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Genco Shipping & Trading Limited Takes Delivery of Two Supramax VesselsNEW YORK, Dec. 21 /PRNewswire-FirstCall/ -- 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:
Cash Revenue Expected
Year Charterer Daily Daily Delivery
Vessel Built Charter Expiration(1) Rate(2) Rate(3) (4)
Capesize Vessels
Genco Augustus 2007 Cargill December 45,263 62,750 -
Inter- 2009
national
S.A.
Genco Tiberius 2007 Cargill January 45,263 62,750 -
Inter- 2010
national
S.A.
Genco London 2007 SK Shipping August 57,500 64,250
Co., Ltd 2010
Genco Titus 2007 Cargill November 45,000(5) 46,250 -
Inter- 2011
national
S.A.
Genco
Constantine 2008(6) Cargill 54 to 62
Inter- months from 52,750(7) Q2 2008
national delivery date
S.A.
Genco Hadrian 2008(6) To be TBD TBD Q4 2008
determined
("TBD")
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 May 31,500 -
Inter- 2009
national
S.A.
Genco Knight 1999 SK Shipping May 37,700 -
Ltd. 2009
Genco Leader 1999 A/S Klaveness December 25,650(8) -
2008
Genco Trader(9) 1990 Baumarine AS January 25,750(8) -
2008
Genco Vigour 1999 STX Panocean March 29,000(10) -
(UK) Co. Ltd. 2009
Genco Acheron 1999 STX Panocean February 30,000 -
(UK) Co. Ltd. 2008
Genco Surprise 1998 Cosco Bulk January 25,000 -
Carrier 2008
Co., Ltd.
Hanjin Shipping 35 to 37 42,100 -
Co., Ltd. months from
delivery to
new charterer
Supramax Vessels
Genco Predator 2005 Intermare
Transport GmbH January 22,500(11) 41,000 -
2008
Genco Warrior 2005 Hyundai November 38,750 -
Merchant 2010
Marine
Co. Ltd.
Genco Hunter 2007 Pacific March 65,000 -
Basin 2008
Chartering
Ltd.
Handymax Vessels
Genco Success 1997 Korea Line March 2008/ 24,000/ -
Corporation January 2011 33,000(12)
Genco Carrier 1998 Pacific February 24,000 -
Basin 2008
Chartering
Ltd.
Genco
Prosperity 1997 Pacific April 26,000 -
Basin 2008
Chartering
Ltd.
Genco Wisdom 1997 Hyundai February 24,000 -
Merchant 2008(13)
Marine January 34,500
Co. Ltd. 2011
Genco Marine 1996 NYK February 24,000 -
Bulkship 2008
Europe S.A.
Genco Muse 2001 Oldendorff March 58,000 -
GmbH & Co. 2008
KG.
Handysize Vessels
Genco Explorer 1999 Lauritzen August 19,500 -
Bulkers A/S
2009
Genco Pioneer 1999 Lauritzen August 19,500 -
Bulkers A/S
2009
Genco Progress 1999 Lauritzen August 19,500 -
Bulkers A/S 2009
Genco Reliance 1999 Lauritzen August 19,500 -
Bulkers A/S 2009
Genco Sugar 1998 Lauritzen August 19,500 -
Bulkers A/S
2009
Genco Charger 2005 Pacific November 24,000 -
Basin 2010
Chartering
Ltd.
Genco
Challenger 2003 Pacific November 24,000 -
Basin 2010
Chartering
Ltd.
Genco Champion 2006 Pacific 35 to 37.5 24,000 Q1 2008
Basin months from
Chartering delivery
Ltd. date
(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 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. |
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