Investors

Genco Shipping & Trading Limited Takes Delivery of Capesize Newbuilding

Dec 30, 2008

Genco Hadrian Commences Long-Term Time Charter

NEW YORK, Dec. 30 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Hadrian, a 170,500 dwt Capesize newbuilding. The Genco Hadrian is the sixth vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group.

The Company has commenced a time charter upon delivery of the Genco Hadrian with Cargill International S.A., for 46 to 62 months at a gross rate of $65,000 per day, less a 5% third party brokerage commission. The charter, which is due to expire between October 2012 and February 2014, also includes a 50 percent index-based profit sharing component.

Genco has drawn upon its 10-year, $1.4 billion revolving credit facility to finance the remaining balance for the Genco Hadrian of $96.8 million. The Company expects the delivery of three additional newbuilding vessels by the end of 2009 and intends to utilize the undrawn portion of its $1.4 billion revolving credit facility as well as cash flow from operations to fund these acquisitions.

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:




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

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

    Genco      2007    Cargill       January     45,263    62,750    -
    Tiberius           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      2008    Cargill       October     65,000(5)           -
    Hadrian            International 2012
                       S.A.

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

    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         31,500              -
                       International 2009
                       S.A.
    Genco
    Knight     1999    SK Shipping   May
                       Ltd.          2009        37,700              -

    Genco
    Leader     1999    Baumarine     November    Spot(7)             -
                       AS            2009
    Genco
    Vigour     1999    STX Panocean  March       29,000(8)           -
                       (UK)Co. Ltd.  2009

    Genco      1999    Global
    Acheron            Chartering    July        55,250(9)           -
                       Ltd           2011
                       (a subsidiary
                       of ArcelorMittal
                       Group)

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

    Genco
    Raptor     2007    COSCO Bulk    April       52,800              -
                       Carriers      2012
                       Co., Ltd.

    Genco      2007    Baumarine AS  October     Spot(10)            -
    Thunder                          2009

    Supramax
    Vessels
    --------
    Genco      2005    Bulkhandling  September   Spot(11)            -
    Predator           Handymax      2009
                       A/S

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

    Genco
    Hunter     2007    Pacific       June        62,000(12)          -
                       Basin         2009
                       Chartering
                       Ltd.

    Genco      2007    Samsun Logix  July        48,500(13) 47,700   -
    Cavalier           Corporation   2010

    Handymax
    Vessels
    --------
    Genco      1997     Korea Line   February    33,000(14)          -
    Success             Corporation  2011

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

    Genco      1997     Pacific      June        37,000(15)          -
    Prosperity          Basin        2011
                        Chartering
                        Ltd

    Genco
    Wisdom     1997     Hyundai      February    34,500              -
                        Merchant     2011
                        Marine Co.
                        Ltd.

    Genco
    Marine     1996     NYK          March       47,000              -
                        Bulkship     2009
                        Europe
                        S.A.

    Genco
    Muse       2001     Norden A/S   October     47,650              -
                                     2008
                        AMN
                        Bulkcarriers January     30,000(16)          -
                        INC          2009

    Handysize
    Vessels
    ---------
    Genco      1999     Lauritzen    August      19,500              -
    Explorer            Bulkers A/S  2009


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

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

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

    Genco
    Sugar      1998     Lauritzen    August      19,500              -
                        Bulkers A/S  2009

    Genco      2005     Pacific      November    24,000              -
    Charger             Basin        2010
                        Chartering Ltd.

    Genco      2003     Pacific      November    24,000             

-Challenger Basin 2010

                        Chartering
                        Ltd.

    Genco      2006     Pacific      December    24,000              -
    Champion            Basin        2010
                        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 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) We have reached an agreement to enter the vessel into the Baumarine
Pool with an option to convert the balance period of the charter party to a
fixed rate, but only after June 1, 2009. The vessel entered the pool following
the completion of its previous time charter on December 16, 2008. In addition
to a 1.25% third party brokerage commission, the charter party calls for a
management fee which consists of a 1.25% deduction as well as a $334 fixed
daily management fee.
    (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.
    (9) 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.
    (10) We have reached an agreement to enter the vessel into the Baumarine
Pool with an option to convert the balance period of the charter party to a
fixed rate, but only after March 1, 2009. The vessel entered the pool
following the completion of its previous time charter on November 16, 2008. In
addition to a 1.25% third party brokerage commission, the charter party calls
for a management fee which consists of a 1.25% deduction as well as a $334
fixed daily management fee.
    (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.

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 32 drybulk vessels
consisting of six Capesize, eight Panamax, four Supramax, six Handymax and
eight Handysize vessels, with an aggregate carrying capacity of approximately
2,397,000 dwt. After the expected delivery of three vessels the Company has
agreed to acquire, 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 2,909,000 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) 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 three
remaining drybulk vessels; 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.


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)