Genco Shipping & Trading Limited Announces Plan to Sign Time Charter for Panamax Vessel
Increases Time Charter Coverage to 70% for 2010
NEW YORK, May 12 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has reached an agreement to sign a time charter for the Genco Beauty, a 1999-built Panamax vessel, with D/S Norden A/S, Copenhagen for approximately 11 to 13.5 months at a rate of $27,000 per day, less a 5% third-party brokerage commission. The time charter is expected to commence following the expiration of the vessel's current time charter on or about May 17, 2010 and is subject to the completion of definitive documentation. Currently, Genco has approximately 70% of its fleet's estimated available days secured on contracts for the remainder of 2010.
The following table reflects the current employment of Genco's current fleet:
Vessel (1) |
Year Built |
Charterer |
Charter Expiration (2) |
Cash Daily Rate (3) |
Net Revenue Daily Rate (4) |
|
Capesize Vessels |
||||||
Genco Augustus |
2007 |
Cargill International S.A. |
December 2010 |
39,000 |
||
Genco Tiberius |
2007 |
Cargill International S.A. |
May 2010 |
38,000 |
||
Genco London |
2007 |
SK Shipping Co., Ltd |
August 2010 |
57,500 |
64,250 |
|
Genco Titus |
2007 |
Cargill International S.A. |
September 2011 |
45,000(5) |
46,250 |
|
Genco Constantine |
2008 |
Cargill International S.A. |
August 2012 |
52,750(5) |
||
Genco Hadrian |
2008 |
Cargill International S.A. |
October 2012 |
65,000(5) |
||
Genco Commodus |
2009 |
Morgan Stanley Capital Group Inc. |
June 2011 |
36,000 |
||
Genco Maximus |
2009 |
Cargill International S.A. |
June 2010 |
32,000 |
||
Genco Claudius |
2010 |
Cargill International S.A. |
November 2010 |
36,000 |
||
Panamax Vessels |
||||||
Genco Beauty |
1999 |
LD Commodities Suisse, Geneva D/S Norden A/S, Copenhagen |
May 2010 April 2011 |
19,125 27,000 |
||
Genco Knight |
1999 |
Swissmarine Services S.A. |
March 2011 |
25,000 |
||
Genco Leader |
1999 |
Klaveness Chartering |
December 2010 |
20,000 |
||
Genco Vigour |
1999 |
Global Maritime Investments Ltd. |
November 2010 |
24,000 |
||
Genco Acheron |
1999 |
Global Chartering Ltd (a subsidiary of ArcelorMittal Group) |
July 2011 |
55,250 |
||
Genco Surprise |
1998 |
Hanjin Shipping Co., Ltd. |
December 2010 |
42,100 |
||
Genco Raptor |
2007 |
COSCO Bulk Carriers Co., Ltd. |
April 2012 |
52,800 |
||
Genco Thunder |
2007 |
Klaveness Chartering |
June 2010 |
20,000 |
||
Supramax Vessels |
||||||
Genco Predator |
2005 |
Pacific Basin Chartering Ltd. |
April 2011 |
22,500 |
||
Genco Warrior |
2005 |
Hyundai Merchant Marine Co. Ltd. |
November 2010 |
38,750 |
||
Genco Hunter |
2007 |
Pacific Basin Chartering Ltd. |
February 2011 |
21,750 |
||
Genco Cavalier |
2007 |
Clipper Bulk Shipping NV |
June 2010 |
20,000 |
||
Handymax Vessels |
||||||
Genco Success |
1997 |
Korea Line Corporation |
February 2011 |
33,000(6) |
||
Genco Carrier |
1998 |
Louis Dreyfus Corporation |
March 2011 |
37,000 |
||
Genco Prosperity |
1997 |
Pacific Basin Chartering Ltd |
June 2011 |
37,000 |
||
Genco Wisdom |
1997 |
Hyundai Merchant Marine Co. Ltd. |
February 2011 |
34,500 |
||
Genco Marine |
1996 |
STX Pan Ocean Co. Ltd. |
April 2011 |
20,000 |
||
Genco Muse |
2001 |
Global Maritime Investments Ltd. |
December 2010 |
17,750 |
||
Handysize Vessels |
||||||
Genco Explorer |
1999 |
Lauritzen Bulkers A/S |
August 2010 |
Spot(7) |
||
Genco Pioneer |
1999 |
Lauritzen Bulkers A/S |
August 2010 |
Spot(7) |
||
Genco Progress |
1999 |
Lauritzen Bulkers A/S |
May 2011 |
Spot(7) |
||
Genco Reliance |
1999 |
Lauritzen Bulkers A/S |
May 2011 |
Spot(7) |
||
Genco Sugar |
1998 |
Lauritzen Bulkers A/S |
May 2011 |
Spot(7) |
||
Genco Charger |
2005 |
Pacific Basin Chartering Ltd. |
November 2010 |
24,000 |
||
Genco Challenger |
2003 |
Pacific Basin Chartering Ltd. |
November 2010 |
24,000 |
||
Genco Champion |
2006 |
Pacific Basin Chartering Ltd. |
December 2010 |
24,000 |
||
(1) References to Genco's vessels and fleet in this press release exclude vessels owned by Genco's subsidiary, Baltic Trading Limited. (2) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Except for the Genco Titus, Genco Constantine, and Genco Hadrian under the terms of each contract, the charterer is entitled to extend the 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 and Genco Hadrian has the option to extend the charter for a period of one year. The Genco Constantine has the option to extend the charter for a period of eight months. (3) Time charter rates presented are the gross daily charterhire rates before third-party commissions generally ranging from 1.25% to 5.00%. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues. (4) 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 "Net 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 vessels 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. The minimum remaining term for the Genco Tiberius expired on January 13, 2010, the Genco London expires on August 30, 2010 and the Genco Titus on September 16, 2011 at which point the respective liabilities are amortized to zero and the vessels begin earning the "Cash Daily Rate". For cash flow purposes, we will continue to receive the rate presented in the "Cash Daily Rate" column until the charter expires. (5) These charters include a 50% index-based profit sharing component above the respective base rates listed in the table. The profit sharing between the charterer and us for each 15-day period is calculated by taking the average over that period of the published Baltic Cape Index of the four time charter routes, as reflected in daily reports. If such average is more than the base rate payable under the charter, the excess amount is allocable 50% to each of the charterer and us. A third-party brokerage commission of 3.75% based on the profit sharing amount due to us is payable out of our share. (6) We extended the time charter for an additional 35 to 37.5 months at a rate of $40,000 per day for the first 12 months, $33,000 per day for the following 12 months, $26,000 per day for the next 12 months and $33,000 per day thereafter less a 5% third-party commission. In all cases, the rate for the duration of the time charter will average $33,000 per day. For purposes of revenue recognition, the time charter contract is reflected on a straight-line basis at approximately $33,000 per day for 35 to 37.5 months in accordance with U.S. GAAP. (7) We have reached an agreement to enter these vessels into the LB/IVS Pool whereby Lauritzen Bulkers A/S acts as the pool manager. We can withdraw up to two vessels with three months' notice and the remaining three vessels with 12 months' notice. |
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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 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,903,000 dwt. In addition, after the delivery of four vessels expected in May and October 2010, our subsidiary Baltic Trading Limited will own a fleet of six drybulk vessels, consisting of two Capesize and four Supramax vessels with an aggregate carrying capacity of approximately 566,000 dwt. References to Genco's vessels and fleet in this press release exclude vessels owned by Baltic Trading Limited.
"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 include, without limitation, statements with respect to the commencement of time charters and 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 the following: the completion of definitive documentation with respect to time charters; and other factors listed from time to time under "Risk Factors" and other sections of our public filings with the Securities and Exchange Commission including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and its subsequently filed reports on form 8-K.
SOURCE Genco Shipping & Trading Limited
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