Investors

Genco Shipping & Trading Limited Takes Delivery of Panamax Vessel

Jun 23, 2008
NEW YORK, June 23, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Raptor, a 2007-built Panamax vessel. The Genco Raptor is the first vessel to be delivered to the Company under Genco's previously announced agreements on May 12, 2008 to acquire three drybulk vessels from Bocimar International N.V. and Delphis N.V.

The Genco Raptor is expected to be delivered to its charterer, COSCO Bulk Carriers Co., Ltd., on or about June 25, 2008, to commence a time charter for 46 to 50 months at a rate of $52,800 per day, less a 5% third party brokerage commission. The charter is due to expire between April 2012 and August 2012.

    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 Expected
                                            Charter    Daily   Daily   Deliv-
                  Year                      Expiration  Rate    Rate     ery
    Vessel        Built   Charterer            (1)       (2)     (3)     (4)

    Capesize
    Vessels
    Genco         2007 Cargill              December  45,263    62,750   -
    Augustus           International S.A.   2009
    Genco         2007 Cargill              January   45,263    62,750   -
    Tiberius           International S.A.   2010
    Genco London  2007 SK Shipping Co., Ltd August    57,500    64,250   -
                                            2010
    Genco Titus   2007 Cargill              September 45,000(5) 46,250   -
                       International S.A.   2011
    Genco         2008 Cargill              August    52,750(5)          -
    Constantine        International S.A.   2012                         Q4
    Genco Hadrian 2008 Cargill              46 to 62  65,000(5)         2008
                   (6) International S.A.   months
                                            from
                                            delivery
    Genco         2009 To be determined     TBD         TBD              Q2
    Commodus       (6) (TBD)                                          2009
    Genco Maximus 2009 TBD                  TBD         TBD              Q2
                   (6)                                                  2009
    Genco CS 1005 2009 TBD                  TBD         TBD              Q2
                   (6)                                                  2009
    Genco         2009 TBD                  TBD         TBD              Q3
    Claudius       (6)                                                  2009
    Genco CS 1006 2009 TBD                  TBD         TBD              Q3
                   (6)                                                  2009
    Genco CS 1007 2009 TBD                  TBD         TBD              Q4
                   (6)                                                  2009

    Panamax
    Vessels
    Genco Beauty  1999 Cargill              May       31,500             -
                       International S.A.   2009
    Genco Knight  1999 SK Shipping Ltd.     May       37,700             -
                                            2009
    Genco Leader  1999 A/S Klaveness        December  25,650(7)          -
                                            2008
    Genco Vigour  1999 STX Panocean (UK)    March     29,000(8)          -
                       Co. Ltd.             2009
    Genco Acheron 1999 Armada Shipping S.A. July 2008 74,500(9)          -
                       ArcelorMittal        August    55,250
                                            2011
    Genco         1998 Hanjin Shipping Co., December  42,100             -
    Surprise           Ltd.                 2010
    Genco Raptor  2007 COSCO Bulk Carriers  April     52,800             -
                       Co., Ltd.            2012
    Genco Thunder 2007 TBD                  TBD       TBD                Q4
                                                                        2008

    Supramax
    Vessels
    Genco         2005 Oldendorff GmbH &    July      55,000             -
    Predator           Co. KG.              2008
    Genco Warrior 2005 Hyundai Merchant     November  38,750             -
                       Marine Co. Ltd.      2010
    Genco Hunter  2007 Pacific Basin        July      60,000(10)         -
                       Chartering Ltd.      2008
    Genco         2007 Samsun Logix         24 to     48,500(11) 47,700  Q3
    Cavalier           Corporation          26.5                        2008
                                            months
                                            from
                                            delivery

    Handymax
    Vessels
    Genco Success 1997 Korea Line           February  33,000(12)         -
                       Corporation          2011
    Genco Carrier 1998 Louis Dreyfus        March     37,000(13)         -
                       Corporation          2011
    Genco         1997 Pacific Basin        July 2008 26,000             -
    Prosperity         Chartering Ltd.      June 2011 37,000(14)
                       Pacific Basin
                       Chartering Ltd
    Genco Wisdom  1997 Hyundai Merchant     February  34,500(15)         -
                       Marine Co. Ltd.      2011
    Genco Marine  1996 NYK Bulkship Europe  March     47,000             -
                       S.A.                 2009
    Genco Muse    2001 Norden A/S           July 2008 47,650             -


    Handysize
    Vessels
    Genco         1999 Lauritzen Bulkers    August    19,500             -
    Explorer           A/S                  2009
    Genco Pioneer 1999 Lauritzen Bulkers    August    19,500             -
                       A/S                  2009
    Genco         1999 Lauritzen Bulkers    August    19,500             -
    Progress           A/S                  2009
    Genco         1999 Lauritzen Bulkers    August    19,500             -
    Reliance           A/S                  2009
    Genco Sugar   1998 Lauritzen Bulkers    August    19,500             -
                       A/S                  2009
    Genco Charger 2005 Pacific Basin        November  24,000             -
                       Chartering Ltd.      2010
    Genco         2003 Pacific Basin        November  24,000             -
    Challenger         Chartering Ltd.      2010
    Genco         2006 Pacific Basin        December  24,000             -
    Champion           Chartering Ltd.      2010
    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 29 drybulk vessels consisting of five Capesize, seven Panamax, three Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,097,000 dwt. After the expected delivery of 12 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) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire a total of 12 remaining 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, 2007, and our subsequent reports on Form 10-Q and Form 8-K.

SOURCE Genco Shipping & Trading Limited

http://www.gencoshipping.com