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)