Investors

Genco Shipping & Trading Limited Announces Third Quarter 2008 Financial Results

Oct 29, 2008
NEW YORK, Oct 29, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Declares Dividend of $1.00 per Share for Q3 2008

Genco Shipping & Trading Limited (NYSE: GNK) today reported its financial results for the three and nine months ended September 30, 2008.

The following financial review discusses the results for the three and nine months ended September 30, 2008 and September 30, 2007.

Third Quarter 2008 and Year-to-Date Highlights

    --  Declared a dividend of $1.00 per share, based on Q3 2008 results,
        payable on or about November 28, 2008 to all shareholders of record as
        of November 17, 2008;

    --  Excluding the $4.4 million in dividends received from our investment in
        Jinhui Shipping and Transportation shares, recorded net income of $58.6
        million, or $1.86 basic and $1.85 diluted earnings per share for the
        third quarter;

    --  Recorded net income of $63.0 million, or $2.00 basic and $1.99 diluted
        earnings per share for the third quarter;

    --  Closed on a new $320 million credit facility;

    --  Took delivery of the Genco Thunder and Genco Cavalier, thereby
        completing the Bocimar acquisition;

    --  Reached time charter agreements for three vessels, including one from
        the Bocimar acquisition; and

    --  Paid a $1.00 per share dividend on August 29, 2008 based on Q2 2008
        results.

Financial Review: 2008 Third Quarter

Excluding the $4.4 million dividends received from the investment in Jinhui Shipping and Transportation shares, the Company recorded net income of $58.6 million, or $1.86 basic and $1.85 diluted earnings per share for the three months ended September 30, 2008. Including these dividends, the Company recorded net income for the third quarter of 2008 of $63.0 million, or $2.00 basic and $1.99 diluted earnings per share.

EBITDA was $89.8 million for the three months ended September 30, 2008 versus $33.0 million for the three months ended September 30, 2007.

Robert Gerald Buchanan, President, commented, "Genco's success in securing its growing fleet on favorable contracts with leading charterers was once again the main driver of the Company's strong quarterly results. The majority of the vessels in our current fleet are currently on long-term time charters with an average remaining life of approximately 18 months as of October 29, 2008. During the third quarter, the Company signed three short-term time charters, including one for a recently acquired vessel. We currently have approximately 93% of our fleet's available days secured on contracts for the remainder of 2008 and 60% in 2009."

Genco Shipping & Trading Limited revenues increased 136% to $107.6 million for the three months ended September 30, 2008 versus $45.6 million for the three months ended September 30, 2007, due to the operation of a larger fleet as well as the renewal of time charters at higher charter rates than those contracted previously.

The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet increased 60% to $39,349 per day for the three months ended September 30, 2008 compared to $24,362 for the three months ended September 30, 2007. The increase in TCE rates was due to higher charter rates achieved in the third quarter of 2008 versus the third quarter of 2007 for three of the Panamax vessels, six of the Handymax vessels, and five of the Handysize vessels in our current fleet. Furthermore, higher TCE rates were achieved in the third quarter of 2008 versus the same period last year due to the operation of five Capesize vessels acquired as part of the Metrostar acquisition.

Total operating expenses increased to $36.9 million for the three months ended September 30, 2008 from $20.5 million for the three-month period ended September 30, 2007, due to higher vessel operating expenses, general and administrative expenses and depreciation and amortization related to the operation of a larger fleet. Vessel operating expenses were $11.5 million for the third quarter of 2008 compared to $6.7 million for the same period last year. The increase in vessel operating expenses was due to the operation of a larger fleet, higher crewing, and insurance expenses, as well as the operation of larger class vessels, namely Capesize vessels for the third quarter of 2008 versus the same period last year. We expect our vessel operating expenses, which generally represent variable costs, to further increase as a result of the expansion of our fleet. Depreciation and amortization expenses increased to $18.8 million for the third quarter of 2008 from $8.2 million for the third quarter of 2007 related to the growth of our fleet. General and administrative expenses increased to $4.1 million from $3.4 million during the comparative periods due to costs associated with higher employee non-cash compensation and other employee related costs. Management fees were $0.7 million for the three months ended September 30, 2008 and $0.4 million for the three months ended September 30, 2007, respectively, and relate to fees paid to our independent technical managers.

Daily vessel operating expenses grew to $4,187 per vessel per day during the third quarter of 2008 from $3,665 for the same quarter last year as a result of higher crew and insurance expenses as well as the operation of five Capesize vessels. We believe daily vessel operating expenses are best measured for comparative purposes over a 12month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers and management's expectations, our 2008 DVOE budget is $4,700 per vessel per day.

Financial Review: Nine Months 2008

Net income was $197.9 million or $6.60 basic and $6.56 diluted earnings per share, for the nine months ended September 30, 2008 compared to $49.9 million, or $1.97 basic and $1.96 diluted earnings per share for the nine months ended September 30, 2007. Included in net income for the nine months ended September 30, 2008 is a $26.2 million gain from the sale of the Genco Trader, $7.0 million of income received from our investment in stock of Jinhui Shipping and Transportation Limited, and a loss from derivative instruments of $2.0 million. Revenues increased 154% to $303.8 million for the nine months ended September 30, 2008 compared to $119.7 million for the nine months ended September 30, 2007. EBITDA was $271.3 million for the nine months ended September 30, 2008 versus $88.9 for the nine months ended September 30, 2007. TCE rates obtained by the Company increased to $38,742 per day for the nine months ended September 30, 2008 from $22,065 for the same period in 2007. Total operating expenses were $77.1 million for the nine months ended September 30, 2008 compared to $53.8 for the nine months ended September 30, 2007, and daily vessel operating expenses per vessel were $4,279 versus $3,673 for the comparative periods.

Liquidity and Capital Resources

Cash Flow

Net cash provided by operating activities for the nine months ended September 30, 2008 and 2007, was $207.4 million and $75.8 million, respectively. The increase was primarily due to the operation of a larger fleet, which contributed to increases in net income, depreciation, and deferred revenues. Adjustments to operating cash flows include $16.5 million of amortization of value of the time charters acquired as part of the Metrostar and Evalend acquisitions, $3.4 million of realized gain on forward currency contracts, $3.4 million of unrealized gain on forward currency contracts, $7.0 million of realized income from dividends, and $26.2 million in gains from the sale of the Genco Trader. The adjustments to operating cash flow above were offset by $4.7 million of amortization of non-vested stock compensation, and $8.8 million in unrealized losses on hedged short-term investments. Net cash provided by operating activities for the nine months ended September 30, 2007 was primarily a result of recorded net income of $49.9 million, plus depreciation and amortization charges of $22.8 million.

Net cash used in investing activities was $426.3 million for the nine months ended September 30, 2008 as compared to $655.0 for the nine months ended September 30, 2007. For the nine months ended September 30, 2008, cash used in investing activities primarily related to the purchase of vessels in the amount of $412.0 million, deposits on vessels to be acquired of $57.4 million, and the purchase of $10.3 million of Jinhui stock. The above were offset by proceeds from the sale of the Genco Trader in the amount of $43.1 million and $7.0 million of realized gains in short-term investment, and receipts on forward currency contracts of $3.4 million. For the nine months ended September 30, 2007 the cash used in investing activities mostly related to the purchase of vessels in the amount of $348.3 million, deposits on vessels to be acquired of $196.6 million, and the purchase of short-term investments of $115.5 million, offset by the sale of the Genco Glory in the amount of $13.0 million.

Net cash provided by financing activities for the nine months ended September 30, 2008 was $289.8 million as compared to $556.8 million for the nine months ended September 30, 2007. For the nine months ended September 30, 2008, net cash provided by financing activities consisted of the drawdown of $461.5 million related to the purchase of vessels and $195.6 million in net proceeds from our May 2008 follow-on offering. These inflows were offset by the repayment of $268.0 million under the 2007 credit facility and the payment of cash dividends of $85.6 million. For the same period last year, net cash provided by financing activities consisted of $826.2 million of proceeds from the 2007 credit facility related to the purchase of vessels and $77.0 million of proceeds from a short-term line used to finance the purchase of Jinhui shares, and was offset by the repayment of $288.9 million under the 2005 credit facility and the payment of cash dividends of $50.5 million.

Capital Expenditures

We make capital expenditures from time to time in connection with vessel acquisitions. Our current fleet consists of five Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,226,500 dwt. After the expected delivery of 10 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.

In addition to acquisitions that we may undertake in future periods, we will incur additional capital expenditures due to special surveys and drydockings for our fleet. We estimate that three of our vessels will be drydocked in the remainder of 2008. An additional five vessels will be drydocked in 2009.

We estimate our drydocking costs for our fleet through 2009 to be:

                                        Q4 2008                  2009
                                        -------                 ------
    Estimated Costs(1)                $2.8 million           $4.4 million
    Estimated Offhire Days(2)              60                    100

(1) Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash from operations.

(2) Assumes 20 days per drydocking per vessel. Actual length will vary based on the condition of the vessel, yard schedules and other factors.

The Genco Acheron, Genco Leader and Genco Progress completed their drydocking during the third quarter of 2008 at a cumulative cost of approximately $3.1 million. The vessels were on cumulative planned offhire for 57 days in connection with their scheduled drydockings. The Genco Hunter, the Supramax vessel that was involved in a collision in Singapore incurred unscheduled offhire associated with temporary as well as permanent repairs during the third quarter of 2008. More specifically, immediately following the aforementioned collision, the vessel incurred 11.56 offhire days related to temporary repairs, as well as 0.788 days related to a speed claim until the vessel reached its discharge port. The vessel entered a repair yard to complete permanent repairs, and as a result, the vessel incurred 11.912 days of offhire during the third quarter of 2008. Since the permanent repairs were not completed during the third quarter, the vessel incurred an additional 17 days of offhire related to its permanent repairs during the fourth quarter of 2008. As previously announced, the Company believes that any offhire over 14 days will be reimbursed by its loss of hire insurance coverage, but revenue will not be recognized until the insurance claim has been approved.

Update on Share Repurchase Program

The Company previously announced that its Board of Directors has approved a share repurchase program for up to a total of $50 million of the Company's common stock. As of September 30, 2008, the Company has bought back 278,300 shares at an average price of $41.32 per share.

As of October 29, 2008, the Company had 31,517,678 shares of common stock outstanding.

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.

                              Three Months Ended       Nine Months Ended
                            September   September   September   September
                             30, 2008    30, 2007    30, 2008    30, 2007
                            ---------   ---------   ---------   ---------
                                 (Dollars in             (Dollars in
                              thousands, except       thousands, except
                             share and per share     share and per share
                                    data)                   data)
                                 (unaudited)             (unaudited)
                                 -----------             -----------
    INCOME STATEMENT DATA:
    Revenues                 $107,557     $45,630    $303,798    $119,697

    Operating expenses:
      Voyage expenses           1,748       1,853       3,216       4,284
      Vessel operating
       expenses                11,509       6,702      33,615      19,536
      General and
       administrative
       expenses                 4,133       3,395      12,975       9,642
      Management fees             712         414       2,050       1,157
      Depreciation and
       amortization            18,840       8,159      51,453      22,778
      Gain on sale of
       vessel                       -           -     (26,227)     (3,575)
                               ------      ------      ------      ------
        Total operating
         expenses              36,942      20,523      77,082      53,822
                               ------      ------      ------      ------

    Operating income           70,615      25,107     226,716      65,875
                               ------      ------     -------      ------

    Other (expense) income:
      Income from
       short-term
       investment               4,410           -       7,001           -
      (Loss) Income from
       derivative
       instruments               (629)        475      (2,009)     (1,119)
      Interest income             634         823       1,609       2,777
      Interest expense        (12,031)    (10,085)    (35,433)    (17,655)
                              -------     -------     -------     -------
        Other (expense)
         income:               (7,616)     (8,787)    (28,832)    (15,997)
                               ------      ------     -------     -------


    Net income                $62,999     $16,320    $197,884     $49,878
                              =======     =======    ========     =======

    Earnings per share -
     basic                      $2.00       $0.64       $6.60       $1.97
                                =====       =====       =====       =====

    Earnings per share -
     diluted                    $1.99       $0.64       $6.56       $1.96
                                =====       =====       =====       =====

    Weighted average shares
     outstanding - basic   31,423,483  25,336,587  29,974,547  25,319,479
                           ==========  ==========  ==========  ==========

    Weighted average
     shares outstanding
     - diluted             31,610,262  25,481,948  30,166,060  25,453,502
                           ==========  ==========  ==========  ==========

                                                  September 30,  December 31,
                                                      2008           2007
                                                   ----------     ----------
    BALANCE SHEET DATA:                            (unaudited)
    Cash                                             $142,455      $71,496
    Current assets, including cash                    220,815      267,594
    Total assets                                    2,030,947    1,653,272
    Current liabilities, including current
     portion of long-term debt                         31,133       70,364
    Total long-term debt, including current
     portion                                        1,129,500      936,000
    Shareholders' equity                              815,187      622,185


                                                        Nine Months Ended
                                                  September 30,  September 20,
                                                      2008           2007
                                                   ----------     ----------
                                                          (unaudited)

    Net cash provided by operating activities         207,426       75,840
    Net cash used in investing activities            (426,278)    (654,996)
    Net cash provided by financing activities         289,811      556,840

                                  Three Months Ended       Nine Months Ended
                                 September   September   September   September
                                  30, 2008    30, 2007    30, 2008    30, 2007
                                 ---------   ---------   ---------   ---------
    FLEET DATA:                       (unaudited)             (unaudited)
    Total number of vessels
     at end of period                 31         22           31         22
    Average number of vessels (1)   29.9       19.9         28.7       19.5
    Total ownership days for
     fleet (2)                     2,749      1,829        7,856      5,319
    Total available days for
     fleet (3)                     2,689      1,797        7,759      5,231
    Total operating days for
     fleet (4)                     2,656      1,792        7,693      5,163
    Fleet utilization (5)          98.8%       99.7%        99.1%      98.7%


    AVERAGE DAILY RESULTS:
    Time charter equivalent (6)  $39,349    $24,362      $38,742    $22,065
    Daily vessel operating
     expenses per vessel (7)       4,187      3,665        4,279      3,673



                                  Three Months Ended       Nine Months Ended
                                 September   September   September   September
                                  30, 2008    30, 2007    30, 2008    30, 2007
                                 ---------   ---------   ---------   ---------
                                (Dollars in thousands)  (Dollars in thousands)
                                      -----------             -----------
    EBITDA Reconciliation:            (unaudited)             (unaudited)

      Net Income                   $62,999    $16,320    $197,884     $49,878
          + Net interest expense    11,397      9,262      33,824      14,878
          + Depreciation and
            amortization            18,840      8,159      51,453      22,778
          + Amortization of
            nonvested stock
            compensation             1,477        470       4,671       1,641
          + Amortization of value
            of time charters
            acquired                (4,935)    (1,176)    (16,545)       (259)
                                 ---------   ---------   ---------   ---------
           EBITDA(8)                89,778     33,035     271,287      88,916
                                 =========   =========   =========   =========

(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was part of our fleet during the period divided by the number of calendar days in that period.

(2) We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.

(3) We define available days as the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. Companies in the shipping industry generally use available days to measure the number of days in a period during which vessels should be capable of generating revenues.

(4) We define operating days as the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

(5) We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the number of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning.

(6) We define TCE rates as our net voyage revenue (voyage revenues less voyage expenses) divided by the number of our available days during the period, which is consistent with industry standards. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. Since some vessels were acquired with an existing time charter at 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. This intangible liability is amortized as an increase to voyage revenues over the minimum remaining term of the charter.

(7)We define daily vessel operating expenses to include crew wages and related costs, the cost of insurance expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.

(8) EBITDA represents net income plus net interest expense, income tax expense, depreciation and amortization, amortization of nonvested stock compensation, and amortization of the value of time charter acquired. EBITDA is included because it is used by management and certain investors as a measure of operating performance. EBITDA is used by analysts in the shipping industry as a common performance measure to compare results across peers. Our management uses EBITDA as a performance measure in consolidating internal financial statements and it is presented for review at our board meetings. EBITDA is also used by our lenders in certain loan covenants. For these reasons, we believe that EBITDA is a useful measure to present to our investors. EBITDA is not an item recognized by U.S. GAAP and should not be considered as an alternative to net income, operating income or any other indicator of a company's operating performance required by U.S. GAAP. EBITDA is not a source of liquidity or cash flows as shown in our consolidated statement of cash flows. The definition of EBITDA used here may not be comparable to that used by other companies.

Genco Shipping & Trading Limited's Fleet

Our current fleet consists of five Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize drybulk carriers with an aggregate carrying capacity of approximately 2,226,500 dwt. Our current fleet contains nine groups of sister ships, which are vessels of virtually identical sizes and specifications. We believe that maintaining a fleet that includes sister ships reduces costs by creating economies of scale in the maintenance, supply and crewing of our vessels. As of September 30, 2008, the average age of our current fleet was 6.4 years, as compared to the average age for the world fleet of approximately 15 years for the drybulk shipping segments in which we compete. All of the vessels in our current fleet are currently on long-term time charters with an average remaining life of approximately 18 months as of October 29, 2008.

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      Net        Ex-
                                 Charter        Daily     Revenue    Pect-
              Year               Expir-         Rate (2)  Daily      ed
     Vessel   Built    Charterer ation (1)                Rate (3)   Deliv-
                                                                     ery (4)
     -----------------------------------------------------------------------
     Capesize Vessels
     ---------
     Genco
      Augustus 2007    Cargill   December 2009  45,263    62,750         -
                       Interna-
                       tional
                       S.A.
     Genco
      Tiberius 2007    Cargill
                       Interna-
                       tional
                       S.A.      January 2010   45,263    62,750         -
     Genco
      London   2007    SK Shipping
                       Co., Ltd  August 2010    57,500    64,250         -
     Genco
      Titus    2007    Cargill
                       Interna-
                       tional
                       S.A.      September 2011 45,000(5) 46,250         -
     Genco     2008    Cargill
      Constantine      Interna-
                       tional
                       S.A.      August 2012    52,750(5)                -

     Genco     2009(7) Cargill
      Hadrian(6)       Interna-
                       tional    46 to 62 months
                       S.A.(6)   from delivery  65,000(5)            Q1 2009


     Genco     2009(7) To be
      Commodus         determined
                       ("TBD")   TBD            TBD                  Q2 2009

     Genco
      Maximus  2009(7) TBD       TBD            TBD                  Q2 2009
     Genco
      Aurelius 2009(7) TBD       TBD            TBD                  Q2 2009
     Genco
      Claudius 2009(7) TBD       TBD            TBD                  Q3 2009
     Genco
      Julian   2009(7) TBD       TBD            TBD                  Q3 2009
     Genco
      Valerian 2009(7) TBD       TBD            TBD                  Q4 2009

     Panamax Vessels
     ---------------
     Genco
      Beauty   1999    Cargill
                       Interna-
                       tional
                       S.A.      May 2009       31,500                   -
     Genco
      Knight   1999    SK Shipping
                       Ltd.      May 2009       37,700                   -
     Genco
      Leader   1999    A/S Klave-
                       ness
                       Charter-
                       ing       December 2008  25,650(8)                -
     Genco
      Vigour   1999    STX
                       Panocean
                       (UK)
                       Co. Ltd.  March 2009     29,000(9)                -
     Genco
      Acheron  1999    Arcelor-
                       Mittal    July 2011      55,250(10)               -
     Genco     1998    Hanjin
      Surprise         Shipping
                       Co.,Ltd.  December 2010  42,100                   -
     Genco
      Raptor   2007    COSCO Bulk
                       Carriers
                       Co.,
                       Ltd.      April 2012     52,800                   -
     Genco
      Thunder  2007    Glory
                       Wealth
                       Shipping
                       Pte.Ltd.  November 2008  35,000                   -

     Supramax Vessels
     ----------------
     Genco     2005    A/S Klave-
      Predator         ness
                       Charter-
                       ing       October 2008   58,000(11)               -
                       Bulkhandl-
                       ing
                       Handymax
                       A/S       September 2009 Spot (11)
     Genco
      Warrior  2005    Hyundai
                       Merchant
                       Marine
                       Co. Ltd.  November 2010  38,750                   -
     Genco
      Hunter   2007    Charter-
                       ing Ltd.  June 2009      62,000(12)               -
     Genco
      Cavalier 2007    Samsun
                       Logix
                       Corpora-
                       tion      July 2010      48,500(13) 47,700        -

     Handymax Vessels
     ----------------
     Genco
      Success  1997    Korea Line
                       Corpora-
                       tion      February 2011  33,000(14)               -
     Genco
      Carrier  1998    Louis
                       Dreyfus
                       Corpora-
                       tion      March 2011     37,000                   -
     Genco
      Prosper-
      ity      1997    Charter-
                       ing Ltd   June 2011      37,000(15)               -
     Genco
      Wisdom   1997    Hyundai
                       Merchant
                       Marine
                       Co. Ltd.  February 2011  34,500                   -
     Genco
      Marine   1996    NYK Bulkship
                       Europe
                       S.A.      March 2009     47,000                   -
     Genco
      Muse     2001    Norden
                       A/S       October 2008   47,650                   -
                       AMN Bulk-
                       carriers
                       INC       January 2009   30,000(16)
     Handysize Vessels
     -----------------
     Genco     1999    Lauritzen
      Explorer         Bulkers
                       A/S       August 2009    19,500                   -
     Genco
      Pioneer  1999    Lauritzen
                       Bulkers
                       A/S       August 2009    19,500                   -
     Genco     1999    Lauritzen
       Progress        Bulkers
                       A/S       August 2009    19,500                   -
     Genco     1999    Lauritzen
      Reliance         Bulkers
                       A/S       August 2009    19,500                   -
     Genco
      Sugar    1998    Lauritzen
                       Bulkers
                       A/S       August 2009    19,500                   -
     Genco
      Charger  2005    Charter-
                       ing Ltd.  November 2010  24,000                   -
     Genco     2003    Charter-
      Challenger       ing Ltd.  November 2010  24,000                   -

     Genco
      Champion 2006    Charter-
                       ing Ltd.  December 2010  24,000                   -
     Genco
      Eagle    2009    TBD       TBD            TBD                  Q1 2009
     Genco
      Falcon   2009    TBD       TBD            TBD                  Q1 2009
     Genco
      Hawk     2009    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) Under the terms of this charter, if the Genco Hadrian is not delivered during 2008, the charterer has the option to cancel the charter. Based on further guidance from the shipyard constructing the Genco Hadrian, we now expect this vessel to be delivered in January 2009.

(7) Year built for vessels being delivered in the future are estimates based on guidance received from the sellers and/or the respective shipyards.

(8) The time charter rate presented is the net daily charterhire rate. There are no payments of commissions associated with this time charter.

(9) 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.

(10) We have entered into a time charter agreement with ArcelorMittal for 35 to 37 months at a rate of $55,250 per day less a 5% third-party commission. The vessel is currently in drydocking and is expected to deliver to its new charterer on or about August 1, 2008.

(11) We have entered into a short-term time charter with A/S Klaveness Chartering for 3 to 5 months at a rate of $58,000 per day less a 5% third-party commission. The charter is expected to be completed on or about October 31, 2008. Following the expiration of this charter we have entered the vessel into the Bulkhandling Handymax Pool with an option to convert the balance period of the charter party to a fixed rate, but only after January 1, 2009.

(12) We have reached an agreement to extend the time charter with Pacific Basin Chartering Ltd. for 11 to 13.5 months at a rate of $62,000 per day, less a 5% third party brokerage commission. The time charter commenced following the expiration of the vessel's prior time charter on July 21, 2008.

(13) The time charter for this vessel commenced on July 19, 2008. 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 was 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.

(14) We 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.

(15) 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 commenced on July 10, 2008, following the expiration of the previous charter.

(16) We have entered into a time charter agreement with AMN Bulkcarriers Inc. for 3 to 5 months at a rate of $30,000 per day less a 5% third-party commission. The new charter commenced on October 5, 2008, following the expiration of the previous charter.

Q3 2008 Dividend Announcement

The Company's Board of Directors declared a third quarter 2008 dividend of $1.00 per share payable on or about November 28, 2008 to all shareholders of record as of November 17, 2008. As previously announced, the Company plans to declare quarterly dividends to shareholders by each February, May, August and November, in amounts substantially equal to its available cash from operations during the previous quarter, less cash expenses for that quarter (principally vessel operating expenses and debt service) and any reserves the Board of Directors determines the Company should maintain. These reserves may cover, among other things: drydocking, repairs, claims, liabilities and other obligations, interest expense and debt amortization, acquisitions of additional assets and working capital.

Given the current market, the Company's Board gave particular consideration to continued payment of the Company's $1.00 target dividend for the third quarter. The Board determined to pay the target dividend based on the Company's cash flow for the quarter. If market weakness and uncertainties persist, the Board will continue to take a particularly close look at the Company's dividend policy and target. In making future dividend decisions, the Board will review such factors as market conditions, Genco's upcoming cash needs and potential opportunities which may arise given the current market.

John C. Wobensmith, Chief Financial Officer, commented, "We are pleased to have declared our thirteenth consecutive dividend since going public in July 2005. During the third quarter, we continued to receive support from the banking markets and entered into a new $320 million term loan facility. Including this most recent financing, Genco has a total of $1.7 billion in aggregate credit facilities in place. We intend to utilize the undrawn portion of these facilities as well as cash flow from operations to fund our current outstanding acquisitions."

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 31 drybulk vessels consisting of five Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,226,500 dwt. After the expected delivery of 10 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.

Conference Call Announcement

Genco Shipping & Trading Limited announced that it will hold a conference call on Thursday, October 30, 2008 at 8:30 a.m. Eastern Time, to discuss its 2008 third quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company's website, www.GencoShipping.com. To access the conference call, dial (888) 271-8604 or (913) 312-0728 and enter passcode 4899540. A replay of the conference call can also be accessed through November 13, 2008 by dialing (888) 203-1112 or (719) 457-0820 and entering the passcode 4899540. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.

"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 report are the following: (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) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) 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; (ix) 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; (x) the Company's acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire a total of ten drybulk vessels; (xii) the decision of the charterer of the Genco Hadrian with respect to the option mentioned in the table above; (xiii) the results of the investigation into the incident involving the collision of the Genco Hunter described above, the possible cause of and liability for such incident, and the scope of insurance coverage available to Genco for such incident; and other factors listed from time to time in our public filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and its reports on Form 10-Q and Form 8-K. The timing and amount of purchases under the Company's share repurchase program will be determined by management based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities and Exchange Act. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company's discretion and without notice. Repurchases will be subject to restrictions under the Company's existing credit facility. Our ability to pay dividends in any period will depend upon 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