Genco Shipping & Trading Limited Announces Plan to Sign Time Charter for the Genco Prosperity
12 Februar 2007 - 1:25PM
PR Newswire (US)
Increases Time Charter Coverage to 69% for 2007 NEW YORK, Feb. 12
/PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited
(NASDAQ:GSTL) today announced it has reached an agreement to enter
into a time charter for the Genco Prosperity, a 1997-built Handymax
vessel, with A/C Pacific Basin Chartering LTD. The time charter
will be for eleven to thirteen months at a rate of $26,000 per day,
less a 5% third party brokerage commission. The time charter for
the Genco Prosperity will commence following the expiration of the
vessel's current time charter. Robert Gerald Buchanan, President,
said, "We are pleased to have once again reached an agreement to
enter into a time charter with a leading international charterer.
With the new time charter for the Genco Prosperity, we have
achieved a rate that exceeds the vessel's previous level and have
increased our 2007 coverage to 69% of available days for the year.
Going forward, we intend to continue to seek opportunities to take
advantage of a strong freight market and sign additional charters
at rates that are favorable to the Company's breakeven and capital
costs. At the same time, we intend to look for opportunities to
draw upon our strong liquidity position to further consolidate the
industry in a prudent manner that meets our objectives related to
earnings and cash flow accretion as well as return on capital." The
following table sets forth information about the current employment
of Genco's fleet: Vessel Charterer Charter Expiration (1) Time
Charter Rate (2) Panamax Vessels Genco Beauty Cargill March 2007
$29,000 Genco Knight BHP March 2007 29,000 Genco Leader AS
Klaveness December 2008 25,650(3) Genco Trader Baumarine AS October
2007 25,750(3) Genco Vigour BHP March 2007 29,000 Genco Acheron
Global Maritime Investments Ltd. March 2007 28,500 STX Pan Ocean
January 2008 30,000(4) Genco Surprise Cosco Bulk 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
Carrier DBCN Corporation March 2007 24,000 Pacific Basin Chartering
Ltd. January 2008 24,000(5) Genco Prosperity DS Norden March 2007
23,000 A/C Pacific Basin Chartering Ltd. 11 to 13 months from
delivery to new charterer 26,000 Genco Wisdom HMMC November 2007
24,000 Genco Marine NYK Europe March 2007 18,000(6) February 2008
24,000 Genco Muse Qatar Navigation QSC September 2007 26,500(7)
Handysize Vessels Genco Explorer Lauritzen Bulkers July 2007 13,500
Genco Pioneer Lauritzen Bulkers August 2007 13,500 Genco Progress
Lauritzen Bulkers August 2007 13,500 Genco Reliance Lauritzen
Bulkers July 2007 13,500 Genco Sugar Lauritzen Bulkers July 2007
13,500 (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 5% to third parties, except as indicated for
the Genco Trader and the Genco Leader in note 3 below. 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 and the Genco Trader were delivered to the charterer for the
commencement of the time charter on January 15, 2007 and December
24, 2006, respectively. For each of these vessels, the time charter
rate presented is the net daily charterhire rate. There are no
payments of brokerage commissions associated with these time
charters. (4) We have reached an agreement to commence a time
charter for 11 to 13 months at a rate of $30,000 per day, less a 5%
third-party brokerage commission. The estimated charter expiration
is based on the time charter beginning in March 2007, the earliest
possible termination of the previous charterer. (5) The estimated
charter expiration is based on the time charter beginning in March
2007, the earliest possible termination of the previous charterer.
(6) The time charter rate was $26,000 until March 2006 and $18,000
thereafter until March 2007. For purposes of revenue recognition,
the time charter contract through March 2007 is reflected on a
straight- line basis in accordance with generally accepted
accounting principles in the United States, or U.S. GAAP.
Additionally, we have reached an agreement with the current
charterer for an additional 11 to 13 months at a rate of $24,000
per day, less a 5% third-party brokerage commission. (7) 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. After the completion of
the pending sale of the Genco Glory, Genco Shipping & Trading
Limited will own a fleet of 19 drybulk vessels, consisting of seven
Panamax, seven Handymax and five Handysize vessels, with a carrying
capacity of approximately 988,000 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 A/C Pacific Basin Chartering LTD
for the time charter described above or other charters for which
definitive documentation has not yet been executed, 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. DATASOURCE: 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/
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