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