Expands Time Charter Coverage to 86% for 2008 and 59% for 2009 NEW YORK, May 19
NEW YORK, May 19 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has reached an agreement to
commence a time charter for the Genco Acheron, a 1999-built Panamax vessel,
with ArcelorMittal for 35 to 37.5 months at a rate of $55,250 per day, less a
3.75% third party brokerage commission.
The Genco Acheron is expected to complete its scheduled drydocking near
the end of June 2008 following the expiration of the current charter. Genco
plans to commence the new time charter with ArcelorMittal following the
vessel's drydocking near the end of July 2008. The time charter is subject to
completion of definitive documentation.
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 Revenue
Charter DailyDaily Expected
Year Expiration Rate Rate Delivery
VesselBuilt Charterer (1)(2) (3)(4)
Capesize
Vessels
Genco 2007 Cargill December 45,26362,750-
Augustus International2009
S.A.
Genco 2007 Cargill January45,26362,750-
Tiberius International2010
S.A.
Genco 2007 SK Shipping August 57,50064,250-
London Co., Ltd 2010
Genco 2007 Cargill September 45,000(5) 46,250-
Titus International2011
S.A.
Genco 2008 Cargill August 52,750(5) -
Constant- International2012
ineS.A.
Genco 2008 To be determined TBD TBD Q4 2008
Hadrian (6) ("TBD")
Genco 2009 TBD TBD TBD Q2 2009
Commodus (6)
Genco 2009 TBD TBD TBD Q2 2009
Maximus (6)
Genco 2009 TBD TBD TBD Q3 2009
Claudius (6)
Panamax Vessels
Genco 1999 Cargill May 2009 31,500 -
Beauty International
S.A.
Genco 1999 SK Shipping Ltd. May 2009 37,700 -
Knight
Genco 1999 A/S KlavenessDecember 25,650(7) -
Leader 2008
Genco 1999 STX Panocean March 29,000(8) -
Vigour (UK) Co. Ltd.2009
Genco 1999 Armada June 2008 74,500(9) -
Acheron Shipping S.A.
ArcelorMittalJuly 2011 55,250
Genco 1998 Hanjin Shipping December
Surprise Co., Ltd.2010 42,100 -
Genco 2007 TBD TBD TBD Q3 2008
Raptor
Genco 2007 TBD TBD TBD Q4 2008
Thunder
Supramax Vessels
Genco 2005 Oldendorff GmbH June 55,000 -
Predator & Co. KG.2008
Genco 2005 Hyundai Merchant November 38,750 -
WarriorMarine Co. Ltd. 2010
Genco 2007 Pacific BasinJune
Hunter Chartering Ltd. 2008 -
60,000(10)
24 to 26.5
Genco 2007 Samsun Logix months from
Cavalier Corporation delivery Q3 2008
50,500(11)
Handymax Vessels
Genco Korea Line February
Success 1997 Corporation 2011 33,000(12) -
Genco Louis DreyfusMarch
Carrier 1998 Corporation 2011 37,000(13) -
Genco
Prosper- Pacific BasinJuly
ity 1997 Chartering Ltd. 2008 26,000 -
Pacific BasinJune
Chartering Ltd 2011
37,000(14)
Genco Hyundai Merchant February
Wisdom1997 Marine Co. Ltd. 2011 -
34,500(15)
Genco NYK Bulkship March
Marine1996 Europe S.A. 2009 47,000 -
GencoJuly
Muse 2001 Norden A/S 2008 47,650 -
Handysize Vessels
Genco LauritzenAugust
Explorer 1999 Bulkers A/S 2009 19,500 -
Genco LauritzenAugust
Pioneer 1999 Bulkers A/S 2009 19,500 -
Genco LauritzenAugust
Progress 1999 Bulkers A/S 2009 19,500 -
Genco LauritzenAugust
Reliance 1999 Bulkers A/S 2009 19,500 -
Genco LauritzenAugust
Sugar 1998 Bulkers A/S 2009 19,500 -
Genco Pacific BasinNovember
Charger 2005 Chartering Ltd. 2010 24,000 -
Genco
Challen- Pacific BasinNovember
ger 2003 Chartering Ltd. 2010 24,000 -
Genco Pacific BasinDecember
Champion 2006 Chartering Ltd. 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, 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 has the option to extend the charter for a period of one year.
(2) Time charter rates presented are the gross daily charterhire rates
before third party commissions ranging from 1.25% to 6.25%, except as
indicated for the Genco Leader in note 7 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) 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) The time charter rate presented is the net daily charterhire rate.
There are no payments of commissions associated with this time charter.
(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 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 on May 5, 2007, following the
expiration of the vessel's previous time charter.
(9) We have entered into a short-term time charter with Armada Shipping
S.A. for one trip at a rate of $74,500 per day less a 5% third-party
commission. The new charter commenced on April 18, 2008, following the
expiration of the previous charter, and is expected to be completed at the end
of June 2008. Upon the completion of the new time charter, the vessel is
expected to complete its drydocking before commencing subsequent time
charters.
(10) We have reached an agreement to extend the time charter for an
additional three to 5.5 months at a rate of $60,000 per day, less a 5% third-
party commission. The new charter commenced on March 6, 2008, following the
expiration of the previous charter.
(11) We intend to acquire this vessel from Bocimar International N.V., and
Delphis N.V. with an at-market time charter for 24 to 26.5 months at a rate of
$50,500 per day less a 5% third-party commission. The time charter is expected
to commence upon delivery to us, which is estimated to occur in the third
quarter of 2008. The acquisition is subject to the completion of customary
additional documentation, including a novation of the existing charter for
this vessel, and closing conditions. We are currently negotiating certain
changes to the existing charter. If we cannot reach an agreement on these
changes, we may exercise our right to cancel the acquisition of this vessel.
(12) We recently 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. The new charter commenced on March 1, 2008,
following the expiration of the previous charter.
(13) We have reached an agreement to commence a time charter for 34 to
37.5 months at a rate of $37,000 per day less a 5% third-party commission. The
new charter commenced on May 17, 2008, following the expiration of the
previous charter.
(14) We recently extended the time charter for an additional 35 to 37.5
months at a rate of $37,000 per day less a 5% third-party commission. The new
charter is scheduled to commence on July 10, 2008, following the expiration of
the previous charter.
(15) We recently extended the time charter for an additional 35 to 37.5
months at a rate of $34,500 per day less a 5% third-party commission. The new
charter commenced on March 1, 2008, following the expiration of the previous
charter.
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 28 drybulk vessels
consisting of five Capesize, six Panamax, three Supramax, six Handymax and
eight Handysize vessels, with an aggregate carrying capacity of approximately
2,020,000 dwt. After the expected delivery of the four remaining Capesize
vessels from companies within the Metrostar Management Corporation group and
three drybulk vessels from Bocimar International N.V. and Delphis N.V., 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
2,910,000 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 terms and conditions of
any definitive documentation that the Company may execute with ArcelorMittal
for the time charter for the Genco Acheron described above; (ii) the terms and
conditions of any definitive documentation that the Company may execute with
Pacific Basin Chartering Ltd. for the time charter for the Genco Prosperity;
(ii) the fulfillment of the closing conditions under the Company's agreement
to acquire the remaining four drybulk vessels from companies within the
Metrostar Management Corporation group; (iii) the execution of customary
additional documentation for the Company's agreements to acquire the three
Bocimar International N.V. and Delphis N.V. drybulk vessels, including a
novation of the existing charter for the Supramax vessel; (iv) the fulfillment
of the closing conditions under the Company's agreement to acquire the three
Bocimar International N.V. and Delphis N.V. drybulk vessels; (v) increases in
costs and expenses including but not limited to: crew wages, insurance,
provisions, repairs, maintenance and general and administrative expenses; (vi)
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, 2007, our Quarterly
Reports on Form 10-Q, and our reports on Form 8-K.
SOURCE Genco Shipping & Trading Limited
