Investors

Genco Shipping & Trading Limited Announces Plan to Sign Time Charter for Newly Acquired Vessel

Jun 17, 2008
NEW YORK, June 17, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement to commence a time charter for the Genco Raptor, a 2007-built Panamax vessel, with COSCO Bulk Carriers Co., Ltd. for 46 to 50 months at a rate of $52,800 per day, less a 5% third party brokerage commission. The Genco Raptor is one of three drybulk vessels the Company agreed to acquire from Bocimar International N.V. in May 2008. The time charter for the Genco Raptor will commence upon delivery of the vessel and is subject to the completion of definitive documentation.
    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:

                                                                Net
                                                        Cash  Revenue
                                      Charter          Daily    Daily Expected
                 Year                Expiration         Rate     Rate Delivery
    Vessel       Built  Charterer       (1)              (2)      (3)      (4)

    Capesize
    Vessels

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

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

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

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

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

    Genco      2008(6) Cargill       46 to 62 months  65,000(5)        Q4 2008
    Hadrian            International from delivery
                       S.A.

    Genco      2009(6)     To be          TBD           TBD            Q2 2009
    Commodus            determined
                          ("TBD")

    Genco      2009(6)      TBD           TBD           TBD            Q2 2009
     Maximus

    Genco CS   2009(6)      TBD           TBD           TBD            Q2 2009
     1005

    Genco      2009(6)      TBD           TBD           TBD            Q3 2009
    Claudius

    Genco
     CS 1006   2009(6)      TBD           TBD           TBD            Q3 2009

    Genco      2009(6)      TBD           TBD           TBD            Q4 2009
     CS 1007


    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         1999 Armada        July 2008        74,500(9)             -
    Acheron            Shipping S.A. August 2011      55,250
                       ArcelorMittal

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

    Genco Raptor  2007 COSCO Bulk    46 to 50 months    52,800         Q3 2008
                       Carriers Co., from delivery
                       Ltd.

    Genco         2007 TBD           TBD                 TBD           Q4 2008
    Thunder


    Supramax
    Vessels

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

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

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

    Genco         2007 Samsun Logix  24 to 26.5      48,500(11) 47,700 Q3 2008
    Cavalier           Corporation   months
                                     from delivery

    Handymax
    Vessels

    Genco         1997 Korea Line    February 2011   33,000(12)            -
    Success            Corporation

    Genco         1998 Louis Dreyfus March 2011      37,000(13)            -
    Carrier            Corporation

    Genco         1997 Pacific Basin July 2008       26,000                -
    Prosperity         Chartering    June 2011       37,000(14)
                       Ltd.
                       Pacific Basin
                       Chartering
                       Ltd

    Genco Wisdom  1997 Hyundai       February 2011   34,500(15)            -
                       Merchant
                       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         1999 Lauritzen     August 2009        19,500              -
    Explorer           Bulkers A/S

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

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

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

    Genco Sugar   1998 Lauritzen     August 2009        19,500              -
                       Bulkers A/S
    Genco         2005 Pacific Basin November 2010      24,000              -
    Charger            Chartering
                       Ltd.

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

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

    Genco HS 2031 2008 TBD           TBD                TBD            Q4 2008

    Genco HS 2032 2008 TBD           TBD                TBD            Q4 2008

    Genco HS 2033 2008 TBD           TBD                TBD            Q1 2009


(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 "Net 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) The time charter for this vessel 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 and closing conditions. In completing the negotiation of certain changes we required for novation of the existing charter, we agreed to reduce the daily gross rate and received a rebate from the brokers involved in the vessel sale. Since the vessel will be acquired with 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.

(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 13 vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 41 drybulk vessels, consisting of 12 Capesize, eight Panamax, four Supramax, six Handymax and 11 Handysize vessels, with an aggregate carrying capacity of approximately 3,516,000 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) 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) the Company's acquisition or disposition of vessels; (vi) the terms and conditions of any definitive documentation that the Company may execute with its charterers for the time charters for the Genco Raptor, the Genco Hadrian, the Genco Acheron, and the Genco Prosperity; (vii) the fulfillment of the closing conditions under the Company's agreement to acquire a total of 13 remaining drybulk vessels from companies within the Metrostar Management Corporation group, Bocimar International N.V. and Delphis N.V., Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd.; (viii) the execution of customary additional documentation for the Company's agreements to acquire a total of seven vessels from Bocimar International N.V. and Delphis N.V. and Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd.; (ix) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (x) 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; (xi) 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; 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, and our subsequent reports on Form 10-Q and 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

http://www.gencoshipping.com