|
| |||||||||||||||
Omega Navigation Enterprises, Inc. Reports Second Quarter and Six Months 2008 Results PIRAEUS, GREECE--(MARKET WIRE)--Aug 25, 2008 -- Omega Navigation Enterprises, Inc. (NasdaqGM:ONAV - News) (SGX:
ONAV50), a provider of global marine transportation services
focusing on product tankers, announced today its financial
and operational
results for the second quarter and six months ended June
30, 2008.
The Company had previously announced the declaration of its quarterly cash dividend with respect to the second quarter of 2008 of $ 0.50 per share payable on August 29, 2008 to stockholders of record on August 18, 2008. Second Quarter 2008 Results For the quarter ended June 30, 2008, Omega Navigation reported total revenues of $ 19.3 million and Net Income of $ 8.0 million, or $ 0.53 per basic share. Excluding a non-cash book gain on its interest rate derivative instruments, a non-cash book loss on warrants revaluation and non-cash incentive compensation grants, the Company generated net income of $ 5.7 million or $ 0.38 per basic share. EBITDA for the second quarter of 2008 was $ 12.6 million. Please see below for a reconciliation of EBITDA to Cash from Operating Activities. Net Income included $ 1.6 million primarily attributable to profit sharing on charters of the vessels Omega Lady Sarah and Omega Emmanuel. The Company owned and operated an average of 8 vessels, all product carriers, during the second quarter of 2008, and 7.7 product carriers in the second quarter of 2007. The Omega Theodore was delivered to us from the shipyard on April 26, 2007. Excluding profit sharing, the Company's Panamax product carriers earned an average time-charter equivalent rate of $ 25,050 per day per vessel during the second quarter of 2008, versus $ 25,017 per day per vessel, during the second quarter of 2007. The Company's Handymax product tankers earned an average time charter equivalent rate of $ 20,742 per vessel per day during the second quarter of 2008 versus $ 20,799 per day per vessel during the second quarter of 2007. Since the inception of the charters of the product tankers through the second quarter of 2008, the profit sharing element of those charters amounted to approximately $ 10.0 million. The Company has already received $6.7 million of cash and has recorded profit share revenues of $ 6.8 million and currently expects to record an additional $ 3.2 million in quarters to follow upon final settlement of such profit share. The table below presents the amount of profit share revenues recorded per quarter.
Amount of profit share
Quarter revenues recorded per
quarter
---------------- -----------------------
1st Quarter 2007 $ 1.1 million
2nd Quarter 2007 $ 1.0 million
3rd Quarter 2007 $ 1.3 million
4th Quarter 2007 $ 0.6 million
1st Quarter 2008 $ 1.2 million
2nd Quarter 2008 $ 1.6 million
Total $ 6.8 millionThe Company expects to receive approximately an additional $ 3.3 million in cash arising from the profit sharing agreements for voyages performed until the end of the second quarter 2008. Operating expenses for the Company's MR product tankers averaged $ 5,073 per day per vessel in the second quarter of 2008 versus $ 4,428 per day per vessel in the second quarter of 2007. Panamax product tankers averaged operating expenses of $ 5,201 per day per vessel in the second quarter of 2008 versus $ 4,568 per day per vessel in the second quarter of 2007. The increase of the daily operating expenses of the Company's Panamax as well as the MR product tankers relates mainly to an increase in crew wages. First Six Months 2008 Results For the six months ended June 30, 2008, Omega Navigation reported total revenues of $ 38.2 million and Net Income of $ 10.2 million, or $ 0.67 per basic share. Excluding a non-cash book gain on its interest rate derivative instruments, a non-cash book loss on warrants revaluation and non-cash incentive compensation grants, the Company earned $ 10.7 million or $ 0.70 per basic share. EBITDA for the first six months of 2008 was $ 25.3 million. Please see below for a reconciliation of EBITDA to Cash from Operating Activities. Net Income included $ 2.8 million of revenues primarily arising from profit sharing on charters of the vessels Omega Lady Miriam, Omega Lady Sarah, Omega Theodore and Omega Emmanuel. The Company owned and operated an average of 8 vessels, all product carriers, during the first six months of 2008, and 6.9 product carriers in the first six months 2007. Excluding profit sharing, the Company's Panamax product carriers earned an average time-charter equivalent rate of $ 25,063 per day per vessel during the first half of 2008, versus $ 24,977 per day per vessel, during the first six months of 2007. The Company's Handymax product tankers earned an average time charter equivalent rate of $ 20,751 per vessel per day during the first half of 2008 versus $ 20,809 per day per vessel during the first six months of 2007. Operating expenses for the MR product tankers averaged $ 4,833 per day per vessel in the first half of 2008 versus $ 4,363 per day per vessel in the first six months of 2007. Panamax product tankers averaged operating expenses of $ 5,240 per day per vessel in the first six months of 2008 versus $ 4,683 per day per vessel in the first half of 2007. The increase of the daily operating expenses of the Panamax as well as the MR product tankers relates mainly to an increase in crew wages. Lower Interest Expense Due to our recent debt restructuring concluded in March 2008, the Company has been able to take advantage of the current low interest rate environment and lower our overall interest expenses. Approximately $ 192.5 million of the Company's outstanding debt has been either swapped out on a fixed basis or floats with LIBOR with a floor of 2.5% and a ceiling of 5.1%. This has had the effect of lowering our overall interest rate exposure. Interest Expense and finance costs in the second quarter of 2008 were $ 3.2 million and in the corresponding quarter of 2007 interest expense and finance costs were $ 4.8 million. For the six months ended June 30, 2008 interest expense and finance costs were $ 7.2 million versus $ 8.6 million in the same period of 2007. Fleet Developments Current Fleet Omega Navigation's current fleet includes eight double hull product tankers with an aggregate carrying capacity of 512,358 dwt. All of the Company's product tankers are employed under time charters having a minimum term of three years from their respective delivery dates and are chartered to established charterers including Norden, ST Shipping (Glencore) and Torm. Six of the eight product tankers have profit sharing arrangements which enable the Company to share in the charter market's upside potential. The following table illustrates the current contract expirations and renewals:
Vessel Charter Profit Charter
Rate Sharing Expiration Renewal
----------------- -------- ------- ---------- -------------------------
Charterers' Extension
option at $28,500
Omega Queen $ 26,500 No May-09 through May-11
Charterers' Extension
option at $28,500
Omega King $ 26,500 No Jun-09 through Jun-11
Omega Lady Sarah $ 24,000 Yes Jun-09
Omega Lady Miriam $ 24,000 Yes Jul-09
Charterers' Extension
option at $24,000
Omega Prince $ 21,000 Yes Jun-09 through Jun-10
Charterers' Extension
option at $24,000
Omega Princess $ 21,000 Yes Jun-09 through Jun-10
Omega Emmanuel $ 25,500 Yes Apr-10
Omega Theodore $ 25,500 Yes May-10Acquisition contracts On May 19, 2008 the Company announced that it had entered into an agreement with an unaffiliated third party to purchase two 47,000 dwt. newbuilding double hull product/chemical tankers for $ 55.5 million each. The first vessel is scheduled to be delivered in the second quarter of 2009 and the second vessel is scheduled to be delivered in the third quarter of 2010. The purchase agreement required a deposit of 10% of the purchase price that was placed in a joint account with sellers and buyers on May 29, 2008. The Company has entered into an agreement with a commercial bank to finance 90% of the above deposit payment with bank debt and the remainder of $1.2 million was financed from cash available from operations. The Company has also agreed with the same commercial bank for the financing of up to 75% of the purchase price of the vessels at the time of their respective deliveries. The agreed interest rate will range between 100 to 120 bps over LIBOR depending on the applicable ratio of loan to vessels' market value and the financial covenants are in line with the existing covenants under our other senior secured credit facilities. At delivery, the vessels will each be chartered for three years to ST Shipping (a subsidiary of Glencore International A.G.) for a gross base rate of $ 21,135 per day per vessel. In addition, the charters also provide for profit sharing, whereby the Company will share equally in any upside above the base rate with the charterer, based on the vessels' actual quarterly trading results. Newbuilding contracts On June 19, 2007, the Company announced that it had signed shipbuilding contracts with Hyundai Mipo Dockyard, to construct and acquire five newbuilding double hull Handymax product/chemical tankers each with a capacity of 37,000 dwt. Four of these vessels are scheduled for delivery in 2010 with the fifth scheduled for delivery in early 2011. The purchase price is $ 44.2 million per vessel and the payment terms are more attractive than, what the Company believes to be industry standard. With the addition of these seven vessels Omega's enlarged fleet will consist of 15 product carriers with a total deadweight capacity of 791,358 tons. The following table illustrates the delivery dates and charter arrangements on all of the newbuildings the Company has agreed to acquire:
Profit Charter
Vessel Delivery Charter Rate Sharing Expiration
----------------------- ------------ ------------ ------------ ------------
TBN1 Jun-09 $ 21,135 Yes Jun-12
TBN2 Mar-10 No Mar-13
TBN3 Jul-10 $ 21,135 Yes Jul-13
TBN4 Jul-10
TBN5 Sep-10
TBN6 Dec-10
TBN7 Feb-11Note: TBN2 above rate is confidential but vessel is expected to generate annual EBITDA of about $ 6 million. Management Commentary: George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented: "We are pleased to have concluded our ninth consecutive profitable quarter since our IPO in April 2006. We attribute our strong operational and financial results to our strategy of acquiring high quality modern vessels and seeking predictable and stable cash flows through the long term employment of our vessels. In addition, the fact that the charters of six of our eight product tankers have profit sharing has enabled us to participate in the upside potential of the charter market and thereby maximize our profitability and the return for our shareholders. The profit sharing agreements in 2008 have allowed the Company to enjoy particularly strong earnings. "All of our vessels in our current fleet are under three year time charters with established charterers pursuant to which we have secured 100% of our operating days for 2008 and 64% for 2009. The charters on the two Panamax Ice Class vessels delivered to us in March and April of 2007 extend to 2010. The recently announced acquisition of two newbuilding product tankers to be delivered in the second quarter of 2009 and the third quarter of 2010 respectively have also already been chartered out for three years, to ST Shipping (Glencore International) bringing our overall fleet coverage to 65% in 2009 thereby enhancing the stability and visibility of our cash flows. In addition, a three year time charter has been concluded with NYK Line of Japan on the first of the five newbuilding vessels we contracted for in mid 2007. The tables above show that we have made significant progress for both our current fleet and our newbuildings in securing time charters for the entire fleet which will continue to allow us to achieve strong and visible earnings and further protect our dividend. "We would like to reiterate that we are pursuing a strategy of prudent growth, gradually expanding our revenue and profit generation capabilities. Based on the activity we have announced so far, we expect to add seven newbuilding product carriers to our fleet, by 2011 thereby expanding it to a total of 15 vessels, and solidifying our position as a strong player in the global product tanker market. We expect to be taking delivery of these seven vessels between the second quarter 2009 and the first quarter 2011, at a time when newbuilding berths for product tankers around the world are becoming increasingly hard to find. In addition, the two MR resale acquisitions are favorably comparable to the current value of a similar prompt delivered vessel and the newbuilding contract values for similar vessels to our five newbuildings we ordered in June 2007 have already appreciated since we contracted them. "We remain optimistic about the long term fundamentals of the product tanker market, the area of our strategic focus. We believe that we enjoy strong competitive advantages in this market with our focused business strategy, our fleet of young high quality vessels, long term employment with established charterers, a solid and flexible capital structure and a strong management team, enabling us to continue delivering strong, stable and predictable results for our shareholders. "Finally, we continued with our stable dividend policy, declaring our ninth consecutive quarterly dividend of $ 0.50 per common share." Quarterly Dividend On August 6, 2008 the Company announced its ninth consecutive quarterly dividend since it went public, of $ 0.50 per common share, payable on August 29, 2008 to shareholders of record as of August 18, 2008. Omega Navigation intends to declare and pay quarterly dividends to shareholders in amounts that are substantially equal to the available cash from operations during the previous quarter after cash expenses, and other discretionary reserves. Gregory McGrath, Chief Financial Officer of Omega Navigation, commented, "We have now paid or declared on schedule nine consecutive quarterly dividends since going public in the amount of $ 0.50 per common share, aggregating $ 4.50 per common share. Our next quarterly dividend declaration is anticipated for November 2008. Our overall objective is to pursue a strategy of disciplined growth, while at the same time implementing a stable, dividend payout. We believe this strategy will maximize shareholder value over the long term. "Our subordinated share structure enhances our Company's ability to pay dividends to the public shareholders. The Class B shares held by the initial shareholder, which were approximately 20.5% of the total outstanding shares, are subordinated in respect of paying dividends to the public shareholders. "As of June 30, 2008, the Company had a ratio of debt to market value of 54% with respect to the current eight vessel fleet and a net debt to book capitalization ratio of 63% including debt already incurred under the predelivery financing of the seven newbuildings which we believe are modest ratios for industry standards given our strong time charter coverage and the young age and quality of our fleet. "The restructuring of our debt facility toward the end of the first quarter of this year has had the effect of taking advantage of our current low interest rate environment, decreasing our interest expenses while at the same time it has increased our financial flexibility and will enhance our ability to pursue our strategy of prudent growth aimed at increasing shareholder value in the longer term." Fleet Data
Panamax Tankers Handymax Tankers
Three months ended Three months ended
---------------------------- ----------------------------
June 30, 2008 June 30, 2007 June 30, 2008 June 30, 2007
------------- ------------- ------------- -------------
Number of
vessels at end
of period 6 6 2 2
Average age of
fleet (in years) 3 2 2 1
Ownership days (1) 546 520.58 182 182
Available days (2) 546 520.58 182 182
Operating days (3) 546 520.58 182 182
Fleet
Utilization (4) 100% 100% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 13,677,135 $ 13,023,541 $ 3,775,006 $ 3,785,474
Time charter
equivalent
(TCE) rate
$/day (5)(7) 25,050 25,017 20,742 20,799
Vessel operating
expenses (net
of pre-delivery
expenses) $ 2,839,632 $ 2,378,258 $ 923,371 $ 805,957
Daily vessel
operating
expenses
$/day (6) 5,201 4,568 5,073 4,428
------------- ------------- ------------- -------------
Six months ended Six months ended
---------------------------- ----------------------------
June 30, 2008 June 30, 2007 June 30, 2008 June 30, 2007
------------- ------------- ------------- -------------
Number of
vessels at end
of period 6 6 2 2
Average age of
fleet (in years) 3 2 2 1
Ownership days (1) 1,092 884.76 364 362
Available days (2) 1,092 884.76 364 362
Operating days (3) 1,092 884.76 364 362
Fleet
Utilization (4) 100% 100% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 27,368,632 $ 22,099,153 $ 7,553,222 $ 7,532,911
Time charter
equivalent
(TCE) rate
$/day (5)(7) 25,063 24,977 20,751 20,809
Vessel operating
expenses (net
of predelivery
expenses) $ 5,721,663 $ 4,143,152 $ 1,759,361 $ 1,579,557
Daily vessel
operating
expenses
$/day(6) 5,240 4,683 4,833 4,363
------------- ------------- ------------- -------------
(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
June 30, 2008 and June 30, 2007 pre-delivery expenses of Panamax
product tankers amounted to $ 0 million and $ 0.4 million,
respectively.
For the six months ended June 30, 2008 and June 30, 2007 pre-delivery
expenses of Panamax product tankers amounted to $ 0 million and
$ 0.8 million, respectively.
(7) For the three months ended June 30, 2008 excludes $ 1.6 million of
profit sharing revenue booked in the second quarter of 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 six months ended June 30, 2008 excludes $ 2.8 million
of profit sharing revenue booked in the first six months of 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.Fleet Profile and Employment: The table below describes the profile and employment of the Company's fleet as of today:
Vessel Sister Year Deadweight Type Delivery Daily Hire Re-de-
Ship (1) Built (dwt) Date Rate (2) livery
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
Omega Lady Sarah C 2004 71,500 LR1 - Ice
Class 1C Jun-06 $24,000 (4) Jun-09
Omega Lady Miriam C 2003 71,500 LR1 - Ice
Class 1C Aug-06 $24,000 (4) Jul-09
Omega Emmanuel D 2007 73,000 LR1 - Ice
Class 1A Mar-07 $25,500 (6) Apr-10
Omega Theodore D 2007 73,000 LR1 - Ice
Class 1A Apr-07 $25,500 (6) May-10
Handymax Product
Tankers
Omega Prince B 2006 36,680 MR1 - Ice
Class 1A Jun-06 $21,000 (5) Jun-09
Omega Princess B 2006 36,680 MR1 - Ice
Class 1A Jul-06 $21,000 (5) Jun-09
TOTAL (DWT): 512,358
Additional Handymax
Vessels
TBN1 F 2009 47,000 Jun-09 $21,135 (7) Jun-12
TBN2 E 2010 37,000 Mar-10 Mar-13
TBN3 F 2010 47,000 Jul-10 $21,135 (7) Jul-13
TBN4 E 2010 37,000 Jul-10
TBN5 E 2010 37,000 Sep-10
TBN6 E 2010 37,000 Dec-10
TBN7 E 2011 37,000 Feb-11
Total (DWT): 279,000
(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.
(7) Plus any additional income under profit sharing arrangements,
according to which charter earnings in excess of $ 21,135 per day
will be divided equally between Omega and ST Shipping.Conference Call and Webcast: As previously announced, the Company's management will host a conference call to discuss its second quarter 2008 results on Tuesday, August 26, 2008 at 10:00 A.M. EDT. 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 September 2, 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#.
Omega Navigation Enterprises Inc
Consolidated Statement of Income
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 19,293 17,998 38,152 32,137
Expenses:
Voyage expenses (246) (236) (478) (431)
Vessel operating
expenses (3,763) (3,578) (7,481) (6,521)
Depreciation and
amortization (4,697) (4,537) (9,343) (8,059)
Management fees (314) (278) (621) (526)
Options’ premium - (100) - (200)
General and
administrative
expenses (1,400) (1,097) (2,506) (2,189)
Incentive
compensation (214) (110) (944) (175)
Foreign currency
losses (9) (11) (75) (19)
----------- ----------- ----------- -----------
Operating income 8,650 8,051 16,704 14,017
----------- ----------- ----------- -----------
Other income (expenses)
Interest and finance
costs (3,200) (4,773) (7,193) (8,597)
Interest income 128 375 261 1,321
Change in fair
value of warrants (756) (452) (736) (452)
Gain on derivative
instruments 3,161 601 1,164 366
----------- ----------- ----------- -----------
Total other income
/(expenses), net (667) (4,249) (6,504) (7,362)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
INCOME FROM CONTINUING
OPERATIONS 7,983 3,802 10,200 6,655
----------- ----------- ----------- -----------
DISCONTINUED OPERATIONS
Income/(Loss) from
discontinued operations
of the bulk carrier
fleet - 12 20 (154)
----------- ----------- ----------- -----------
INCOME/(LOSS) FROM
DISCONTINUED
OPERATIONS - 12 20 (154)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net income 7,983 3,814 10,220 6,501
=========== =========== =========== ===========
Omega Navigation Enterprises Inc
Consolidated Balance Sheet
(All amounts expressed in thousands of U.S. Dollars)
June 30, December 31,
2008 2007
-------------- --------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 11,227 8,893
Accounts receivable, trade 210 179
Inventories 593 501
Prepayments and other 872 848
Restricted cash 85 417
Derivative asset 47 -
-------------- --------------
Total current assets 13,034 10,838
-------------- --------------
FIXED ASSETS:
Vessels, net 451,946 461,251
Property and equipment, net 81 103
Advances for vessels’ acquisition 56,865 44,869
-------------- --------------
Total fixed assets 508,892 506,223
-------------- --------------
OTHER NON CURRENT ASSETS:
Deferred charges 681 343
Derivative asset 825 -
Restricted cash 5,105 5,081
-------------- --------------
Total other non current assets 6,611 5,424
-------------- --------------
Total assets 528,537 522,485
============== ==============
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long term debt - 781
Accounts payable 1,261 869
Accrued and other current liabilities 1,655 2,740
Deferred revenue 1,315 1,869
Warrants 7,834 -
Derivative liability 711 1,151
Dividends payable 57 30
-------------- --------------
Total current liabilities 12,833 7,440
-------------- --------------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 334,289 322,565
Warrants - 7,097
Derivative liability 518 428
Long Term Dividends payable 105 81
Other Long Term Liabilities 16 -
-------------- --------------
Total non-current liabilities 334,928 330,171
-------------- --------------
-------------- --------------
COMMITMENTS AND CONTINGENCIES: - -
-------------- --------------
Stockholders’ equity:
Common stock 152 151
Additional paid-in capital 197,990 197,047
Accumulated deficit (17,366) (12,324)
-------------- --------------
Total stockholders’ equity 180,776 184,874
-------------- --------------
Total liabilities and stockholders’ equity 528,537 522,485
============== ==============
Omega Navigation Enterprises Inc
Consolidated Statement of Cash Flows
(All amounts expressed in thousands of U.S. Dollars-)
Three months ended Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Cash flows from
operating activities
Net income from
continuing operations 7,983 3,802 10,200 6,655
Net cash provided by
continuing operating
activities 9,678 7,913 19,049 15,780
Net cash used in
discontinued operating
activities - (106) - (692)
----------- ----------- ----------- -----------
Net cash provided by
continuing and
discontinued operating
activities 9,678 7,807 19,049 15,088
----------- ----------- ----------- -----------
Cash flows used in
investing activities
Net cash used in
investing
activities-continuing
operations (11,505) (54,136) (12,001) (120,334)
Net cash provided by
investing
activities-discontinued
operations - - - 81,468
----------- ----------- ----------- -----------
Net cash used in
investing activities-
continuing and
discontinued
operations (11,505) (54,136) (12,001) (38,866)
----------- ----------- ----------- -----------
Cash flows (used
in)/provided by
financing activities
Net cash (used
in)/provided by
financing
activities-continuing
operations 2,079 38,811 (4,714) 75,998
Net cash used in
financing
activities-discontinued
operations - - - (37,394)
----------- ----------- ----------- -----------
Net cash (used
in)/provided by
financing
activities-continuing
and discontinued
operations 2,079 38,811 (4,714) 38,604
----------- ----------- ----------- -----------
Net increase/(decrease)
in cash and cash
equivalents 252 (7,518) 2,334 14,826
Cash and cash
equivalents at the
beginning of the
period 10,975 26,206 8,893 3,862
----------- ----------- ----------- -----------
Cash and cash
equivalents at end of
period 11,227 18,688 11,227 18,688
=========== =========== =========== ===========
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 Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net cash from operating
activities 9,678 7,913 19,049 15,780
Net
increase/(decrease)
in current assets (89) (328) 147 152
Net increase/(decrease)
in current liabilities
excluding bank debt 994 893 1,160 (569)
Stock based
compensation (214) (110) (944) (175)
Write off of options’
premium - (100) - (200)
Change in fair value
of warrants (756) (452) (736) (452)
Net interest
(income)/expense 3,128 4,393 6,990 7,230
Amortization of
financing costs (150) (74) (355) (142)
EBITDA 12,591 12,135 25,311 21,624
CONTINUING &
DISCONTINUED
OPERATIONS Three months ended Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net cash from
operating activities 9,678 7,807 19,049 15,088
Net increase/(decrease)
in current assets (89) (348) 147 (20)
Net increase in
current liabilities
excluding bank debt 994 1,031 1,180 180
Stock based
compensation (214) (110) (944) (175)
Write off of
options’ premium - (100) - (200)
Change in fair value
of warrants (756) (452) (736) (452)
Net interest
(income)/expense 3,128 4,393 6,990 7,358
Amortization of
financing costs (150) (74) (355) (181)
EBITDA 12,591 12,147 25,331 21,598(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 double hull product tankers. The current fleet includes eight double hull product tankers with a carrying capacity of 512,358 dwt which are chartered out under three-year time charters with an average age of less than three years. The company has also announced the signing of shipbuilding contracts to construct and acquire five additional product tankers with a capacity of 37,000 dwt each scheduled for delivery between March 2010 and early in 2011 and two additional product tankers with a capacity of 47,000 dwt the first scheduled for delivery on the second quarter 2009 and the second scheduled for delivery on the third quarter 2010. With the addition of these seven vessels, Omega's fleet will expand to 15 product tankers with a total deadweight capacity of 791,358 dwt. 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: 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
http://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
http://www.capitallink.com
Source: Omega Navigation
|  | ||||||||||||||
