Operating Fleet Data
Panamax Tankers Handymax Tankers
-------------------------- --------------------------
Three months ended Three months ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
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) 552 368 184 184
Available days (2) 552 368 184 184
Operating days (3) 552 368 184 184
Fleet Utilization (4) 100% 100% 100% 100%
Voyage revenues (net
of voyage
expenses) (7) $ 13,826,066 $ 9,170,954 $ 3,817,959 $ 3,817,936
Time charter
equivalent (TCE)
rate $/day (5)(7) 25,047 24,921 20,750 20,750
Vessel operating
expenses (net of
predelivery
expenses) $ 2,529,085 $ 1,830,411 $ 744,887 $ 766,516
Daily vessel
operating expenses
$/day (6) 4,582 4,974 4,048 4,166
------------ ------------ ------------ ------------
Year ended Year ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Number of vessels
at end of year 6 4 2 2
Average age of
fleet (in years) 2 2 1 0
Ownership days (1) 1,989 753 730 369
Available days (2) 1,989 753 730 369
Operating days (3) 1,989 753 730 369
Fleet Utilization (4) 100% 100% 100% 100%
Voyage revenues (net
of voyage
expenses) (7) $ 49,751,319 $ 18,897,176 $ 15,173,810 $ 7,628,272
Time charter
equivalent (TCE)
rate $/day (5)(7) 25,013 25,096 20,786 20,673
Vessel operating
expenses (net of
predelivery
expenses) $ 9,093,574 $ 3,523,869 $ 3,258,075 $ 1,436,252
Daily vessel
operating expenses
$/day (6) 4,572 4,680 4,463 3,892
------------ ------------ ------------ ------------
(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 December 31, 2007, pre-delivery
expenses amounted to $0 million for Panamax product tankers and $0 for
Handymax product tankers. For the year ended December 31, 2007,
pre-delivery expenses amounted to $0.8 million for Panamax product tankers
and $0 for Handymax product tankers. For the three months ended December
31, 2006, pre-delivery expenses amounted to $64,298 for Panamax product
tankers and $54,809 for Handymax product tankers. For the year ended
December 31, 2006, pre-delivery expenses amounted to $0.4 million for
Panamax product tankers and $0.3 for Handymax product tankers.
(7) For the three months ended December 31, 2007 excludes $ 0.6 million of
profit sharing revenue booked in the fourth quarter of 2007 on the "Omega
Lady Sarah," the "Omega Lady Miriam" and the "Omega Emmanuel." For the year
ended December 31, 2007 excludes $ 4.0 million of profit sharing revenue
booked in 2007 on the "Omega Lady Sarah," "Omega Lady Miriam," "Omega
Theodore" and "Omega Emmanuel."
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
------------ -------- ----- ---------- ----- -------- -------- --- --------
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
Handymax
Vessels
------------ -------- ----- ---------- ----- -------- -------- --- --------
TBN1 E 2010 37,000 Mar-10
------------ -------- ----- ---------- ----- -------- -------- --- --------
TBN2 E 2010 37,000 Jul-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 fourth quarter 2007 results on March 4, 2008 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 March,
11, 2008 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 Year ended
---------------------- ----------------------
December December December December
31, 31, 31, 31,
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited)
---------- ---------- ---------- ----------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 18,523 13,154 69,890 26,867
Expenses:
Voyage expenses (257) (165) (930) (341)
Vessel operating expenses (3,274) (2,716) (13,121) (5,669)
Depreciation and
amortization (4,747) (3,571) (17,557) (7,236)
Management fees (287) (268) (1,110) (568)
Options' premium - (200) (200) (200)
General and
administrative expenses (1,146) (814) (4,667) (2,354)
Foreign currency losses (30) (18) (89) (33)
---------- ---------- ---------- ----------
Operating income 8,782 5,402 32,216 10,466
---------- ---------- ---------- ----------
Other income (expenses)
Interest and finance
costs (4,821) (3,387) (18,579) (7,425)
Interest income 217 145 1,822 1,837
Change in fair value of
warrants settled liability 838 - 1,070 -
Loss on derivative
instruments (649) 158 (1,221) (313)
---------- ---------- ---------- ----------
Total other income
/(expenses), net (4,415) (3,084) (16,908) (5,901)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
INCOME FROM CONTINUING
OPERATIONS 4,367 2,318 15,308 4,565
---------- ---------- ---------- ----------
DISCONTINUED OPERATIONS
Income/(Loss) from
discontinued operations of
the bulk carrier fleet
(including a gain on
extinguishment of debt of
$5 million in 2006) - 2,032 (155) 11,248
Loss on disposal of dry
bulk carrier vessels in 2006 - - - (1,685)
---------- ---------- ---------- ----------
INCOME/(LOSS) FROM
DISCONTINUED OPERATIONS - 2,032 (155) 9,563
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income 4,367 4,350 15,153 14,128
========== ========== ========== ==========
Omega Navigation Enterprises, Inc.
Consolidated Balance Sheet
(All amounts expressed in thousands of U.S. Dollars)
December 31, December 31,
2007 2006
(Unaudited)
----------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 9,283 3,862
Accounts receivable, trade 179 145
Inventories 501 504
Prepayments and other 848 518
Restricted cash 27 2,477
Vessels held for sale - 81,468
----------- ------------
Total current assets 10,838 88,974
----------- ------------
FIXED ASSETS:
Vessels, net 461,251 350,288
Property and equipment, net 103 143
Advances for vessels' acquisition 44,869 200
----------- ------------
Total fixed assets 506,223 350,631
----------- ------------
OTHER NON-CURRENT ASSETS:
Deferred charges 343 226
Restricted cash 5,081 4,000
----------- ------------
Total other non current assets 5,424 4,226
----------- ------------
Total assets 522,485 443,831
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt - 49,133
Accounts payable 869 1,496
Accrued and other current liabilities 2,318 1,129
Deferred revenue 1,869 2,719
Derivative liability 1,151 32
Dividends payable 30 -
----------- ------------
Total current liabilities 6,237 54,509
----------- ------------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 323,346 188,944
Warrants 7,097 -
Derivative liability 428 281
Dividends payable 81 -
----------- ------------
Total non-current liabilities 330,952 189,225
----------- ------------
----------- ------------
COMMITMENTS AND CONTINGENCIES: - -
----------- ------------
Stockholders' equity:
Common stock 151 151
Additional paid-in capital 197,047 196,590
Retained earnings/(Accumulated deficit) (11,902) 3,356
----------- ------------
Total stockholders' equity 185,296 200,097
----------- ------------
Total liabilities and stockholders' equity 522,485 443,831
=========== ============
Omega Navigation Enterprises, Inc.
Consolidated Statement of Cash Flows
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Year ended
---------------------- ----------------------
December December December December
31, 31, 31, 31,
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited)
---------- ---------- ---------- ----------
Cash flows from operating
activities
Income from continuing
operations 4,367 2,318 15,308 4,565
Net cash provided by/(used
in) continuing operating
activities 8,705 5,692 34,067 15,002
Net cash provided by/(used
in) discontinued operating
activities - 1,752 (695) 7,728
---------- ---------- ---------- ----------
Net cash from continuing
and discontinued operating
activities 8,705 7,444 33,372 22,730
---------- ---------- ---------- ----------
Cash flows from investing
activities
Net cash provided by/(used
in) investing
activities-continuing
operations (22,443) (13) (165,178) (358,067)
Net cash provided by
investing
activities-discontinued
operations - - 81,468 -
---------- ---------- ---------- ----------
Net cash provided by/(used
in) investing activities-
continuing and
discontinued operations (22,443) (13) (83,710) (358,067)
---------- ---------- ---------- ----------
Cash flows from financing
activities
Net cash provided by/(used
in)financing
activities-continuing
operations 13,397 (12,006) 93,153 338,427
Net cash used in financing
activities-discontinued
operations - (606) (37,394) (4,286)
---------- ---------- ---------- ----------
Net cash provided by/(used
in) financing
activities-continuing and
discontinued operations 13,397 (12,612) 55,759 334,141
---------- ---------- ---------- ----------
Net increase/(decrease) in
cash and cash equivalents (341) (5,181) 5,421 (1,196)
Cash and cash equivalents
at the beginning of the
period 9,624 9,043 3,862 5,058
---------- ---------- ---------- ----------
Cash and cash equivalents
at end of period 9,283 3,862 9,283 3,862
========== ========== ========== ==========
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 Year ended
---------------------- ----------------------
December December December December
31, 2007 31, 2006 31, 2007 31, 2006
---------- ---------- ---------- ----------
Net cash from operating
activities 8,705 5,692 34,067 15,002
Net increase/(decrease)
in current assets 410 (393) 534 637
Net decrease in current
liabilities excluding
bank debt 45 702 (576) (3,128)
Stock based compensation (146) - (458) -
Write off of options'
premium - (200) (200) (200)
Change in fair value of
warrants settled
liability 838 - 1,071 -
Net interest
(income)/expense 4,604 3,241 16,712 5,588
Amortization of
financing costs (86) (70) (306) (197)
EBITDA 14,370 8,972 50,844 17,702
CONTINUING & DISCONTINUED
OPERATIONS Three months ended Year ended
---------------------- ----------------------
December December December December
31, 2007 31, 2006 31, 2007 31, 2006
---------- ---------- ---------- ----------
Net cash from operating
activities 8,705 7,444 33,372 22,730
Net increase/(decrease) in
current assets 408 128 360 987
Net decrease in current
liabilities excluding bank
debt 45 581 177 (2,477)
Gain on extinguishment of
debt - - - 5,000
Loss on sale of vessels - - - (1,685)
Stock based compensation (146) - (457) -
Write off of options’
premium - (200) (200) (200)
Change in fair value of
warrants settled liability 838 - 1,071 -
Net interest
(income)/expense 4,604 3,986 16,841 8,565
Amortization of financing
costs (86) (190) (347) (342)
EBITDA 14,368 11,749 50,817 32,578
(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