CONTACT:
John C. Wobensmith
Chief Financial Officer
Genco Shipping & Trading Limited
(646) 443-8555
Genco Shipping & Trading Limited Takes Delivery of Two Supramax Vessels
NEW YORK, December 21, 2007 – Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Predator, a 2005-built Supramax vessel, and the Genco Hunter, a 2007-built Supramax vessel, on December 20, 2007.
The Genco Predator and the Genco Hunter represent the fourth and fifth vessels, respectively, to be delivered to the Company under Genco’s previously announced agreements on August 14, 2007 to acquire six drybulk vessels from affiliates of Evalend Shipping Co. S.A. The remaining vessel, the Genco Champion, is expected to be delivered by the first half of January 2008.
The Genco Predator is currently on charter with Intermare Transport GmbH at a rate of $22,500 per day, less a 4.5% third party brokerage commission, and is expected to be delivered to the charterer by December 22, 2007. The charter is due to expire between January 2008 and March 2008. The Genco Hunter is expected to be delivered to its charterer, Pacific Basin Chartering Ltd., by December 22, 2007 to commence a time charter for 2.5 to 5 months at a rate of $65,000 per day, less a 5% third party brokerage commission.
Genco’s current fleet is comprised of 27 drybulk vessels with a total carrying capacity of approximately 1,880,000 dwt. In addition to the remaining drybulk vessel that Genco expects to take delivery from an affiliate of Evalend Shipping Co. S.A., Genco plans to take delivery of the five remaining Capesize newbuildings from companies within the Metrostar Management Corporation group from the second quarter of 2008 through the third quarter of 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:
| Vessel | Year Built | Charterer | Charter Expiration (1) | Cash Daily Rate (2) | Revenue Daily Rate (3) | Expected Delivery (4) |
| | | | | | | |
| Capesize Vessels | | | | | | |
| Genco Augustus | 2007 | Cargill International S.A. | December 2009 | 45,263 | 62,750 | - |
| Genco Tiberius | 2007 | Cargill International S.A. | January 2010 | 45,263 | 62,750 | - |
| Genco London | 2007 | SK Shipping Co., Ltd | August 2010 | 57,500 | 64,250 | |
| Genco Titus | 2007 | Cargill International S.A. | November 2011 | 45,000(5) | 46,250 | - |
| Genco Constantine | 2008(6) | Cargill International S.A. | 54 to 62 months from delivery date | 52,750(7) | | Q2 2008 |
| Genco Hadrian | 2008(6) | To be determined (“TBD”) | TBD | TBD | | Q4 2008 |
| Genco Commodus | 2009(6) | TBD | TBD | TBD | | Q2 2009 |
| Genco Maximus | 2009(6) | TBD | TBD | TBD | | Q2 2009 |
| Genco Claudius | 2009(6) | TBD | TBD | TBD | | Q3 2009 |
| | | | | | | |
| Panamax Vessels | | | | | | |
| Genco Beauty | 1999 | Cargill International S.A. | May 2009 | 31,500 | | - |
| Genco Knight | 1999 | SK Shipping Ltd. | May 2009 | 37,700 | | - |
| Genco Leader | 1999 | A/S Klaveness | December 2008 | 25,650(8) | | - |
| Genco Trader(9) | 1990 | Baumarine AS | January 2008 | 25,750(8) | | - |
| Genco Vigour | 1999 | STXPanocean (UK) Co. Ltd. | March 2009 | 29,000(10) | | - |
| Genco Acheron | 1999 | STXPanocean (UK) Co. Ltd. | February 2008 | 30,000 | | - |
| Genco Surprise | 1998 | Cosco Bulk Carrier Co., Ltd. | January 2008 | 25,000 | | - |
| | | Hanjin Shipping Co., Ltd. | 35 to 37 months from delivery to new charterer | 42,100 | | - |
| | | | | | | |
| Supramax Vessels | | | | | | |
| Genco Predator | 2005 | Intermare Transport GmbH | January 2008 | 22,500(11) | 41,000 | - |
| Genco Warrior | 2005 | Hyundai Merchant Marine Co. Ltd. | November 2010 | 38,750 | | - |
| Genco Hunter | 2007 | Pacific Basin Chartering Ltd. | March 2008 | 65,000 | | - |
| | | | | | | |
| Handymax Vessels | | | | | | |
| Genco Success | 1997 | Korea Line Corporation | March 2008/ January 2011 | 24,000/ 33,000(12) | | - |
| Genco Carrier | 1998 | Pacific Basin Chartering Ltd. | February 2008 | 24,000 | | - |
| Genco Prosperity | 1997 | Pacific Basin Chartering Ltd. | April 2008 | 26,000 | | - |
| Genco Wisdom | 1997 | Hyundai Merchant Marine Co. Ltd. | February 2008 January 2011 | 24,000(13) 34,500 | | - |
| Genco Marine | 1996 | NYK Bulkship Europe S.A. | February 2008 | 24,000 | | - |
| Genco Muse | 2001 | Oldendorff GmbH & Co. KG. | March 2008 | 58,000 | | - |
| | | | | | | |
| Handysize Vessels | | | | | | |
| Genco Explorer | 1999 | Lauritzen Bulkers A/S | August 2009 | 19,500 | | - |
| Genco Pioneer | 1999 | Lauritzen Bulkers A/S | August 2009 | 19,500 | | - |
| Genco Progress | 1999 | Lauritzen Bulkers A/S | August 2009 | 19,500 | | - |
| Genco Reliance | 1999 | Lauritzen Bulkers A/S | August 2009 | 19,500 | | - |
| Genco Sugar | 1998 | Lauritzen Bulkers A/S | August 2009 | 19,500 | | - |
| Genco Charger | 2005 | Pacific Basin Chartering Ltd. | November 2010 | 24,000 | | - |
| Genco Challenger | 2003 | Pacific Basin Chartering Ltd. | November 2010 | 24,000 | | - |
| Genco Champion | 2006 | Pacific Basin Chartering Ltd. | 35 to 37.5 months from delivery date | 24,000 | | Q1 2008 |
(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, 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 Titushas the option to extend the charter for a period of one year.
(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 8 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 “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) The charter includes a 50 percent index-based profit sharing component.
(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) The Genco Constantine is scheduled to be on charter with Cargill International S.A., for 54 to 62 months at a gross rate of $52,750 per day, less a 5% third party brokerage commission. The charter also includes a 50 percent index-based profit sharing component.
(8) 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.
(9) We have entered into an agreement to sell the Genco Trader to SW Shipping Co., Ltd. for approximately $44 million, less a 2% brokerage commission. The delivery is expected to occur in the first quarter of 2008.
(10) 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.
(11) 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.
(12) We intend to extend the time charter for an additional 35 to 37.5 months at a rate of $33,000 per day less a 5% third party brokerage commission. The new charter will commence following the expiration of the previous charter on March 1, 2008.
(13) We have reached an agreement to extend the time charter for an additional 35 to 37.5 months at a rate of $34,500 per day less a 5% third party brokerage commission. The new charter will commence following the expiration of the previous charter on March 1, 2008.
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 27 drybulk vessels consisting of four Capesize, seven Panamax, three Supramax, six Handymax and seven Handysize vessels, with a carrying capacity of approximately 1,880,000 dwt. After the sale of the Genco Trader as well as the delivery of the one remaining vessel from an affiliate of Evalend Shipping Co. S.A. and the five remaining vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 32 drybulk vessels, consisting of nine Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,700,000 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 agreement to acquire the one remaining Evalend drybulk vessel; (ii) the fulfillment of the closing conditions under the Company’s agreement to acquire the remaining five 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.
