Genco Shipping & Trading Limited News
Genco Shipping & Trading Limited Announces Plan To Extend Time Charter for Handymax Vessel
The time charter for the Genco Prosperity is expected to commence following the expiration of the vessel's current time charter on
The following table reflects the employment of Genco's current fleet as well as the employment or other status of vessels expected to join Genco's fleet: Cash Revenue Expected Year Charter Daily Daily Delivery Vessel Built Charterer Expiration(1) Rate(2) Rate(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 2007 SK Shipping Co., August 2010 57,500 64,250 - London Ltd Genco 2007 Cargill September 2011 45,000(5) 46,250 - Titus International S.A. Genco 2008 Cargill August 2012 52,750(5) - Constantine International S.A. Genco 2008(6) To be determined TBD TBD Q4 2008 Hadrian (\"TBD\") Genco 2009(6) TBD TBD TBD Q2 2009 Commodus Genco 2009(6) TBD TBD TBD Q2 2009 Maximus Genco 2009(6) TBD TBD TBD Q3 2009 Claudius Panamax Vessels ———————- Genco 1999 Cargill May 2009 31,500 - Beauty International S.A. Genco 1999 SK Shipping Ltd. May 2009 37,700 - Knight Genco 1999 A/S Klaveness December 2008 25,650(7) - Leader Genco 1999 STX Panocean (UK) March 2009 29,000(8) - Vigour Co. Ltd. Genco 1999 Armada Shipping June 2008 74,500(9) - Acheron S.A. Genco 1998 Hanjin Shipping December 2010 42,100 - Surprise Co., Ltd. Genco 2007 TBD TBD TBD Q3 2008 Raptor Genco 2007 TBD TBD TBD Q4 2008 Thunder Supramax Vessels ———————— Genco 2005 Oldendorff GmbH & June 2008 55,000 - Predator Co. KG. Genco 2005 Hyundai Merchant November 2010 38,750 - Warrior Marine Co. Ltd. Genco 2007 Pacific Basin June 2008 60,000(10) - Hunter Chartering Ltd. Genco 2007 Samsun Logix 24 to 26.5 50,500(11) 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 Ltd. Pacific Basin June 2011 37,000(14) Chartering Ltd Genco 1997 Hyundai Merchant February 2011 34,500(15) - Wisdom Marine Co. Ltd. Genco 1996 NYK Bulkship March 2009 47,000 - Marine Europe S.A. Genco 2001 Norden A/S July 2008 47,650 - Muse Handysize Vessels ————————- Genco 1999 Lauritzen Bulkers August 2009 19,500 - Explorer A/S Genco 1999 Lauritzen Bulkers August 2009 19,500 - Pioneer A/S Genco 1999 Lauritzen Bulkers August 2009 19,500 - Progress A/S Genco 1999 Lauritzen Bulkers August 2009 19,500 - Reliance A/S Genco 1998 Lauritzen Bulkers August 2009 19,500 - Sugar 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. (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 \"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 end of June 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)We intend to acquire this vessel from Bocimar International N.V., and Delphis N.V. with an at-market time charter for 24 to 26.5 months at a rate of $50,500 per day less a 5% third-party commission. The time charter 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, including a novation of the existing charter for this vessel, and closing conditions. We are currently negotiating certain changes to the existing charter. If we cannot reach an agreement on these changes, we may exercise our right to cancel the acquisition of this vessel. (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 the four remaining Capesize vessels from companies within the Metrostar Management Corporation group and three drybulk vessels from Bocimar International N.V. and Delphis N.V., Genco Shipping & Trading Limited will own 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 2,910,000 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) the terms and conditions of any definitive documentation that the Company may execute with Pacific Basin Chartering Ltd. for the time charter for the Genco Prosperity described above; (ii) the fulfillment of the closing conditions under the Company's agreement to acquire the remaining four drybulk vessels from companies within the Metrostar Management Corporation group; (iii) the execution of customary additional documentation for the Company's agreements to acquire the three Bocimar International N.V. and Delphis N.V. drybulk vessels, including a novation of the existing charter for the Supramax vessel; (iv) the fulfillment of the closing conditions under the Company's agreement to acquire the three Bocimar International N.V. and Delphis N.V. drybulk vessels; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) 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; 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
SOURCE Genco Shipping & Trading Limited
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