Investors

Genco Shipping & Trading Limited Announces First Quarter 2009 Financial Results

Apr 29, 2009

NEW YORK, April 29 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today reported its financial results for the three months ended March 31, 2009.

The following financial review discusses the results for the three months ended March 31, 2009 and March 31, 2008.

    First quarter 2009 and Year-to-Date Highlights


    --  Recorded net income of $41.2 million, or $1.32 basic and diluted
        earnings per share for the first quarter; and


    --  Amended the $1.4 billion revolving credit facility to waive the
        collateral maintenance requirement until such time that Genco is in a
        position to satisfy the covenant and other conditions previously
        announced.

    Financial Review: 2009 First quarter

The Company recorded net income for the first quarter of 2009 of $41.2 million, or $1.32 basic and diluted earnings per share. Comparatively, for the three months ended March 31, 2008 net income was $74.0 million or $2.57 basic and $2.56 diluted earnings per share. Included in net income for the three months ended March 31, 2008 was a $26.2 million gain on the sale of the Genco Trader.

EBITDA was $76.1 million for the three months ended March 31, 2009 versus $101.1 million for the three months ended March 31, 2008. Included in EBITDA for the period ending March 31, 2008 was a $26.2 million gain related to the sale of the Genco Trader.

Robert Gerald Buchanan, President, commented, "During the first quarter, Genco continued to benefit from its significant time charter coverage, which enabled the Company to once again deliver strong results for shareholders. Consistent with our strategy, a large portion of our modern and versatile fleet is secured on long-term contracts with a diverse group of reputable, high quality counterparties. With approximately 60% of our fleet's estimated available days locked away on time charters for the remainder of 2009, we remain well positioned to provide our shareholders with sizeable contracted revenue streams during a challenging market environment as we continue to provide our customers with the highest quality service."

Genco Shipping & Trading Limited revenues increased 5.4% to $96.7 million for the three months ended March 31, 2009 versus $91.7 million for the three months ended March 31, 2008 due to the operation of a larger fleet offset by lower charter rates achieved for some of our vessels.

The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet decreased 7.5% to $33,203 per day for the three months ended March 31, 2009 compared to $35,891 for the three months ended March 31, 2008. The slight decrease in TCE rates resulted from lower charter rates achieved in the first quarter of 2009 versus the first quarter of 2008 for three of the Panamax vessels, four of the Supramax and Handymax vessels, and one of the Handysize vessels in our current fleet. Furthermore, lower TCE rates were achieved in the first quarter of 2009 versus the same period last year due to the non-payment of hire for the Genco Cavalier resulting from the bankruptcy of Samsun Logix Corporation, as well as the lack of revenue from the profit sharing agreements on two of our Capesize vessels. This was partially offset by higher revenues on two of our Panamax and five of our Handymax vessels.

Total operating expenses increased to $41.5 million for the three months ended March 31, 2009 from $6.4 million for the three-month period ended March 31, 2008 due to higher vessel operating expenses, management fees and depreciation and amortization related to the operation of a larger fleet. Total operating expenses for the first quarter of 2008 included a $26.2 million gain on the sale of the Genco Trader. Vessel operating expenses were $14.2 million for the first quarter of 2009 compared to $10.9 million for the same period last year. The increase in vessel operating expenses was due to the operation of a larger fleet, higher crewing and insurance expenses, as well as the operation of more Capesize vessels for the first quarter of 2009 versus the same period last year. We expect our vessel operating expenses, which generally represent variable costs, to further increase as a result of the expansion of our fleet and higher crewing expenses.

Depreciation and amortization expenses increased to $20.9 million for the first quarter of 2009 from $15.9 million for the first quarter of 2008 related to the growth of our fleet. General and administrative expenses decreased to $3.9 million from $4.4 million during the comparative periods due to costs associated with lower employee non-cash compensation, legal fees and other administrative costs. Management fees were $0.9 million for the three months ended March 31, 2009 and $0.7 million for the three months ended March 31, 2008, respectively, and relate to fees paid to our independent technical managers.

Daily vessel operating expenses, or DVOE, grew to $4,931 per vessel per day during the first quarter of 2009 from $4,278 for the same quarter last year as a result of higher crew and insurance expenses as well as the operation of a greater number of Capesize vessels. We believe daily vessel operating expenses are best measured for comparative purposes over a 12month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers and management's expectations, our 2009 DVOE budget is $5,350 per vessel per day on a weighted average basis. As previously announced, the increased budget reflects the anticipated increased cost for crewing, insurance and lube oil expenses, as well as the operation of a greater number of Capesize vessels.

John C. Wobensmith, Chief Financial Officer, commented, "During the first quarter, Genco maintained its focus on preserving the Company's financial strength. With the amendment of our $1.4 billion credit facility under favorable terms, we significantly increased our financial flexibility and strengthened our industry leadership. We intend to utilize our strong liquidity position combined with our strong cash flow from operations to fund our remaining three Capesize newbuildings. Complementing our built-in growth, we will continue to seek opportunities to take advantage of current market weakness in a manner that meets our strict return criteria for the benefit of the Company and its shareholders."

    Liquidity and Capital Resources

    Cash Flow

Net cash provided by operating activities for the three months ended March 31, 2009 and 2008, was $55.5 million and $55.7 million, respectively. The slight decrease was due to the operation of a larger fleet, which contributed to an increase in adjustments to reconcile net income to operating cash flows, including increases in depreciation and amortization. Decreases in adjustments to reconcile net income to operating cash flows include $4.7 million of amortization of value of the time charters acquired as part of the Metrostar and Evalend acquisitions, $3.2 million of prepaid and other current and non-current assets, and $1.4 million in deferred voyage revenue. Net cash provided by operating activities for the three months ended March 31, 2008 was primarily a result of recorded net income of $74.0 million, adjusted for depreciation and amortization charges of $15.9 million and offset by a $26.2 million gain on the sale of the Genco Trader.

Net cash used in investing activities was $1.2 million for the three months ended March 31, 2009 as compared to $132.4 million for the three months ended March 31, 2008. For the three months ended March 31, 2009, cash used in investing activities primarily related to deposits on vessels to be acquired of $0.7 million which represents capitalized interest expense for vessels to be delivered. For the three months ended March 31, 2008 the cash used in investing activities mostly related to the purchase of vessels in the amount of $153.3 million, payments on forward currency contracts of $11.4 million, and the purchase of investments of $10.3 million, offset by the proceeds from the sale of the Genco Trader in the amount of $43.1 million.

Net cash used in financing activities for the three months ended March 31, 2009 was $3.4 million as compared to $53.4 million of net cash provided by financing activities for the three months ended March 31, 2008. For the three months ended March 31, 2009, net cash used in financing activities consisted of the payment of deferred financing costs of $3.4 million related to the Company's amendment to the $1.4 billion revolving credit facility. For the quarter ended March 31, 2008, net cash provided by financing activities consisted of the drawdown of $151.5 million related to the purchase of vessels and was offset by the repayment of $73.0 million under our 2007 credit facility and the payment of cash dividends of $24.7 million.

Capital Expenditures

We make capital expenditures from time to time in connection with vessel acquisitions. Our current fleet consists of six Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,396,500 dwt. After the expected delivery of three vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,908,000 dwt.

In addition to acquisitions that we may undertake in future periods, we will incur additional capital expenditures due to special surveys and drydockings for our fleet. We estimate that four of our vessels will be drydocked in the second quarter of 2009. An additional two vessels will be drydocked in the remainder of 2009.

    We estimate our drydocking costs for our fleet through 2010 to be:

                                 Q2 2009      Q3 - Q4 2009       2010
                               ------------   ------------   ------------
    Estimated Costs(1)         $3.2 million   $1.0 million   $2.0 million

    Estimated Offhire Days(2)       80             40             60

    (1) Estimates are based on our budgeted cost of drydocking our vessels
    in China.  Actual costs will vary based on various factors, including
    where the drydockings are actually performed.  We expect to fund these
    costs with cash from operations.

    (2) Assumes 20 days per drydocking per vessel.  Actual length will vary
    based on the condition of the vessel, yard schedules and other factors.

The Genco Muse completed its drydocking during the first quarter of 2009 at an aggregate cost of approximately $0.6 million. The vessel was on planned offhire for 17 days in connection with its scheduled drydocking. As previously announced, the Genco Cavalier, a 2008-built Supramax vessel, was involved in a minor collision caused by another vessel in its vicinity during the first quarter of 2009. The vessel incurred approximately 16 days of offhire for repairs arising from the event. The Company has filed a claim for the full amount of the damages as well as any offhire time related to the collision against the other vessel's owner.

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.

                                                  Three Months Ended
                                          March 31, 2009     March 31, 2008
                                          --------------     --------------
                                             (Dollars in thousands, except
                                                share and per share data)
                                                      (unaudited)
    INCOME STATEMENT DATA:
    Revenues                                     $96,650            $91,669

    Operating expenses:
      Voyage expenses                              1,579                744
      Vessel operating expenses                   14,202             10,919
      General and administrative expenses          3,893              4,411
      Management fees                                879                672
      Depreciation and amortization               20,949             15,864
      Gain on sale of vessel                           -            (26,227)
                                                       -            -------
        Total operating expenses                  41,502              6,383
                                                  ------              -----

    Operating income                              55,148             85,286
                                                  ------             ------

    Other (expense) income:
      Other income (expense)                          18                (64)
      Interest income                                 23                552
      Interest expense                           (13,948)           (11,787)
                                                 -------            -------
        Other (expense):                         (13,907)           (11,299)
                                                 -------            -------

    Net income                                   $41,241            $73,987
                                                 =======            =======

    Earnings per share - basic                     $1.32              $2.57
                                                   =====              =====

    Earnings per share - diluted                   $1.32              $2.56
                                                   =====              =====

    Weighted average shares
     outstanding - basic                      31,260,482         28,733,928
                                              ==========         ==========
    Weighted average shares
     outstanding - diluted                    31,351,390         28,914,350
                                              ==========         ==========


                                          March 31, 2009  December 31, 2008
                                          --------------  -----------------
    BALANCE SHEET DATA:                       (unaudited)
    Cash & cash equivalents                     $175,785           $124,956
    Current assets, including cash               193,839            140,748
    Total assets                               2,033,885          1,990,006
    Current liabilities                           29,052             30,192
    Total long-term debt                       1,173,300          1,173,300
    Shareholders' equity                         749,495            696,478


                                                  Three Months Ended
                                          March 31, 2009     March 31, 2008
                                          --------------     --------------
    Net cash provided by operating activities    $55,486            $55,711
    Net cash used in investing activities         (1,213)          (132,351)
    Net cash (used in) provided by
     financing activities                         (3,444)            53,439


                                                   Three Months Ended
                                           March 31, 2009    March 31, 2008
                                           --------------    --------------
    FLEET DATA:                                       (unaudited)
    Total number of vessels at end
     of period                                        32                 28
    Average number of vessels (1)                   32.0               28.0
    Total ownership days for fleet (2)             2,880              2,552
    Total available days for fleet (3)             2,863              2,533
    Total operating days for fleet (4)             2,816              2,528
    Fleet utilization (5)                           98.4%              99.8%


    AVERAGE DAILY RESULTS:
    Time charter equivalent (6)                  $33,203            $35,891
    Daily vessel operating expenses
     per vessel (7)                                4,931              4,278
                                                   -----              -----


                                                   Three Months Ended
                                           March 31, 2009    March 31, 2008
                                                 (Dollars in thousands)
                                                 ----------------------
    EBITDA Reconciliation:                            (unaudited)
      Net Income                                 $41,241            $73,987
        +Net interest expense                     13,925             11,235
        +Depreciation and amortization            20,949             15,864
                                                  ------             ------
          EBITDA(8)                               76,115            101,086
                                                  ======            =======


    (1) Average number of vessels is the number of vessels that constituted
    our fleet for the relevant period, as measured by the sum of the number
    of days each vessel was part of our fleet during the period divided by
    the number of calendar days in that period.
    (2) We define ownership days as the aggregate number of days in a period
    during which each vessel in our fleet has been owned by us. Ownership
    days are an indicator of the size of our fleet over a period and affect
    both the amount of revenues and the amount of expenses that we record
    during a period.
    (3) We define available days as the number of our ownership days less the
    aggregate number of days that our vessels are off-hire due to scheduled
    repairs or repairs under guarantee, vessel upgrades or special surveys
    and the aggregate amount of time that we spend positioning our vessels.
    Companies in the shipping industry generally use available days to
    measure the number of days in a period during which vessels should be
    capable of generating revenues.
    (4) We define operating days as the number of our available days in a
    period less the aggregate number of days that our vessels are off-hire
    due to unforeseen circumstances. The shipping industry uses operating
    days to measure the aggregate number of days in a period during which
    vessels actually generate revenues.
    (5) We calculate fleet utilization by dividing the number of our
    operating days during a period by the number of our available days
    during the period. The shipping industry uses fleet utilization to
    measure a company's efficiency in finding suitable employment for its
    vessels and minimizing the number of days that its vessels are off-hire
    for reasons other than scheduled repairs or repairs under guarantee,
    vessel upgrades, special surveys or vessel positioning.
    (6) We define TCE rates as our net voyage revenue (voyage revenues less
    voyage expenses) divided by the number of our available days during the
    period, which is consistent with industry standards. TCE rate is a common
    shipping industry performance measure used primarily to compare daily
    earnings generated by vessels on time charters with daily earnings
    generated by vessels on voyage charters, because charterhire rates for
    vessels on voyage charters are generally not expressed in per-day
    amounts while charterhire rates for vessels on time charters generally
    are expressed in such amounts. Since some vessels were acquired with an
    existing time charter at 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.  This intangible liability is
    amortized as an increase to voyage revenues over the minimum remaining
    term of the charter.
    (7) We define daily vessel operating expenses to include crew wages and
    related costs, the cost of insurance expenses relating to repairs and
    maintenance (excluding drydocking), the costs of spares and consumable
    stores, tonnage taxes and other miscellaneous expenses. Daily vessel
    operating expenses are calculated by dividing vessel operating expenses
    by ownership days for the relevant period.
    (8) EBITDA represents net income plus net interest expense and
    depreciation and amortization.  EBITDA is included because it is used by
    management and certain investors as a measure of operating performance.
    EBITDA is used by analysts in the shipping industry as a common
    performance measure to compare results across peers.  Our management
    uses EBITDA as a performance measure in our consolidating internal
    financial statements, and it is presented for review at our board
    meetings.  The Company believes that EBITDA is useful to investors as
    the shipping industry is capital intensive which often results in
    significant depreciation and cost of financing.  EBITDA presents
    investors with a measure in addition to net income to evaluate the
    Company's performance prior to these costs.  EBITDA is not an item
    recognized by U.S. GAAP and should not be considered as an alternative
    to net income, operating income or any other indicator of a company's
    operating performance required by U.S. GAAP.  EBITDA is not a source of
    liquidity or cash flows as shown in our consolidated statement of cash
    flows.  The definition of EBITDA used here may not be comparable to that
    used by other companies.


    Genco Shipping & Trading Limited's Fleet

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 32 drybulk vessels and after the expected delivery of three vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,908,000 dwt.

Our current fleet consists of six Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize drybulk carriers with an aggregate carrying capacity of approximately 2,396,500 dwt. Our current fleet contains nine groups of sister ships, which are vessels of virtually identical sizes and specifications. We believe that maintaining a fleet that includes sister ships reduces costs by creating economies of scale in the maintenance, supply and crewing of our vessels. As of March 31, 2009, the average age of our current fleet was 6.7 years, as compared to the average age for the world fleet of approximately 15 years for the drybulk shipping segments in which we compete. The majority of the vessels in our current fleet are currently on long-term time charters with an average remaining life of approximately 14 months as of March 31, 2009.

    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
                                        Charter      Cash   Revenue  Expected
                 Year                  Expiration   Daily    Daily   Delivery
    Vessel       Built    Charterer       (1)      Rate(2)   Rate(3)    (4)

    Capesize Vessels

    Genco                 Cargill       December
     Augustus    2007   International    2009      45,263    62,750      -
                           S.A.

    Genco                 Cargill       January
     Tiberius    2007   International    2010      45,263    62,750      -
                           S.A.

    Genco        2007    SK Shipping     August
     London               Co., Ltd        2010     57,500    64,250      -

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

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

    Genco                 Cargill       October
     Hadrian    2008    International    2012      65,000(5)             -
                           S.A.

    Genco                   To be
     Commodus    2009(6)  determined      TBD         TBD             Q2 2009
                           ("TBD")
    Genco
     Maximus     2009(6)     TBD          TBD         TBD             Q3 2009

    Genco
     Claudius    2009(6)     TBD          TBD         TBD             Q3 2009

    Panamax Vessels

    Genco                  Cargill
     Beauty      1999    International  May 2009   31,500                -
                            S.A.
    Genco
     Knight      1999     SK Shipping   May 2009   37,700                -
                             Ltd.

    Genco
     Leader      1999    Baumarine AS   November     Spot(7)             -
                                          2009
    Genco                  Sangamon
     Vigour      1999   Transportation  June 2009  10,000(8)             -
                            Group
                        (Guaranteed by
                      Louis Dreyfus Corp)

    Genco              Global Chartering
     Acheron     1999  Ltd (a subsidiary   July
                       of ArcelorMittal    2011    55,250                -
                           Group)

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

    Genco                 COSCO Bulk      April
     Raptor      2007    Carriers Co.,    2012     52,800                -
                             Ltd.
    Genco
     Thunder     2007     Baumarine AS    October
                                           2009      Spot(9)             -

    Supramax Vessels

    Genco                Bulkhandling    September
     Predator    2005    Handymax A/S      2009      Spot(10)            -

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

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

    Genco                Clipper Bulk      June    12,000(11)            -
     Cavalier    2007    Shipping NV       2009

    Handymax Vessels

    Genco                 Korea Line     February
     Success     1997    Corporation       2011    33,000(12)            -

    Genco                Louis Dreyfus    March
     Carrier     1998    Corporation       2011    37,000                -

    Genco                Pacific Basin     June
     Prosperity  1997    Chartering Ltd    2011    37,000                -

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

    Genco                 Clipper Bulk     June
     Marine      1996     Shipping NV      2009    14,500(13)            -

    Genco                Global Maritime    May
     Muse        2001    Investments Ltd.  2009     6,500                -

    Handysize Vessels

    Genco                  Lauritzen      August
     Explorer    1999     Bulkers A/S      2009    19,500                -

    Genco                  Lauritzen      August
     Pioneer     1999     Bulkers A/S      2009    19,500                -

    Genco                  Lauritzen      August
     Progress    1999     Bulkers A/S      2009    19,500                -

    Genco                  Lauritzen      August
     Reliance    1999     Bulkers A/S      2009    19,500                -

    Genco                  Lauritzen      August
     Sugar       1998     Bulkers A/S      2009    19,500                -

    Genco                Pacific Basin   November
     Charger     2005   Chartering Ltd.    2010    24,000                -

    Genco                Pacific Basin   November
     Challenger  2003   Chartering Ltd.    2010    24,000                -

    Genco                Pacific Basin   December
     Champion    2006   Chartering Ltd.    2010    24,000                -


    (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,  Genco Constantine, and Genco Hadrian 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 and
    Genco Hadrian has the option to extend the charter for a period of one
    year.  The Genco Constantine has the option to extend the charter for a
    period of eight months.
    (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) We have reached an agreement to enter the vessel into the Baumarine
    Pool with an option to convert the balance period of the charter party
    to a fixed rate, but only after June 1, 2009. The vessel entered the pool
    following the completion of its previous time charter on December 16,
    2008. In addition to a 1.25% third party brokerage commission, the
    charter party calls for a management fee.
    (8) We have entered into a time charter trip for approximately 90 days
    at a rate of $10,000 per day less a 5% third-party commission which
    commenced on April 7, 2009.
    (9) We have reached an agreement to enter the vessel into the Baumarine
    Pool with an option to convert the balance period of the charter party
    to a fixed rate, but only after March 1, 2009. In addition to a 1.25%
    third party brokerage commission, the charter party calls for a management
    fee.
    (10) We have entered the vessel into the Bulkhandling Handymax Pool with
    an option to convert the balance period of the charter party to a fixed
    rate, but only after January 1, 2009. In addition to a 1.25% third party
    brokerage commission, the charter party calls for a management fee.
    (11) Following Samsun Logix Corporation's ("Samsun") filing for the
    equivalent of bankruptcy protection in South Korea, otherwise referred
    to as a rehabilitation application, the Company has terminated the
    charter party agreement as a result of the non-payment of hire and has
    commenced arbitration proceedings in the United Kingdom for damages
    related to the non-performance of Samsun under the time charter. In
    addition, we have entered into a short term time charter for
    approximately 3 to 5 months at a rate of $12,000 per day, less a 5%
    third-party commission. The vessel entered into the time charter on
    March 9, 2009.
    (12) 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.
    (13) We have entered into a short term time charter for approximately 3
    to 5 months at a rate of $14,500 per day, less a 5% third-party
    commission. The vessel entered into the time charter following the
    completion of its previous time charter with NYK Bulkship Atlantic NV on
    or about April 2, 2009.

    Credit Facility Amendment

On January 26, 2009, the Company announced that it had entered into an agreement with DnB NOR Bank ASA and Bank of Scotland PLC as the lead arrangers to amend its $1.4 billion credit facility. Under terms of the amended ten-year $1.4 billion facility, the collateral maintenance requirement is waived until such time that Genco is in a position to satisfy the requirement as well as continue to comply with all other covenants and certain other conditions previously announced. Genco continues to be able to borrow the undrawn portion of the loan during the waiver period. Amounts borrowed under the amended facility began to reduce on March 31, 2009 at $12.5 million per quarter and will bear interest at LIBOR plus 2.00%.

The Company also announced that, under the terms of the amended credit facility, its cash dividends and its share repurchases will be suspended, effective immediately. Genco will be able to reinstate its cash dividends and share repurchases once the Company can represent that it is in a position to again satisfy the collateral maintenance covenant. The amendment to the credit facility places no further restrictions on uses of the Company's cash.

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 32 drybulk vessels consisting of six Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,396,500 dwt. After the expected delivery of three vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,908,000 dwt.

Conference Call Announcement

Genco Shipping & Trading Limited announced that it will hold a conference call on Thursday, April 30, 2009 at 8:30 a.m. Eastern Time, to discuss its 2009 first quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company's website, www.GencoShipping.com. To access the conference call, dial (877) 440-5784 or (719) 325-4850 and enter passcode 9899034. A replay of the conference call can also be accessed available through Thursday, May 14, 2009 at (888) 203-1112 or (719) 457-0820 and entering the passcode 9899034. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.

"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 report are the following: (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 three drybulk vessels; (xii) the results of the investigation into the incident involving the collision of the Genco Hunter, the possible cause of and liability for such incident, and the scope of insurance coverage available to Genco for such incident; (xiii) the Company's ability to collect amounts due from and the outcome of its pending claim against Samsun Logix Corporation with respect to the terminated charter for the Genco Cavalier; (xiv) the Company's ability to collect on any damage claim for the recent collision involving the Genco Cavalier; and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, the Company's Annual Reports on Form 10-K for the year ended December 31, 2008 and its reports on Form 10-Q and Form 8-K.

SOURCE  Genco Shipping & Trading Limited

    -0-                           04/29/2009
    /CONTACT:  John C. Wobensmith, Chief Financial Officer, Genco Shipping &
Trading Limited, +1-646-443-8555/
    /Web Site:  http://www.gencoshipping.com /
    (GNK)

CO:  Genco Shipping & Trading Limited

ST:  New York
IN:  MAR TRN
SU:  ERN CCA

PR
-- NY07772 --
7772 04/29/2009 16:23 EDT http://www.prnewswire.com