Investors

Genco Shipping & Trading Limited Announces Plan to Sign Time Charter for Panamax Vessel

Jan 06, 2010
NEW YORK, Jan 06, 2010 /PRNewswire via COMTEX/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement to enter into a time charter for the Genco Vigour, a 1999-built Panamax vessel, with Global Maritime Investments Ltd. for approximately 10.5 to 13.5 months at a rate of $24,000 per day, less a 5% third-party brokerage commission. The time charter is expected to commence on or about January 8, 2010 following the expiration of the vessel's current time charter and is subject to the completion of definitive documentation. Currently, Genco has approximately 54% of its fleet's estimated available days secured on contracts for 2010.

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



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

    Capesize Vessels
    ----------------
    Genco Augustus  2007   Cargill              January 2010  45,263    62,750
                            International S.A.
    Genco Tiberius  2007   Cargill              February 2010 45,263    62,750
                            International S.A.
    Genco London    2007   SK Shipping Co., Ltd August 2010   57,500    64,250
    Genco Titus     2007   Cargill              September     45,000(4) 46,250
                            International S.A.   2011
    Genco           2008   Cargill              August 2012   52,750(4)
     Constantine            International S.A.
    Genco Hadrian   2008   Cargill              October 2012  65,000(4)
                            International S.A.
    Genco Commodus  2009   Morgan Stanley       June 2011     36,000
                            Capital Group Inc.
    Genco Maximus   2009   Cargill              February 2010 31,750
                            International S.A.
    Genco Claudius  2010   Cargill              November 2010 36,000(5)
                            International S.A.

    Panamax Vessels
    ---------------
    Genco Beauty    1999   LD Commodities       March 2010    19,125
                            Suisse, Geneva
    Genco Knight    1999   Swissmarine          February 2010 16,500
                            Services S.A.
    Genco Leader    1999   Baumarine AS/        Jan 10/Dec 10 20,742/
                            Klaveness Chartering              20,000(6)
    Genco Vigour    1999   C Transport          Jan 10/Nov 10 20,000/
                            Panamax Ltd./                     24,000(7)
                            Global Maritime
                            Investments Ltd.
    Genco Acheron   1999   Global               July 2011     55,250
                            Chartering Ltd
                            (a subsidiary of
                            ArcelorMittal Group)
    Genco Surprise  1998   Hanjin Shipping      December 2010 42,100
                            Co., Ltd.
    Genco Raptor    2007   COSCO Bulk           April 2012    52,800
                            Carriers Co., Ltd.
    Genco Thunder   2007   Klaveness Chartering March 2010    20,000

    Supramax Vessels
    ----------------
    Genco Predator  2005   Bulkhandling         April 2010      Spot(8)
                            Handymax A/S
    Genco Warrior   2005   Hyundai Merchant     November 2010 38,750
                            Marine Co. Ltd.
    Genco Hunter    2007   Pacific Basin        February 2010 17,000
                            Chartering Ltd.
    Genco Cavalier  2007   Clipper Bulk         February 2010 16,750
                            Shipping NV

    Handymax Vessels
    ----------------
    Genco Success   1997   Korea Line           February 2011  33,000(9)
                            Corporation
    Genco Carrier   1998   Louis Dreyfus        March 2011     37,000
                            Corporation
    Genco           1997   Pacific Basin        June 2011      37,000
     Prosperity             Chartering Ltd
    Genco Wisdom    1997   Hyundai Merchant     February 2011  34,500
                            Marine Co. Ltd.
    Genco Marine    1996   STX Pan Ocean        February 2010  15,500
                            Co. Ltd.
    Genco Muse      2001   Global Maritime      January 2010   15,000
                            Investments Ltd.

    Handysize Vessels
    -----------------
    Genco Explorer  1999   Lauritzen            February 2010    Spot(10)
                            Bulkers A/S
    Genco Pioneer   1999   Lauritzen            February 2010    Spot(10)
                            Bulkers A/S
    Genco Progress  1999   Lauritzen            February 2010    Spot(10)
                            Bulkers A/S
    Genco Reliance  1999   Lauritzen            November 2010    Spot(10)
                            Bulkers A/S
    Genco Sugar     1998   Lauritzen            November 2010    Spot(10)
                            Bulkers A/S
    Genco Charger   2005   Pacific Basin        November 2010  24,000
                            Chartering Ltd.
    Genco           2003   Pacific Basin        November 2010  24,000
     Challenger             Chartering Ltd.
    Genco Champion  2006   Pacific Basin        December 2010  24,000
                            Chartering Ltd.

    (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 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) 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 have reached an agreement to charter the vessel for 10.5 to 13.5
    months at a rate of $36,000 per day, less a 5% third-party commission and
    commenced on January 4, 2010.
    (6) We 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. We exercised the option to
    convert the balance period of the charter party to a fixed rate on June
    3, 2009 at a gross rate of $20,742 per day. We further reached an
    agreement to charter the vessel for 10.5 to 13.5 months at a rate of
    $20,000 per day, less a 5% third-party commission. The vessel is expected
    to enter into the time charter following the completion of its previous
    time charter on or about January 16, 2010.
    (7) We have reached an agreement to charter the vessel for 10.5 to 13.5
    months at a rate of $24,000 per day, less a 5% third-party commission.
    The vessel is expected to enter into the time charter following the
    completion of its previous time charter on or about January 8, 2010.
    (8) 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. We extended the charter party by an
    additional 5 to 7.5 months starting November 5, 2009. In addition to a
    1.25% third-party brokerage commission, the charter party calls for a
    management fee.
    (9) 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.
    (10) We have reached an agreement to enter these vessels into a spot pool
    managed by Lauritzen Bulkers beginning at the expiration of their current
    time charters in August 2009.  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: (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; 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