Genco Shipping & Trading Limited Announces Plan to Extend Time Charters for Five Handysize Vessels
19 März 2007 - 2:30PM
PR Newswire (US)
Increases Time Charter Coverage to 84% for the Remainder of 2007
and 39% for 2008 NEW YORK, March 19 /PRNewswire-FirstCall/ -- Genco
Shipping & Trading Limited (NASDAQ:GSTL) today announced it has
reached agreements to extend the time charters for five Handysize
vessels currently on charter with Lauritzen Bulkers A/S. The
Company intends to extend the time charters for the 1999-built
Genco Reliance, the 1999-built Genco Explorer, the 1999-built Genco
Pioneer, the 1999-built Genco Progress, and the 1998-built Genco
Sugar with Lauritzen Bulkers A/S for an additional 23 to 25 months
at a rate of $19,500 per vessel per day, less a 5% third party
brokerage commission. The time charters, subject to the completion
of definitive agreements, are scheduled to commence on September 5,
2007 upon the expiration of the vessels' current time charters.
Robert Gerald Buchanan, President, said, "We are pleased to extend
the time charters for our five Handysize vessels with Lauritzen
Bulkers at a gross rate more than 44% higher than the previous
level. These agreements are consistent with our strategy to
capitalize on strong market conditions and lock in favorable rates
over the long term. Currently, we have approximately 84% of our
fleet's available days secured on contracts for the remainder of
2007 and 39% already for 2008. We believe our additional long-term
time charter coverage enhances our revenue and earnings visibility
and further strengthens our position to distribute significant
dividends to our shareholders." The following table sets forth
information about the employment of Genco's fleet: Time Charter
Vessel Charterer Charter Expiration (1) Rate (2) Panamax Vessels
Genco Beauty Cargill April 2007 $29,000 Genco Knight BHP April 2007
29,000 Genco Leader A/S Klaveness December 2008 25,650(3) Genco
Trader Baumarine AS October 2007 25,750(3) Genco Vigour BHP April
2007 29,000 STX Panocean (UK) 23 to 25 months from 29,000(4) Co.
Ltd. delivery to new charterer Genco Acheron Global Maritime March
2007 28,500 Investments Ltd. STX Panocean (UK) February 2008
30,000(5) Co. Ltd. Genco Surprise Cosco Bulk Carrier November 2007
25,000 Co., Ltd. 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 February
2008 24,000(6) Chartering Ltd. Genco Prosperity DS Norden April
2007 23,000 A/C Pacific Basin 11 to 13 months from 26,000
Chartering Ltd. delivery to new charterer Genco Wisdom HMMC
November 2007 24,000 Genco Marine NYK Europe March 2007 18,000(7)
February 2008 24,000 Genco Muse Qatar Navigation QSC September 2007
26,500(8) Handysize Vessels Genco Explorer Lauritzen Bulkers A/S
September 2007 13,500 August 2009 19,500 Genco Pioneer Lauritzen
Bulkers A/S September 2007 13,500 August 2009 19,500 Genco Progress
Lauritzen Bulkers A/S September 2007 13,500 August 2009 19,500
Genco Reliance Lauritzen Bulkers A/S September 2007 13,500 August
2009 19,500 Genco Sugar Lauritzen Bulkers A/S September 2007 13,500
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 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 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. (5) 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. (6) The estimated charter expiration is based on the
time charter beginning in March 2007, the earliest possible
termination of the previous charterer. (7) 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 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. (8) 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 owns 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 Lauritzen Bulkers A/S for the time charters 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 and our reports on Form 8-K.
DATASOURCE: 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/
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