Appoints Chartering Manager
NEW YORK, Jan. 18 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (Nasdaq: GSTL) today announced it has reached an agreement in
principle to extend the time charter for the Genco Marine, a 1996-built
Handymax vessel currently on charter with NYK Bulkship Europe S.A. The
extended time charter would be for an additional eleven to thirteen months at
a rate of $24,000 per day, less a 5% third party brokerage commission. The
time charter, subject to completion of definitive documentation, would
commence following the expiration of the vessel's current time charter on or
about March 29, 2007.
Robert Gerald Buchanan, President, said, "Genco continues to take
advantage of the strong rate environment as we extend our time charter for the
Genco Marine at an improved rate with NYK Bulkship Europe S.A., a leading
international charterer. Upon signing this agreement, we will have
successfully increased our time charter coverage for 2007 and will have
secured approximately 61% of our fleet's available days on contracts for the
year. Consistent with our strategy and focus on providing shareholders with
stable and substantial dividends, we intend to continue to seek opportunities
to lock in the majority of our vessels on favorable time charters."
The Company also announced it has named Matthew Doherty as Chartering
Manager, effective immediately. In the new position, Mr. Doherty will be
responsible for managing the daily chartering activities for Genco's 20-vessel
fleet. Mr. Doherty brings 25 years of experience in the shipping industry,
including extensive chartering responsibilities. Prior to joining Genco, he
served in the chartering department of General Maritime Management LLC since
2000.
The following table sets forth information about the current employment of
Genco's fleet after giving effect to the new time charter:
Vessel Expiration Time Charter
Vessel Type Date(1) Rates (2)
1 Genco Beauty Panamax February 2007 $29,000
2 Genco Knight Panamax February 2007 $29,000
3 Genco Leader Panamax January 2009 $25,650 (3)
4 Genco Trader Panamax October 2007 $25,750 (4)
5 Genco Vigour Panamax December 2006 $29,000
6 Genco Acheron Panamax January 2007 $28,500
11 to 13 months from
delivery to new charterer $30,000 (5)
7 Genco Surprise Panamax November 2007 $25,000
8 Genco Muse Handymax September 2007 $26,500 (6)
9 Genco Marine Handymax March 2007 $18,000 (7)
February 2008 $24,000
10 Genco Prosperity Handymax March 2007 $23,000
11 Genco Carrier Handymax December 2006 $24,000
11 to 13 months from
delivery to new charterer $24,000 (8)
12 Genco Wisdom Handymax January 2007 $24,000
December 2007 $24,000 (9)
13 Genco Success Handymax January 2007 $23,850
January 2008 $24,000 (10)
14 Genco Glory Handymax December 2006 $18,250
15 Genco Commander Handymax October 2007 $19,750
16 Genco Explorer Handysize July 2007 $13,500
17 Genco Pioneer Handysize August 2007 $13,500
18 Genco Progress Handysize August 2007 $13,500
19 Genco Reliance Handysize July 2007 $13,500
20 Genco Sugar Handysize July 2007 $13,500
(1) The dates presented on this table represent the earliest dates that
our charters may be terminated. Except with respect to the Genco Trader and
Genco Leader charters, under the terms of the contracts, charterers are
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 5% to third
parties. In a time charter, the charterer is responsible for voyage expenses
such as bunkers, port expenses, agents' fees and canal dues.
(3) The Genco Leader delivered to the charterer for the commencement of
the time charter on January 15, 2007. The time charter rate presented is the
net daily charterhire rate. There are no payments of brokerage commissions
associated with this time charter agreement. Time charter rate agreed to in
principle is subject to the completion of definitive documentation acceptable
to both Genco and AS Klaveness Chartering.
(4) The Genco Trader delivered to the charterer for the commencement of
the time charter on December 23, 2006. The time charter rate presented is the
net daily charterhire rate. There are no payments of brokerage commissions
associated with this time charter agreement. Time charter rate agreed to in
principle is subject to the completion of definitive documentation to both
Genco and Baumarine AS.
(5) The Company has reached an agreement in principle to commence a time
charter for eleven to thirteen months at a rate of $30,000 per day less a 5%
third party brokerage commission. The time charter rate agreed to in principle
is subject to the completion of definitive documentation acceptable for both
Genco and STX Panocean Co. Ltd.
(6) Since this vessel was acquired with an existing time charter at an
above market rate, the Company allocates the purchase price between the vessel
and a deferred asset for the value assigned to the above market charterhire.
This deferred asset is amortized as a reduction to voyage revenues over the
remaining term of the charter, resulting in a daily rate of approximately
$21,500 recognized as revenue. For cash flow purposes, the Company will
continue to receive $26,500 per day less commissions.
(7) The time charter rate was $26,000 until March 2006 and $18,000
thereafter. For purposes of revenue recognition, the charter contract is
reflected on a straight-line basis in accordance with GAAP. The time charter
rate agreed to in principle is subject to the completion of definitive
documentation acceptable for both Genco and NYK Bulkship Europe S.A.
(8) Time charter rate agreed to in principle is subject to the completion
of definitive documentation acceptable to both Genco and Pacific Basin
Chartering Ltd.
(9) The Company extended the time charter for an additional eleven to
thirteen months at a rate of $24,000 per day, less a 5% third party brokerage
commission. The extended time charter commenced on January 14, 2007. The
extension is subject to completion of definitive documentation acceptable to
both Genco and Hyundai Merchant Marine Co., Ltd.
(10) The Company extended the time charter for an additional eleven to
thirteen months at a rate of $24,000 per day, less a 5% third party brokerage
commission. The time charter would commence February 1, 2007 following the
expiration of the vessel's current time charter in January 2007. The extension
is subject to completion of definitive documentation acceptable to both Genco
and Korea Line Corporation.
About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited transports iron ore, coal, grain, steel
products and other drybulk cargoes along worldwide shipping routes. Currently,
Genco Shipping & Trading Limited owns a fleet of 20 drybulk vessels,
consisting of seven Panamax, eight Handymax and five Handysize vessels, with a
carrying capacity of approximately 1,029,000 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 report are the terms and conditions of any
definitive documentation that the Company may execute with NYK Bulkship Europe
S.A. for the time charter described above, 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, 2005, our Quarterly Reports on Form 10-Q, and our reports
on Form 8-K. Our ability to pay dividends in any period will depend upon
factors including the limitations under our loan agreements, applicable
provisions of Marshall Islands law and the final determination by the Board of
Directors each quarter after its review of our financial performance. The
timing and amount of dividends, if any, could also be affected by factors
affecting cash flows, results of operations, required capital expenditures, or
reserves. As a result, the amount of dividends actually paid may vary.
SOURCE Genco Shipping & Trading Limited
CONTACT:
John C. Wobensmith
Chief Financial Officer
Genco Shipping &
Trading Limited
1-646-443-8555
Web site:
http://www.gencoshipping.com
