NEW YORK, Feb. 21 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has taken delivery of the Genco
Constantine, a 180,183 dwt Capesize newbuilding. The Genco Constantine is the
fifth 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
Constantine with Cargill International S.A., for 54 to 62 months at a gross
rate of $52,750 per day, less a 5% third party brokerage commission. The
charter, which is due to expire between August 2012 and April 2013, also
includes a 50 percent index-based profit sharing component.
The following table reflects the current employment of Genco's current
fleet as well as the employment or other status of vessels expected to join
Genco's fleet:
Cash Revenue
Charter Daily Daily Expected
Year Expiration Rate Rate Delivery
Vessel Built Charterer (1) (2) (3) (4)
Capesize
Vessels
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 Co., August 57,500 64,250 -
Ltd 2010
Genco Titus 2007 Cargill September 45,000 46,250 -
International 2011 (5)
S.A.
Genco 2008 Cargill August 52,750 -
Constantine International 2012 (5)
S.A.
Genco 2008 To be determined TBD TBD Q4 2008
Hadrian (6) (''TBD'')
Genco 2009 TBD TBD TBD Q2 2009
Commodus (6)
Genco 2009 TBD TBD TBD Q2 2009
Maximus (6)
Genco 2009 TBD TBD TBD Q3 2009
Claudius (6)
Panamax
Vessels
Genco Beauty 1999 Cargill May 31,500 -
International 2009
S.A.
Genco Knight 1999 SK Shipping Ltd. May 37,700 -
2009
Genco Leader 1999 A/S Klaveness December 25,650 -
2008 (7)
Genco 1990 Baumarine AS February 25,750 -
Trader(8) 2008 (7)
Genco Vigour 1999 STX Panocean March 29,000 -
(UK) Co. Ltd. 2009 (9)
Genco Acheron 1999 STX Panocean March 30,000 -
(UK) Co. Ltd. 2008
Genco 1998 Hanjin Shipping December 42,100 -
Surprise Co., Ltd. 2010 (10)
Supramax
Vessels
Genco 2005 Intermare February 22,500 47,200 -
Predator Transport GmbH 2008 (11)
Oldendorff GmbH 3 to 5 55,000
& Co. KG. months
from
delivery
to new
charterer
Genco Warrior 2005 Hyundai Merchant November 38,750 -
Marine Co. Ltd. 2010
Genco Hunter 2007 Pacific Basin March 65,000 -
Chartering Ltd. 2008
June 60,000
2008 (12)
Handymax
Vessels
Genco Success 1997 Korea Line March 24,000/ -
Corporation 2008/
February 33,000
2011 (13)
Genco Carrier 1998 Pacific Basin March 24,000 -
Chartering Ltd. 2008
Genco 1997 Pacific Basin April 26,000 -
Prosperity Chartering Ltd. 2008
Genco Wisdom 1997 Hyundai Merchant March 24,000 -
Marine Co. Ltd. 2008 (14)
February 34,500
2011
Genco Marine 1996 NYK Bulkship March 24,000 -
Europe S.A. 2008
Genco Muse 2001 Oldendorff GmbH March 58,000 -
& Co. KG. 2008
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 Basin November 24,000 -
Charger Chartering 2010
Ltd.
Genco 2003 Pacific Basin November 24,000 -
Challenger Chartering 2010
Ltd.
Genco 2006 Pacific Basin December 24,000 -
Champion Chartering 2010
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 the payments of brokerage commissions ranging from 1.25% to 6.25% to
third parties, except as indicated for the Genco Trader and the Genco Leader
in note 7 below. In a time charter, the charterer is responsible for voyage
expenses such as bunkers, port expenses, agents' fees and canal dues.
(3) For the vessels acquired with a below-market time charter rate, the
approximate amount of revenue on a daily basis to be recognized as revenues is
displayed in the column named "Revenue Daily Rate" and is net of any third-
party commissions. Since these vessels were acquired with existing time
charters with below-market rates, we allocated the purchase price between the
respective vessel and an intangible liability for the value assigned to the
below-market charterhire. This intangible liability is amortized as an
increase to voyage revenues over the minimum remaining term of the charter.
For cash flow purposes, we will continue to receive the rate presented in the
"Cash Daily Rate" column until the charter expires.
(4) Dates for vessels being delivered in the future are estimates based on
guidance received from the sellers and/or the respective shipyards.
(5) The charter includes a 50 percent index-based profit sharing
component.
(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) For the Genco Leader and the Genco Trader, the time charter rate
presented is the net daily charterhire rate. There are no payments of
brokerage commissions associated with these time charters.
(8) We have entered into an agreement to sell the Genco Trader to SW
Shipping Co., Ltd. for approximately $44 million, less a 2% brokerage
commission. The delivery is expected to occur in the first quarter of 2008.
(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 brokerage
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 following the
expiration of the vessel's previous time charter on May 5, 2007.
(10) The new charter commenced following the expiration of the previous
charter on January 31, 2008.
(11) The Genco Predator is currently on charter with Intermare Transport
GmbH at a gross rate of $22,500 per day. The charter is due to expire between
February 2008 and March 2008.
(12) We have reached an agreement to extend the time charter for an
additional 3 to 5.5 months at a rate of $60,000 per day less a 5% third party
brokerage commission. The new charter will commence following the expiration
of the previous charter on March 6, 2008.
(13) We intend to extend 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 and $26,000 per day for the next 12 months and
$33,000 thereafter less a 5% third-party brokerage commission. In all cases
the rate for the duration of the time charter will average $33,000. 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 generally accepted accounting principles in the United States,
or U.S. GAAP. The new charter will commence following the expiration of the
previous charter on March 1, 2008.
(14) We have reached an agreement to extend the time charter for an
additional 35 to 37.5 months at a rate of $34,500 per day less a 5% third
party brokerage commission. The new charter will commence following the
expiration of the previous charter on March 1, 2008.
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 29 drybulk vessels
consisting of five Capesize, seven Panamax, three Supramax, six Handymax and
eight Handysize vessels, with a carrying capacity of approximately 2,089,000
dwt. After the sale of the Genco Trader as well as the delivery of the four
remaining Capesize vessels from companies within the Metrostar Management
Corporation group, Genco Shipping & Trading Limited will own a fleet of 32
drybulk vessels, consisting of nine Capesize, six Panamax, three Supramax, six
Handymax and eight Handysize vessels, with a carrying capacity of
approximately 2,700,000 dwt.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
of 1995
This press release contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward looking statements are based on management's current
expectations and observations. Included among the factors that, in our view,
could cause actual results to differ materially from the forward looking
statements contained in this press release are (i) the fulfillment of the
closing conditions under the Company's agreement to acquire the remaining four
Metrostar drybulk vessels; (ii) increases in costs and expenses including but
not limited to: crew wages, insurance, provisions, repairs, maintenance and
general and administrative expenses; (iii) changes in the condition of the
Company's vessels or applicable maintenance or regulatory standards (which may
affect, among other things, our anticipated drydocking or maintenance and
repair costs) and unanticipated drydock expenditures; and other factors listed
from time to time in our public filings with the Securities and Exchange
Commission including, without limitation, our Annual Report on Form 10-K for
the year ended December 31, 2006, our Quarterly Reports on Form 10-Q, and our
reports on 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)