Fleet Data
Panamax Tankers Handymax Tankers
---------------------- ----------------------
Three months ended Three months ended
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June 30, June 30, June 30, June 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
Number of vessels at end of
period 6 6 3 2
Average age of fleet (in
years) 5 4 3 3
Ownership days (1) 546 546 273 182
Available days (2) 546 527 273 182
Operating days (3) 546 521 273 182
Fleet Utilization (4) 100% 99% 100% 100%
Voyage revenues (net of
voyage expenses) (7) 10,129,614 12,067,119 4,555,234 3,473,156
Time charter equivalent
(TCE) rate $/day (5)(7) 18,552 22,898 16,686 19,083
Vessel operating expenses 2,816,105 3,131,227 1,411,077 965,343
Daily vessel operating
expenses $/day(6) 5,158 5,735 5,169 5,304
Six months ended Six months ended
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June 30, June 30, June 30, June 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
Number of vessels at end of
period 6 6 3 2
Average age of fleet (in
years) 5 4 3 3
Ownership days (1) 1,086 1,086 488 362
Available days (2) 1,086 1,054 488 362
Operating days (3) 1,086 1,038 488 361
Fleet Utilization (4) 100% 98% 100% 100%
Voyage revenues (net of
voyage expenses) (7) 21,510,116 24,971,422 7,988,491 7,207,473
Time charter equivalent
(TCE) rate $/day (5)(7) 19,807 23,692 16,370 19,910
Vessel operating expenses 6,167,390 6,469,399 2,557,626 1,917,794
Daily vessel operating
expenses $/day(6) 5,679 5,957 5,241 5,298
(1) Ownership days are the aggregate number of days in a period during
which each vessel in the Company's fleet has been owned by the Company.
Ownership days are an indicator of the size of the Company's fleet over
a period and affect both the amount of revenues and the amount of
expenses that the Company records during a period.
(2) Available days are the number of the Company's ownership days less the
aggregate number of days that the Company's 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 the Company's 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) The Company calculates fleet utilization by dividing the number of the
Company's fleet's operating days during a period by the number of its
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 pre-delivery 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. The six month period ended
June 30, 2010 excludes an amount of $0.3 million relating to the
predelivery expenses of Megacore Honami.
(7) The three month period ended June 30, 2009, excludes $0.7 million of
profit sharing revenue related to profit sharing on charters of the
vessels, the Omega Lady Sarah, the Omega Lady Miriam, the Omega
Emmanuel and the Omega Theodore. The six month period ended June 30,
2009 excludes $2.4 million of profit sharing revenue related to profit
sharing on charters of the vessels the Omega Lady Sarah, the Omega Lady
Miriam, the Omega Emmanuel and the Omega Theodore.
Omega Navigation Enterprises Inc
Consolidated Statements of Income/(Loss)
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
CONTINUING OPERATIONS (unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Voyage revenue 18,940 16,711 34,445 35,388
Revenue from related
parties 94 - 119 -
Expenses:
Voyage expenses 4,255 469 4,947 769
Vessel operating
expenses 4,025 4,097 8,900 8,388
Depreciation and
amortization 5,227 4,787 10,142 9,476
Management fees 311 349 692 651
General and
administrative
expenses (including
non cash
compensation expense
of $118, $260 for
the quarter ended
June 30, 2010 and
2009 respectively
and $291 and
$910 for the six
months ended June
30, 2010 and 2009
respectively) 1,412 1,595 2,844 3,333
Foreign currency
(gains)/losses (80) 80 (104) 79
----------- ----------- ----------- -----------
Income from vessels
operation 3,884 5,334 7,143 12,692
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Loss on Termination
of purchase
agreements (3,000) (3,000) (3,000) (3,000)
Income/(Loss) from
Joint Venture
companies (7) (479) 126 (479)
----------- ----------- ----------- -----------
Operating
Income/(Expense) 877 1,855 4,269 9,213
Other income (expenses)
Interest and finance
costs (1,569) (2,123) (3,197) (3,915)
Interest income 14 35 34 80
Change in fair value
of warrants - - - 1,127
Gain/(Loss) on
derivative
instruments (182) (737) (1,500) (1,808)
----------- ----------- ----------- -----------
Total other income
/(expenses), net (1,737) (2,825) (4,663) (4,516)
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INCOME/(LOSS) FROM
CONTINUING OPERATIONS (860) (970) (394) 4,697
DISCONTINUED OPERATIONS
Income/(Loss) from
discontinued
operations of the bulk
carrier fleet - - - -
----------- ----------- ----------- -----------
INCOME/(Loss) FROM
DISCONTINUED
OPERATIONS - - - -
----------- ----------- ----------- -----------
Net income/(Loss) (860) (970) (394) 4,697
=========== =========== =========== ===========
Omega Navigation Enterprises Inc
Consolidated Balance Sheets
(All amounts expressed in thousands of US dollars)
June 30,
2010 December 31,
(unaudited) 2009
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents 907 15,564
Accounts receivable, trade 2,198 1,720
Inventories 819 614
Prepayments and other 1,736 1,419
Due from related parties - 90
Restricted cash 5,543 5,807
Derivative asset 6 -
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Total current assets 11,209 25,214
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FIXED ASSETS:
Vessels, net 459,261 423,762
Property and equipment, net 91 54
Advances for vessels' under construction and
acquisition 56,943 70,620
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Total fixed assets 516,295 494,436
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OTHER NON CURRENT ASSETS:
Deferred charges 1,653 2,110
Restricted cash 32 105
Investments in Joint Ventures 11,163 5,347
Intangible assets 267 221
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Total other non current assets 13,115 7,783
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============ ============
Total assets 540,619 527,433
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 285,531 343,252
Accounts payable 3,535 2,401
Accrued and other current liabilities 3,802 3,211
Deferred revenue 49 594
Derivative liability 6,504 9,909
Dividends payable 73 166
Due to related parties 399 -
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Total current liabilities 299,893 359,533
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NON-CURRENT LIABILITIES:
Long term debt, net of current portion 73,001 -
Dividends payable 32 105
Other long term liabilities 1 1
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Total non-current liabilities 73,034 106
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COMMITMENTS AND CONTINGENCIES: - -
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Stockholders' equity:
Common stock 159 158
Additional paid-in capital 201,910 201,618
Accumulated deficit (34,377) (33,982)
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Total stockholders' equity 167,692 167,794
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------------ ------------
Total liabilities and stockholders' equity 540,619 527,433
============ ============
Omega Navigation Enterprises Inc
Consolidated Statements of Cash Flows
(All amounts expressed in thousands of U.S. Dollars)
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Cash flows from
operating activities
Net income/(loss) from
continuing operations (860) (970) (394) 4,697
Net cash provided by
continuing operating
activities 4,445 2,152 7,633 12,584
----------- ----------- ----------- -----------
Net cash provided by
continuing and
discontinued
operating activities 4,445 2,152 7,633 12,584
----------- ----------- ----------- -----------
Cash flows (used
in)/provided by
investing activities
Net cash (used
in)/provided by
investing
activities-continuing
operations (8,936) 163 (37,653) (47)
----------- ----------- ----------- -----------
Net cash (used
in)/provided by
investing activities-
continuing and
discontinued
operations (8,936) 163 (37,653) (47)
----------- ----------- ----------- -----------
Cash flows provided
by /(used in)
financing activities
Net cash provided
by/(used in)
financing
activities-continuing
operations 2,995 (5,804) 15,363 (13,544)
----------- ----------- ----------- -----------
Net cash provided
by/(used in)
financing
activities-continuing
and discontinued
operations 2,995 (5,804) 15,363 (13,544)
----------- ----------- ----------- -----------
Net (decrease in cash
and cash equivalents
(1,496) (3,489) (14,657) (1,007)
Cash and cash
equivalents at the
beginning of the
period 2,403 19,293 15,564 16,811
----------- ----------- ----------- -----------
Cash and cash
equivalents at end of
period 907 15,804 907 15,804
=========== =========== =========== ===========
Reconciliation of Adjusted EBITDA (1) to Cash from Operating Activities
(All amounts expressed in thousands of U.S. Dollars)
CONTINUING &
DISCONTINUED
OPERATIONS Three months ended Six months ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Net cash from operating
activities 4,445 2,152 7,633 12,584
Net increase/(decrease)
in current assets and
non current assets (1,572) 3,093 510 3,367
Net (increase)/decrease
in current liabilities
excluding bank debt (265) (2,911) (1,014) (4,885)
Net interest expense 3,966 4,080 8,074 7,490
Warrants settled
liabilities - - - 1,127
Stock based
compensation expense (118) (260) (291) (910)
Payments for
drydocking costs - 823 - 1,528
Amortization of
financing costs (352) (336) (501) (484)
----------- ----------- ----------- -----------
Adjusted EBITDA 6,104 6,641 14,411 19,817
=========== =========== =========== ===========
(1) Adjusted EBITDA represents net income before interest, taxes,
gains/losses on derivative instruments, depreciation and amortization.
Adjusted 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 the Company's calculation of Adjusted EBITDA may not be
comparable to that reported by other companies. Adjusted EBITDA is
included here because it is a basis upon which the Company assesses
its liquidity position because the Company believes Adjusted EBITDA
presents useful information to investors regarding the Company's
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
double hull product tankers. The current fleet includes twelve hull product
tankers with a carrying capacity of about 680,000 dwt, of which two double
hull product / chemical tankers, with a capacity of 47,000 dwt, and two
double hull product / chemical tankers, with a capacity of 37,000 dwt., are
owned through equal partnership joint ventures with a wholly owned
subsidiary of Glencore International, A.G. Furthermore, as previously
announced, the joint venture company has entered into shipbuilding
contracts with Hyundai Mipo Dockyard in South Korea, to construct and
acquire seven additional double hull product tankers with a capacity of
74,000 dwt each scheduled for delivery between October 2010 and early 2012.
The Company was incorporated in the Marshall Islands in February 2005. Its
principal executive offices are located in Athens, Greece and it also
maintains an office in the United States.
Omega Navigation's 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: omeganavigation@capitallink.com www.capitallink.com