Genco Shipping & Trading Limited Announces Second Quarter 2012 Financial Results

   Genco Shipping & Trading Limited Announces Second Quarter 2012 Financial                                    Results  PR Newswire  NEW YORK, Aug. 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    oRecorded net loss attributable to Genco for the second quarter of $27.7     million, or $0.65 basic and diluted loss per share;   oMaintained strong cash position of $255.8 million on a consolidated basis,     including restricted cash;         o$251.4 million at Genco Shipping & Trading Limited, including          restricted cash;        o$4.4 million at Baltic Trading Limited;    oEntered 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   oContinued 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,    June 30,               June 30,               June 30,                    2012        2011                   2012                   2011                    (Dollars in thousands,             (Dollars in thousands, except                    except share and per               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  29,516      25,465                 57,351                 50,260  expenses  General,  administrative    8,362       8,298                  17,058                 17,149  and management  fees  Depreciation and  34,491      34,025                 68,916                 67,106  amortization    Total operating 73,364      67,714                 145,730                135,409    expenses Operating (loss)   (10,433)    31,616                 (22,955)               65,350 income Other (expense) income:  Other income      20          (56)                   4                      (111)  (expense)  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      (30,149)    10,183                 (66,262)               22,713 taxes:  Income tax        (343)       (355)                  (615)                  (714)  expense Net (loss) income  (30,492)    9,828                  (66,877)               21,999     Less: Net loss     attributable     to             (2,751)     (262)                  (6,037)                (1,517)     noncontrolling     interest Net (loss) income attributable to    $ (27,741)  $ 10,090               $ (60,840)             $ 23,516 Genco Shipping & Trading Limited Net (loss) income  $ (0.65)    $ 0.29                 $ (1.50)               $ 0.67 per share - basic Net (loss) income per share -        $ (0.65)    $ 0.29                 $ (1.50)               $ 0.67 diluted ^(1) Weighted average common shares      42,878,228  35,150,352             40,484,409             35,146,254 outstanding - basic Weighted average common shares      42,878,228  35,204,649             40,484,409             35,211,636 outstanding - diluted^(1)                                June 30,               December                                2012                   31, 2011 BALANCE SHEET                             (unaudited) DATA: Cash (including                $ 255,768              $ 237,718 restricted cash) Current assets                 274,292                259,365 Total assets                   3,074,139              3,119,277 Current liabilities (including current             250,597                221,702 portion of long term debt) Total long-term debt (including                1,670,084              1,694,393 current portion and note payable) Shareholders' equity (including $201.9 million and             1,352,461              1,361,618 $210.0 million of non-controlling  interest at June  30, 2012 and  December 31,  2011,  respectively)                                Six Months Ended                                June 30,               June 30,                                2012                   2011                                           (unaudited) Net cash provided by operating                   $ 558                  82,965 activities Net cash used in investing                      (2,650)                (68,318) activities Net cash provided by financing                   20,142                 706 activities 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,    June 30,               June 30,               June 30,                    2012        2011                   2012                   2011                    (Dollars in thousands)             (Dollars in thousands) EBITDA             (unaudited)                                   (unaudited) Reconciliation:  Net (Loss) Income  attributable to   $ (27,741)  $ 10,090               $ (60,840)             $ 23,516  Genco Shipping &  Trading Limited  +  Net interest   19,736      21,377                 43,311                 42,526     expense  +  Income tax     343         355                    615                    714     expense     Depreciation  +  and            34,491      34,025                 68,916                 67,106     amortization     EBITDA^(1)     $ 26,829    $ 65,847               $ 52,002               $ 133,862                    Three Months Ended                 Six Months Ended                    June 30,    June 30,               June 30,               June 30,                    2012        2011                   2012                   2011 GENCO STANDALONE   (unaudited)                                   (unaudited) FLEET DATA: Total number of vessels at end of  53          51                     53                     51 period Average number of  53.0        50.6                   53.0                   49.8 vessels^(2) Total ownership    4,823       4,600                  9,646                  9,012 days for fleet^(3) Total available    4,713       4,568                  9,391                  8,961 days for fleet^(4) Total operating    4,696       4,542                  9,339                  8,906 days for fleet^(5) Fleet              99.6%       99.4%                  99.4%                  99.4% utilization^(6) AVERAGE DAILY RESULTS: Time charter       $ 11,435    19,325                 $ 11,209               $ 19,917 equivalent^(7) Daily vessel operating expenses 5,234       4,714                  5,096                  4,722 per vessel ^(8)                    Three Months Ended                 Six Months Ended                    June 30,    June 30,               June 30,               June 30,                    2012        2011                   2012                   2011 CONSOLIDATED FLEET (unaudited)                                   (unaudited) DATA: Total number of vessels at end of  62          60                     62                     60 period Average number of  62.0        59.6                   62.0                   58.8 vessels^(2) Total ownership    5,642       5,419                  11,284                 10,641 days for fleet^(3) Total available    5,523       5,387                  11,020                 10,590 days for fleet^(4) Total operating    5,498       5,357                  10,956                 10,531 days for fleet^(5) Fleet              99.6%       99.4%                  99.4%                  99.4% utilization^(6) AVERAGE DAILY RESULTS: Time charter       $ 11,067    18,299                 $ 10,774               $ 18,720 equivalent^(7) Daily vessel operating expenses 5,232       4,700                  5,082                  4,723 per vessel ^(8)  (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:                                                               Charter        Cash Daily Vessel           Year  Charterer           Expiration (1)                                                           Rate (2)                  Built Capesize Vessels Genco Augustus   2007  Cargill             October 2012   100% of BCI                        International S.A. Genco Tiberius   2007  Cargill             September 2012 100% of BCI                        International S.A. Genco London     2007  Cargill             July 2013      100% of BCI(3)                        International S.A. Genco Titus      2007  Swissmarine         September 2012 100% of BCI                        Services S.A. Genco            2008  Cargill             Aug. 2012/Oct. $52,750/100% of Constantine            International S.A.  2013           BCI(4)(5) Genco Hadrian    2008  Cargill             October 2012   $65,000(4)                        International S.A. Genco Commodus   2009  Swissmarine         May 2013       99% of BCI                        Services S.A. Genco Maximus    2009  Swissmarine         January 2013   98.5% of BCI                        Services S.A. Genco Claudius   2010  Swissmarine         December 2012  98.5% of BCI                        Services S.A. Panamax Vessels Genco Beauty     1999  Global Maritime     May 2013       97% of BPI(6)                        Investments Ltd. Genco Knight     1999  Swissmarine         March 2013     98% of BPI                        Services S.A. Genco Leader     1999  J. Aron & Company   November 2012  100% of BPI Genco Vigour     1999  Global Maritime     January 2013   97% of BPI                        Investments Ltd. Genco Acheron    1999  Global Maritime     December 2012  97% of BPI                        Investments Ltd. Genco Surprise   1998  Global Maritime     August 2012    97% of BPI                        Investments Ltd. Genco Raptor     2007  Global Maritime     March 2013     100% of BPI                        Investments Ltd. Genco Thunder    2007  Swissmarine         July 2012      97% of BPI(7)                        Services S.A. Supramax Vessels Genco Predator   2005  D'Amico Dry Ltd.    April 2013     103% of BSI(8) Genco Warrior    2005  Trafigura Beheer    October 2012   102% of BSI                        B.V. Genco Hunter     2007  Pacific Basin       August         106% of BSI/105% of                        Chartering Ltd.     2012/July 2013 BSI(9) Genco Cavalier   2007  D/S Norden          August 2012    $10,000 Genco Lorraine   2009  Olam International  August 2012    $18,500                        Ltd. Genco Loire      2009  Clipper Bulk        July 2013      $9,950(10)                        Shipping N.V. Genco Aquitaine  2009  Pioneer Navigation  March 2013     100% of BSI                        Ltd. Genco Ardennes   2009  Klaveness           August 2012    $19,000                        Chartering Genco Auvergne   2009  Pacific Basin       April 2013     100% of BSI                        Chartering Ltd. Genco Bourgogne  2010  Western Bulk        November 2012  $12,250                        Carriers A/S Genco Brittany   2010  D'Amico Dry Ltd.    April 2013     100% of BSI(11) Genco Languedoc  2010  Wan Bong Chartering September 2012 $8,750(12)                        Co. Ltd. Genco Normandy   2007  Olam International  September 2012 $8,500(13)                        Ltd. Genco Picardy    2005  Trafigura Beheer    December 2012  98% of BSI                        B.V. Genco Provence   2004  Hamburg Bulk        December 2012  $12,000                        Carriers Genco Pyrenees   2010  Navig8 Inc.         February 2013  100% of BSI Genco Rhone      2011  AMN Bulk Carriers   March 2013     100% of BSI                        Inc. Handymax Vessels Genco Success    1997  ED & F MAN Shipping April 2013     91.5% of BSI                        Ltd. Genco Carrier    1998  Klaveness           June 2013      91% of BSI(14)                        Chartering Genco Prosperity 1997  SK Shipping Co.     October 2012   $8,000(15)                        Ltd. Genco Wisdom     1997  Klaveness           September 2012 92% of BSI                        Chartering Genco Marine     1996  ED & F MAN Shipping April 2013     91% of BSI                        Ltd. Genco Muse       2001  Trafigura Beheer    March 2013     93.5% of BSI                        B.V. Handysize Vessels Genco Explorer   1999  Lauritzen Bulkers   November 2012  Spot(16)                        A/S Genco Pioneer    1999  Lauritzen Bulkers   November 2012  Spot(16)                        A/S Genco Progress   1999  Lauritzen Bulkers   August 2013    Spot(16)                        A/S Genco Reliance   1999  Lauritzen Bulkers   August 2013    Spot(16)                        A/S Genco Sugar      1998  Lauritzen Bulkers   August 2013    Spot(16)                        A/S Genco Charger    2005  AMN Bulk Carriers   October 2012   100% of BHSI                        Inc. Genco Challenger 2003  AMN Bulk Carriers   November 2012  100% of BHSI                        Inc. Genco Champion   2006  Pacific Basin       March 2013     100% of BHSI                        Chartering Ltd.                        Cargill                            $8,500-$13,500 with Genco Ocean      2010  International S.A.  June 2013      50% profit                                                           sharing(17)                        Cargill                            $8,500-$13,500 with Genco Bay        2010  International S.A.  January 2013   50% profit                                                           sharing(17)                        Cargill                            $8,500-$13,500 with Genco Avra       2011  International S.A.  March 2014     50% profit                                                           sharing(17) Genco Mare       2011  Cargill             May 2015       115% of BHSI                        International S.A.                        Cargill                            $8,500-$13,500 with Genco Spirit     2011  International S.A.  September 2014 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  Website: http://www.GencoShipping.com Contact: John C. Wobensmith, Chief Financial Officer, Genco Shipping & Trading Limited, +1-646-443-8555  
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