Investors

Genco Shipping & Trading Limited Announces Plan to Extend Time Charter for Handymax Vessel

Apr 23, 2010
Expands Time Charter Coverage to 65% for 2010

NEW YORK, April 23, 2010 /PRNewswire via COMTEX/ --Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement to extend the time charter for the Genco Marine, a 1996-built Handymax vessel, with STX Pan Ocean Co. Ltd. for approximately 11 to 13.5 months at a rate of $20,000 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 on or about May 4, 2010 and is subject to the completion of definitive documentation. Currently, Genco has approximately 65% of its fleet's estimated available days secured on contracts for the remainder of 2010.

The following table reflects the current employment of Genco's fleet:

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

     Capesize
      Vessels
     --------
                            Cargill
                            International        December
     Genco Augustus    2007 S.A.                     2010   39,000

                            Cargill
                            International
     Genco Tiberius    2007 S.A.                June 2010   38,000

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

                            Cargill
                            International
     Genco Titus       2007 S.A.           September 2011   45,000(4)   46,250

                            Cargill
                            International
     Genco Constantine 2008 S.A.              August 2012   52,750(4)

                            Cargill
                            International
     Genco Hadrian     2008 S.A.             October 2012   65,000(4)

                            Morgan
                            Stanley
                            Capital
     Genco Commodus    2009 Group Inc.          June 2011   36,000

                            Cargill
                            International
     Genco Maximus     2009 S.A.                 May 2010   32,000

                            Cargill
                            International
     Genco Claudius    2010 S.A.            November 2010   36,000


     Panamax Vessels
     ---------------

                            LD
                            Commodities
                            Suisse,
     Genco Beauty      1999 Geneva               May 2010    19,125

                            Swissmarine
                            Services
     Genco Knight      1999 S.A.               March 2011    25,000

                            Klaveness
     Genco Leader      1999 Chartering      December 2010    20,000

                            Global
                            Maritime
                            Investments
     Genco Vigour      1999 Ltd.            November 2010    24,000

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

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

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

                            Klaveness
     Genco Thunder     2007 Chartering           May 2010    20,000


     Supramax
      Vessels
     --------

                            Bulkhandling
                            Handymax
     Genco Predator    2005 A/S                  May 2010    Spot(5)

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

                            Pacific
                            Basin
                            Chartering
     Genco Hunter      2007 Ltd.           February 2011     21,750

                            Clipper Bulk
     Genco Cavalier    2007 Shipping NV         May 2010     20,000


     Handymax
      Vessels
     --------

                            Korea Line
     Genco Success     1997 Corporation    February 2011    33,000(6)

                            Louis
                            Dreyfus
     Genco Carrier     1998 Corporation       March 2011     37,000

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

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

                            STX Pan
                            Ocean Co.
     Genco Marine      1996 Ltd.                May 2010     15,500
                                              April 2011     20,000

                            Global
                            Maritime
                            Investments
     Genco Muse        2001 Ltd.           December 2010     17,750


     Handysize
      Vessels
     ---------

                            Lauritzen
     Genco Explorer    1999 Bulkers A/S        July 2010     Spot(7)

                            Lauritzen
     Genco Pioneer     1999 Bulkers A/S        July 2010     Spot(7)

                            Lauritzen
     Genco Progress    1999 Bulkers A/S       April 2011     Spot(7)

                            Lauritzen
     Genco Reliance    1999 Bulkers A/S       April 2011     Spot(7)

                            Lauritzen
     Genco Sugar       1998 Bulkers A/S       April 2011     Spot(7)

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

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

                            Pacific Basin
                            Chartering
     Genco Champion    2006 Ltd.           December 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 the 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 generally ranging from 1.25% to 5.00%. 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. The minimum remaining term for the Genco Tiberius expired on January 13, 2010, the Genco London expires on August 30, 2010 and the Genco Titus on September 26, 2011 at which point the respective liabilities are amortized to zero and the vessels begin earning the "Cash Daily Rate". For cash flow purposes, we will continue to receive the rate presented in the "Cash Daily Rate" column until the charter expires.

(4) 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.

(5) 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.

(6) 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.

(7) We have reached an agreement to enter these vessels into the LB/IVS Pool whereby Lauritzen Bulkers A/S acts as the pool manager. Under the pool agreement, we can withdraw up to three vessels with three months' notice until December 31, 2009 and the remaining two vessels with 12 months' notice. After December 31, 2009, we can withdraw up to two vessels with three months' notice and the remaining three vessels with 12 months' notice.

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 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,903,000 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 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: 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, 2009 and its subsequently filed reports on form 8-K.

SOURCE Genco Shipping & Trading Limited