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