Fleet Data
Three Months Ended March 31, 2007 Product Carriers
Panamax Handymax
Tankers Tankers
Number of vessels at end of period 5 2
Average age of fleet (in years) 3 1
Ownership days (2) 364 180
Available days (3) 364 180
Operating days (4) 364 180
Fleet Utilization (5) 100% 100%
Voyage revenues (net of voyage expenses) (8) 9,089,615 3,747,436
Time charter equivalent (TCE) rate $/day (6)(8) 24,971 20,819
Vessel operating expenses (net of predelivery
expenses) 1,762,620 773,599
Daily vessel operating expenses (7) 4,842 4,298
(1) 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 a part of our fleet during the period divided by the
number of calendar days in the period.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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 March 31, 2007, pre-delivery
expenses amounted to $0.4 million for Panamax product tankers and $0 for
Handymax product tankers.
(8) Excludes $ 1.1 million of profit sharing revenue booked in the first
quarter of 2007 on the "Omega Lady Sarah" and the "Omega Lady Miriam"
related to voyages carried out during the second and third quarters of
2006.
Fleet Profile and Employment:
The table below describes the profile and employment of the Company’s fleet
as of today:
Sister Dead-
Ship Year weight Delivery Daily Hire Re-
Vessel (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
------ ------ -------- ------ -------- ---------- -- --------
LR1 -
Ice
Omega Lady Class
Sarah C 2004 71,500 1C Jun-06 $ 24,000 (4) Jun-09
------ ------ -------- ------ -------- ---------- -- --------
LR1 -
Ice
Omega Lady Class
Miriam C 2003 71,500 1C Aug-06 $ 24,000 (4) Jul-09
------ ------ -------- ------ -------- ---------- -- --------
LR1 -
Ice
Omega Class
Emmanuel D 2007 73,000 1A Mar-07 $ 25,500 (6) Apr-10
------ ------ -------- ------ -------- ---------- -- --------
LR1 -
Ice
Omega Class
Theodore D 2007 73,000 1A Apr-07 $ 25,500 (6) May-10
------ ------ -------- ------ -------- ---------- -- --------
Handymax Product
Tankers
------ ------ -------- ------ -------- ---------- -- --------
Ice
Class
Omega Prince B 2006 36,680 1A Jun-06 $ 21,000 (5) Jun-09
------ ------ -------- ------ -------- ---------- -- --------
Ice
Omega Class
Princess B 2006 36,680 1A Jul-06 $ 21,000 (5) Jun-09
------ ------ -------- ------ -------- ---------- -- --------
TOTAL (DWT): 512,358
------ ------ -------- ------ -------- ---------- -- --------
Additional
Vessels
------ ------ -------- ------ -------- ---------- -- --------
LR1 -
Ice
Panamax TBN Class
3 D 2007 73,000 1A Aug-07
------ ------ -------- ------ -------- ---------- -- --------
LR1 -
Ice
Panamax TBN Class
4 D 2007 73,000 1A Sep-07
------ ------ -------- ------ -------- ---------- -- --------
Total (DWT): 146,000
------ ------ -------- ------ -------- ---------- -- --------
(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 first quarter 2007 results on May 15, 2007 at 9:00 A.M.
EDT.
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 (866) 869-2352
(from the US),
0800 694 1449 (from the UK) or + 44 (0) 1452 560 304 (from outside the US).
Quote "Omega Navigation."
A telephonic replay of the conference call will be available until May 22,
2007 by dialing 1-866-223-0615 (US Toll Free Dial In), 0800-694-1503 (UK
Toll Free Dial In) or +44(0)1452-586-513 (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-except shares and per
share data)
Omega Navigation Enterprises Inc
Three Months
Ended March 31,
2007
--------------
(unaudited)
CONTINUING OPERATIONS
---------------------
Revenues:
Voyage revenue 14,139
Expenses:
Voyage expenses (195)
Vessel operating expenses (2,943)
Depreciation and amortization (3,522)
Management fees (248)
Options’ premium (100)
General and administrative expenses (1,157)
Foreign currency losses (8)
--------------
Operating income 5,966
--------------
Other income (expenses)
Interest and finance costs (3,823)
Interest income 946
Loss on derivative instruments (234)
--------------
Total other income /(expenses), net (3,111)
--------------
--------------
INCOME FROM CONTINUING OPERATIONS 2,855
--------------
DISCONTINUED OPERATIONS
-----------------------
Loss from discontinued operations of the bulk carrier
fleet (166)
--------------
LOSS FROM DISCONTINUED OPERATIONS (166)
--------------
--------------
Net income 2,689
==============
Earning / (Loss) per common share, basic and diluted:
- From continuing operations
Earnings per Class A common share, basic and diluted 0.19
Earnings per Class B common share, basic and diluted 0.19
Weighted average number of Class A common shares, basic 12,010,000
Weighted average number of Class A common shares, diluted 12,188,502
Weighted average number of Class B common shares, basic and
diluted 3,140,000
- From discontinued operations
Loss per Class A common share, basic and diluted (0.01)
Loss per Class B common share, basic and diluted (0.01)
Weighted average number of Class A common shares, basic 12,010,000
Weighted average number of Class A common shares, diluted 12,188,502
Weighted average number of Class B common shares, basic and
diluted 3,140,000
- From continuing and discontinued operations
Earnings per Class A common share, basic and diluted 0.18
Earnings per Class B common share, basic and diluted 0.18
Weighted average number of Class A common shares, basic 12,010,000
Weighted average number of Class A common shares, diluted 12,188,502
Weighted average number of Class B common shares, basic and
diluted 3,140,000
Consolidated Balance Sheet
(All amounts expressed in thousands of U.S.
Dollars - except shares and per share data)
March 31, December 31,
2007 2006
-------------- ---------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 26,206 3,862
Accounts receivable, trade 284 145
Inventories 581 504
Prepayments and other 629 518
Restricted cash 304 931
Vessels held for sale - 81,468
-------------- ---------------
Total current assets 28,004 87,428
-------------- ---------------
FIXED ASSETS:
Vessels, net 410,961 350,288
Property and equipment, net 128 143
Advances for vessels’ acquisition 6,100 200
-------------- ---------------
Total fixed assets 417,189 350,631
-------------- ---------------
OTHER NON CURRENT ASSETS:
Deferred charges 130 226
Restricted cash 5,539 5,546
-------------- ---------------
Total other non current assets 5,669 5,772
-------------- ---------------
Total assets 450,862 443,831
============== ===============
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 11,180 49,133
Accounts payable 1,410 1,496
Accrued and other current liabilities 1,483 1,129
Deferred revenue 3,303 2,719
Derivatives liability 587 313
-------------- ---------------
Total current liabilities 17,963 54,790
-------------- ---------------
NONCURRENT LIABILITIES:
LONG-TERM DEBT, net of current portion 233,668 188,944
Warrants 3,982 -
-------------- ---------------
Total noncurrent liabilities 237,650 188,944
-------------- ---------------
-------------- ---------------
COMMITMENTS AND CONTINGENCIES: - -
-------------- ---------------
Stockholders’ equity:
Common stock: 151 151
Additional paid-in capital 196,654 196,590
Retained earnings (1,556) 3,356
-------------- ---------------
Total stockholders’ equity 195,249 200,097
-------------- ---------------
Total liabilities and stockholders’ equity 450,862 443,831
============== ===============
Omega Navigation Enterprises Inc
Consolidated Statement of Cash Flows
(All amounts expressed in thousands of U.S.
Dollars-except shares and per share data)
Three months
ended March
31, 2007
--------------
(unaudited)
Cash flows from operating activities
Income from continuing operations 2,855
--------------
Net cash from continuing operating activities 8,068
Net cash from discontinued operating activities (885)
--------------
Net cash from continuing and discontinued operating
activities 7,183
--------------
Cash flows from investing activities
--------------
Net cash used in investing activities-continuing operations (70,082)
Net cash provided by investing activities-discontinued
operations 81,469
--------------
Net cash (used in) /provided by investing activities-
continuing and discontinued operations 11,387
--------------
Cash flows from financing activities --------------
Net cash provided by financing activities-continuing
operations 42,583
Net cash used in financing activities-discontinued
operations (38,809)
--------------
Net cash provided by/ (used in) financing
activities-continuing and discontinued operations 3,774
--------------
Net increase in cash and cash equivalents 22,344
Cash and cash equivalents at the beginning of the period 3,862
--------------
Cash and cash equivalents at end of period 26,206
==============
Omega Navigation Enterprises Inc
Reconciliation of EBITDA (1) to Cash From Operating Activities
(All amounts expressed in thousands of U.S.
Dollars-except shares and per share data)
Three months ended March 31,
2007
------------------------------
Continuing
operations Total
-------------- --------------
Net cash from operating activities 8,068 7,183
Net increase in current assets 177 326
Net decrease in current liabilities
excluding bank debt (1,462) (851)
Stock based compensation (64) (64)
Net interest expense 2,837 2,966
Amortization of financing costs (67) (108)
-------------- --------------
EBITDA 9,489 9,452
============== ==============
(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.
The Company also has or had options to acquire two additional double hull
Ice Class 1A Panamax product carriers currently under construction at STX
Shipbuilding in South Korea which are expected to be available for delivery
between August and September 2007.
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," "except," "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