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