GSTL Genco Shipping & Trading Ltd (MM)

NEW YORK, Sept. 18 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NASDAQ:GSTL) today announced it has reached an agreement in principle to extend the time charter for the Genco Success, a 1997-built Handymax vessel currently on charter with Korea Line Corporation. The extended time charter would be for an additional eleven to thirteen months at a rate of $24,000 per day, less a 5% third party brokerage commission. The time charter would commence February 1, 2007 following the expiration of the vessel's current time charter in January 2007. The extension is subject to completion of definitive agreements acceptable to both Genco and Korea Line Corporation. Robert Gerald Buchanan, President, said, "Genco continues to execute its strategy of securing long-term contracts with leading charterers. We are pleased to extend our time charter for the Genco Success under favorable terms as we further demonstrate our ability to capitalize on a rising freight market. Our long-term contracts provide stable cash flows that enable the distribution of strong dividends to Genco's shareholders. Going forward, we will maintain our focus on securing substantial time charter coverage while pursuing strategic acquisitions to drive future growth." The following table sets forth information about the employment of Genco's fleet after giving effect to the extension: Vessel Vessel Type Expiration Date(1) Time Charter Rates(2) 1 Genco Beauty Panamax February 2007 $29,000 2 Genco Knight Panamax February 2007 $29,000 3 Genco Leader Panamax Spot(3) N/A 4 Genco Trader Panamax Spot(3) N/A 5 Genco Vigour Panamax December 2006 $29,000 6 Genco Muse Handymax September 2007 $26,500 (4) 7 Genco Marine Handymax March 2007 $18,000 (5) 8 Genco Prosperity Handymax March 2007 $23,000 9 Genco Carrier Handymax December 2006 $24,000 10 Genco Wisdom Handymax January 2007 $24,000 11 Genco Success Handymax January 2007 $23,850 January 2008 $24,000 12 Genco Glory Handymax December 2006 $18,250 13 Genco Explorer Handysize July 2007 $13,500 14 Genco Pioneer Handysize August 2007 $13,500 15 Genco Progress Handysize August 2007 $13,500 16 Genco Reliance Handysize July 2007 $13,500 17 Genco Sugar Handysize July 2007 $13,500 18 Genco Surprise(6) Panamax 12 to 14 months from delivery date $25,000 19 Genco Commander(6) Handymax 11 to 13 months from delivery date $19,750 20 Genco Acheron(6) Panamax To be determined To be determined (1) The dates presented on this table represent the earliest dates that our charters may be terminated. Except with respect to the Genco Trader and Genco Leader charters, under the terms of the contracts, charterers are 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 unaffiliated third parties. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues. (3) The Genco Trader and Genco Leader entered into the Baumarine Pool arrangement in December 2005 and February 2006, respectively. (4) Since this vessel was acquired with an existing time charter at an above market rate, the Company allocates the purchase price between the vessel and a deferred asset for the value assigned to the above market charterhire. This deferred asset is amortized as a reduction to voyage revenues over the remaining term of the charter, resulting in a daily rate of approximately $21,500 recognized as revenue. For cash flow purposes, the Company will continue to receive $26,500 per day less commissions. (5) The time charter rate was $26,000 until March 2006 and $18,000 thereafter. For purposes of revenue recognition, the charter contract is reflected on a straight-line basis in accordance with GAAP. (6) On July 10, 2006, Genco Shipping & Trading Limited agreed to acquire three drybulk vessels from affiliates of Franco Compania Naviera S.A. The acquisition is subject to customary closing conditions and the vessels are expected to be delivered between August and November of 2006. 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 acquisition of the three vessels, Genco Shipping & Trading Limited will own a fleet of 20 drybulk vessels, consisting of seven Panamax, eight Handymax and five Handysize vessels, with a carrying capacity of approximately 1,029,000 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 agreements that the Company and Korea Line Corporation may enter into for such extension, 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, 2005, our Quarterly Reports on Form 10-Q, and our reports on Form 8-K. Our ability to pay dividends in any period will depend upon 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. 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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