Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a
provider of global marine transportation services focusing on
product tankers, announced today its financial and operational
results for the quarter ended June 30, 2009.
Second Quarter 2009 Results
For the quarter ended June 30, 2009, Omega Navigation reported
total revenues of $16.7 million and Net Income of $3.4 million, or
$0.23 per basic share, excluding a loss related to the termination
of a purchase agreement, a loss on interest rate derivative
instruments and incentive compensation grants expense. Including
these items the Company reported Net Loss of $1.0 million or $0.06
per basic share. EBITDA for the second quarter of 2009 was $6.6
million. Please see below for a reconciliation of EBITDA to Cash
from Operating Activities.
Operating Income included revenue of $0.7 million attributable
to profit sharing.
The Company owned and operated an average of eight vessels, all
of which were product carriers, during the second quarter of 2009,
the same number as in the second quarter of 2008. In addition,
since April 2009, the Company holds a 50% interest in a joint
venture, which owns an additional product carrier vessel. The Omega
King and the Omega Queen were out of service for 8 and 12 days,
respectively, during the 2009 period for scheduled drydockings and
immediately thereafter entered in to new time charters. The Omega
Queen was chartered out to ST Shipping (Glencore) for a base rate,
which covers operating expenses and debt service, with
profit-sharing above the base rate. The Omega King entered a new
time charter with Torm at an average base rate of $16,500 per day
for one year, with profit-sharing elements. Torm also has an option
to extend the charter for one year at a base rate of $20,000 per
day plus profit-sharing. The Omega Prince and Omega Princess also
entered in to new charter arrangements. These vessels entered
commercial management agreements with ST Shipping whereby their
actual earnings will be pooled with 7 vessels of similar operating
characteristics, also commercially managed by ST Shipping.
Excluding profit-share, the panamaxes averaged $22,898 per day per
vessel and the MR's averaged $19,083 per vessel per day (net of
voyage expenses) for the second quarter of 2009. In the second
quarter of 2008, the Panamax product tankers averaged $25,050 per
day per vessel and the MR's product tankers averaged $20,742 per
day per vessel (net of voyage expenses). Voyage revenues were
mainly adversely affected in the second quarter of 2009 by the
offhire time related to the scheduled drydockings noted above, by
the lower hire rates on the new charter arrangements mentioned
above and by 5 days offhire related to a collision on the Omega
Theodore, which occurred at the end of March 2009 as previously
announced. After completion of repairs, the Omega Theodore was
redelivered to ST Shipping in accordance with the current time
charter agreement.
Since the inception of our product tankers' charters through the
end of the second quarter of 2009, the profit sharing element of
those charters that we have or are entitled to receive amounted to
approximately $14.1 million. The Company has already received $13.2
million of cash and has recorded profit share revenues of $13.2
million, and currently expects to record an additional $0.9 million
in quarters to follow for voyages performed through the second
quarter of 2009. The table below presents the amount of profit
share revenues recorded per quarter.
Amount of
profit share
revenues
recorded per
Quarter 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
3rd Quarter 2008 $ 1.8 million
4th Quarter 2008 $ 2.2 million
1st Quarter 2009 $ 1.7 million
2nd Quarter 2009 $ 0.7 million
Total $ 13.2 million
Operating expenses for our MR product tankers averaged $5,304
per day per vessel in the second quarter of 2009, versus $5,073 per
day per vessel in the second quarter of 2008. Our Panamax product
tankers averaged operating expenses of $5,735 per day per vessel in
the second quarter of 2009, versus $5,201 per day per vessel in the
second quarter of 2008. The increase of the daily operating
expenses of the vessels relates mainly to the maintenance expenses
related to the drydockings of the Omega King and Omega Queen in the
second quarter of 2009 and an increase in crew wages.
First Six Months 2009 Results
For the six months ended June 30, 2009, Omega Navigation
reported total revenues of $35.4 million and Net Income of $9.7
million, or $0.63 per basic share excluding a loss on interest rate
derivative instruments, a gain on warrants revaluation, non cash
incentive compensation grants and a loss related to the termination
of a purchase agreement. Including these items, Net income was $4.7
million or $0.31 per share. EBITDA for the first six months of 2009
was $19.8 million. Please see below for a reconciliation of EBITDA
to Cash from Operating Activities.
Operating Income included revenue of $2.4 million attributable
to profit sharing.
The Company owned and operated an average of eight vessels, all
of which were product carriers, during the first half of 2009, the
same as in the first half of 2008. In addition, since April 2009,
the Company holds a 50% interest in a joint venture, which owns an
additional product carrier vessel. Excluding profit-sharing, the
Company's Panamax product tankers earned an average time-charter
equivalent rate of $23,692 per day per vessel during the first half
of 2009, versus $25,063 per day per vessel (net of voyage
expenses), during the first six months of 2008. The Company's
Handymax product tankers earned an average time-charter equivalent
rate of $19,910 per vessel per day during the first half of 2009
versus $20,751 per day per vessel (net of voyage expenses) during
the first six months of 2008.
Operating expenses for the MR product tankers averaged $5,298
per day per vessel in the first half of 2009 versus $4,833 per day
per vessel in the first six months of 2008. Panamax product tankers
averaged operating expenses of $5,957 per day per vessel in the
first six months of 2009 versus $5,240 per day per vessel in the
first half of 2008. The increase in operating expenses was
primarily related to maintenance expenses incurred during scheduled
drydockings in the first half of 2009, insurance deductible
incurred related to the collision on the Omega Theodore and an
increase in crew wages.
Loan Covenant Compliance
As of June 30, 2009, the Company was fully compliant with all
its loan covenants.
Recent Fleet Developments
With the recent announcement of the delivery of the newbuilding
vessel Omega Duke to a joint venture, in which Omega Navigation has
a 50% shareholding, Omega's current operated fleet includes nine
double hull product tankers with an aggregate carrying capacity of
559,358 dwt. The Omega Duke has been time chartered to ST Shipping
(Glencore International AG) for a period of 5 years until mid 2014,
with a base rate which fully covers operating expenses and debt
service plus profit sharing arrangement. With the additional
announcements that the Omega Queen and Omega King have been time
chartered out, seven out of nine product tankers are currently
employed under fixed rate time charters. The recent time charters
are to established counterparties, ST Shipping and Torm A/S.
Currently seven out of nine of the vessels have profit-sharing
arrangements associated with them which enable the Company to share
in the charter market's upside potential.
With these recent charters concluded, the Company has for the
remainder of 2009 and until mid 2010 fixed rate time charter
coverage of 78%, inclusive of the joint venture, all with
profit-sharing arrangements allowing the Company to take advantage
of any upside in the charter market. The Company has entered the
Omega Prince and Omega Princess into floating rate time charters
with rates based on the market results of a pool of similar vessels
commercially managed by ST Shipping and through these arrangements
enjoy excellent utilization rates and above spot market charter
rates. All of the time charters recently concluded are for
relatively short periods of time, which increases the Company's
flexibility to terminate those on short notice in case the market
improves and thereby take advantage of better market conditions.
Also, with these time charters we have continued full utilization
of the fleet without experiencing any unscheduled offhire time.
In the first six months of the year, the turmoil which prevailed
in the global economy had a severe impact on the entire tanker
industry, and specifically on rates and asset values. Omega's
strategy of owning young, high quality assets and employing its
vessels through term time charters has enabled the Company to
present profitable operating results, even in these uncertain times
and depressed tanker market. While oil demand has contracted and
oil product inventories remain high, there has been recent evidence
that the economic climate may be recovering. As the economic
recovery progresses, we would expect to see an increase in oil
demand, and the resultant increase in rates and asset values.
Management Commentary:
George Kassiotis, President and Chief Executive Officer of Omega
Navigation, commented: "We are pleased to have concluded our
thirteenth consecutive quarter with profitable operating results,
since our IPO in April 2006. We attribute our profitable operating
results to our strategy of acquiring high quality modern vessels
and seeking predictable and stable cash flows through the term
employment of our vessels. In addition, the fact that the charters
on seven of our nine product tankers have profit-sharing provisions
has enabled us to participate in any upside of the charter market
and thereby maximize our profitability.
"We continue to return profitable operating results even in this
most challenging economic environment. We have seen signs that the
economic environment is improving and with that demand for oil and
oil products should gradually return as well. We would expect that
once demand improves and current high inventory levels decrease, we
should see an improving rate environment and asset values should
also improve. Based on our current charter rates and the continued
performance of each of our charterers, we believe that we are well
positioned to continue to show profitable operating results even in
this economic climate. While rates remain somewhat depressed, we
believe we are now seeing evidence of a rebound in demand for oil
products, which should help stimulate rates going forward.
"We seek to optimize the management of our capital exposure,
deliver our balance sheet and create synergies, which will enhance
our ability to fund our growth plans and take advantage of
opportunities during challenging times.
"In this respect, we are pleased to enjoy a strong business
relationship with Glencore, one of the largest commodities traders
in the world. The joint ownership of the Omega Duke is further
evidence of the high standards of operating performance that our
Company offers to its customers and end users of its vessels and
also demonstrates our ability to create synergies in a challenging
environment.
"We also believe that we continue to have strong relationships
with our commercial lenders, that are large European and Asian
banks, which have continued to offer their support to the
Company.
"We would like to reiterate that we are continuing to pursue a
strategy of prudent growth, gradually expanding our fleet and our
revenue and profit generation potential.
"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,
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."
Gregory McGrath, Chief Financial Officer of Omega Navigation,
commented, "As of June 30, 2009, the Company had a ratio of net
debt to net capitalization of about 64%, with respect to the
current eight vessel fleet and including debt already incurred for
the pre-delivery financing of the remaining six newbuildings, which
we believe is modest for industry standards given our strong time
charter coverage and the young age and quality of our fleet. As of
June 30, 2009 we were fully compliant with all our loan
covenants.
"We continue to have a strong relationship with our commercial
lenders and have received their ongoing support and commitment to
the Company, even in this very challenging credit market. Our
balance sheet was also recently strengthened by the formation of
the joint venture company which owns the Omega Duke and the
consequent novation of the debt associated with that vessel from
Omega to the joint venture."
Fleet Data
Panamax Tankers Handymax Tankers
------------------------ ------------------------
Three months ended Three months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
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) 546 546 182 182
Available days (2) 527 546 182 182
Operating days (3) 521 546 182 182
Fleet Utilization (4) 99% 100% 100% 100%
Voyage revenues (net
of voyage
expenses) (7) $12,067,119 $13,677,135 $ 3,473,156 $ 3,775,006
Time charter
equivalent (TCE) rate
$/day (5)(7) 22,898 25,050 19,083 20,742
Vessel operating
expenses $ 3,131,227 $ 2,839,632 $ 965,343 $ 923,371
Daily vessel operating
expenses $/day(6) 5,735 5,201 5,304 5,073
----------- ----------- ----------- -----------
Six months ended Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
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) 1,086 1,092 362 364
Available days (2) 1,054 1,092 362 364
Operating days (3) 1,038 1,092 361 364
Fleet Utilization (4) 98% 100% 100% 100%
Voyage revenues (net
of voyage
expenses) (7) $24,971,422 $27,368,632 $ 7,207,473 $ 7,553,222
Time charter
equivalent (TCE) rate
$/day (5)(7) 23,692 25,063 19,910 20,751
Vessel operating
expenses $ 6,469,399 $ 5,721,663 $ 1,917,794 $ 1,759,361
Daily vessel operating
expenses $/day(6) 5,957 5,240 5,298 4,833
----------- ----------- ----------- -----------
(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.
(7) For the three months ended June 30, 2009, excludes $0.7
million of profit sharing revenue booked in the second quarter of
2009 related to profit sharing on charters of the vessels Omega
Lady Sarah, Omega Lady Miriam, Omega Emmanuel and Omega Theodore.
For the six months ended June 30, 2009 excludes $2.4 million of
profit sharing revenue booked in the first six months of 2009
related to profit sharing on charters of the vessels Omega Lady
Sarah, Omega Lady Miriam, Omega Emmanuel and Omega Theodore.
Fleet Profile and Employment:
The table below describes the profile and employment of the
Company's fleet as of today:*
Daily
Sister Year Deadweight Delivery Hire Latest
Vessel Ship(1) Built (dwt) Type date rate(2) Redelivery
CURRENT FLEET
Panamax product tankers
Omega Queen A 2004 74,999 LR1 May-09 Base rate Evergreen,
plus profit subject to
share termination
notice of
2 months
Omega King A 2004 74,999 LR1 May-09 16,500 (3) May-10
Omega Lady LR1-Ice
Sarah C 2004 71,500 Class 1C July-09 $ 25,500 (4) Aug-12
Omega Lady R1-Ice
Miriam C 2003 71,500 Class 1C Sep-09 $ 25,500 (5) Oct-12
Omega LR1-Ice
Emmanuel D 2007 73,000 Class 1A Mar-07 $ 25,500 (6) Apr-10
Omega LR1-Ice
Theodore D 2007 73,000 Class 1A Apr-07 $ 25,500 (6) May-10
Handymax product tankers
Omega MR1-Ice
Prince B 2006 36,680 Class 1A (7)
Omega MR1-Ice
Princess B 2006 36,680 Class 1A (7)
TOTAL
(DWT): 512,358
Vessel owned through 50% controlled joint venture
Omega Duke F 2009 47,000 MR2 Apr-09 Base rate plus Apr-14
profit share
Handymax vessels under construction
TBN1 E 2010 37,000 MR1 Mar-10 Confidential Mar-13
TBN2 F 2010 47,000 MR2 Jul-10 $ 21,135 (8) Jul-13
TBN3 E 2010 37,000 MR1 Jul-10
TBN4 E 2010 37,000 MR1 Sep-10
TBN5 E 2010 37,000 MR1 Dec-10
TBN6 E 2011 37,000 MR1 Feb-11
TOTAL (DWT): 232,000
* This table assumes the full performance by each our current
and anticipated customers under our current and contracted
charters.
(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) Average base rate for the first year is $16,500 plus profit
share. Torm has the option to extend the charter for an additional
year at a daily rate of $20,000 with a profit sharing arrangement
with earnings above that base level shared equally between Omega
and Torm.
(4) Plus any additional income under profit sharing agreements,
according to which charter earnings in excess of $25,500 per day
will be divided equally between Omega Navigation and ST
Shipping.
(5) Plus any additional income under profit sharing agreement,
according to which charter earnings in excess of $25,500 per day
will be divided equally between Omega Navigation and ST
Shipping.
(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) The actual earnings of these vessels will be pooled with 7
vessels of similar operating characteristics all managed by ST.
(8) Plus 50% of any trading income in excess of the daily
hire.
Conference Call Details:
As previously announced, the Company's management will host a
conference call tomorrow September 9, 2009 at 10:00am EDT to
discuss its second quarter 2009 results.
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."
A telephonic replay of the conference call will be available
until September 16, 2009 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 Statements of Income / (Loss)
(All amounts expressed in thousands of U.S. Dollars)
Three months Six months
ended ended
June June June June
30, 30, 30, 30,
2009 2008 2009 2008
(unaudited) (unaudited)
-------------- --------------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 16,711 19,293 35,388 38,152
Expenses:
Voyage expenses (469) (246) (769) (478)
Vessel operating expenses (4,097) (3,763) (8,388) (7,481)
Depreciation and amortization (4,787) (4,697) (9,476) (9,343)
Management fees (349) (314) (651) (621)
General and administrative expenses
(including non cash compensation expense
of $260, and $214 for the quarter ended
June 30, 2009 and 2008 respectively and
$910 and $944 for the six months ended
June 30, 2009 and 2008 respectively) (1,595) (1,614) (3,333) (3,450)
Foreign currency losses (80) (9) (79) (75)
------ ------ ------ ------
Income from vessels operation 5,334 8,650 12,692 16,704
------ ------ ------ ------
Loss on Termination of purchase agreements (3,000) - (3,000) -
Income/(Loss) from Joint Venture companies (479) - (479) -
------ ------ ------ ------
Operating Income/(Expense) 1,855 8,650 9,213 16,704
------ ------ ------ ------
Other income (expenses)
Interest and finance costs (2,123) (3,200) (3,915) (7,193)
Interest income 35 128 80 261
Change in fair value of warrants - (756) 1,127 (736)
Gain/(Loss) on derivative instruments (737) 3,161 (1,808) 1,164
Total other income /(expenses), net (2,825) (667) (4,516) (6,504)
------ ------ ------ ------
INCOME/(LOSS) FROM CONTINUING OPERATIONS (970) 7,983 4,697 10,200
------ ------ ------ ------
DISCONTINUED OPERATIONS
Income/(Loss) from discontinued operations
of the bulk carrier fleet - - - 20
------ ------ ------ ------
INCOME/(LOSS) FROM DISCONTINUED OPERATIONS - - - 20
------ ------ ------ ------
------ ------ ------ ------
Net income/(Loss) (970) 7,983 4,697 10,220
====== ====== ====== ======
Omega Navigation Enterprises Inc
Consolidated Balance Sheets
(All amounts expressed in thousands of U.S. Dollars)
June 30, December 31,
2009 2008
(unaudited)
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 15,804 16,811
Accounts receivable, trade 1,667 596
Inventories 681 602
Prepayments and other 2,591 506
Restricted cash 219 123
Due from related parties 116 -
----------- -----------
Total current assets 21,078 18,638
----------- -----------
FIXED ASSETS:
Vessels, net 433,182 442,485
Property and equipment, net 130 64
Advances for vessels under construction and
acquisition 52,466 57,672
----------- -----------
Total fixed assets 485,778 500,221
----------- -----------
OTHER NON CURRENT ASSETS:
Deferred charges 2,403 1,154
Restricted cash 5,109 5,174
Investments in Joint Venture companies 5,146 -
Other non current assets 125 109
----------- -----------
Total other non current assets 12,783 6,437
----------- -----------
----------- -----------
Total assets 519,639 525,296
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 605 138
Accounts payable 2,237 1,804
Accrued and other current liabilities 3,760 1,815
Deferred revenue 3,845 1,368
Warrants - 3,941
Derivative liability 8,771 5,839
Dividends payable 183 87
----------- -----------
Total current liabilities 19,401 14,992
----------- -----------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 330,225 335,112
Derivative liability 3,631 8,409
Dividends payable 109 174
Other long term liabilities 2 5
----------- -----------
Total non-current liabilities 333,967 343,700
----------- -----------
----------- -----------
COMMITMENTS AND CONTINGENCIES: - -
----------- -----------
Stockholders' equity:
Common stock 158 151
Additional paid-in capital 201,120 198,402
Accumulated deficit (35,007) (31,949)
----------- -----------
Total stockholders' equity 166,271 166,604
----------- -----------
----------- -----------
Total liabilities and stockholders' equity 519,639 525,296
=========== ===========
Omega Navigation Enterprises Inc
Consolidated Statements 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,
2009 2008 2009 2008
(unaudited) (unaudited)
-------------------- --------------------
Cash flows from operating
activities
Net income/(Loss) from
continuing operations (970) 7,983 4,697 10,200
Net cash provided by
continuing operating
activities 2,152 9,678 12,584 19,049
--------- --------- --------- ---------
Net cash provided by
continuing and discontinued
operating activities 2,152 9,678 12,584 19,049
--------- --------- --------- ---------
Cash flows provided by/used in
investing activities
Net cash provided by/(used in)
investing activities-continuing
operations 163 (11,505) (47) (12,001)
--------- --------- --------- ---------
Net cash provided by/(used in)
investing activities-
continuing and discontinued
operations 163 (11,505) (47) (12,001)
--------- --------- --------- ---------
Cash flows (used in)/provided
by financing activities
Net cash (used in)/provided by
financing activities-continuing
operations (5,804) 2,079 (13,544) (4,714)
--------- --------- --------- ---------
Net cash (used in)/provided by
financing activities-continuing
and discontinued operations (5,804) 2,079 (13,544) (4,714)
--------- --------- --------- ---------
Net (decrease)/ increase in
cash and cash equivalents (3,489) 252 (1,007) 2,334
Cash and cash equivalents at
the beginning of the period 19,293 10,975 16,811 8,893
--------- --------- --------- ---------
Cash and cash equivalents at
end of period 15,804 11,227 15,804 11,227
========= ========= ========= =========
Reconciliation of EBITDA (1) to Cash from Operating Activities
(All amounts expressed in thousands of U.S. Dollars)
CONTINUING & DISCONTINUED
OPERATIONS Three months ended Six months ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited)
-------------------- --------------------
Net cash from operating
activities 2,152 9,678 12,584 19,049
Net increase/(decrease) in
current assets and non
current assets 3,093 (89) 3,367 147
Net (increase)/decrease in
current liabilities excluding
bank debt (2,911) 994 (4,885) 1,180
Net interest (income)/expense 4,080 3,128 7,490 6,990
Warrants settled liability - (756) 1,127 (736)
Stock based compensation
expense (260) (214) (910) (944)
Payments for drydocking costs 823 - 1,528 -
Amortization of financing
costs (336) (150) (484) (355)
--------- --------- --------- ---------
EBITDA 6,641 12,591 19,817 25,331
========= ========= ========= =========
(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 of
eight double hull product tankers. In addition, since April 2009
the Company holds a 50% interest in a 50/50 joint venture with
Glencore International AG, which owns an additional double hull
product tanker. The current operated fleet includes nine double
hull product tankers with a carrying capacity of 559,358 dwt., of
which one double hull product tanker, with a capacity of 47,000
dwt, is owned through a 50/50 joint venture with Glencore
International AG (through wholly owned subsidiaries). The nine
product tankers are chartered out under period time charters.
Furthermore, the company has also announced the signing of
shipbuilding contracts in June of 2007 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. The
company also announced in May of 2008 that it had entered into an
agreement with an unrelated third party to purchase one newbuilding
47,000 dwt. coated product / chemical tanker under construction at
Hyundai Mipo Dockyard in South Korea, scheduled to be delivered in
the third quarter of 2010.
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.
Contacts: Company Contact: Gregory A. McGrath Chief Financial
Officer Omega Navigation Enterprises, Inc. PO Box 272 Convent
Station, NJ 07961 Tel. (551) 580-0532 E-mail:
gmcgrath@omeganavigation.com www.omeganavigation.com Investor
Relations / Financial Media: Nicolas Bornozis President Capital
Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel.
(212) 661-7566 E-mail: nbornozis@capitallink.com
www.capitallink.com
Grafico Azioni Omega Navigation Enterprises, Inc. (MM) (NASDAQ:ONAV)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Omega Navigation Enterprises, Inc. (MM) (NASDAQ:ONAV)
Storico
Da Set 2023 a Set 2024