Investors

Genco Shipping & Trading Limited Takes Delivery of Panamax Vessel

Sep 25, 2008
NEW YORK, Sept 25, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Thunder, a 2007-built Panamax vessel. The Genco Thunder is the final vessel to be delivered to the Company under Genco's agreements previously announced on May 12, 2008 to acquire three drybulk vessels from Bocimar International N.V. and Delphis N.V.

The Genco Thunder is expected to be delivered to its charterer, Glory Wealth Shipping Pte. Ltd., on or about September 27, 2008, to commence a short-term time charter for approximately 50 days at a rate of $35,000 per day, less a 5% third party brokerage commission. Currently, Genco has approximately 92% of its fleet's estimated available days secured on contracts for the remainder of 2008 and 60% for 2009.

Genco has drawn upon its 10-year, $1.4 billion revolving credit facility to finance the remaining balance for the Genco Thunder of $77.35 million. The Company expects the delivery of ten additional newbuilding vessels by the end of 2009 and intends to utilize the undrawn portion of its $1.7 billion in aggregate credit facilities 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     Daily   (4)
                                                     (2)      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        2007     SK Shipping     August      57,500     64,250   -
    London                Co., Ltd        2010

    Genco        2007     Cargill
    Titus                 International   September   45,000(5)  46,250   -
                          S.A.            2011

    Genco        2008     Cargill         August      52,750(5)           -
    Constantine           International   2012
                          S.A.

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

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

    Genco        2009(7)  TBD             TBD         TBD                 Q2
    Maximus                                                               2009

    Genco        2009(7)  TBD             TBD         TBD                 Q2
    Aurelius                                                              2009

    Genco        2009(7)  TBD             TBD         TBD                 Q3
    Claudius                                                              2009

    Genco        2009(7)  TBD             TBD         TBD                 Q3
    Julian                                                                2009

    Genco        2009(7)  TBD             TBD         TBD                 Q4
    Valerian                                                              2009

    Panamax Vessels

    Genco        1999     Cargill         May         31,500              -
    Beauty                International   2009
                          S.A.

    Genco        1999     SK Shipping     May         37,700              -
    Knight                Ltd.            2009

    Genco        1999     A/S Klaveness   December    25,650(8)           -
    Leader                Chartering      2008

    Genco        1999     STX Panocean    March       29,000(9)           -
    Vigour                (UK) Co. Ltd.   2009

    Genco        1999     ArcelorMittal   July        55,250(10)          -
    Acheron                               2011

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

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

    Genco        2007     Glory Wealth    November    35,000              -
    Thunder               Shipping Pte.   2008
                          Ltd.

    Supramax Vessels

    Genco        2005     A/S Klaveness   October     58,000(11)          -
    Predator              Chartering      2008

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

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

    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 Dreyfus   March       37,000              -
    Carrier               Corporation      2011

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

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

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

    Genco        2001     Norden A/S      September   47,650              -
    Muse                                  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        1998     Lauritzen       August       19,500             -
    Sugar                 Bulkers A/S     2009

    Genco        2005     Pacific Basin   November     24,000             -
    Charger               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        2009     TBD             TBD          TBD                Q1
    Eagle                                                                 2009

    Genco        2009     TBD             TBD          TBD                Q1
    Falcon                                                                2009

    Genco        2009     TBD             TBD          TBD                Q1
    Hawk                                                                  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 new charter commenced following the completion of the prior time charter on July 18, 2008.

(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.

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.

"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 10 remaining drybulk vessels; (xii) the decision of the charterer of the Genco Hadrian with respect to the option mentioned in the table above; 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