Fleet Data
Panamax Tankers Handymax Tankers
Three months ended Three months ended
-------------------------- --------------------------
March 31, March 31, March 31, March 31,
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) 540 540 215 180
Available days
(2) 540 527 215 180
Operating days (3) 540 517 215 180
Fleet Utilization
(4) 100% 98% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 11,380,502 $ 12,904,303 $ 3,433,256 $ 3,734.317
Time charter
equivalent (TCE)
rate $/day (5)(7) 21,075 24,486 15,969 20,746
Vessel operating
expenses $ 3,352,621 $ 3,336,941 $ 1,194,343 $ 944,559
Daily vessel
operating expenses
$/day(6) 6,209 6,180 5,555 5,248
Three months ended Three months ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Number of vessels
at end of period 6 6 2 2
Average age of
fleet (in years) 4 3 3 2
Ownership days (1) 552 552 184 184
Available days
(2) 552 551 184 184
Operating days (3) 552 551 184 184
Fleet Utilization
(4) 100% 100% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 11,915,228 $ 13,746,951 $ 2,262,685 $ 3,826,791
Time charter
equivalent (TCE)
rate $/day (5)(7) 21,586 24,949 12,297 20,798
Vessel operating
expenses $ 3,406,208 $ 3,071,240 $ 1,003,538 $ 940,185
Daily vessel
operating expenses
$/day(6) 6,171 5,564 5,454 5,110
Year ended Year ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Number of vessels
at end of period 6 6 2 2
Average age of
fleet (in years) 4 3 3 2
Ownership days (1) 2,190 2,196 730 732
Available days
(2) 2,158 2,186 730 732
Operating days (3) 2,142 2,186 729 732
Fleet Utilization
(4) 99% 100% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 48,047,635 $ 54,714,307 $ 11,666,142 $ 15,204,973
Time charter
equivalent (TCE)
rate $/day (5)(7) 22,267 25,027 15,981 20,772
Vessel operating
expenses $ 13,352,678 $ 11,871,230 $ 3,906,862 $ 3,614,449
Daily vessel
operating expenses
$/day(6) 6,097 5,406 5,352 4,938
(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 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. For the first quarter 2010
excludes an amount of $0.3 million relating to the predelivery
expenses of Megacore Honami.
(7) For the year ended December 31, 2009 excludes $ 3.2 million of profit
sharing revenue booked in the first nine months of 2009 related to
profit sharing on charters of the vessels Omega Lady Sarah, Omega Lady
Miriam, Omega Emmanuel and Omega Theodore. For the year ended December
31, 2008, excludes $ 6.8 million of profit sharing revenue booked in
the year 2008 related to profit sharing on charters of the vessels
Omega Lady Sarah, Omega Lady Miriam, Omega Emmanuel, Omega Theodore,
Omega Prince and Omega Princess. For the three months ended December
31, 2008, excludes $ 2.2 million of profit sharing revenue booked in
the fourth quarter of 2008 related to profit sharing on charters of
the vessels Omega Lady Sarah, Omega Lady Miriam, Omega Emmanuel and
Omega Theodore.
Omega Navigation Enterprises Inc
Consolidated Statements of Income
(All amounts expressed in thousands of U.S. Dollars)
3 month period 3 month period
ended ended Year ended
------------------ ------------------ ------------------
March March December December December December
31, 2010 31, 2009 31, 2009 31, 2008 31, 2009 31, 2008
-------- -------- -------- -------- -------- --------
CONTINUING (unaudited)(unaudited)(unaudited) (unaudited)
OPERATIONS
Revenues:
Voyage
Revenue 15,505 18,678 14,746 20,066 64,456 77,713
Expenses:
Voyage
expenses 691 300 568 292 1,535 1,032
Vessel
operating
expenses 4,875 4,291 4,410 4,011 17,260 15,486
Depreciation
and
amortization 4,915 4,690 4,850 4,776 19,173 18,868
Management
fees 382 302 314 310 1,283 1,243
General and
administrative
expenses
(including
non cash
compensation
expense of
$174, $649,
$237, and
$203 for the
quarter
ended March
31, 2010,
March 31,
2009,
December 31,
2009 and
2008
respectively
and $1,408
and $1,354
for the year
ended
December 31,
2009 and
2008
respectively) 1,406 1,737 1,294 1,290 6,018 6,085
Foreign
currency
(gains)/losses (24) (1) 28 (31) 122 (44)
-------- -------- -------- -------- -------- --------
Income from
vessels
operation 3,260 7,359 3,282 9,418 19,065 35,043
-------- -------- -------- -------- -------- --------
Loss on
Termination
of purchase
agreements - - - - (3,000) -
Income/(Loss)
from Joint
Venture
companies 132 - 118 - (278) -
-------- -------- -------- -------- -------- --------
Operating
Income/(Expense) 3,392 7,359 3,400 9,418 15,787 35,043
-------- -------- -------- -------- -------- --------
Other income
(expenses)
Interest and
finance
costs (1,627) (1,793) (1,563) (4,046) (7,181) (14,385)
Interest
income 20 45 35 245 138 711
Change in
fair value
of warrants - 1,127 - 2,787 1,127 3,156
Gain/(Loss)
on
derivative
instruments (1,319) (1,071) (972) (12,846) (4,149) (13,586)
-------- -------- -------- -------- -------- --------
Total other
Income/
(expenses),
net (2,926) (1,692) (2,500) (13,860) (10,065) (24,104)
-------- -------- -------- -------- -------- --------
INCOME/(LOSS)
FROM
CONTINUING
OPERATIONS 466 5,667 900 (4,442) 5,722 10,939
DISCONTINUED
OPERATIONS
Income from
discontinued
operations of
the bulk
carrier fleet - - - - - 20
-------- -------- -------- -------- -------- --------
INCOME FROM
DISCONTINUED
OPERATIONS - - - - - 20
-------- -------- -------- -------- -------- --------
Net income 466 5,667 900 (4,442) 5,722 10,959
======== ======== ======== ======== ======== ========
Omega Navigation Enterprises Inc
Consolidated Balance Sheets
(All amounts expressed in thousands of U.S. Dollars)
March 31, December 31, December 31,
2010 2009 2008
(unaudited) (unaudited)
------------ ------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,403 15,564 16,811
Accounts receivable, trade 3,221 1,720 596
Inventories 1,232 614 602
Prepayments and other 1,474 1,419 506
Due from related parties - 90 -
Restricted cash 5,631 5,807 123
------------ ------------ ------------
Total current assets 13,961 25,214 18,638
------------ ------------ ------------
FIXED ASSETS:
Vessels, net 464,359 423,762 442,485
Property and equipment, net 96 54 56
Advances for vessels' under
construction and acquisition 53,730 70,620 57,672
------------ ------------ ------------
Total fixed assets 518,185 494,436 500,213
------------ ------------ ------------
OTHER NON CURRENT ASSETS:
Deferred charges 1,941 2,110 1,154
Restricted cash 32 105 5,174
Investments in Joint Venture
companies 5,479 5,347 -
Other non current assets - - 109
Intangible assets 248 221 8
------------ ------------ ------------
Total other non current assets 7,700 7,783 6,445
------------ ------------ ------------
------------ ------------ ------------
Total assets 539,846 527,433 525,296
============ ============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current portion of long term
debt 355,457 343,252 138
Accounts payable 3,167 2,401 1,804
Accrued and other current
liabilities 3,711 3,212 1,815
Deferred revenue 243 594 1,368
Warrants - - 3,941
Derivative liability 8,726 9,909 5,839
Dividends payable 75 166 87
------------ ------------ ------------
Total current liabilities 371,379 359,534 14,992
------------ ------------ ------------
NON-CURRENT LIABILITIES:
Long term debt, net of current
portion - - 335,112
Derivative liability - - 8,409
Dividends payable 32 105 174
Other long term liabilities - - 5
------------ ------------ ------------
Total non-current liabilities 32 105 343,700
------------ ------------ ------------
------------ ------------ ------------
COMMITMENTS AND CONTINGENCIES: - - -
------------ ------------ ------------
Stockholders' equity:
Common stock 159 158 151
Additional paid-in capital 201,792 201,618 198,402
Accumulated deficit (33,516) (33,982) (31,949)
------------ ------------ ------------
Total stockholders' equity 168,435 167,794 166,604
------------ ------------ ------------
------------ ------------ ------------
Total liabilities and
stockholders' equity 539,846 527,433 525,296
============ ============ ============
Omega Navigation Enterprises Inc
Consolidated Statements of Cash Flows
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Three months ended Year ended
March March December December December December
31, 31, 31, 31, 31, 31,
2010 2009 2009 2008 2009 2008
-------- -------- --------- --------- --------- ---------
(unaudited)(unaudited)(unaudited) (unaudited)
Cash flows
from
operating
activities
Net income/
(loss) from
continuing
operations 466 5,667 900 (4,442) 5,722 10,939
Net cash
provided
by/(used in)
continuing
operating
activities 3.353 10,400 (97) 10,656 19,283 40,055
-------- -------- --------- --------- --------- ---------
Net cash
provided
by /(used in)
continuing
and
discontinued
operating
activities 3,353 10,400 (97) 10,656 19,283 40,055
-------- -------- --------- --------- --------- ---------
Cash flows
used in
investing
activities
Net cash
used in
investing
activities-
continuing
operations (28.717) (211) (18,269) (475) (18,605) (12,820)
-------- -------- --------- --------- --------- ---------
Net cash
used in
investing
activities-
continuing
and
discontinued
operations (28,717) (211) (18,269) (475) (18,605) (12,820)
-------- -------- --------- --------- --------- ---------
Cash flows
provided
by /(used in)/
financing
activities
Net cash
(used in)/
provided by
financing
activities-
continuing
operations 12,203 (7,707) 11,574 (7,212) (1,925) (19,317)
-------- -------- --------- --------- --------- ---------
Net cash
(used in)/
provided by
financing
activities-
continuing
and
discontinued
operations 12,203 (7,707) 11,574 (7,212) (1,925) (19,317)
-------- -------- --------- --------- --------- ---------
Net
(decrease)/
increase in
cash and cash
equival-
ents (13,161) 2,482 (6,792) 2,969 (1,247) 7,918
Cash and
cash
equivalents
at the
beginning
of the
period 15,564 16,811 22,356 13,842 16,811 8,893
-------- -------- --------- --------- --------- ---------
Cash and
cash
equivalents
at end of
period 2,403 19,293 15,564 16,811 15,564 16,811
======== ======== ========= ========= ========= =========
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
March 31, March 31,
2010 2009
----------- -----------
(unaudited) (unaudited)
Net cash from operating activities 3,353 10,400
Net increase/(decrease) in current assets and non
current assets 2,082 276
Net (increase)/decrease in current liabilities
excluding bank debt (914) (1,943)
Net interest expense 4.108 3,409
Warrants settled liabilities - 1,127
Stock based compensation expense (174) (649)
Payments for drydocking costs - 704
Amortization of financing costs (148) (148)
----------- -----------
Adjusted EBITDA 8,307 13,176
=========== ===========
CONTINUING
OPERATIONS Three months ended Year ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
(unaudited) (unaudited)
Net cash from
operating
activities (97) 10,656 19,283 40,055
Net
increase/(decrease)
in current
assets and non
current assets 1,234 377 2,030 285
Net
(increase)/decrease
in current
liabilities
excluding bank
debt 3,533 (461) (1,216) 466
Net interest
expense 3,965 3,973 15,532 14,591
Warrants settled
liabilities - 2,787 1,127 3,156
Stock based
compensation
expense (237) (203) (1,408) (1,355)
Payments for
drydocking costs - 10 1,521 538
Loss on
termination of
purchase
agreement - - 3,000 -
Amortization of
financing costs (149) (157) (782) (668)
------------ ------------ ------------ ------------
Adjusted EBITDA 8,249 16,982 39,087 57,068
============ ============ ============ ============
CONTINUING &
DISCONTINUED
OPERATIONS Three months ended Year ended
December 31, December December 31, December
2009 31, 2008 2009 31, 2008
------------ ------------ ------------ ------------
(unaudited) (unaudited)
Net cash from
operating
activities (97) 10,656 19,283 40,055
Net
increase/(decrease)
in current
assets and non
current assets 1,234 377 2,030 285
Net
(increase)/decrease
in current
liabilities
excluding bank
debt 3,533 (461) (1,216) 486
Net interest
expense 3,965 3,973 15,532 14,591
Warrants settled
liabilities - 2,787 1,127 3,156
Stock based
compensation
expense (237) (203) (1,408) (1,355)
Payments for
drydocking costs - 10 1,521 538
Loss on
termination of
purchase
agreement - - 3,000 -
Amortization of
financing costs (149) (157) (782) (668)
------------ ------------ ------------ ------------
Adjusted EBITDA 8,249 16,982 39,087 57,088
============ ============ ============ ============
(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 our 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 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
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