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Genco Shipping & Trading Limited Announces Second Quarter 2012 Financial Results

August 1, 2012

NEW YORK, Aug. 1, 2012 /PRNewswire/ — Genco Shipping & Trading Limited (NYSE: GNK) (“Genco” or the “Company”) today reported its financial results for the three and six months ended June 30, 2012.

The following financial review discusses the results for the three and six months ended June 30, 2012 and June 30, 2011.

Second Quarter 2012 and Year-to-Date Highlights

  • Recorded net loss attributable to Genco for the second quarter of $27.7 million, or $0.65 basic and diluted loss per share;
  • Maintained strong cash position of $255.8 million on a consolidated basis, including restricted cash;
    • $251.4 million at Genco Shipping & Trading Limited, including restricted cash;
    • $4.4 million at Baltic Trading Limited;
  • Entered into separate agreements to amend the amortization schedule and extend existing covenant waivers under each of our three credit facilities through and including the quarter ending December 31, 2013; and
  • Continued a short time charter strategy by fixing vessels on spot market-related time charters with the option to convert to a fixed rate and on short-term charters while the market remains volatile.

Financial Review: 2012 Second Quarter

The Company recorded net loss attributable to Genco for the second quarter of 2012 of $27.7 million, or $0.65 basic and diluted loss per share. Comparatively, for the three months ended June 30, 2011, net income attributable to Genco was $10.1 million, or $0.29 basic and diluted earnings per share.

EBITDA was $26.8 million for the three months ended June 30, 2012 versus $65.8 million for the three months ended June 30, 2011.

Robert Gerald Buchanan, President, commented, “During the second quarter, we maintained an opportunistic time charter approach in a challenging drybulk market. By preserving the ability to benefit from a rising freight rate environment combined with a large and modern fleet, we intend to drive future performance when market conditions improve while continuing to provide our leading customers with the highest quality service.”

Genco’s voyage revenues decreased to $62.1 million for the three months ended June 30, 2012 versus $98.5 million for the three months ended June 30, 2011. The decrease was due to lower charter rates achieved by the majority of our vessels as well as a higher number of days that our vessels were on planned offhire to complete drydockings during the second quarter of 2012 compared to the second quarter of 2011. The decrease in charter rates was partially offset by the increase in the size of our fleet. The average daily time charter equivalent, or TCE, rates obtained by the Company’s fleet decreased to $11,067 per day for the three months ended June 30, 2012 compared to $18,299 per day for the three months ended June 30, 2011. The decrease in TCE rates resulted from lower charter rates achieved in the second quarter of 2012 versus the same period in 2011 for the majority of the vessels in our fleet. Continued deliveries of newbuilding vessels coupled with lower growth rates of imported commodities in emerging market economies through the first half of 2012 were the main contributors of reduced rates, which affected the earnings of our vessels. The effect of these contributors was partially offset by increased scrapping of older tonnage.

Total operating expenses increased to $73.4 million for the three months ended June 30, 2012 from $67.7 million for the three-month period ended June 30, 2011. Vessel operating expenses were $29.5 million for the second quarter of 2012 compared to $25.5 million for the same period in 2011. The increase in vessel operating expenses was due to the increase in the size of our fleet, the timing of purchases of spare parts as well as higher maintenance and crew related expenses, which was partially offset by lower lube consumption for the second quarter of 2012 versus the same period in 2011.

Depreciation and amortization expenses slightly increased to $34.5 million for the second quarter of 2012 from $34.0 million for the second quarter of 2011 as a result of the growth of our fleet. General, administrative and management fees marginally increased to $8.4 million in the second quarter of 2012 from $8.3 million in the second quarter of 2011, primarily due to slightly higher third-party management fees due to the growth of our fleet and higher office-related expenses. Increases were partially offset by a decrease in non-cash compensation.

Daily vessel operating expenses, or DVOE, increased to $5,232 per vessel per day during the second quarter of 2012 as compared to $4,700 per vessel per day for the second quarter of 2011, mainly due to the timing of purchases of spare parts as well as higher maintenance and crew related expenses, partially offset by lower lube consumption. We believe daily vessel operating expenses are best measured for comparative purposes over a 12?month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on estimates provided by our technical managers and management’s expectations, our DVOE budget for the second half of 2012 is $5,200 per vessel per day on a weighted average basis for the 53 vessels in our fleet, excluding vessels owned by Baltic Trading Limited.

John C. Wobensmith, Chief Financial Officer, commented, “Genco ended the second quarter with a sizeable cash balance of $251.4 million, enhancing the Company’s ability to operate in a soft rate environment. Consistent with our objective to preserve the Company’s financial strength and flexibility, we entered into agreements in August to amend our three credit facilities under favorable terms. Specifically, Genco’s scheduled amortization payments have been eliminated for each facility through and including the quarter ending December 31, 2013. In addition, the existing waivers for both the maximum leverage ratio covenant and the interest coverage ratio covenant have been extended for each facility through and including the quarter ending December 31, 2013. We appreciate the continued support of our lending group, a core differentiator for our Company, as we remain committed to a strong financial foundation for the benefit of our shareholders.”

Financial Review: First Half 2012

The net loss attributable to Genco was $60.8 million or $1.50 basic and diluted loss per share for the six months ended June 30, 2012, compared to net income attributable to Genco of $23.5 million or $0.67 basic and diluted earnings per share for the six months ended June 30, 2011. Voyage revenues decreased to $121.1 million for the six months ended June 30, 2012 compared to $199.1 million for the six months ended June 30, 2011. EBITDA was $52.0 million for the six months ended June 30, 2012 versus $133.9 million for the six months ended June 30, 2011. TCE rates obtained by the Company decreased to $10,774 per day for the six months ended June 30, 2012 from $18,720 per day for the six months ended June 30, 2011, mainly due to lower rates achieved for our vessels during the first six months of 2012 as compared to the prior year period as well as the operation of a greater number of smaller class vessels. Total operating expenses were $145.7 million for the six months ended June 30, 2012 compared to $135.4 million for the six months ended June 30, 2011, and daily vessel operating expenses per vessel were $5,082 versus $4,723 for the comparative periods, mainly due to the timing of purchases of spare parts as well as higher maintenance and crew related expenses, partially offset by lower lube consumption.

Liquidity and Capital Resources

Cash Flow

Net cash provided by operating activities for the six months ended June 30, 2012 and 2011 was $0.6 million and $83.0 million, respectively. The decrease in cash provided by operating activities was primarily due to a net loss of $66.9 million for the first six months of 2012 compared to net income of $22.0 million for the same period of 2011, which resulted from lower charter rates achieved in the first half of 2012 versus the prior year period for the majority of the vessels in our fleet.

Net cash used in investing activities for the six months ended June 30, 2012 and 2011 was $2.7 million and $68.3 million, respectively. The decrease was primarily due to fewer funds used for purchases of vessels during the first half of 2012 compared to the same period in 2011. For the six months ended June 30, 2012, cash used in investing activities primarily related to the purchase of fixed assets in the amount of $1.8 million and vessel related equipment totaling $0.8 million. For the six months ended June 30, 2011, cash used in investing activities predominantly related to purchases of vessels in the amount of $67.2 million.

Net cash provided by financing activities was $20.1 million during the six months ended June 30, 2012 as compared to $0.7 million during the six months ended June 30, 2011. The increase in cash provided by financing activities was primarily due to $49.9 million of net proceeds provided by our follow-on offering in February 2012. Cash used in financing activities for the first six months of 2012 consisted of a $12.5 million repayment of debt under the 2007 Credit Facility, $10.2 million repayment of debt under the $253 Million Term Loan Facility, $3.8 million repayment of debt under the $100 Million Term Loan Facility, $0.2 million of deferred financing costs and the $3.1 million dividend payment of our subsidiary, Baltic Trading Limited, to its outside shareholders. Cash provided by financing activities during the first six months of 2011 mainly consisted of $21.5 million of proceeds from the $253 Million Term Loan Facility related to the Bourbon vessels acquired and $20.0 million of proceeds from the $100 Million Term Loan Facility related to the Metrostar vessels acquired offset by the following uses of cash: a $25.0 million repayment of debt under the 2007 Credit Facility, $9.8 million repayment of debt under the $253 Million Term Loan Facility, $1.8 million repayment of debt under the $100 Million Term Loan Facility, $0.3 million of deferred financing costs and the $3.9 million dividend payment of our subsidiary, Baltic Trading Limited, to its outside shareholders.

Capital Expenditures

We make capital expenditures from time to time in connection with vessel acquisitions. Excluding Baltic Trading Limited’s vessels, we own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an aggregate carrying capacity of approximately 3,810,000 dwt. In addition, our subsidiary Baltic Trading Limited currently owns a fleet of nine drybulk vessels, consisting of two Capesize, four Supramax, and three Handysize vessels with an aggregate carrying capacity of approximately 672,000 dwt.

In addition to acquisitions that we may undertake in future periods, we will incur additional expenditures due to special surveys and drydockings for our fleet. We estimate that six of our vessels will complete drydockings in the third quarter of 2012 and one additional vessel will be drydocked in the fourth quarter of 2012. We further anticipate that seven of our vessels will be drydocked in 2013.

We estimate our drydocking costs for our fleet, excluding the vessels owned by Baltic Trading Limited, through 2013 to be:

                               Q3 2012      Q4 2012              2013
                               -------      -------              ----
    Estimated Costs (1)        $3.0 million $0.5 million $5.0 million
    Estimated Offhire Days (2)          105           20          140
    (1) Estimates are based on our
     budgeted cost of drydocking
     our vessels in China.  Actual
     costs will vary based on
     various factors, including
     where the drydockings are
     actually performed.  We expect
     to fund these costs with cash
     from operations.

    (2) Assumes 20 days per
     drydocking per vessel.  Actual
     length will vary based on the
     condition of the vessel, yard
     schedules and other factors.
     Included in the total
     estimated offhire days is the
     third quarter of 2012 portion
     of the Genco Carrier drydock
     which amounted to five days.

The Genco Knight, Genco Raptor, Genco Cavalier, Genco Success and Genco Beauty completed their respective drydockings during the second quarter of 2012, while the Genco Carrier commenced its drydocking on June 19, 2012 and completed the same during the third quarter, on July 5, 2012. The vessels were on planned offhire for an aggregate of 105.4 days in connection with their scheduled drydockings at a cumulative cost of approximately $3.4 million for the second quarter of 2012.

Credit Facility Amendments

On August 1, 2012, the Company entered into separate agreements to amend provisions of its 2007 Credit Facility, $253 Million Term Loan Facility and $100 Million Term Loan Facility. DnB Nor Bank ASA, Deutsche Bank AG Filiale Deutschlandgeschaft and Credit Agricole CIB, respectively, acted as the lead arranger of each facility.

Under the terms of the agreements, Genco’s scheduled amortization payments have been eliminated through and including the quarter ending December 31, 2013. As a result, the Company’s next scheduled amortization payment under its three credit facilities will be due in the first quarter of 2014 in the amount totaling $55.2 million. Additionally, the existing waivers for both the maximum leverage ratio covenant and the interest coverage ratio covenant have been extended under all three facilities from March 31, 2013 through and including the quarter ending December 31, 2013.

As part of these agreements, the Company prepaid an aggregate of $99.9 million in principal loan amounts reducing the facility amounts for each facility. Specifically, $57.9 million was allocated to the 2007 Credit Facility, $30.5 million was allocated to the $253 Million Term Loan Facility and $11.5 million allocated to the $100 Million Term Loan Facility.

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited’s selected consolidated financial and other data for the periods indicated below.


                                                                                                                                                                                                                                                                                                                    Three Months Ended                                           Six Months Ended
                                                                                                                                                                                                                                                                                 June 30, 2012                                   June 30, 2011                                    June 30, 2012                                 June 30, 2011
                                                                                                                                                                                                                                                                                 -------------                                   -------------                                    -------------                                 -------------
                                                                                                                                                                                                                                                                                                          (Dollars in thousands, except share and per                   (Dollars in thousands, except share and per
                                                                                                                                                                                                                                                                                                                        share data)                                                 share data)
                                                                                                                                                                                                                                                                                  (unaudited)                                                         (unaudited)
                                                                                                                                                                                                                                                                                  ----------                                                           ----------
    INCOME STATEMENT DATA:
    Revenues:
                                                                                                                                 Voyage revenues                                                                                                                                                $62,112                                 $98,511                                                      $121,137                               $199,130
                                                                                                                                 Service revenues                                                                                                                                                   819                                     819                                                         1,638                                  1,629
                                                                                                                                                                                                Total revenues                                                                                    62,931                                  99,330                                                       122,775                                200,759
                                                                                                                                                                                                                                                                                                  ------                                  ------                                                       -------                                -------

    Operating expenses:
                                                                                                                                 Voyage expenses                                                                                                                                                    995                                     (74)                                                        2,405                                    894
                                                                                                                                 Vessel operating expenses                                                                                                                                       29,516                                  25,465                                                        57,351                                 50,260
                                                                                                                                 General, administrative and management fees                                                                                                                      8,362                                   8,298                                                        17,058                                 17,149
                                                                                                                                 Depreciation and amortization                                                                                                                                   34,491                                  34,025                                                        68,916                                 67,106
                                                                                                                                                                                                Total operating expenses                                                                          73,364                                  67,714                                                       145,730                                135,409
                                                                                                                                                                                                                                                                                                  ------                                  ------                                                       -------                                -------

    Operating (loss) income                                                                                                                                                                                                                                                                                            (10,433)                                 31,616                                                 (22,955)                            65,350
                                                                                                                                                                                                                                                                                                                       -------                                  ------                                                 -------                             ------

    Other (expense) income:
                                                                                                                                 Other income (expense)                                                                                                                                              20                                     (56)                                                            4                                   (111)
                                                                                                                                 Interest income                                                                                                                                                    148                                     163                                                           303                                    335
                                                                                                                                 Interest expense                                                                                                                                               (19,884)                                (21,540)                                                      (43,614)                               (42,861)

                                                                                                                                                                                                Other expense:                                                                                   (19,716)                                (21,433)                                                      (43,307)                               (42,637)
                                                                                                                                                                                                                                                                                                 -------                                 -------                                                       -------                                -------

    (Loss) Income before income taxes:                                                                                                                                                                                                                                                                                 (30,149)                                 10,183                                                 (66,262)                            22,713

                                                                                                                                 Income tax expense                                                                                                                                                (343)                                   (355)                                                         (615)                                  (714)
                                                                                                                                                                                                                                                                                                   -----

    Net (loss) income                                                                                                                                                                                                                                                                                                  (30,492)                                  9,828                                                 (66,877)                            21,999
                                                                                                                                                                                                                          Less: Net loss attributable to noncontrolling interest                                        (2,751)                                   (262)                                                 (6,037)                            (1,517)
                                                                                                                                                                                                                                                                                                                        ------                                    ----                                                  ------                             ------

    Net (loss) income attributable to Genco Shipping & Trading Limited                                                                                                                                                                                                                                                $(27,741)                                $10,090                                                $(60,840)                           $23,516
                                                                                                                                                                                                                                                                                                                      ========                                 =======                                                ========                            =======

    Net (loss) income per share - basic                                                                                                                                                                                                                                                                                 $(0.65)                                  $0.29                                                  $(1.50)                             $0.67
                                                                                                                                                                                                                                                                                                                        ======                                   =====                                                  ======                              =====

    Net (loss) income per share - diluted (1)                                                                                                                                                                                                                                                                           $(0.65)                                  $0.29                                                  $(1.50)                             $0.67
                                                                                                                                                                                                                                                                                                                        ======                                   =====                                                  ======                              =====

    Weighted average common shares outstanding - basic                                                                                                                                                                                                                                                              42,878,228                              35,150,352                                              40,484,409                         35,146,254
                                                                                                                                                                                                                                                                                                                    ==========                              ==========                                              ==========                         ==========

    Weighted average common shares outstanding - diluted(1)                                                                                                                                                                                                                                                         42,878,228                              35,204,649                                              40,484,409                         35,211,636
                                                                                                                                                                                                                                                                                                                    ==========                              ==========                                              ==========                         ==========

                                                                                                                                                                                                                                                                                                                                 June 30, 2012                                  December 31, 2011
                                                                                                                                                                                                                                                                                                                                 -------------                                  -----------------
    BALANCE SHEET DATA:                                                                                                                                                                                                                                                           (unaudited)
    Cash (including restricted cash)                                                                                                                                                                            $255,768                                                                                              $237,718
    Current assets                                                                                                                                                                                               274,292                                                                                               259,365
    Total assets                                                                                                                                                                                               3,074,139                                                                                             3,119,277
    Current liabilities (including current portion of long term debt)                                                                                                                                            250,597                                                                                               221,702
    Total long-term debt (including current portion and note payable)                                                                                                                                          1,670,084                                                                                             1,694,393
    Shareholders' equity (including $201.9 million and $210.0 million of non-controlling                                                                                                                       1,352,461                                                                                             1,361,618

                                                                                                                                 interest at June 30, 2012 and December 31, 2011, respectively)

                                                                                                                                                                                                                                                                                                                                Six Months Ended
                                                                                                                                                                                                                                                                                                                                 June 30, 2012                                    June 30, 2011
                                                                                                                                                                                                                                                                                                                                 -------------                                    -------------
                                                                                                                                                                                                                                                                                                                                                      (unaudited)

    Net cash provided by operating activities                                                                                                                                                                       $558                                                                                                82,965
    Net cash used in investing activities                                                                                                                                                                         (2,650)                                                                                              (68,318)
    Net cash provided by financing activities                                                                                                                                                                     20,142                                                                                                   706

    1) The convertible notes were anti-dilutive for the quarter and year to date periods ending June 30, 2012 and June 30, 2011.

                                                                                                                                                                                                                                                                                                                    Three Months Ended                                          Six Months Ended
                                                                                                                                                                                                                                                                                 June 30, 2012                                   June 30, 2011                                    June 30, 2012                                 June 30, 2011
                                                                                                                                                                                                                                                                                                                  (Dollars in thousands)                                     (Dollars in thousands)
                                                                                                                                                                                                                                                                                                                  ---------------------                                      ---------------------
    EBITDA Reconciliation:                                                                                                                                (unaudited)                                                                                                                                         (unaudited)
                                                                                                                                  Net (Loss) Income attributable to Genco Shipping & Trading
                                                                                                                                  Limited                                                                                                                                                      $(27,741)                                $10,090                                                      $(60,840)                               $23,516
                                                                                                                                 +                                                                                        Net interest expense                                                                          19,736                                  21,377                                                  43,311                             42,526
                                                                                                                                 +                                                                                        Income tax expense                                                                               343                                     355                                                     615                                714
                                                                                                                                 +                                                                                        Depreciation and amortization                                                                 34,491                                  34,025                                                  68,916                             67,106
                                                                                                                                                                                                                          EBITDA(1)                                                                                    $26,829                                 $65,847                                                 $52,002                           $133,862
                                                                                                                                                                                                                                                                                                                       =======                                 =======                                                 =======                           ========

                                                                                                                                                                                                                                                                                                                    Three Months Ended                                          Six Months Ended
                                                                                                                                                                                                                                                                                 June 30, 2012                                   June 30, 2011                                    June 30, 2012                                 June 30, 2011
                                                                                                                                                                                                                                                                                 -------------                                   -------------                                    -------------                                 -------------
    GENCO STANDALONE FLEET DATA:                                                                                                                          (unaudited)                                                                                                                                         (unaudited)
    Total number of vessels at end of period                                                                                                                                                                                                                                                                                53                                      51                                                      53                                 51
    Average number of vessels(2)                                                                                                                                                                                                                                                                                          53.0                                    50.6                                                    53.0                               49.8
    Total ownership days for fleet(3)                                                                                                                                                                                                                                                                                    4,823                                   4,600                                                   9,646                              9,012
    Total available days for fleet(4)                                                                                                                                                                                                                                                                                    4,713                                   4,568                                                   9,391                              8,961
    Total operating days for fleet(5)                                                                                                                                                                                                                                                                                    4,696                                   4,542                                                   9,339                              8,906
    Fleet utilization(6)                                                                                                                                                                                                                                                                                                  99.6%                                   99.4%                                                   99.4%                              99.4%

    AVERAGE DAILY RESULTS:
    Time charter equivalent(7)                                                                                                                                                                                                                                                                                         $11,435                                  19,325                                                 $11,209                            $19,917
    Daily vessel operating expenses per vessel (8)                                                                                                                                                                                                                                                                       5,234                                   4,714                                                   5,096                              4,722
                                                                                                                                                                                                                                                                                                                         -----                                   -----                                                   -----                              -----

                                                                                                                                                                                                                                                                                                                    Three Months Ended                                          Six Months Ended
                                                                                                                                                                                                                                                                                 June 30, 2012                                   June 30, 2011                                    June 30, 2012                                 June 30, 2011
                                                                                                                                                                                                                                                                                 -------------                                   -------------                                    -------------                                 -------------
    CONSOLIDATED FLEET DATA:                                                                                                                              (unaudited)                                                                                                                                         (unaudited)
    Total number of vessels at end of period                                                                                                                                                                                                                                                                                62                                      60                                                      62                                 60
    Average number of vessels(2)                                                                                                                                                                                                                                                                                          62.0                                    59.6                                                    62.0                               58.8
    Total ownership days for fleet(3)                                                                                                                                                                                                                                                                                    5,642                                   5,419                                                  11,284                             10,641
    Total available days for fleet(4)                                                                                                                                                                                                                                                                                    5,523                                   5,387                                                  11,020                             10,590
    Total operating days for fleet(5)                                                                                                                                                                                                                                                                                    5,498                                   5,357                                                  10,956                             10,531
    Fleet utilization(6)                                                                                                                                                                                                                                                                                                  99.6%                                   99.4%                                                   99.4%                              99.4%

    AVERAGE DAILY RESULTS:
    Time charter equivalent(7)                                                                                                                                                                                                                                                                                         $11,067                                  18,299                                                 $10,774                            $18,720
    Daily vessel operating expenses per vessel (8)                                                                                                                                                                                                                                                                       5,232                                   4,700                                                   5,082                              4,723
                                                                                                                                                                                                                                                                                                                         -----                                   -----                                                   -----                              -----

    (1)  EBITDA represents net (loss)
     income attributable to Genco
     Shipping & Trading Limited plus net
     interest expense, taxes and
     depreciation and amortization.
     EBITDA is included because it is
     used by management and certain
     investors as a measure of operating
     performance. EBITDA is used by
     analysts in the shipping industry as
     a common performance measure to
     compare results across peers.  Our
     management uses EBITDA as a
     performance measure in our
     consolidating internal financial
     statements, and it is presented for
     review at our board meetings.  The
     Company believes that EBITDA is
     useful to investors as the shipping
     industry is capital intensive which
     often results in significant
     depreciation and cost of financing.
     EBITDA presents investors with a
     measure in addition to net income to
     evaluate the Company's performance
     prior to these costs.  EBITDA is not
     an item recognized by U.S. GAAP and
     should not be considered as an
     alternative to net income, operating
     income or any other indicator of a
     company's operating performance
     required by U.S. GAAP.  EBITDA is
     not a source of liquidity or cash
     flows as shown in our consolidated
     statement of cash flows.  The
     definition of EBITDA used here may
     not be comparable to that used by
     other companies.  The foregoing
     definition of EBITDA differs from
     the definition of Consolidated
     EBITDA used in the financial
     covenants of our 2007 Credit
     Facility, our $253 Million Term Loan
     Credit Facility, and $100 Million
     Term Loan Credit Facility.
     Specifically, Consolidated EBITDA
     substitutes gross interest expense
     (which includes amortization of
     deferred financing costs) for net
     interest expense used in our
     definition of EBITDA, includes
     adjustments for restricted stock
     amortization and non-cash charges
     for deferred financing costs related
     to the refinancing of the other
     credit facilities or any non-cash
     losses from our investment in Jinhui
     and excludes extraordinary gains or
     losses and gains or losses from
     derivative instruments used for
     hedging purposes or sales of assets
     other than inventory sold in the
     ordinary course of business.
    (2)  Average number of vessels is the
     number of vessels that constituted
     our fleet for the relevant period,
     as measured by the sum of the number
     of days each vessel was part of our
     fleet during the period divided by
     the number of calendar days in that
     period.
    (3)  We define ownership days as the
     aggregate number of days in a period
     during which each vessel in our
     fleet has been owned by us.
     Ownership days are an indicator of
     the size of our fleet over a period
     and affect both the amount of
     revenues and the amount of expenses
     that we record during a period.
    (4)  We define available days as the
     number of our ownership days less
     the aggregate number of days that
     our vessels are off-hire due to
     scheduled repairs or repairs under
     guarantee, vessel upgrades or
     special surveys and the aggregate
     amount of time that we spend
     positioning our vessels between time
     charters. Companies in the shipping
     industry generally use available
     days to measure the number of days
     in a period during which vessels
     should be capable of generating
     revenues.
    (5)  We define operating days as the
     number of our available days in a
     period less the aggregate number of
     days that our vessels are off-hire
     due to unforeseen circumstances. The
     shipping industry uses operating
     days to measure the aggregate number
     of days in a period during which
     vessels actually generate revenues.
    (6)  We calculate fleet utilization
     by dividing the number of our
     operating days during a period by
     the number of our available days
     during the period. The shipping
     industry uses fleet utilization to
     measure a company's efficiency in
     finding suitable employment for its
     vessels and minimizing the number of
     days that its vessels are off-hire
     for reasons other than scheduled
     repairs or repairs under guarantee,
     vessel upgrades, special surveys or
     vessel positioning.
    (7)  We define TCE rates as our net
     voyage revenue (voyage revenues less
     voyage expenses) divided by the
     number of our available days during
     the period, which is consistent with
     industry standards. TCE rate is a
     common shipping industry performance
     measure used primarily to compare
     daily earnings generated by vessels
     on time charters with daily earnings
     generated by vessels on voyage
     charters, because charterhire rates
     for vessels on voyage charters are
     generally not expressed in per-day
     amounts while charterhire rates for
     vessels on time charters generally
     are expressed in such amounts. Since
     some vessels were acquired with an
     existing time charter at 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.  This intangible
     liability is amortized as an
     increase to voyage revenues over the
     minimum remaining term of the
     charter.
    (8)  We define daily vessel operating
     expenses to include crew wages and
     related costs, the cost of insurance
     expenses relating to repairs and
     maintenance (excluding drydocking),
     the costs of spares and consumable
     stores, tonnage taxes and other
     miscellaneous expenses. Daily vessel
     operating expenses are calculated by
     dividing vessel operating expenses
     by ownership days for the relevant
     period.

Genco Shipping & Trading Limited’s Fleet

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Excluding Baltic Trading’s vessels, we own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an aggregate carrying capacity of approximately 3,810,000 dwt. In addition, our subsidiary Baltic Trading Limited currently owns a fleet of nine drybulk vessels, consisting of two Capesize, four Supramax, and three Handysize vessels.

Our current fleet, other than Baltic Trading’s vessels, contains ten groups of sister ships, which are vessels of virtually identical sizes and specifications. We believe that maintaining a fleet that includes sister ships reduces costs by creating economies of scale in the maintenance, supply and crewing of our vessels. As of August 1, 2012, the average age of our fleet was 7.2 years, as compared to the average age for the world fleet of approximately 11 years for the drybulk shipping segments in which we compete.

The following table reflects the current employment of Genco’s current fleet, excluding Baltic Trading’s vessels:

                      Vessel                                   Charterer                        Charter            Cash Daily
                             Year                                                           Expiration (1)          Rate (2)
                             Built
    ---                      -----

    Capesize Vessels
    ----------------
    Genco Augustus                 2007 Cargill International S.A.       October 2012                             100% of BCI
    Genco Tiberius                 2007 Cargill International S.A.       September 2012                           100% of BCI
    Genco London                   2007 Cargill International S.A.       July 2013                               100% of BCI(3)
    Genco Titus                    2007 Swissmarine Services S.A.        September 2012                           100% of BCI
    Genco Constantine              2008 Cargill International S.A.       Aug. 2012/Oct. 2013                                                  $52,750/100% of BCI(4)(5)
    Genco Hadrian                  2008 Cargill International S.A.       October 2012                                                                        $65,000(4)
    Genco Commodus                 2009 Swissmarine Services S.A.        May 2013                                  99% of BCI
    Genco Maximus                  2009 Swissmarine Services S.A.        January 2013                             98.5% of BCI
    Genco Claudius                 2010 Swissmarine Services S.A.        December 2012                            98.5% of BCI

    Panamax Vessels
    ---------------
    Genco Beauty                   1999 Global Maritime Investments Ltd. May 2013                                97% of BPI(6)
    Genco Knight                   1999 Swissmarine Services S.A.        March 2013                                98% of BPI
    Genco Leader                   1999 J. Aron & Company                November 2012                            100% of BPI
    Genco Vigour                   1999 Global Maritime Investments Ltd. January 2013                              97% of BPI
    Genco Acheron                  1999 Global Maritime Investments Ltd. December 2012                             97% of BPI
    Genco Surprise                 1998 Global Maritime Investments Ltd. August 2012                               97% of BPI
    Genco Raptor                   2007 Global Maritime Investments Ltd. March 2013                               100% of BPI
    Genco Thunder                  2007 Swissmarine Services S.A.        July 2012                               97% of BPI(7)

    Supramax Vessels
    ----------------
    Genco Predator                 2005 D'Amico Dry Ltd.                 April 2013                              103% of BSI(8)
    Genco Warrior                  2005 Trafigura Beheer B.V.            October 2012                             102% of BSI
    Genco Hunter                   2007 Pacific Basin Chartering Ltd.    August 2012/July 2013             106% of BSI/105% of BSI(9)
    Genco Cavalier                 2007 D/S Norden                       August 2012                                                                            $10,000
    Genco Lorraine                 2009 Olam International Ltd.          August 2012                                                                            $18,500
    Genco Loire                    2009 Clipper Bulk Shipping N.V.       July 2013                                                                           $9,950(10)
    Genco Aquitaine                2009 Pioneer Navigation Ltd.          March 2013                               100% of BSI
    Genco Ardennes                 2009 Klaveness Chartering             August 2012                                                                            $19,000
    Genco Auvergne                 2009 Pacific Basin Chartering Ltd.    April 2013                               100% of BSI
    Genco Bourgogne                2010 Western Bulk Carriers A/S        November 2012                                                                          $12,250
    Genco Brittany                 2010 D'Amico Dry Ltd.                 April 2013                             100% of BSI(11)
    Genco Languedoc                2010 Wan Bong Chartering Co. Ltd.     September 2012                                                                      $8,750(12)
    Genco Normandy                 2007 Olam International Ltd.          September 2012                                                                      $8,500(13)
    Genco Picardy                  2005 Trafigura Beheer B.V.            December 2012                             98% of BSI
    Genco Provence                 2004 Hamburg Bulk Carriers            December 2012                                                                          $12,000
    Genco Pyrenees                 2010 Navig8 Inc.                      February 2013                            100% of BSI
    Genco Rhone                    2011 AMN Bulk Carriers Inc.           March 2013                               100% of BSI

    Handymax Vessels
    ----------------
    Genco Success                  1997 ED & F MAN Shipping Ltd.         April 2013                               91.5% of BSI
    Genco Carrier                  1998 Klaveness Chartering             June 2013                               91% of BSI(14)
    Genco Prosperity               1997 SK Shipping Co. Ltd.             October 2012                                                                        $8,000(15)
    Genco Wisdom                   1997 Klaveness Chartering             September 2012                            92% of BSI
    Genco Marine                   1996 ED & F MAN Shipping Ltd.         April 2013                                91% of BSI
    Genco Muse                     2001 Trafigura Beheer B.V.            March 2013                               93.5% of BSI

    Handysize Vessels
    -----------------
    Genco Explorer                 1999 Lauritzen Bulkers A/S            November 2012                              Spot(16)
    Genco Pioneer                  1999 Lauritzen Bulkers A/S            November 2012                              Spot(16)
    Genco Progress                 1999 Lauritzen Bulkers A/S            August 2013                                Spot(16)
    Genco Reliance                 1999 Lauritzen Bulkers A/S            August 2013                                Spot(16)
    Genco Sugar                    1998 Lauritzen Bulkers A/S            August 2013                                Spot(16)
    Genco Charger                  2005 AMN Bulk Carriers Inc.           October 2012                             100% of BHSI
    Genco Challenger               2003 AMN Bulk Carriers Inc.           November 2012                            100% of BHSI
    Genco Champion                 2006 Pacific Basin Chartering Ltd.    March 2013                               100% of BHSI
    Genco Ocean                    2010 Cargill International S.A.       June 2013                                           $8,500-$13,500 with 50% profit sharing(17)
    Genco Bay                      2010 Cargill International S.A.       January 2013                                        $8,500-$13,500 with 50% profit sharing(17)
    Genco Avra                     2011 Cargill International S.A.       March 2014                                          $8,500-$13,500 with 50% profit sharing(17)
    Genco Mare                     2011 Cargill International S.A.       May 2015                                 115% of BHSI
    Genco Spirit                   2011 Cargill International S.A.       September 2014                                      $8,500-$13,500 with 50% profit sharing(17)

    (1) The charter expiration dates
     presented represent the earliest
     dates that our charters may be
     terminated in the ordinary
     course.  Except for the Genco
     Constantine and the 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 Hadrian
     has the option to extend the
     charter for a period of one year.
      The charterer of the Genco
      Constantine has the option to
     extend the charter for a period
     of eight months.

    (2) Time charter rates presented
     are the gross daily charterhire
     rates before third-party
     commissions generally ranging
     from 1.25% to 6.25%. In a time
     charter, the charterer is
     responsible for voyage expenses
     such as bunkers, port expenses,
     agents' fees and canal dues.

    (3) We have agreed to an extension
     with Cargill International S.A.
     on a spot market-related time
     charter for 11.5 to 14.5 months
     based on 100% of the Baltic
     Capesize Index (BCI), published
     by the Baltic Exchange, as
     reflected in daily reports.  Hire
     is paid every 15 days in arrears
     less a 5.00% third party
     brokerage commission.  Genco
     maintains the option to convert
     to a fixed rate based on Capesize
     FFA values at 100%.  The vessel
     went to drydock for scheduled
     repairs on July 28, 2012.  The
     extension will begin when the
     vessel is out of drydock on or
     about August 8, 2012.

    (4) 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 BCI 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.

    (5) We have agreed to an extension
     with Cargill International S.A.
     on a spot market-related time
     charter for 14 to 16.5 months
     based on 100% of the BCI, as
     reflected in daily reports.  Hire
     is paid every 15 days in arrears
     less a 5.00% third party
     brokerage commission.  Genco
     maintains the option to convert
     to a fixed rate based on Capesize
     FFA values at 100%.  The
     extension will begin on or about
     August 21, 2012.

    (6) We have reached an agreement
     with Global Maritime Investments
     Ltd. on a spot market-related
     time charter for a minimum of
     eleven months based on 97% of the
     Baltic Panamax Index (BPI),
     published by the Baltic Exchange,
     as reflected in daily reports,
     except for the initial 50 days in
     which hire is based on 97% of the
     rate for the Baltic Panamax P3A
     route. Hire is paid every 15 days
     in arrears less a 5.00% third
     party brokerage commission.
     Genco maintains the option to
     convert to a fixed rate based on
     Panamax FFA values at 97%.  The
     vessel delivered to charterers on
     June 15, 2012 after drydock for
     scheduled repairs was completed.

    (7) The vessel redelivered to
     Genco on July 28, 2012 and is
     currently in drydock for
     scheduled repairs.

    (8) We have reached an agreement
     with D'Amico Dry Ltd. on a spot
     market-related time charter for
     11 to 13.5 months based on 103%
     of the Baltic Supramax Index
     (BSI), published by the Baltic
     Exchange, as reflected in daily
     reports.  Hire is paid every 15
     days in arrears less a 5.00%
     third party brokerage commission.
      Genco maintains the option to
      convert to a fixed rate based on
     Supramax FFA values at 103%.  The
     vessel delivered to charterers on
     May 23, 2012.

    (9) We have agreed to an extension
     with Pacific Basin Chartering
     Ltd. on a spot market-related
     time charter for 11.5 to 14.5
     months based on 105% of the BSI,
     as reflected in daily reports,
     except for the initial 45 days in
     which hire is $4,000 per day.
     Hire is paid every 15 days in
     arrears less a 5.00% third party
     brokerage commission.  Genco
     maintains the option to convert
     to a fixed rate based on Supramax
     FFA values at 105%.  The
     extension will begin on or about
     August 12, 2012.

    (10) We have reached an agreement
     with Clipper Bulk Shipping N.V.
     on a time charter for 11 to 14.5
     months at a rate of $9,950 per
     day less a 5.00% third party
     brokerage commission.  Hire is
     paid every 15 days in advance.
     The vessel will deliver to
     charterers on or about August 13,
     2012 after repositioning.  The
     vessel was previously on a time
     charter with Oldendorff GMBH &
     Co. at a rate of $6,250 per day
     less a 5.00% third party
     brokerage commission which began
     on June 7, 2012 and concluded on
     July 28, 2012.

    (11) We have reached an agreement
     with D'Amico Dry Ltd. on a spot
     market-related time charter for
     11 to 13.5 months based on 100%
     of the average of the daily rates
     of the BSI, as reflected in daily
     reports.  Hire is paid every 15
     days in arrears less a 5.00%
     third party brokerage commission.
      Genco maintains the option to
      convert to a fixed rate based on
     Supramax FFA values at 100%.  The
     vessel delivered to charterers on
     May 9, 2012.

    (12) We have reached an agreement
     with Wan Bong Chartering Co. Ltd.
     on a time charter for two laden
     legs at a rate of $8,750 per day
     less a 5.00% third party
     brokerage commission.  Hire is
     paid every 15 days in advance.
     The vessel delivered to
     charterers on June 7, 2012.

    (13) We have agreed to an
     extension with Olam International
     Ltd. on a time charter for 2 to 5
     months at a rate of $8,500 per
     day less a 5.00% third party
     brokerage commission.  Hire is
     paid every 15 days in advance.
     The extension began on July 13,
     2012.

    (14) We have reached an agreement
     with Klaveness Chartering on a
     spot market-related time charter
     for 11 to 13.5 months based on
     91% of the average of the daily
     rates of the BSI, as reflected in
     daily reports, except for the
     initial 35 days in which hire is
     based on 91% of the rate for the
     Baltic Supramax S2 route.  Hire
     is paid every 15 days in arrears
     less a 5.00% third party
     brokerage commission.  Genco
     maintains the option to convert
     to a fixed rate based on Supramax
     FFA values at 91%.  The vessel
     went to drydock on June 19, 2012
     and delivered to charterers on
     July 6, 2012.

    (15) We have reached an agreement
     with SK Shipping Co. Ltd. on a
     time charter for 3.5 to 6 months
     at a rate of $8,000 per day less
     a 5.00% third party brokerage
     commission.  Hire is paid every
     15 days in advance.  The vessel
     delivered to charterers on June
     20, 2012.

    (16) 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.

    (17) The rate for the spot market-
     related time charter is linked
     with a floor of $8,500 and a
     ceiling of $13,500 daily with a
     50% profit sharing arrangement to
     apply to any amount above the
     ceiling. The rate is based on
     115% of the average of the daily
     rates of the Baltic Handysize
     Index (BHSI), published by the
     Baltic Exchange, as reflected in
     daily reports. Hire is paid every
     15 days in advance net of a 5.00%
     third party brokerage commission.
      These vessels were acquired with
      existing time charters with
     below-market rates. For these
     below-market time charters,
     Genco allocates the purchase
     price between the respective
     vessels and an intangible
     liability for the value assigned
     to the below-market charter-
     hire. This intangible liability
     is amortized as an increase to
     voyage revenues over the minimum
     remaining terms of the applicable
     charters, at which point the
     respective liabilities will be
     amortized to zero and the vessels
     will begin earning the ''Cash
     Daily Rate.'' For cash flow
     purposes, Genco will continue to
     receive the rate presented in the
     ''Cash Daily Rate'' column until
     the charter expires.
     Specifically, for the Genco
     Spirit, Genco Avra, Genco Ocean
     and Genco Bay, the daily amount
     of amortization associated with
     the below-market rates are
     approximately $200, $350, $700
     and $750 per day over the actual
     cash rate earned, respectively.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Excluding Baltic Trading Limited’s fleet, we own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an aggregate carrying capacity of approximately 3,810,000 dwt. In addition, our subsidiary Baltic Trading Limited currently owns a fleet of nine drybulk vessels, consisting of two Capesize, four Supramax, and three Handysize vessels. References to Genco’s vessels and fleet in this press release exclude vessels owned by Baltic Trading Limited.

Conference Call Announcement

Genco Shipping & Trading Limited announced that it will hold a conference call on Thursday, August 2, 2012 at 8:30 a.m. Eastern Time, to discuss its 2012 second quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company’s website, www.GencoShipping.com. To access the conference call, dial (888) 452-4030 or (719) 325-2334 and enter passcode 7066040. A replay of the conference call can also be accessed for two weeks by dialing (888) 203-1112 or (719) 457-0820 and entering the passcode 7066040. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.

“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. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. 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 following: (i) declines in demand or rates in the drybulk shipping industry; (ii) prolonged weakness in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) 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; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube, oil, bunkers, repairs, maintenance and general, administrative and management fee expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) acts of war, terrorism, or piracy; (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 Company’s acquisition or disposition of vessels; (xii) the amount of offhire time needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xiii) the completion of definitive documentation with respect to charters; (xiv) charterers’ compliance with the terms of their charters in the current market environment; (xv) the fulfillment of post-closing actions required under our recent credit facility amendments, including effecting a second priority security interest in favor of lenders under our 2007 Credit Facility in vessels pledged under our other two credit facilities; and other factors listed from time to time in 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, 2011 and its reports on Form 10-Q and Form 8-K.

SOURCE Genco Shipping & Trading Limited


Source: PR Newswire