EX-12.1 4 kl11049_12-1.htm EXHIBIT 12.1 kl11049_12-1.htm
 
Exhibit 12.1
 
 
                                     
  GENCO SHIPPING & TRADING LIMITED
  CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
  (Amounts in thousands of dollars, except ratios)
                 
                                     
   
Nine Months Ended
September 30,
  
Year Ended December 31,
    
For the Period
September 27,
through
December 31,
  
   
2008
      
2007
      
2006
    
       2005
      
2004
  
                                     
Earnings:
                                    
Net income
   $ 197,884  
 (A) (B)
   $ 106,809       $ 63,522     $ 54,482       $ 907  
Adjustments:
                                              
Fixed charges
     39,761         30,853         10,035       15,348         242  
Plus amortization of capitalized interest
     37         4                              
Less capitalized interest
     (4,328 )       (4,350 )       -       -         -  
                                               
Earnings
   $ 233,354       $ 133,316       $ 73,557     $ 69,830       $ 1,149  
                                               
Fixed Charges:
                                              
Interest expensed and capitalized
   $ 39,205       $ 26,725       $ 9,694       10,737         242  
Amortization of deferred financing costs
     556  
 (B)
     4,128  
 (C)
     341       4,611  
 (D)
     -  
                                               
Total fixed charges
   $ 39,761       $ 30,853       $ 10,035     $ 15,348       $ 242  
                                               
Ratio of earnings to fixed charges
     5.87         4.32         7.33       4.55         4.75  
                                               
                                               
(A) On November 3, 2008, the Company agreed to cancel the acquisition of six drybulk newbuildings. As part of the agreement, the selling group will retain the deposits totaling $53,000 plus the interest earned on such deposits for the six vessels, comprised of three Capesize and three Handysize vessels. This transaction will result in a charge in the fourth quarter of 2008 to the Company’s income statement of approximately $54,000 related to the forfeiture of these deposits. This charge is not included in the calculation shown.
  
                                               
(B) The $320 million credit facility was cancelled on November 12, 2007, and this resulted in the write-off of unamortized deferred financing costs of approximately $2,300 in the fourth quarter of 2008. This write-off is not included in the calculation shown.
  
                                               
(C) The Company refinanced its credit facility on July 20, 2007, and this resulted in the write-off of unamortized deferred financing costs of $3,568 in the third quarter of 2007.
  
                                               
(D) The Company refinanced its credit facility on July 29, 2005, which resulted in the write-off of unamortized deferred financing costs associated with the prior facility.