NEW YORK, June 17 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited today announced that it has reached an agreement to commence a time charter for the Genco Raptor, a 2007-built Panamax vessel, with COSCO Bulk Carriers Co., Ltd. for 46 to 50 months at a rate of $52,800 per day, less a 5% third party brokerage commission. The Genco Raptor is one of three drybulk vessels the Company agreed to acquire from Bocimar International N.V. in May 2008. The time charter for the Genco Raptor will commence upon delivery of the vessel and is subject to the completion of definitive documentation.
The following table reflects the current employment of Genco's current fleet as well as the employment or other status of vessels expected to join Genco's fleet:
Net Cash Revenue Charter Daily Daily Expected Year Expiration Rate Rate Delivery Vessel Built Charterer (1) (2) (3) (4) Capesize Vessels Genco 2007 Cargill December 2009 45,263 62,750 - Augustus International S.A. Genco 2007 Cargill January 2010 45,263 62,750 - Tiberius International S.A. Genco London 2007 SK Shipping August 2010 57,500 64,250 - Co., Ltd Genco Titus 2007 Cargill September 2011 45,000(5) 46,250 - International S.A. Genco 2008 Cargill August 2012 52,750(5) - Constantine International S.A. Genco 2008(6) Cargill 46 to 62 months 65,000(5) Q4 2008 Hadrian International from delivery S.A. Genco 2009(6) To be TBD TBD Q2 2009 Commodus determined ("TBD") Genco 2009(6) TBD TBD TBD Q2 2009 Maximus Genco CS 2009(6) TBD TBD TBD Q2 2009 1005 Genco 2009(6) TBD TBD TBD Q3 2009 Claudius Genco CS 1006 2009(6) TBD TBD TBD Q3 2009 Genco 2009(6) TBD TBD TBD Q4 2009 CS 1007 Panamax Vessels Genco Beauty 1999 Cargill May 2009 31,500 - International S.A. Genco Knight 1999 SK Shipping May 2009 37,700 - Ltd. Genco Leader 1999 A/S Klaveness December 2008 25,650(7) - Genco Vigour 1999 STX Panocean March 2009 29,000(8) - (UK) Co. Ltd. Genco 1999 Armada July 2008 74,500(9) - Acheron Shipping S.A. August 2011 55,250 ArcelorMittal Genco 1998 Hanjin December 2010 42,100 - Surprise Shipping Co., Ltd. Genco Raptor 2007 COSCO Bulk 46 to 50 months 52,800 Q3 2008 Carriers Co., from delivery Ltd. Genco 2007 TBD TBD TBD Q4 2008 Thunder Supramax Vessels Genco 2005 Oldendorff July 2008 55,000 - Predator GmbH & Co. KG. Genco 2005 Hyundai November 2010 38,750 - Warrior Merchant Marine Co. Ltd. Genco Hunter 2007 Pacific Basin July 2008 60,000(10) - Chartering Ltd. Genco 2007 Samsun Logix 24 to 26.5 48,500(11) 47,700 Q3 2008 Cavalier Corporation months from delivery Handymax Vessels Genco 1997 Korea Line February 2011 33,000(12) - Success Corporation Genco 1998 Louis Dreyfus March 2011 37,000(13) - Carrier Corporation Genco 1997 Pacific Basin July 2008 26,000 - Prosperity Chartering June 2011 37,000(14) Ltd. Pacific Basin Chartering Ltd Genco Wisdom 1997 Hyundai February 2011 34,500(15) - Merchant Marine Co. Ltd. Genco Marine 1996 NYK Bulkship March 2009 47,000 - Europe S.A. Genco Muse 2001 Norden A/S July 2008 47,650 - Handysize Vessels Genco 1999 Lauritzen August 2009 19,500 - Explorer Bulkers A/S Genco 1999 Lauritzen August 2009 19,500 - Pioneer Bulkers A/S Genco 1999 Lauritzen August 2009 19,500 - Progress Bulkers A/S Genco 1999 Lauritzen August 2009 19,500 - Reliance Bulkers A/S Genco Sugar 1998 Lauritzen August 2009 19,500 - Bulkers A/S Genco 2005 Pacific Basin November 2010 24,000 - Charger Chartering Ltd. Genco 2003 Pacific Basin November 2010 24,000 - Challenger Chartering Ltd. Genco 2006 Pacific Basin December 2010 24,000 - Champion Chartering Ltd. Genco HS 2031 2008 TBD TBD TBD Q4 2008 Genco HS 2032 2008 TBD TBD TBD Q4 2008 Genco HS 2033 2008 TBD TBD TBD Q1 2009
(1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Except for the Genco Titus, 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. The charterer of the Genco Titus has the option to extend the charter for a period of one year.
(2) Time charter rates presented are the gross daily charterhire rates before third party commissions ranging from 1.25% to 6.25%, except as indicated for the Genco Leader in note 7 below. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues.
(3) 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 vessel 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. For cash flow purposes, we will continue to receive the rate presented in the "Cash Daily Rate" column until the charter expires.
(4) Dates for vessels being delivered in the future are estimates based on guidance received from the sellers and/or the respective shipyards.
(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) Year built for vessels being delivered in the future are estimates based on guidance received from the sellers and/or the respective shipyards.
(7) The time charter rate presented is the net daily charterhire rate. There are no payments of commissions associated with this time charter.
(8) 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 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 on May 5, 2007, following the expiration of the vessel's previous time charter.
(9) We have entered into a short-term time charter with Armada Shipping S.A. for one trip at a rate of $74,500 per day less a 5% third-party commission. The new charter commenced on April 18, 2008, following the expiration of the previous charter, and is expected to be completed at the middle of July 2008. Upon the completion of the new time charter, the vessel is expected to complete its drydocking before commencing subsequent time charters.
(10) We have reached an agreement to extend the time charter for an additional three to 5.5 months at a rate of $60,000 per day, less a 5% third-party commission. The new charter commenced on March 6, 2008, following the expiration of the previous charter.
(11) The time charter for this vessel is expected to commence upon delivery to us, which is estimated to occur in the third quarter of 2008. The acquisition is subject to the completion of customary additional documentation and closing conditions. In completing the negotiation of certain changes we required for novation of the existing charter, we agreed to reduce the daily gross rate and received a rebate from the brokers involved in the vessel sale. Since the vessel will be acquired with a below-market rate, we allocated the purchase price between the vessel and an intangible liability for the value assigned to the below-market charterhire.
(12) We recently 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. The new charter commenced on March 1, 2008, following the expiration of the previous charter.
(13) We have reached an agreement to commence a time charter for 34 to 37.5 months at a rate of $37,000 per day less a 5% third-party commission. The new charter commenced on May 17, 2008, following the expiration of the previous charter.
(14) We recently extended the time charter for an additional 35 to 37.5 months at a rate of $37,000 per day less a 5% third-party commission. The new charter is scheduled to commence on July 10, 2008, following the expiration of the previous charter.
(15) We recently extended the time charter for an additional 35 to 37.5 months at a rate of $34,500 per day less a 5% third-party commission. The new charter commenced on March 1, 2008, following the expiration of the previous charter.
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 28 drybulk vessels consisting of five Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,020,000 dwt. After the expected delivery of 13 vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 41 drybulk vessels, consisting of 12 Capesize, eight Panamax, four Supramax, six Handymax and 11 Handysize vessels, with an aggregate carrying capacity of approximately 3,516,000 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) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) the Company's acquisition or disposition of vessels; (vi) the terms and conditions of any definitive documentation that the Company may execute with its charterers for the time charters for the Genco Raptor, the Genco Hadrian, the Genco Acheron, and the Genco Prosperity; (vii) the fulfillment of the closing conditions under the Company's agreement to acquire a total of 13 remaining drybulk vessels from companies within the Metrostar Management Corporation group, Bocimar International N.V. and Delphis N.V., Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd.; (viii) the execution of customary additional documentation for the Company's agreements to acquire a total of seven vessels from Bocimar International N.V. and Delphis N.V. and Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd.; (ix) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (x) 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; (xi) the number of offhire days needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; 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, 2007, and our subsequent reports on Form 10-Q and Form 8-K. Our ability to pay dividends in any period will depend upon various 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.
