Investors

Genco Shipping & Trading Limited Takes Delivery of Supramax Vessel

Jul 17, 2008

NEW YORK, July 17 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Cavalier, a 2007-built Supramax vessel. The Genco Cavalier is the second 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 Cavalier is expected to be delivered to its charterer, Samsun Logix Corporation, on or about July 19, 2008, to commence a time charter for 24 to 26.5 months at a cash rate of $48,500 per day, less a 5% third party brokerage commission. The charter is due to expire between July 2010 and October 2010.

    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
              Year                          Charter     Daily   Daily Delivery
    Vessel    Built       Charterer      Expiration(1)  Rate(2) Rate(3)    (4)
    --------------------------------------------------------------------------
    Capesize Vessels
    ----------------
    Genco     2007    Cargill             December 2009  45,263    62,750    -
     Augustus          International S.A.
    Genco     2007    Cargill             January 2010   45,263    62,750    -
     Tiberius          International S.A.
    Genco     2007    SK Shipping Co.,    August 2010    57,500    64,250    -
     London            Ltd
    Genco     2007    Cargill             September 2011 45,000(5) 46,250    -
     Titus             International S.A.
    Genco     2008    Cargill             August 2012    52,750(5)           -
     Constantine       International S.A.
    Genco     2008(6) Cargill             46 to 62       65,000(5)     Q4 2008
     Hadrian           International S.A.  months from
                                           delivery
    Genco     2009(6) To be determined    TBD            TBD           Q2 2009
     Commodus          ("TBD")
    Genco     2009(6) TBD                 TBD            TBD           Q2 2009
     Maximus
    Genco CS  2009(6) TBD                 TBD            TBD           Q2 2009
     1005
    Genco     2009(6) TBD                 TBD            TBD           Q3 2009
     Claudius
    Genco CS  2009(6) TBD                 TBD            TBD           Q3 2009
     1006
    Genco CS  2009(6) TBD                 TBD            TBD           Q4 2009
     1007

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

    Supramax Vessels
    ----------------
    Genco     2005    Oldendorff GmbH &   July 2008      55,000              -
     Predator          Co. KG.
                      A/S Klaveness       October 2008   58,000(10)          -
                       Chartering
    Genco     2005    Hyundai Merchant    November 2010  38,750              -
     Warrior           Marine Co. Ltd.
    Genco     2007    Pacific Basin       July 2008      60,000(11)          -
     Hunter            Chartering Ltd.
                      Pacific Basin       June 2009      62,000
                       Chartering Ltd.
    Genco     2007    Samsun Logix        July 2010      48,500(12) 47,700   -
     Cavalier          Corporation

    Handymax Vessels
    ----------------
    Genco     1997    Korea Line          February 2011  33,000(13)          -
     Success           Corporation
    Genco     1998    Louis Dreyfus       March 2011     37,000(14)          -
     Carrier           Corporation
    Genco     1997    Pacific Basin       July 2008      26,000              -
     Prosperity        Chartering Ltd.
                      Pacific Basin       June 2011      37,000(15)
                       Chartering Ltd.
    Genco     1997    Hyundai Merchant    February 2011  34,500(16)          -
     Wisdom            Marine Co. Ltd.
    Genco     1996    NYK Bulkship        March 2009     47,000              -
     Marine            Europe S.A.
    Genco     2001    Norden A/S          July 2008      47,650              -
     Muse

    Handysize Vessels
    -----------------
    Genco     1999    Lauritzen           August 2009    19,500              -
     Explorer          Bulkers A/S
    Genco     1999    Lauritzen           August 2009    19,500              -
     Pioneer           Bulkers A/S
    Genco     1999    Lauritzen           August 2009    19,500              -
     Progress          Bulkers A/S
    Genco     1999    Lauritzen           August 2009    19,500              -
     Reliance          Bulkers A/S
    Genco     1998    Lauritzen           August 2009    19,500              -
     Sugar             Bulkers A/S
    Genco     2005    Pacific Basin       November 2010  24,000              -
     Charger           Chartering Ltd.
    Genco     2003    Pacific Basin       November 2010  24,000              -
     Challenger        Chartering Ltd.
    Genco     2006    Pacific Basin       December 2010  24,000              -
     Champion          Chartering Ltd.
    Genco HS  2008    TBD                 TBD            TBD           Q4 2008
     2031
    Genco HS  2008    TBD                 TBD            TBD           Q4 2008
     2032
    Genco HS  2008    TBD                 TBD            TBD           Q1 2009
     2033

(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 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 is expected to commence following the completion of the existing time charter on or about July 18, 2008.

(11) 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 is expected to commence following the expiration of the vessel's current time charter and is subject to the completion of definitive documentation.

(12) The time charter for this vessel is expected to commence on or about 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.

(13) 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.

(14) 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.

(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 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 30 drybulk vessels consisting of five Capesize, seven Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,151,000 dwt. After the expected delivery of 11 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 11 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

CONTACT:
John C. Wobensmith, Chief Financial Officer, Genco Shipping & Trading Limited, +1-646-443-8555

Web site: http://www.gencoshipping.com
(GNK)