Exhibit 99.1
CONTACT:
John C. Wobensmith
Chief Financial Officer
Genco Shipping & Trading Limited
(646) 443-8555
Genco Shipping & Trading Limited Takes Delivery of Second Capesize Vessel
NEW YORK, August 28, 2007 – Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Tiberius, a January 2007-built 175,000 dwt Capesize vessel. The Genco Tiberius is the second vessel to be delivered to the Company under Genco’s previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group.
The Genco Tiberius is currently on charter with Cargill International S.A. at a rate of $45,263 per day, less a 5% third party brokerage commission. The charter is due to expire between January 2010 and May 2010.
The following table reflects the current employment of Genco’s existing fleet as well as the employment or other status of vessels expected to join Genco’s fleet:
| | | | |
| | | | | |
Capesize Vessels | | | | |
| Genco Augustus | Cargill International S.A. | December 2009 | $45,263(4) | - |
| Genco Tiberius | Cargill International S.A. | January 2010 | 45,263(4) | - |
| Genco London | SK Shipping Co., Ltd | September 2010 | 57,500(4)(5) | Q4 2007 |
| Genco Titus | Cargill International S.A. | December 2011 | 45,000(4)(6) | Q4 2007 |
| Genco Constantine | To be determined (“TBD”) | TBD | TBD | Q2 2008 |
| Genco Hadrian | TBD | TBD | TBD | Q4 2008 |
| Genco Commodus | TBD | TBD | TBD | Q2 2009 |
| Genco Maximus | TBD | TBD | TBD | Q2 2009 |
| Genco Claudius | TBD | TBD | TBD | Q3 2009 |
| | | | | |
Panamax Vessels | | | | |
| Genco Beauty | Cargill International S.A. | May 2009 | 31,500 | - |
| Genco Knight | SK Shipping Ltd. | May 2009 | 37,700 | - |
| Genco Leader | A/S Klaveness | December 2008 | 25,650(7) | - |
| Genco Trader | Baumarine AS | October 2007 | 25,750(7) | - |
| Genco Vigour | STX Panocean (UK) Co. Ltd. | March 2009 | 29,000(8) | - |
| Genco Acheron | STX Panocean (UK) Co. Ltd. | February 2008 | 30,000 | - |
| Genco Surprise | Cosco Bulk Carrier Co., Ltd. | November 2007 | 25,000 | - |
| | | | | |
Supramax Vessels | | | | |
| Genco Predator | Intermare Transport GmbH | January 2008 | 22,500 (9) | Q4 2007 |
| Genco Warrior | TBD | TBD | TBD | Q4 2007 |
| Genco Hunter | TBD | TBD | TBD | Q4 2007 |
| | | | | |
Handymax Vessels | | | | |
| Genco Success | KLC | January 2008 | 24,000 | - |
| Genco Commander | A/S Klaveness | October 2007 | 19,750 | - |
| Genco Carrier | Pacific Basin Chartering Ltd. | February 2008 | 24,000 | - |
| Genco Prosperity | A/C Pacific Basin Chartering Ltd. | April 2008 | 26,000 | - |
| Genco Wisdom | HMMC | November 2007 | 24,000 | - |
| Genco Marine | NYK Bulkship Europe S.A. | February 2008 | 24,000 | - |
| Genco Muse | Qatar Navigation QSC | September 2007 | 26,500(10) | - |
| | | | | |
Handysize Vessels | | | | |
| Genco Explorer | Lauritzen Bulkers A/S | September 2007 August 2009 | 13,500 19,500 | - |
| Genco Pioneer | Lauritzen Bulkers A/S | September 2007 August 2009 | 13,500 19,500 | - |
| Genco Progress | Lauritzen Bulkers A/S | September 2007 August 2009 | 13,500 19,500 | - |
| Genco Reliance | Lauritzen Bulkers A/S | September 2007 August 2009 | 13,500 19,500 | - |
| Genco Sugar | Lauritzen Bulkers A/S | September 2007 August 2009 | 13,500 19,500 | - |
| Genco Charger | Pacific Basin Chartering Ltd. | 35 to 37.5 months from delivery date | 24,000 | Q4 2007 |
| Genco Challenger | Pacific Basin Chartering Ltd. | 35 to 37.5 months from delivery date | 24,000 | Q4 2007 |
| Genco Champion | Pacific Basin Chartering Ltd. | 35 to 37.5 months from delivery date | 24,000 | Q4 2007 |
(1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. 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.
(2) Time charter rates presented are the gross daily charterhire rates before the payments of brokerage commissions ranging from 1.25% to 6.25% to third parties, except as indicated for the Genco Trader and the Genco Leader in note 4 below. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents’ fees and canal dues.
(3) Dates for vessels delivering in the future are estimates based on guidance received from the sellers and/or respective shipyards.
(4) The time charter rate is below current market rates and therefore will result in a liability that will amortize as an increase to revenue. See Note 2, Summary of Significant Accounting Policies under the caption "Vessel acquisitions" in the footnotes to our financial statements in our Form 10-Q for the quarterly period ended June 30, 2007 for disclosure of our policy.
(5) The Genco London is scheduled to be on charter with SK Shipping Co., Ltd. for 35 to 39 months at a gross rate of $57,500 per day. The charter is due to expire between September 2010 and January 2011.
(6) The Genco Titus is scheduled to be on charter with Cargill International S.A., for 48 months at a gross rate of $45,000 per day. The charter, which is due to expire in December 2011, also includes a 50 percent index-based profit sharing component. The charterer has the option to extend the charter for a period of one year.
(7) For the Genco Leader and the Genco Trader, the time charter rate presented is the net daily charterhire rate. There are no payments of brokerage commissions associated with these time charters.
(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 brokerage 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 following the expiration of the vessel’s previous time charter on May 5, 2007.
(9) The Genco Predator is currently on charter with Intermare Transport GmbH at a gross rate of $22,500 per day. The charter is due to expire between January 2008 and March 2008. The rate is below current market rates and therefore will result in a liability that will amortize as an increase to revenue. See our Summary of Significant Accounting Policies under the caption “Vessel acquisitions” in our footnotes in the June 30, 2007 Form 10-Q for disclosure of our policy.
(10) Since this vessel was acquired with an existing time charter at an above-market rate, we allocated the purchase price between the vessel and an intangible asset for the value assigned to the above-market charterhire. This intangible asset is amortized as a reduction to voyage revenues over the remaining term of the charter, resulting in a daily rate of approximately $22,000 recognized as revenues. For cash flow purposes, we will continue to receive $26,500 per day until the charter expires.
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 21 drybulk vessels consisting of two Capesize, seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 1,343,000 dwt. After the delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the seven remaining vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 34 drybulk vessels, consisting of nine Capesize, seven Panamax, three Supramax, seven Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,814,000 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 the Company’s agreements to acquire the six Evalend drybulk vessels; (ii) the fulfillment of the closing conditions under the Company’s agreement to acquire the nine Metrostar drybulk vessels; (iii) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (iv) 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, 2006, our Quarterly Reports on Form 10-Q, and our reports on Form 8-K.
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