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.
Contact Information: 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