Fleet Data
Panamax Tankers Handymax Tankers
Three months ended Three months ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Number of vessels at end of
period 6 3 2 1
Average age of fleet (in
years) 2 2 1 0
Ownership days (1) 520.58 48.95 182 3.29
Available days (2) 520.58 48.95 182 3.29
Operating days (3) 520.58 48.95 182 3.29
Fleet Utilization (4) 100% 100% 100% 100%
Voyage revenues (net of
voyage expenses) (7) 13,023,541 1,293,307 3,785,474 68,393
Time charter equivalent
(TCE) rate $/day (5)(6) 25,017 26,421 20,799 20,788
Vessel operating expenses
(net of predelivery
expenses) 2,378,258 218,855 805,957 12,449
Daily vessel operating
expenses (6) 4,568 4,471 4,428 3,784
---------- ---------- ---------- ----------
Six months ended Six months ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Number of vessels at end of
period 6 3 2 1
Average age of fleet (in
years) 2 2 1 0
Ownership days (1) 884.76 48.95 362 3.29
Available days (2) 884.76 48.95 362 3.29
Operating days (3) 884.76 48.95 362 3.29
Fleet Utilization (4) 100% 100% 100% 100%
Voyage revenues (net of
voyage expenses) (7) 22,099,153 1,293,307 7,532,911 68,393
Time charter equivalent
(TCE) rate $/day (5)(6) 24,977 26,421 20,809 20,788
Vessel operating expenses
(net of predelivery
expenses) 4,143,152 218,855 1,579,557 12,449
Daily vessel operating
expenses (6) 4,683 4,471 4,363 3,784
---------- ---------- ---------- ----------
(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
June 30, 2007, pre-delivery expenses amounted to $0.4 million for
Panamax product tankers and $0 for Handymax product tankers. For the
six months ended June 30, 2007, pre-delivery expenses amounted to $0.8
million for Panamax product tankers and $0 for Handymax product
tankers. For the three months and six months ended June 30, 2006,
pre-delivery expenses amounted to $0.2 million for Panamax product
tankers and $0.1 for Handymax product tankers.
(7) For the three months ended June 30, 2007 excludes $ 1.0 million of
profit sharing revenue booked in the second quarter of 2007 on the
"Omega Lady Sarah" and the "Omega Theodore." For the six months ended
June 30, 2007 excludes $ 2.1 million of profit sharing revenue booked
in the first and second 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:
Sister Daily
Ship Year Deadweight Delivery Hire
Vessel (1) Built (dwt) Type Date Rate(2) Re-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
----- ----- -------- --------- ------- -------- -- ---------
Ice Class
Omega Prince B 2006 36,680 1A Jun-06 $ 21,000 (5) Jun-09
----- ----- -------- --------- ------- -------- -- ---------
Omega Ice Class
Princess B 2006 36,680 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 second quarter 2007 results on August 29, 2007 at 10:00
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 1-866-223-0615
(from the US), 0800-694-1503 (from the UK) or +44 (0) 1452-586-513 (all
other callers). Quote "Omega."
A telephonic replay of the conference call will be available until
September 05, 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 Six months ended
-------------------- --------------------
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
--------- --------- --------- ---------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 17,998 1,379 32,137 1,379
Expenses:
Voyage expenses (236) (17) (431) (17)
Vessel operating expenses (3,578) (544) (6,521) (544)
Depreciation and
amortization (4,537) (366) (8,059) (366)
Management fees (278) (15) (526) (15)
Options' premium (100) - (200) -
Change in fair value of
warrants settled
liability (452) - (452) -
General and administrative
expenses (1,207) (421) (2,364) (718)
Foreign currency losses (11) (14) (19) (14)
--------- --------- --------- ---------
Operating income/(loss) 7,599 2 13,565 (295)
--------- --------- --------- ---------
Other income (expenses)
Interest and finance costs (4,773) (696) (8,597) (700)
Interest income 375 1,442 1,321 1,454
Gain on derivative
instruments 601 737 366 737
--------- --------- --------- ---------
Total other income /(expenses),
net (3,797) 1,483 (6,910) 1,491
--------- --------- --------- ---------
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS 3,802 1,485 6,655 1,196
--------- --------- --------- ---------
DISCONTINUED OPERATIONS
Income/(Loss) from
discontinued operations of
the bulk carrier fleet 12 1,426 (154) 7,686
--------- --------- --------- ---------
INCOME/(LOSS) FROM
DISCONTINUED OPERATIONS 12 1,426 (154) 7,686
--------- --------- --------- ---------
--------- --------- --------- ---------
Net income 3,814 2,911 6,501 8,882
========= ========= ========= =========
Omega Navigation Enterprises Inc
Consolidated Balance Sheet
(All amounts expressed in thousands of U.S. Dollars)
June 30, December 31,
2007 2006
----------- ------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 18,688 3,862
Accounts receivable, trade 77 145
Inventories 617 504
Prepayments and other 452 518
Restricted cash 2,451 2,477
Derivative asset 9 -
Vessels held for sale - 81,468
----------- ------------
Total current assets 22,294 88,974
----------- ------------
FIXED ASSETS:
Vessels, net 470,725 350,288
Property and equipment, net 125 143
Advances for vessels' acquisition and other
vessel costs 23 200
----------- ------------
Total fixed assets 470,873 350,631
----------- ------------
OTHER NON CURRENT ASSETS:
Deferred charges - 226
Restricted cash 4,000 4,000
----------- ------------
Total other non current assets 4,000 4,226
----------- ------------
Total assets 497,167 443,831
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 17,424 49,133
Accounts payable 1,229 1,496
Accrued and other current liabilities 2,149 1,129
Deferred revenue 1,786 2,719
Derivatives liability - 313
----------- ------------
Total current liabilities 22,588 54,790
----------- ------------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 274,390 188,944
Warrants settled liability 8,620 -
----------- ------------
Total non-current liabilities 283,010 188,944
----------- ------------
----------- ------------
COMMITMENTS AND CONTINGENCIES: - -
----------- ------------
Stockholders' equity:
Common stock 151 151
Additional paid-in capital 196,765 196,590
Retained earnings/(Accumulated deficit) (5,347) 3,356
----------- ------------
Total stockholders' equity 191,569 200,097
----------- ------------
Total liabilities and stockholders' equity 497,167 443,831
=========== ============
Omega Navigation Enterprises Inc
Consolidated Statement of Cash Flows
(All amounts expressed in thousands of U.S. Dollars-)
Three months ended Six months ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
-------- -------- -------- --------
Cash flows from operating
activities
Income from continuing operations 3,802 1,485 6,655 1,196
Net cash from continuing operating
activities 7,913 1,242 15,780 2,094
Net cash from discontinued
operating activities (106) 1,464 (692) 3,792
-------- -------- -------- --------
Net cash from continuing and
discontinued operating activities 7,807 2,706 15,088 5,886
-------- -------- -------- --------
Cash flows from investing
activities
Net cash used in investing
activities-continuing operations (54,136) (254,054) (120,334) (254,454)
Net cash provided by investing
activities-discontinued operations - - 81,468 -
-------- -------- -------- --------
Net cash used in investing
activities- continuing and
discontinued operations (54,136) (254,054) (38,866) (254,454)
-------- -------- -------- --------
Cash flows from financing
activities
Net cash provided by financing
activities-continuing operations 38,811 315,724 75,998 314,307
Net cash provided by /(used in)
financing activities-discontinued
operations - 320 (37,394) (3,180)
-------- -------- -------- --------
Net cash provided by financing
activities-continuing and
discontinued operations 38,811 316,044 38,604 311,127
-------- -------- -------- --------
Net increase/(decrease) in cash and
cash equivalents (7,518) 64,696 14,826 62,559
Cash and cash equivalents at the
beginning of the period 26,206 2,921 3,862 5,058
-------- -------- -------- --------
Cash and cash equivalents at end of
period 18,688 67,617 18,688 67,617
======== ======== ======== ========
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 Six months ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
-------- -------- -------- --------
Net cash from operating activities 7,913 1,242 15,780 2,094
Net increase in current assets (328) 1,044 152 1,070
Net decrease in current
liabilities excluding bank debt 893 (1,150) (569) (2,316)
Stock based compensation (110) - (175) -
Write off of options’ premium (100) - (200) -
Change in fair value of warrants
settled liability (452) - (452) -
Net interest (income)/expense 4,393 (745) 7,230 (755)
Amortization of financing costs (74) (23) (142) (23)
EBITDA 12,135 368 21,624 70
CONTINUING & DISCONTINUED
OPERATIONS Three months ended Six months ended
------------------ ------------------
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
-------- -------- -------- --------
Net cash from operating activities 7,807 2,706 15,090 5,886
Net increase in current assets (348) 699 (20) 920
Net decrease in current
liabilities excluding bank debt 1,031 (2) 180 (1,595)
Gain on extinguishment of debt - - - 5,000
Stock based compensation (110) - (175)
Write off of options’ premium (100) - (200)
Change in fair value of warrants
settled liability (452) - (452)
Net interest (income)/expense 4,393 (108) 7,358 754
Amortization of financing costs (74) (32) (181) (38)
EBITDA 12,147 3,263 21,598 10,927
(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