Investors

Genco Shipping & Trading Limited Announces Plan to Sign Time Charters for Capesize Newbuilding and Panamax Vessel

Jun 02, 2009

Expands Time Charter Coverage to 64% for 2009 and 44% for 2010

NEW YORK, June 2 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement to enter into a time charter for the Genco Commodus, a Capesize newbuilding, with Morgan Stanley Capital Group Inc. for 23 to 25 months at a rate of $36,000 per day, less a 5% third-party brokerage commission. The time charter for the Genco Commodus will commence upon delivery of the vessel, which is expected during July 2009, and is subject to the completion of definitive documentation.

The Company also announced it has exercised its option to convert the balance period of its charter party for the Genco Thunder, a 2007-built Panamax vessel, with Baumarine AS to a fixed rate. As a result, the vessel is now fixed for the balance of the original charter party, with a minimum redelivery date on or about October 15, 2009 and a maximum redelivery date on or about December 15, 2009, at a rate of $20,079 per day, less a 5% third-party brokerage commission. The amended time charter for the Genco Thunder is expected to commence on June 1, 2009 and is subject to the completion of definitive documentation. The vessel has traded in the Baumarine Pool, a spot pool of approximately 80 vessels, since November 2008.

    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:



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

    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 Co.,   August     57,500  64,250         -
     London             Ltd                2010
    Genco         2007  Cargill            September  45,000  46,250         -
     Titus              International      2011        (5)
                        S.A.
    Genco         2008  Cargill            August     52,750                 -
     Constantine        International      2012        (5)
                        S.A.
    Genco         2008  Cargill            October    65,000                 -
     Hadrian            International      2012        (5)
                        S.A.
    Genco         2009  Morgan Stanley     23 to 25   36,000(7)        Q3 2009
     Commodus     (6)   Capital Group      Months
                        Inc.               from
                                           Delivery
    Genco         2009  TBD                TBD        TBD              Q3 2009
     Maximus      (6)
    Genco         2009  TBD                TBD        TBD              Q4 2009
     Claudius     (6)

    Panamax
     Vessels
    Genco         1999  Cargill            August     15,000                 -
     Beauty             International      2009        (8)
                        S.A.
    Genco         1999  SK Shipping Ltd./  June/Sep   37,700/                -
     Knight             Swissmarine        2009       16,500
                        Services S.A.                  (9)
    Genco         1999  Baumarine AS       November   Spot(10)               -
     Leader                                2009
    Genco         1999  Sangamon           June       10,000                 -
     Vigour             Transportation     2009        (11)
                        Group
                        (Guaranteed by
                        Louis Dreyfus
                        Corp)
    Genco         1999  Global             July       55,250                 -
     Acheron            Chartering Ltd     2011
                        (a subsidiary of
                        ArcelorMittal
                        Group)
    Genco         1998  Hanjin Shipping    December   42,100                 -
     Surprise           Co., Ltd.          2010
    Genco         2007  COSCO Bulk         April      52,800                 -
     Raptor             Carriers Co.,      2012
                        Ltd.
    Genco         2007  Baumarine AS       October    Spot/                  -
     Thunder                               2009       20,079
                                                       (12)

    Supramax
     Vessels
    Genco         2005  Bulkhandling       September  Spot
     Predator           Handymax A/S       2009        (13)
    Genco
     Warrior      2005  Hyundai Merchant   November   38,750                 -
                        Marine Co. Ltd.    2010
    Genco         2007  Pacific Basin      June       62,000                 -
     Hunter             Chartering Ltd.    2009
    Genco         2007  Clipper Bulk       June       12,000
     Cavalier           Shipping NV        2009        (14)                  -

    Handymax
     Vessels
    Genco         1997  Korea Line         February   33,000                 -
     Success            Corporation        2011        (15)
    Genco         1998  Louis Dreyfus      March      37,000                 -
     Carrier            Corporation        2011
    Genco         1997  Pacific Basin      June       37,000                 -
     Prosperity         Chartering Ltd     2011
    Genco         1997  Hyundai Merchant   February   34,500                 -
     Wisdom             Marine Co. Ltd.    2011
    Genco         1996  Clipper Bulk       June       14,500                 -
     Marine             Shipping NV        2009        (16)
    Genco         2001  Global Maritime    June        6,500
     Muse               Investments Ltd.   2009

    Handysize
     Vessels
    Genco         1999  Lauritzen Bulkers  August      19,500                -
     Explorer           A/S                2009
    Genco         1999  Lauritzen Bulkers  August      19,500                -
     Pioneer            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         1998  Lauritzen Bulkers  August      19,500                -
     Sugar              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

(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%. 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 vessels 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) Under the terms of this charter, if the Genco Commodus is not delivered by August 15, 2009 the charterer has the option to cancel the charter.

(8) We reached an agreement to extend the time charter for an additional 3 to 5.5 months at a rate of $15,000 per day. The extended time charter commenced following the expiration of the current time charter on May 22, 2009.

(9) We have entered into a short term time charter for approximately 3 to 5.5 months at a rate of $16,500 per day, less a 5% third-party commission. The vessel entered into the time charter following the completion of its previous time charter with SK Shipping Ltd. on June 1, 2009.

(10) 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.

(11) 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.

(12) 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. We exercised the option to convert the balance period of the charter party to a fixed rate on June 1, 2009 at a gross rate of $20,079 per day.

(13) We 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.

(14) Following Samsun Logix Corporation's ("Samsun") filing for the equivalent of bankruptcy protection in South Korea, referred to as a rehabilitation application, we have terminated the charter party agreement as a result of the non-payment of hire, and we have 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.

(15) 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.

(16) 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 April 2, 2009.

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.

"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 include, without limitation, statements with respect to the commencement of time charters and expected delivery dates of newbuildings and 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 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; (xv) the completion of definitive documentation with respect to time charters; and other factors listed from time to time under "Risk Factors" and other sections of our public filings with the Securities and Exchange Commission including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and its subsequently filed reports on Form 10-Q and Form 8-K.

SOURCE Genco Shipping & Trading Limited

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

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