NEW YORK, Aug. 20 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) today announced that it has taken delivery of the Genco
Augustus, a January 2007-built 180,000 dwt Capesize vessel. The Genco Augustus
is the first vessel to be delivered to the Company under Genco's previously
announced agreement on July 18, 2007 to acquire nine Capsize vessels from
companies within the Metrostar Management Corporation group.
The Genco Augustus 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 December 2009 and April 2010.
The following table reflects the employment of Genco's current fleet after
giving effect to the delivery of the Genco Augustus:
Vessel Charterer Charter Time Charter
Expiration (1) Rate (2)
Capesize
Vessel
Genco Cargill
Augustus International S.A. December 2009 $45,263(3)
Panamax
Vessels
Genco Cargill
Beauty International S.A. May 2009 31,500
Genco
Knight SK Shipping Ltd. May 2009 37,700(4)
Genco
Leader A/S Klaveness December 2008 25,650(5)
Genco
Trader Baumarine AS October 2007 25,750(5)
Genco STX Panocean
Vigour (UK) Co. Ltd. March 2009 29,000(6)
Genco STX Panocean
Acheron (UK) Co. Ltd. February 2008 30,000(7)
Genco Cosco Bulk
Surprise Carrier Co., Ltd. November 2007 25,000
Handymax
Vessels
Genco
Success KLC January 2008 24,000
Genco
Commander A/S Klaveness October 2007 19,750
Genco Pacific Basin
Carrier Chartering Ltd. February 2008 24,000
Genco A/C Pacific Basin
Prosperity Chartering Ltd. April 2008 26,000
Genco
Wisdom HMMC November 2007 24,000
Genco NYK Bulkship
Marine Europe S.A. February 2008 24,000(8)
Genco Qatar Navigation
Muse QSC September 2007 26,500(9)
Handysize
Vessels
Genco Lauritzen Bulkers September 2007 13,500
Explorer A/S August 2009 19,500
Genco Lauritzen Bulkers September 2007 13,500
Pioneer A/S August 2009 19,500
Genco Lauritzen Bulkers September 2007 13,500
Progress A/S August 2009 19,500
Genco Lauritzen Bulkers September 2007 13,500
Reliance A/S August 2009 19,500
Genco Lauritzen Bulkers September 2007 13,500
Sugar A/S August 2009 19,500
(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) 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.
(4) A new time charter for 23 to 25 months at a rate of $37,700 per day
less a 6.25% third party commission commenced following the expiration of the
vessel's previous time charter on June 30, 2007.
(5) 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.
(6) 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.
(7) The vessel was delivered to the charterer for the commencement of the
time charter on March 20, 2007.
(8) The vessel was delivered to the charterer for the commencement of the
time charter on March 29, 2007.
(9) 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 20 drybulk vessels
consisting of one Capesize, seven Panamax, seven Handymax and five Handysize
vessels, with a carrying capacity of approximately 1,168,000 dwt. After the
delivery of six vessels from affiliates of Evalend Shipping Co. S.A. and the
eight 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) execution of additional
definitive documentation for the Company's agreements to acquire the six
Evalend drybulk vessels; (ii) the fulfillment of the closing conditions under
the Company's agreements to acquire the six Evalend drybulk vessels; (iii) the
fulfillment of the closing conditions under the Company's agreement to acquire
the nine Metrostar drybulk vessels; (iv) increases in costs and expenses
including but not limited to: crew wages, insurance, provisions, repairs,
maintenance and general and administrative expenses; (v) 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.
SOURCE Genco Shipping & Trading Limited
CONTACT:
John C. Wobensmith,
Chief Financial Officer of Genco Shipping &
Trading Limited,
+1-646-443-8555
Web site: http://www.gencoshipping.com
(GNK)
