and Delphis N.V. drybulk
vessels; (v) increases in costs and expenses including but not limited to:
crew wages, insurance, provisions, repairs, maintenance and general and
administrative expenses; (vi) 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. Our ability to pay dividends in any period will depend upon
various 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, Genco Shipping &
Trading Limited, +1-646-443-8555
Web site: http://www.gencoshipping.com
(GNK)