PIRAEUS, GREECE -- 11/12/07 --
Omega Navigation Enterprises, Inc.
(NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation
services focusing on product tankers, announced today its financial and
operational results for the third quarter ended September 30, 2007.
The Company had previously announced the declaration of its quarterly cash
dividend with respect to the third quarter of 2007 of $0.50 per share
payable on November 30, 2007 to stockholders of record on November 15,
2007.
Omega Navigation Enterprises, Inc. was incorporated in the Marshall Islands
in February 2005. On April 7, 2006, the Company successfully completed its
Initial Public Offering of 12,000,000 Class A Common Shares at $17 per
share raising a total of $204 million in gross proceeds. Omega
Navigation's Class A Common Shares commenced trading on the NASDAQ National
Market on April 7, 2006 and on the Singapore Exchange Securities Trading
Limited on April 10, 2006.
Third Quarter 2007 Results
For the quarter ended September 30, 2007, Omega Navigation reported total
revenues from continuing and discontinued operations of $19.2 million and
Net Income of $4.5 million, or $0.30 per share, excluding a non-cash book
gain on a revaluation of warrants issued as a partial payment for two
newbuilding vessels which were delivered earlier this year and a non-cash
book loss on its interest rate collar. Including these non-cash items Net
Income was $4.3 million, or $0.28 per share. The calculations of the above
basic earnings per share treat all outstanding shares as if they were a
single class. EBITDA for the third quarter of 2007 was $14.9 million.
Please see below for a reconciliation of EBITDA to Cash from Operating
Activities.
Net Income included $1.3 million of revenues related to profit sharing on
charters of the vessels Omega Lady Sarah, Omega Lady Miriam and Omega
Theodore.
Discontinued operations refer to the operation of the two dry bulk carriers
that the Company agreed to sell in September 2006 and delivered on schedule
to their new owners in January 2007.
The Company owned and operated an average of 8 vessels during the third
quarter of 2007 versus an average of 7.6 vessels during the third quarter
of 2006. Excluding profit sharing, the Panamax product carriers earned an
average time-charter equivalent rate of $25,047 per day per vessel during
the third quarter of 2007, versus $25,110 during the third quarter of 2006.
The Handymax product tankers earned an average time charter equivalent
(excluding profit sharing) of $20,777 per vessel per day during the third
quarter of 2007, versus an average time charter equivalent of $20,673 per
day during the third quarter of 2006.
Since the inception of the charters of the product tankers through the
third quarter of 2007 the Company has received $3.9 million of cash
generated from profit sharing agreements. To date, the Company has
recorded income of $3.4 million (including $1.1 million booked in the first
quarter of 2007, $1.0 million in the second quarter of 2007 and $1.3,
million in the third quarter of 2007). The Company expects to receive
approximately an additional $1.3 million in cash related to the profit
sharing agreements and book to income approximately an additional $1.8
million in subsequent quarters, for voyages performed to date.
Operating expenses for the Handymax product tankers averaged $5,074 per day
per vessel in the third quarter of 2007 versus $3,545 per day per vessel in
the third quarter of 2006. The higher expense level in 2007 related to the
timing of some purchases as well as repairs and purchases related to the
supply of bunkers which included some additives which created minor damage.
Panamax product tankers averaged operating expenses of $4,380 per day per
vessel in the third quarter of 2007 versus $4,197 per day per vessel in the
third quarter of 2006. The Panamax product tankers operated for only 336
days and the Handymax vessels operated for 181 days in the third quarter of
2006, versus 552 and 184 days, respectively, in the third quarter of 2007.
Nine Months ended September 30, 2007 Results
For the nine months ended September 30, 2007, the Company recorded Net
Income from continuing and discontinued operations of $10.8 million, or
$0.71 per share, on total revenues, including continuing and discontinued
operations of $51.5 million.
The Company owned and operated an average of 7.3 vessels in the first nine
months of 2007 versus an average of 4.1 vessels in the first nine months of
2006.
The Panamax product carriers in the Company's fleet earned an average time
charter equivalent of $25,004 per vessel per day in the first nine months
of 2007 versus $25,263 per vessel per day in the first nine months of 2006
(excluding any earnings from profit share agreements). Handymax product
tankers in the Company's fleet earned an average of $20,798 per day per
vessel in the first nine months of 2007 versus $20,596 per day per vessel
in the first nine months of 2006.
Operating expenses for the Company's Panamax product tankers averaged
$4,566 per day per vessel, excluding any initial outfitting and
pre-delivery expenses, in the first nine months of 2007 versus $4,399 per
day per vessel in the first nine months of 2006. Operating expenses for
the Company's Handymax product carriers were $4,603 per day per vessel in
the first nine months of 2007 versus $3,620 per day per vessel in the first
nine months of 2006.
The Panamax product carriers in the Company's fleet only operated for 385
days in the first nine months of 2006 and the Handymax product carriers for
only 185 days in the first nine months of 2006, versus 1,437 and 546 days,
respectively, in the first nine months of 2007.
Fleet Developments
Current Fleet
Omega Navigation's current fleet includes eight double hull product tankers
with an aggregate carrying capacity of 512,358 dwt. All of the Company's
product tankers are employed under time charters having a minimum term of
three years from their respective delivery dates and are chartered to
established charterers including Norden, Glencore and Torm. Six of the
eight product tankers have profit sharing arrangements which enable the
Company to share in the charter market's upside potential.
Newbuilding Contracts
On June 19, 2007, the Company announced that it had signed shipbuilding
contracts with Hyundai Mipo Dockyard, to construct and acquire five
newbuilding double hull Handymax product tankers each with a capacity of
37,000 dwt. Four of these vessels are scheduled for delivery in 2010 with
the fifth scheduled for delivery in early 2011. The agreed purchase price
is $44.2 million per vessel and the Company has received, less up front
payment terms, than the Company believes to be industry standard. The
Company intends to fund the periodic progress payments with internally
generated cash flow and debt. With the addition of these five vessels
Omega's fleet will consist of 13 product carriers with a total deadweight
capacity of 697,358 tons.
On March 27, 2007 and April 26, 2007, Omega Navigation took delivery from
STX Shipbuilding Co., South Korea, of the Omega Emmanuel and the Omega
Theodore, respectively, the two newbuilding Ice Class 1A Panamax double
hull product tankers with a capacity of 73,000 dwt each, which the Company
had previously agreed to acquire.
During January 2007, Omega Navigation delivered its two dry bulk carriers
to their new owners. With this delivery and the above mentioned acquisition
of the two Panamax Ice Class 1A product carriers, Omega Navigation has
fulfilled its strategic vision of becoming a pure product tanker company.
Management Commentary:
George Kassiotis, President and Chief Executive Officer of Omega
Navigation, commented: "We are pleased to have concluded our sixth
consecutive profitable quarter since our IPO in April 2006. We attribute
our strong operational and financial results to our strategy of seeking
predictable and stable cash flows through the long term employment of our
vessels which continues to provide us downside protection in the freight
rate environment. In addition, the fact that six of our eight product
tankers have profit sharing which enable us to share into the upside
potential of the charter market and thereby help to maximize the return for
our shareholders.
All of our vessels are under three year time charters with established
charterers pursuant to which we have secured 100% of our operating days for
2007 and 2008 and 63% in 2009. The charters on the vessels delivered to us
in March and April of this year extend to 2010.
We would like to reiterate that we are pursuing a strategy of prudent
growth, expanding our revenue and profit generation capabilities and in
this context, as we have already announced, we have contracted for five
newbuilding product carriers from a very reputable shipyard in South Korea,
to be delivered starting in the first quarter 2010 with the fifth scheduled
for delivery for February 2011. We expect to take delivery of these vessels
at a time when newbuilding berths for product tankers around the world are
becoming increasingly hard to find. In addition, the asset values for
these vessels have already appreciated since we contracted them.
We remain optimistic about the long term fundamentals of the product tanker
market, the area of our strategic focus. We believe that we enjoy strong
competitive advantages in this market with our focused business strategy,
our fleet of young high quality vessels, long term employment with
established charterers, a solid but flexible capital structure and a strong
management team, enabling us to continue delivering strong, stable and
predictable results for our shareholders."
Finally, we continued with our stable dividend policy, declaring our sixth
consecutive quarterly dividend of $0.50 per common share.
Quarterly Dividend
On November 1, 2007, the Board of Directors of the Company approved the
Company's sixth consecutive quarterly dividend since it went public of
$0.50 per common share, payable on November 30, 2007 to shareholders of
record as of November 15, 2007.
Omega Navigation intends to declare and pay quarterly dividends to
shareholders in amounts that are substantially equal to the available cash
from operations during the previous quarter after cash expenses, debt
amortization and discretionary reserves.
Gregory McGrath, Chief Financial Officer of Omega Navigation, commented,
"We have now paid or declared on schedule six consecutive quarterly
dividends since going public in the amount of $0.50 per common share,
aggregating $3.00 per common share, and our next quarterly dividend
declaration is anticipated for February 2008. Our overall objective is to
pursue a strategy of disciplined growth, while at the same time
implementing a stable, dividend payout. We believe this strategy will
maximize shareholder value over the long term. Our dividend policy
enhances our Company's ability to pay dividends to the public shareholders
and is structured to enable all shareholders to share equally in our
Company's profitability and growth. The Class B shares held by the initial
shareholder, which were approximately 20.6% of the total outstanding
shares, are subordinated in respect of paying dividends to the public
shareholders."
As of September 30, 2007, the Company had a debt to book capitalization
ratio of 62%. This level of leverage has allowed the Company to drawdown
its revolving credit facility to partially finance the acquisition of its
eighth product tanker, the newbuilding vessel Omega Theodore, which was
delivered to the Company on April 26, 2007.
Fleet Data
Panamax Tankers Handymax Tankers
-------------------------- --------------------------
Three months ended Three months ended
-------------------------- --------------------------
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Number of vessels
at end of period 6 4 2 2
Average age of
fleet (in years) 2 2 1 0
Ownership days (1) 552 336 184 181
Available days (2) 552 336 184 181
Operating days (3) 552 336 184 181
Fleet Utilization (4) 100% 100% 100% 100%
Voyage revenues (net
of voyage
expenses) (7) $ 13,826,103 $ 8,436,866 $ 3,822,940 $ 3,741,910
Time charter
equivalent (TCE)
rate $/day (5)(7) 25,047 25,110 20,777 20,673
Vessel operating
expenses (net of
predelivery
expenses) $ 2,418,015 $ 1,410,522 $ 933,632 $ 641,601
Daily vessel
operating expenses
$/day(6) 4,380 4,197 5,074 3,545
------------ ------------ ------------ ------------
Nine months ended Nine months ended
-------------------------- --------------------------
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Number of vessels
at end of period 6 4 2 2
Average age of
fleet (in years) 2 2 1 0
Ownership days (1) 1,436.76 385 546 185
Available days (2) 1,436.76 385 546 185
Operating days (3) 1,436.76 385 546 185
Fleet Utilization (4) 100% 100% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 35,925,253 $ 9,726,223 $ 11,355,851 $ 3,810,335
Time charter
equivalent (TCE)
rate $/day (5)(7) 25,004 25,263 20,798 20,596
Vessel operating
expenses (net of
predelivery
expenses) $ 6,560,027 $ 1,693,461 $ 2,513,188 $ 669,733
Daily vessel
operating expenses
$/day (6) 4,566 4,399 4,603 3,620
------------ ------------ ------------ ------------
(1) Ownership days are 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.
(2) Available days are 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. The
shipping industry uses available days to measure the number of days
in a period during which vessels should be capable of generating
revenues.
(3) Operating days are the number of 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.
(4) 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.
(5) Time charter equivalent, or TCE, is a measure of the average daily
revenue performance of a vessel on a per voyage basis. Our method of
calculating TCE is consistent with industry standards and is
determined by dividing voyage revenues (net of voyage expenses) by
available days for the relevant time period. Voyage expenses primarily
consist of port, canal and fuel costs that are unique to a particular
voyage, which would otherwise be paid by the charterer under a time
charter contract, as well as commissions. TCE is a standard shipping
industry performance measure used primarily to compare period-to-period
changes in a shipping company's performance despite changes in the mix
of charter types (i.e., spot charters, time charters and bareboat
charters) under which the vessels may be employed between the periods.
(6) Daily vessel operating expenses, which 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, but excludes
any predelivery expenses incurred at or prior to the delivery of the
product tankers, are calculated by dividing vessel operating expenses
by ownership days for the relevant period. For the three months ended
September 30, 2007, pre-delivery expenses amounted to $0 million for
Panamax product tankers and $0 for Handymax product tankers. For the
nine months ended September 30, 2007, pre-delivery expenses amounted
to $0.8 million for Panamax product tankers and $0 for Handymax
product tankers. For the three months ended September 30, 2006,
pre-delivery expenses amounted to $0.2 million for Panamax product
tankers and $0.2 for Handymax product tankers. For the nine months
ended September 30, 2006, pre-delivery expenses amounted to $0.3
million for Panamax product tankers and $0.3 for Handymax product
tankers.
(7) For the three months ended September 30, 2007 excludes $1.3 million
of profit sharing revenue booked in the third quarter of 2007 on the
"Omega Lady Sarah," the "Omega Lady Miriam" and the "Omega Theodore."
For the nine months ended September 30, 2007 excludes $3.4 million
of profit sharing revenue booked in the first, second and third
quarter of 2007 on the "Omega Lady Sarah," "Omega Lady Miriam" and
"Omega Theodore."
Fleet Profile and Employment:
The table below describes the profile and employment of the Company's fleet
as of today:
Daily
Sister Year Deadweight Delivery Hire Re-
Vessel Ship (1) Built (dwt) Type Date Rate(2) delivery
-------- ----- ---------- -------- -------- ------- -- --------
CURRENT FLEET
Panamax Product
Tankers
Omega Queen A 2004 74,999 LR1 May-06 $26,500 (3) May-09
-------- ----- ---------- -------- -------- ------- -- --------
Omega King A 2004 74,999 LR1 Jun-06 $26,500 (3) Jun-09
-------- ----- ---------- -------- -------- ------- -- --------
Omega Lady LR1 -Ice
Sarah C 2004 71,500 Class 1C Jun-06 $24,000 (4) Jun-09
-------- ----- ---------- -------- -------- ------- -- --------
Omega Lady LR1 -Ice
Miriam C 2003 71,500 Class 1C Aug-06 $24,000 (4) Jul-09
-------- ----- ---------- -------- -------- ------- -- --------
Omega LR1 -Ice
Emmanuel D 2007 73,000 Class 1A Mar-07 $25,500 (6) Apr-10
-------- ----- ---------- -------- -------- ------- -- --------
Omega LR1 -Ice
Theodore D 2007 73,000 Class 1A Apr-07 $25,500 (6) May-10
-------- ----- ---------- -------- -------- ------- -- --------
Handymax Product Tankers
-------- ----- ---------- -------- -------- ------- -- --------
Omega Ice
Prince B 2006 36,680 Class 1A Jun-06 $21,000 (5) Jun-09
-------- ----- ---------- -------- -------- ------- -- --------
Omega Ice
Princess B 2006 36,680 Class 1A Jul-06 $21,000 (5) Jun-09
-------- ----- ---------- -------- -------- ------- -- --------
TOTAL (DWT): 512,358
-------------- ---------- --------------------------------------
Additional Handymax Vessels
TBN1 E 2010 37,000 Mar-10
-------- ----- ---------- -------- -------- ------- -- --------
TBN2 E 2010 37,000 July-10
-------- ----- ---------- -------- -------- ------- -- --------
TBN3 E 2010 37,000 Sept-10
-------- ----- ---------- -------- -------- ------- -- --------
TBN4 E 2010 37,000 Dec-10
-------- ----- ---------- -------- -------- ------- -- --------
TBN5 E 2011 37,000 Feb-11
-------- ----- ---------- -------- -------- ------- -- --------
Total (DWT): 185,000
-------------- ---------- --------------------------------------
(1) Each vessel is a sister ship of each other vessel that has the same
letter.
(2) This table shows gross charter rates and does not include brokers'
commissions, which are 1.25% of the daily time charter rate.
(3) The Company has granted Torm the option to extend the charter for 24
months at a minimum daily time charter hire rate of $28,500.
(4) Plus any additional income under profit sharing provisions of the
Company's charter agreement.
(5) Plus any additional income under profit sharing provisions of the
charter agreements with D/S Norden A/S. The Company has granted the
charterers the option to extend the charter for 12 months at a minimum
daily time charter hire rate of $24,000.
(6) Plus any additional income under profit sharing arrangements, according
to which charter earnings in excess of $ 25,500 per day will be divided
equally between Omega Navigation and ST Shipping. When the vessels
trade in ice conditions, the profit sharing between Omega Navigation
and ST Shipping is 65/35% respectively.
Conference Call and Webcast:
As previously announced, the Company's management will host a conference
call to discuss its third quarter 2007 results on November 13, 2007 at
10:00 A.M. EST.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1-866-819-7111 (US Toll Free Dial In),
0800-953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard
International Dial In). Please quote "Omega."
In case of any problem with the above numbers, please dial 1-866-223-0615
(from the US),
0800 694 1503 (from the UK) or + 44 (0) 1452 586 513 (all other callers).
Please quote "Omega."
A telephonic replay of the conference call will be available until November
20, 2007 by dialing 1-866-247-4222 (US Toll Free Dial In), 0800-953-1533
(UK Toll Free Dial In) or +44(0)1452-55-00-00 (Standard International Dial
In). Access Code: 3663884#.
Slides and audio webcast: There will also be a live, and then archived,
webcast of the conference call, through Omega Navigation's website
(www.omeganavigation.com). Participants into the live webcast should
register on the website approximately 10 minutes prior to the start of the
webcast.
Omega Navigation Enterprises Inc
Consolidated Statement of Income
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Nine months ended
-------------------- --------------------
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
--------- --------- --------- ---------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 19,231 12,334 51,367 13,713
Expenses:
Voyage expenses 242 155 673 177
Vessel operating expenses 3,326 2,396 9,847 2,952
Depreciation and amortization 4,750 3,322 12,809 3,665
Management fees 297 285 823 300
Options' premium - - 200 -
General and administrative
expenses 1,157 841 3,521 1,541
Foreign currency (gains)/losses 44 (1) 62 13
--------- --------- --------- ---------
Operating income 9,415 5,336 23,432 5,065
--------- --------- --------- ---------
Other income (expenses)
Interest and finance costs (5,163) (3,372) (13,758) (4,039)
Interest income 284 238 1,605 1,692
Change in fair value of
warrants settled liability 685 - 233 -
Loss on derivative instruments (938) (1,208) (572) (471)
--------- --------- --------- ---------
Total other income /(expenses),
net (5,132) (4,342) (12,492) (2,818)
--------- --------- --------- ---------
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS 4,283 994 10,940 2,247
--------- --------- --------- ---------
DISCONTINUED OPERATIONS
Income/(Loss) from discontinued
operations of the bulk carrier
fleet (including a gain on
extinguishment of debt of $5
million in 2006) - 1,587 (154) 9,216
Loss on disposal of dry bulk
carrier vessels in 2006 - (1,685) - (1,685)
--------- --------- --------- ---------
INCOME/(LOSS) FROM DISCONTINUED
OPERATIONS - (98) (154) 7,531
--------- --------- --------- ---------
--------- --------- --------- ---------
Net income 4,283 896 10,786 9,778
========= ========= ========= =========
Omega Navigation Enterprises Inc
Consolidated Balance Sheet
(All amounts expressed in thousands of U.S. Dollars)
September 30, December 31,
2007 2006
------------ -------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 9,624 3,862
Accounts receivable, trade 21 145
Inventories 552 504
Prepayments and other 547 518
Restricted cash 2,606 2,477
Vessels held for sale - 81,468
------------ -------------
Total current assets 13,350 88,974
------------ -------------
FIXED ASSETS:
Vessels, net 465,988 350,288
Property and equipment, net 117 143
Advances for vessels' acquisition and other
vessel costs 22,418 200
------------ -------------
Total fixed assets 488,523 350,631
------------ -------------
OTHER NON CURRENT ASSETS:
Deferred charges 356 226
Restricted cash 5,000 4,000
------------ -------------
Total other non current assets 5,356 4,226
------------ -------------
Total assets 507,229 443,831
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 15,175 49,133
Accounts payable 1,006 1,496
Accrued and other current liabilities 2,487 1,129
Deferred revenue 1,719 2,719
Derivatives liability 929 313
------------ -------------
Total current liabilities 21,316 54,790
------------ -------------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 289,590 188,944
Warrants settled liability 7,935 -
------------ -------------
Total non-current liabilities 297,525 188,944
------------ -------------
------------ -------------
COMMITMENTS AND CONTINGENCIES: - -
------------ -------------
Stockholders' equity:
Common stock 151 151
Additional paid-in capital 196,901 196,590
Retained earnings/(Accumulated deficit) (8,664) 3,356
------------ -------------
Total stockholders' equity 188,388 200,097
------------ -------------
Total liabilities and stockholders' equity 507,229 443,831
============ =============
Omega Navigation Enterprises Inc
Consolidated Statement of Cash Flows
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Nine months ended
---------------------- ----------------------
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
---------- ---------- ---------- ----------
Cash flows from operating
activities
Income from continuing
operations 4,283 994 10,940 2,247
Net cash from continuing
operating activities 9,579 7,182 25,359 9,310
Net cash from discontinued
operating activities - 2,217 (692) 5,975
---------- ---------- ---------- ----------
Net cash from continuing
and discontinued operating
activities 9,579 9,399 24,667 15,285
---------- ---------- ---------- ----------
Cash flows from investing
activities
Net cash used in investing
activities-continuing
operations (22,400) (103,598) (142,734) (358,052)
Net cash provided by
investing
activities-discontinued
operations - - 81,468 -
---------- ---------- ---------- ----------
Net cash used in investing
activities- continuing and
discontinued operations (22,400) (103,598) (61,266) (358,052)
---------- ---------- ---------- ----------
Cash flows from financing
activities
Net cash provided by
financing
activities-continuing
operations 3,757 35,625 79,755 350,432
Net cash used in financing
activities-discontinued
operations - - (37,394) (3,680)
---------- ---------- ---------- ----------
Net cash provided by
financing
activities-continuing and
discontinued operations 3,757 35,625 42,361 346,752
---------- ---------- ---------- ----------
Net increase/(decrease) in
cash and cash equivalents (9,064) (58,574) 5,762 3,985
Cash and cash equivalents
at the beginning of the
period 18,688 67,617 3,862 5,058
---------- ---------- ---------- ----------
Cash and cash equivalents
at end of period 9,624 9,043 9,624 9,043
========== ========== ========== ==========
Omega Navigation Enterprises Inc
Reconciliation of EBITDA (1) to Cash from
Operating Activities
(All amounts expressed in thousands of U.S. Dollars)
CONTINUING OPERATIONS Three months ended Nine months ended
---------------------- ----------------------
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
---------- ---------- ---------- ----------
Net cash from operating
activities 9,579 7,182 25,359 9,310
Net increase/(decrease) in
current assets (29) (69) 123 1,030
Net decrease in current
liabilities excluding bank
debt (49) (1,517) (618) (3,830)
Stock based compensation (136) - (311) -
Write off of options’
premium - - (200) -
Change in fair value of
warrants settled liability 685 - 233 -
Net interest
(income)/expense 4,878 3,164 12,108 2,347
Amortization of financing
costs (78) (102) (220) (127)
EBITDA 14,850 8,658 36,474 8,730
CONTINUING & DISCONTINUED Three months ended Nine months ended
OPERATIONS ---------------------- ----------------------
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
---------- ---------- ---------- ----------
Net cash from operating
activities 9,579 9,399 24,667 15,285
Net increase/(decrease) in
current assets (29) (61) (48) 859
Net decrease in current
liabilities excluding bank
debt (49) (1,462) 132 (3,057)
Gain on extinguishment of
debt - - - 5,000
Loss on sale of vessels - (1,685) - (1,685)
Stock based compensation (136) - (311) -
Write off of options’
premium - - (200) -
Change in fair value of
warrants settled liability 685 - 233 -
Net interest
(income)/expense 4,878 3,825 12,237 4,578
Amortization of financing
costs (78) (120) (261) (151)
EBITDA 14,850 9,896 36,449 20,829
(1) EBITDA represents net income before interest, taxes, depreciation and
amortization. EBITDA does not represent and should not be considered
as an alternative to net income or cash flow from operations, as
determined by US GAAP and our calculation of EBITDA may not be
comparable to that reported by other companies. EBITDA is included
here because it is a basis upon which we assess our liquidity position
because we believe it presents useful information to investors
regarding our ability to service and/or incur indebtedness.
About Omega Navigation Enterprises, Inc.
Omega Navigation Enterprises, Inc. is an international provider of global
marine transportation services through the ownership and operation of eight
double hull product tankers. The current fleet includes eight double hull
product tankers with a carrying capacity of 512,358 dwt. These eight
product tankers are chartered out under three-year period time charters.
Furthermore, the company recently announced the signing of shipbuilding
contracts to construct and acquire five newbuilding double hull Handymax
product tankers each with a capacity of 37,000 dwt scheduled for delivery
between March 2010 and early in 2011. With the addition of these five
vessels, the Omega fleet will expand to 13 product tankers with a total
deadweight capacity of 697,358 tons.
The Company was incorporated in the Marshall Islands in February 2005. Its
principal executive offices are located in Piraeus, Greece and it also
maintains an office in the United States.
Omega Navigation's Class A Common Shares are traded on the NASDAQ National
Market under the symbol "ONAV" and are also listed on the Singapore
Exchange Securities Trading Limited under the symbol "ONAV 50."
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides
safe harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of
historical facts.
The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intends," "estimate," "forecast,"
"project," "plan," "potential," "will," "may," "should," "expect" "pending"
and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, the Company's management's examination of
historical operating trends, data contained in the Company's records and
other data available from third parties. Although the Company believes that
these assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond the Company's control,
the Company cannot assure you that the Company will achieve or accomplish
these expectations, beliefs or projections.
In addition to these important factors other important factors that, in the
Company's view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including fluctuations
in charter rates and vessel values, changes in demand for product tanker
and dry bulk shipping capacity, changes in the Company's operating
expenses, including bunker prices, drydocking and insurance costs, the
market for the Company's vessels, availability of financing and
refinancing, changes in governmental rules and regulations or actions taken
by regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political
events, vessels breakdowns and instances of off-hires and other factors.
Please see the Company's filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks and
uncertainties.
Contacts:
Company Contact:
Gregory A. McGrath
Chief Financial Officer
Omega Navigation Enterprises, Inc.
PO Box 272
Convent Station, NJ 07961
Tel. (551) 580-0532
E-mail: gmcgrath@omeganavigation.com
www.omeganavigation.com
Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: nbornozis@capitallink.com
www.capitallink.com
