ATHENS, GREECE--(Marketwire - September 3, 2010) - OceanFreight Inc. (NASDAQ: OCNF), a global provider of marine transportation services, today announced its financial results for the quarter ended June 30, 2010.

Financial Highlights

For the three-month period ended June 30, 2010, the Company reported a Net Loss of $0.81 million or basic and diluted loss per share of $0.01. Included in these results are:

--  A non-cash loss of $1.4 million associated with the change in the fair
    value of interest rate swaps.

--  An expense of $1.3 million associated with the drydocking of two

--  A gain of $1.5 million associated with the sale of a vessel.

Excluding the above items Net Income for the second quarter of 2010 would amount to $0.39 million or $0.01 basic and diluted earnings per share.

Recent Developments

--  On June 17, 2010, the Company effected a 3:1 reverse stock split in
    order to regain compliance with NASDAQ's minimum bid price. As a result
    our then issued and outstanding 231,800,001 common shares were
    converted to 77,266,655 common shares. On August 6, 2010, the Company
    received notice from NASDAQ that it has regained compliance with the
    Listing Rule in connection with the minimum bid price requirement of

--  On September 30, 2009, we agreed to acquire the M/V Montecristo from a
    third party for a gross sale price of $49.5 million. The vessel was
    delivered to the Company on June 28, 2010 and entered a time charter
    employment for a minimum duration of 4 years at a gross daily rate of

Anthony Kandylidis, the Company's Chief Executive Officer, commented: "We continue to execute our stated business plan. Operating income for the second quarter of 2010 was in line with expectations and moving forward we will continue our fleet renewal and expansion program that will improve our operational efficiency, enhance our profitability and increase shareholder value."

Second Quarter 2010 Results

For the second quarter ended June 30, 2010, Voyage Revenues amounted to $24.0 million and Operating Income amounted to $3.8 million. Net Loss amounted to $0.81 million or $0.01 basic and diluted loss per share. Adjusted EBITDA(*) for the second quarter of 2010 was $6.7 million.

An average of 11.6 vessels were owned and operated during the second quarter of 2010, earning an average Time Charter Equivalent, or TCE rate, of $23,812 per day.


On June 30, 2010, the debt (debt, net of deferred financing fees) to total capitalization (debt and stockholders' equity) ratio was 44.1% and the net debt (debt less cash, cash equivalents and restricted cash) to total capitalization ratio was 40.6%.

Equity Infusion

On May 28, 2010, Basset Holding Inc, a company affiliated with our Chief Executive Officer, made an equity infusion of $20.0 million in exchange for 50,000,000 common shares (before the reverse stock split took effect). The funds were used to partially finance the acquisition of the M/V Montecristo.

As of the date of this release the Company has 77,266,655 shares outstanding.


As of June 30, 2010, the Company had total liquidity of approximately $18.3 million.

Fleet Data

(Dollars in thousands, except Average Daily           Three Months Ended
 results - unaudited)                                      June 30,
                                                       2009        2010
                                                    ----------  ----------
Average number of vessels (1)                               13        11.6
                                                    ----------  ----------
Total voyage days for fleet (2)                          1,065         952
                                                    ----------  ----------
Total calendar days for fleet (3)                        1,183       1,050
                                                    ----------  ----------
Time charter equivalent (TCE) daily rate (4)        $   28,071  $   23,812
                                                    ----------  ----------
Fleet utilization (5)                                     90.0%       90.7%
                                                    ----------  ----------

(*) Please see later in this release for a reconciliation of adjusted
    EBITDA to net cash provided by Operating activities.

(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

(2) Total voyage days for fleet are the total days the vessels were in our possession for the relevant period net of off hire.

(3) Calendar days are the total days the vessels were in our possession for the relevant period including off hire days.

(4) Time charter equivalent rate, 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 gross revenues (net of voyage expenses) by voyage 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.

(5) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

The following table reflects the calculation of our TCE daily rates for the periods then ended:

(Dollars in thousands, except Average Daily           Three Months Ended
results - unaudited)                                       June 30,
                                                       2009        2010
                                                    ----------  ----------
Revenues                                                31,688      24,043
                                                    ----------  ----------
Voyage expenses                                         (1,792)     (1,374)
                                                    ----------  ----------
Revenue on a time charter basis                         29,896      22,669
                                                    ----------  ----------

                                                    ----------  ----------
Total voyage days for fleet                              1,065         952
                                                    ----------  ----------

Time charter equivalent (TCE) daily rate            $   28,071  $   23,812
                                                    ----------  ----------

Financial Statements

The following are OceanFreight Inc.'s Consolidated Statements of Operations for the three-month periods ended June 30, 2009 and 2010:

(Dollars in thousands, except for share and  per     Three Months Ended
 share data)                                               June 30,
                                                      2009         2010
                                                  -----------  ----------- 
STATEMENT OF OPERATIONS DATA                      (unaudited)  (unaudited)

Voyage revenues                                   $    29,123  $    24,014
Gain on forward freight agreements                        591          261
Imputed revenue                                         2,565           29
                                                  -----------  -----------
Gross revenue                                          32,279       24,304

Voyage expenses                                        (1,792)      (1,374)
Vessels operating expenses                            (12,800)     (10,983)
Depreciation                                          (12,921)      (6,833)
General and administrative expenses                    (1,817)      (1,490)
Dry docking costs                                      (4,691)      (1,336)
(Impairment loss) on  vessels  held for sale and
 gain on vessel sold                                  (31,281)       1,491
                                                  -----------  -----------
Operating income/(loss)                               (33,023)       3,779
                                                  ===========  ===========

Interest income                                           148           41
Interest expense and finance costs                     (4,896)      (3,238)
Gain/(loss) on derivative instruments                   4,934       (1,395)
                                                  -----------  -----------
Net Loss                                          $   (32,837) $      (813)
                                                  ===========  ===========

Earnings per common share, basic and diluted      $     (1.54) $     (0.01)

Weighted average number of common shares, basic
 and diluted (1)                                   21,359,153   66,827,101

(1) The weighted average number of common shares gives effect to the 3:1 reverse stock split which took place on June 17, 2010.

The following are OceanFreight Inc.'s Consolidated Balance Sheets as of December 31, 2009 and June 30, 2010

   (Dollars in thousands, except per share data)
                                                      2009         2010
                                                  ------------ ------------
ASSETS                                             (audited)   (unaudited)
  Cash and cash equivalents                       $     37,272 $     11,895
  Restricted cash                                        2,500          406
  Vessels held for sale                                 51,080       19,000
  Other current assets                                   9,447       14,700
                                                  ------------ ------------
     Total current assets                              100,299       46,001
                                                  ------------ ------------

  Advances for vessel acquisition                        9,900            -
  Vessels under construction                                 -       46,623
  Vessels, net of accumulated depreciation of
   $43,486 and $56,939, respectively                   423,242      459,855
  Other, net of accumulated depreciation of $123
   and $251, respectively                                  856          728
                                                  ------------ ------------
     Total fixed assets, net                           433,998      507,206
                                                  ------------ ------------

  Restricted cash                                        6,511        6,011
  Other non-current assets                               8,464        9,324
                                                  ------------ ------------
     Total assets                                      549,272      568,542
                                                  ============ ============

  Current portion of long-term debt                     49,947       39,112
  Other current liabilities                             23,381       28,679
                                                  ------------ ------------
     Total current liabilities                          73,328       67,791
                                                  ============ ============

  Derivative liability, net of current portion           3,606        6,731
  Long-term debt, net of current portion               215,727      196,649
                                                  ------------ ------------
     Total non-current liabilities                     219,333      203,380
                                                  ============ ============

STOCKHOLDERS' EQUITY:                                  256,611      297,371
                                                  ------------ ------------
     Total liabilities and stockholders' equity        549,272      568,542
                                                  ============ ============
Adjusted EBITDA Reconciliation

OceanFreight Inc. considers EBITDA to represent net income before interest, taxes, depreciation and amortization. Adjusted EBITDA excludes loss on sale of vessels and impairment on vessels. EBITDA and Adjusted EBITDA do not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by U.S. GAAP and our calculation of EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included in this earnings release because it is a basis upon which we assess our liquidity position, because it is used by our lenders as a measure of our compliance with certain loan covenants and because we believe that it presents useful information to investors regarding our ability to service and/or incur indebtedness.

The following table reconciles Net cash provided by operating activities to EBITDA as adjusted for the effect of the loss from the sale of vessels and impairment loss:

                                                    Three Months Ended
                                                           June 30,
                                                      2009         2010
                                                  -----------  -----------
Net cash provided by operating activities               6,660        5,129
Net increase in operating assets                        1,731        6,057
Net (increase) in operating liabilities                (4,330)      (7,575)
Net interest expense                                    4,749        3,197
Amortization of deferred financing costs included
 in interest expense                                     (196)        (140)
                                                  -----------  -----------
Adjusted EBITDA                                         8,614        6,668
                                                  ===========  ===========

Fleet List

The table below describes our fleet and current employment profile as of September 3, 2010:

                Year                   Current   per  Earliest   Latest
Vessel Name    Built   DWT    Type   Employment  Day  Redelivery Redelivery
               ----- ------- -------- ------- -------- --------- --------
Drybulk Vessels
M/V Robusto     2006 173,949 Capesize      TC   26,000    Aug-14   Dec-14
M/V Cohiba      2006 174,200 Capesize      TC   26,250    Oct-14   Feb-15
M/V Montecristo 2005 180,263 Capesize      TC   23,500    May-14   Oct-14
M/V Partagas    2004 173,880 Capesize      TC   27,500    Jul-12   Dec-12
M/V Topeka      2000  74,710  Panamax      TC   18,000    Jan-11   Mar-11
M/V Helena      1999  73,744  Panamax      TC   32,000    May-12   Jan-13
M/V Augusta     1996  69,053  Panamax      TC   16,000    Nov-11   Mar-12
M/V Austin      1995  75,229  Panamax      TC       (1)   Aug-12   Aug-12
M/V Trenton     1995  75,229  Panamax      TC       (1)   Aug-12   Aug-12

Tanker Vessels
M/T Pink Sands  1993  93,723  Aframax      TC   27,450    Oct-10   Jan-11
M/T Tamara      1990  95,793  Aframax      TC   27,000    Dec-10   Mar-11

Tanker to be
M/T Olinda      1996 149,085  Suezmax    POOL        -         -        -

Drybulk Vessels
 to be Acquired
 VLOC #1        2012 206,000 Capesize      TC   25,000    Jun-15   Jun-15
 VLOC #2        2012 206,000 Capesize      TC 23,000(2)   Oct-17   Oct-17
 VLOC #3        2013 206,000 Capesize      TC 21,500(3)   Jan-20   Jan-20

(1) The hire rate per vessel will be calculated based on a formula linked to the average of the Baltic Panamax Index for the preceding 30 days.

(2) The charter agreement includes a 50/50 percent profit sharing arrangement with the charterer for charterhire above the basic rate, up to $40,000.

(3) The charter agreement includes a 50/50 percent profit sharing arrangement with the charterer for charterhire above the basic rate, up to $38,000.

Conference Call and Webcast: Monday, September 6, 2010 at 08:30 A.M. EDT

OceanFreight management team will host a conference call on Monday, September 6, 2010, at 08:30 A.M. Eastern Daylight Time (EDT) to discuss the Company's financial results for the Quarter ended June 30, 2010.

Conference Call details:

Participants should Dial-Into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (U.S. Toll Free Dial-In), 0800 953 0329 (U.K. Toll Free Dial-In) or +44 (0) 1452 542 301 (Standard International Dial-In). Please quote "OceanFreight."

A telephonic replay of the conference call will be available until September 13, 2010 by dialing 1 866 247 4222 (U.S. Toll Free Dial -In), 0800 953 1533 (U.K. Toll Free Dial -In) or +44 (0) 1452 550 000 (Standard International Dial -In). Access Code: 7445162#.

Slides and audio webcast:

There will also be a simultaneous live webcast over the Internet, through the OceanFreight Inc. website ( Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About OceanFreight Inc.

OceanFreight Inc., is an owner and operator of both drybulk and tanker vessels that operate worldwide. As of the date of this release, OceanFreight owns a fleet of 12 vessels, comprised of 9 drybulk vessels (4 Capesize, 5 Panamaxes) and 3 crude carrier tankers (1 Suezmax, 2 Aframaxes) with a combined deadweight tonnage of about 1.4 million tons.

OceanFreight Inc.'s common stock is listed on the NASDAQ Global Market where it trades under the symbol "OCNF". Visit our website at

Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may 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 forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although OceanFreight Inc. 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 our control, OceanFreight Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our 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 changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in OceanFreight Inc.'s operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by OceanFreight Inc. with the U.S. Securities and Exchange Commission.

Contact Information: Investor Relations/Media: Nicolas Bornozis Capital Link, Inc. (New York) Tel: +1-212-661-7566 E-mail: