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