Net Income (Non GAAP) $ 3.8 Million
Net Income (Non GAAP) per share $ 0.25
Unrealized loss on derivative Instrument $ 1.2
Book loss on disposal of vessels $ 1.7
Net Income (GAAP) $ 0.9 Million
Net Income (GAAP) per share $ 0.06
The company owned and operated an average of 7.6 vessels during the third
quarter 2006, earning an average time-charter equivalent rate of $20,075
per day per ship, for the bulk carriers, $ 20,673 per day per vessel for
the Handymax product tankers, and $25,110 per day per vessel for the
Panamax product tankers.
The company earned revenues through profit-sharing agreements on two of its
Panamax product tankers in the three months ended September 30, 2006.
While these revenues are not reflected in third quarter net income due to
the actual settlement periods, the Company has received cash of over $200
thousand related to the profit sharing earned in the third quarter on one
of the vessels and expects further amounts on the other. The earnings
generated in the third quarter of 2006 from these profit-sharing agreements
will be recognized in subsequent quarters, depending upon when final
settlement is made.
Operating expenses in the third quarter of 2006 were higher than normal due
to one-time expenses related to taking delivery of our 6 product tankers
during the second and third quarter of the year. These one-time expenses
amounted to $343 thousand during the third quarter of 2006.
Nine Months 2006 Results
For the nine-month period ended September 30, 2006, the Company reported
Total Revenues from continuing and discontinued operations of $13.7 and
$11.6 million respectively, and Net Income of $11.9 million, or $1.11 per
share before recording the non-cash book loss on the sale of the two dry
bulk vessels and the non-cash loss on the derivative instruments, or $9.8
million, or $0.91 per share, calculated on 10,710,440 weighted average
basic and diluted shares outstanding for the period, after taking into
effect the non-cash unrealized loss on the interest rate swap/collar and
non-cash book loss on the sale of the two dry bulk vessels. EBITDA for
the period was $22.5 million before recording the non-cash book loss on the
sale of the dry bulk vessels and $20.8 million after recording the non-cash
book loss on the sale of the vessels. Please see below for a
reconciliation of EBITDA to Cash from Operating Activities.
The Company owned and operated an average of 4.1 vessels during the nine
month period ended September 30, 2006 earning an average time-charter
equivalent rate of $20,205 per day per vessel for the bulk carriers,
$20,596 per day per vessel for the Handymax product tankers and $25,263 per
day per vessel for the Panamax product carriers.
Operating expenses in the nine-month period ending September 2006 were
higher than normal due to one-time expenses related to taking delivery of
our 6 product tankers during the second and third quarter of the year.
These one-time expenses amounted to $589 thousand during the first nine
months of 2006.
Sale of the Dry Bulk Vessels
Omega Navigation announced on September 20, 2006 that it entered into an
agreement to sell its two dry bulk carriers the "Ekavi I" and the "Electra
I" for a total gross consideration of $82.5 million. Omega Navigation
expects to deliver the "Ekavi I" and the "Electra I" to the buyer between
November 15, 2006 and January 15, 2007. The proceeds from the sale will be
used to pay down debt on the vessels as well as potentially to further
invest in the product tanker sector or other general corporate purposes.
With the sale of the two dry bulk vessels the Company has become the only
shipping company listed in the U.S. whose fleet consists exclusively of
product tankers.
At the date the agreements were signed, vessels were classified as "held
for sale" and reports the operations from the bulk carriers as discontinued
operations as all criteria for such classification were met. The vessels'
values were based on their sales price less costs incurred to sell the
vessels. The non-cash book loss recognized amounted to $1.7 million, and is
included in income from discontinued operations. This loss was more than
offset by the gain of $5.0 million recorded in the first quarter of 2006,
which was related to the extinguishment of debt on the vessels. Due to the
fact that the vessels meet the criteria to be held for sale they stopped
being depreciated after the date of the agreement.
The lack of depreciation charges in the fourth quarter is expected to add
approximately $830 thousand or $.05 per share to fourth quarter earnings.
Other Developments of Third Quarter 2006
During the third quarter of 2006, Omega Navigation completed the
acquisition of the six identified product tankers which it had agreed to
acquire prior to its IPO, by taking delivery of two double hull product
tankers, including one Panamax and one Handymax ice class 1A.
In summary, during the first quarter of 2006 the Company's fleet was
comprised only of its two dry bulk carriers. During the second quarter of
2006, the Company expanded its fleet and took delivery of four of the six
identified double hull product tankers. During the third quarter the
Company took delivery of its two remaining identified product tankers that
it had agreed to acquire at the time of its IPO, bringing the entire fleet
to two dry bulk vessels and six product tankers.
The company's current fleet includes six double hull product tankers with a
total cargo-carrying capacity of 366,358 dead weight tonnes. Furthermore,
the company has options to acquire four additional double hull Ice Class 1A
product carriers currently under construction and expected to be available
for delivery between March 2007 and September 2007.
Each of the Company's product tankers are employed under time charters for
a minimum of three years from their respective delivery dates and are
chartered to established charterers including Korea Lines, Norden, Glencore
and Torm.
Management Commentary:
George Kassiotis, President and Chief Executive Officer of Omega
Navigation, commented, "We are pleased to have delivered strong financial
results for the second consecutive quarter. We now have taken delivery of
all the vessels we identified during the IPO process and have put them all
on three-year charters as we indicated at the time of the IPO. In
addition, we have entered into an agreement to sell our two dry bulk
vessels at very favorable prices, which will allow us to further invest in
the product tanker sector, thus becoming a 'pure play' in this sector which
offers very favorable fundamentals in the long term."
Gregory McGrath, Chief Financial Officer of Omega Navigation, commented:
"As of September 30, 2006, our total debt to book capitalization stood at
54%. This modest leverage affords us significant flexibility and growth
potential. In addition, following the delivery of our sixth and last
identified product tanker, "Omega Lady Miriam," we still have excess
capacity of $53 million in our existing revolving credit facility.
Furthermore, the fact that we have profit sharing agreements on the
earnings of four of the six product tankers, enables us to capture the
upside potential of the market and enhance our profitability."
Fleet Data
Three Months Ended
September 30, 2006
Product Carriers Drybulk
Panamax Handymax Carriers
Tankers Tankers
Number of vessels at end of
period 4 2 2
Average age of fleet (in years) 2 0 2
Ownership days (2) 336 181 184
Available days (3) 336 181 184
Operating days (4) 336 181 184
Fleet Utilization (5) 100% 100% 100%
Voyage revenues (net of voyage
expenses) $8,436,866 $3,741,910 $3,693,784
Time charter equivalent (TCE)
rate $/day (6) 25,110 20,673 20,075
Vessel operating expenses (net of
predelivery expenses) $1,410,522 $ 641,601 $ 678,141
Daily Vessel operating expenses
$/day (7) 4,197 3,545 3,686
Nine Months Ended
September 30, 2006
Product Carriers Drybulk
Panamax Handymax Carriers
Tankers Tankers
Number of vessels at end of
period 4 2 2
Average age of fleet (in years) 2 0 2
Ownership days (2) 385 185 546
Available days (3) 385 185 546
Operating days (4) 385 185 546
Fleet Utilization (5) 100% 100% 100%
Voyage revenues (net of voyage
expenses) $ 9,726,223 $ 3,810,335 $ 11,032,015
Time charter equivalent (TCE)
rate $/day (6) 25,263 20,596 20,205
Vessel operating expenses (net of
predelivery expenses) $ 1,693,461 $ 669,733 $ 1,974,647
Daily Vessel operating expenses
$/day (7) 4,399 3,620 3,617
(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 the period.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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 September 30, 2006, predelivery
expenses amounted to $158,924 for Panamax tankers and $184,782 for Handymax
tankers. For the nine months ended 2006, predelivery expenses amounted to
$321,064 for Panamax tankers and $268,205 for Handymax tankers.
Fleet Profile and Employment:
The table below describes the profile and employment of the Company's
fleet:
Vessel Sister Year Dead- Deli- Daily
Ships Built weight very Hire
(1) (dwt) Type Date Rate (2) Redelivery
-- ---- ------- ------------ ------ ------- -- ----------
CURRENT FLEET
Product Tanker
Panamax Product
Tankers
-- ---- ------- ------------ ------ ------- -- ----------
Omega Queen D 2004 74,999 LR1 May-06 $26,500 (5) May-09
-- ---- ------- ------------ ------ ------- -- ----------
Omega King D 2004 74,999 LR1 Jun-06 $26,500 (5) Jun-09
-- ---- ------- ------------ ------ ------- -- ----------
Omega Lady Sarah C 2004 71,500 LR1 Jun-06 $24,000 (4) Jun-09
-- ---- ------- ------------ ------ ------- -- ----------
Omega Lady
Miriam C 2003 71,500 LR1 Aug-06 $24,000 (4) Jul-09
-- ---- ------- ------------ ------ ------- -- ----------
Handymax Product
Tankers
-- ---- ------- ------------ ------ ------- -- ----------
Omega Prince B 2006 36,680 Ice Class 1A Jun-06 $21,000 (3) Jun-09
-- ---- ------- ------------ ------ ------- -- ----------
Omega Princess B 2006 36,680 Ice Class 1A Jul-06 $21,000 (3) Jun-09
-- ---- ------- ------------ ------ ------- -- ----------
TOTAL (DWT): 366,358
-- ---- ------- ------------ ------ ------- -- ----------
Dry Bulk Carrier
Dry Bulk Carriers
(Under Agreement
to sell) (6)
Ekavi I A 2004 52,800 Handymax Apr-05 $17,000 Mar-May-07
-- ---- ------- ------------ ------ ------- -- ----------
Electra I A 2004 52,800 Handymax Apr-05 $25,000 Apr-Jun-07
-- ---- ------- ------------ ------ ------- -- ----------
TOTAL (DWT): 105,600
-- ---- ------- ------------ ------ ------- -- ----------
Additional
Vessels on
option (7)
Panamax – Ice
Class 1A Tanker E 2007 74,200 LR1
-- ---- ------- ------------ ------ ------- -- ----------
Panamax – Ice
Class 1A Tanker E 2007 74,200 LR1
-- ---- ------- ------------ ------ ------- -- ----------
Panamax – Ice
Class 1A Tanker E 2007 74,200 LR1
-- ---- ------- ------------ ------ ------- -- ----------
Panamax – Ice
Class 1A Tanker E 2007 74,200 LR1
-- ---- ------- ------------ ------ ------- -- ----------
Total Capacity 296,800
-- ---- ------- ------------ ------ ------- -- ----------
FLEET TOTAL
(DWT) 768,758
-- ---- ------- ------------ ------ ------- -- ----------
(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 5.0% of the daily time charter hire rate for the dry
bulk carriers and 1.25% of the daily time charter rate for the product
tankers.
(3) 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.
(4) Plus any additional income under profit sharing provisions of the
Company's charter agreement.
(5) 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.
(6) As of September 20, 2006, Omega Navigation agreed to sell its two dry
bulk carriers the "Ekavi" and the "Electra" and expects to deliver to the
buyer the vessels between the November 15, 2006 and January 15, 2007.
(7) Omega Navigation has an option to acquire four additional Ice Class 1A
Panamax Tankers.
Quarterly Dividend
On November 6, 2006, the Company announced its second quarterly dividend
since it went public, of $0.50 per share, payable on November 30, 2006 to
shareholders of record as of November 15, 2006.
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
discretionary reserves.
Gregory McGrath, Chief Financial Officer of Omega Navigation, commented,
"Our dividend policy is structured to enable shareholders to share equally
in our Company's profitability and growth. Furthermore, the Class B shares
held by the initial shareholders, which currently represent 20.7% of the
total shares outstanding, are subordinated in terms of dividend payment to
the Class A shares held by the public, which provides the public
shareholders additional comfort and assurance of their payments of
quarterly dividends."
He continued: "We have now paid two quarterly dividends in the amount of
$0.50 per share, and we expect to pay our next quarterly dividend in
February 2007."
Conference Call and Webcast:
As already announced, tomorrow, November 17, 2006 at 10:00 A.M. EST, the
Company's management will host a conference call to discuss the results.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1 866 819 7111 (from the US), 0800 953 0329
(from the UK) or +44(0)1452 542 301 (from outside the US or the UK). Please
quote "Omega Navigation."
In case of any problem with the above numbers, please dial 1 866 869 2352
(from the US),
0800 694 1449 (from the UK) or + 44 (0) 1452 560 304 (from outside the US
or the UK).
Quote "Omega Navigation."
A telephonic replay of the conference call will be available until November
24,2006 by dialing 1 866 247 4222 (from the US), 0800 953 1533 (from the
UK) or + 44(0) 1452 550 000 (from outside the US or the UK). Access Code:
3663884#
Slides and audio webcast: There will also be a live, and then archived,
webcast of the conference call, through Omega Navigation's website
(www.omeganavigation.com) Participants into the live webcast should
register on the website approximately 10 minutes prior to the start of the
webcast.
Omega Navigation Enterprises Inc.
Consolidated Statement of Income
(All amounts expressed in U.S. Dollars)
Three months Nine months
ended ended
September September
30, 2006 30, 2006
------------- -------------
(unaudited) (unaudited)
CONTINUING OPERATIONS
Revenues:
Voyage revenue 12,334,204 13,713,089
Expenses:
Voyage expenses 155,428 176,531
Vessel operating expenses 2,395,829 2,952,463
Depreciation and amortization 3,321,776 3,664,648
Management fees 285,447 300,420
General and administrative expenses 841,015 1,540,554
Foreign currency (gains)/loss (1,226) 13,884
------------- -------------
Operating income 5,335,935 5,064,589
------------- -------------
Other income (expenses):
Interest and finance costs (3,371,733) (4,038,885)
Interest income 237,765 1,691,848
Unrealized loss on derivative instruments (1,208,143) (470,807)
------------- -------------
Total other income /(expenses), net (4,342,111) (2,817,844)
------------- -------------
------------- -------------
INCOME FROM CONTINUING OPERATIONS 993,824 2,246,745
------------- -------------
DISCONTINUED OPERATIONS
Income from discontinued operations of the
bulk carrier fleet (including a gain on
extinguishment of Debt of $5,000,000 in
2006 1,587,924 9,216,823
Loss on disposal of dry bulk carrier
vessels in 2006 (1,685,297) (1,685,297)
------------- -------------
INCOME / (LOSS) FROM DISCONTINUED OPERATIONS (97,373) 7,531,526
------------- -------------
Net income 896,451 9,778,271
============= =============
Earnings per common share, basic and diluted:
- From continuing operations
Earnings per Class A common share, basic and
diluted 0.08 0.25
Earnings per Class B common share, basic and
diluted - 0.11
Weighted average number of Class A common
shares, basic and diluted 12,010,000 7,570,440
Weighted average number of Class B common
shares, basic and diluted 3.140,000 3.140,000
- From discontinued operations
Earnings per Class A common share, basic and
diluted (0.01) 0.84
Earnings per Class B common share, basic and
diluted - 0.39
Weighted average number of Class A common
shares, basic and diluted 12,010,000 7,570,440
Weighted average number of Class B common
shares, basic and diluted 3.140,000 3.140,000
- From continuing and discontinued operations
Earnings per Class A common share, basic and
diluted 0.07 1.08
Earnings per Class B common share, basic and
diluted - 0.50
Weighted average number of Class A common
shares, basic and diluted 12,010,000 7,570,440
Weighted average number of Class B common
shares, basic and diluted 3.140,000 3.140,000
Omega Navigation Enterprises Inc
Consolidated Balance Sheet
(All amounts expressed in U.S. Dollars)
September 30, December 31,
2006 2005
-------------- --------------
(unaudited) (audited)
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents 9,042,937 5,057,706
Accounts receivable, trade 52,035 178,089
Inventories 480,817 -
Prepayments and other 506,349 2,202
Restricted cash - 500,000
Vessels held for sale 81,468,750 -
-------------- --------------
Total current assets 91,550,888 5,737,997
-------------- --------------
FIXED ASSETS:
Vessels, net of accumulated depreciation
of $ 2,373,618 and $ 3,652,708 for
December 31, 2005 and September 30, 2006
respectively 353,841,792 85,490,799
Property and equipment, net of accumulated
depreciation of $0 and $ 11,941 for
December 31, 2005 and September 30, 2006
respectively 145,822 -
Advances for vessels acquisition 400,000 -
-------------- --------------
Total fixed assets 354,387,614 85,490,799
-------------- --------------
OTHER NON CURRENT ASSETS:
Initial Public Offering related costs - 1,162,957
Deferred charges 239,427 -
Restricted cash 4,000,000 -
-------------- --------------
Total non current assets 4,239,427 1,162,957
-------------- --------------
Total assets 450,177,929 92,391,753
============== ==============
LIABILITIES AND SHAREHOLDERS’ EQUITY
------------------------------------
CURRENT LIABILITIES:
Bank credit facility - 38,994,035
Seller’s notes - 36,000,000
Current portion of long term debt 47,322,284 -
Accounts payable 892,889 290,230
Due to stockholder - 121,731
Accrued liabilities 2,758,542 2,439,362
Unearned revenue 2,273,758 138,362
Derivative liability 470,807 -
-------------- --------------
Total current liabilities 53,718,280 77,983,720
-------------- --------------
-------------- --------------
LONG TERM DEBT, net of current portion 193,137,443 -
-------------- --------------
-------------- --------------
COMMITMENTS AND CONTINGENCIES: - -
-------------- --------------
Shareholders’ equity:
Preferred stock, $0.01 par value;
25,000,000, shares authorized, none issued - -
Common stock:
Class A shares, par value $ 0.01per share
authorized; 10,000 shares issued and
outstanding as at December 31, 2005 and
12,010,000 shares issued and outstanding
as at September 30, 2006 120,100 100
Class B shares, par value $ 0.01per share
authorized; 3,140,000 shares issued and
outstanding 31,400 31,400
Additional paid-in capital 196,589,442 9,998,540
Retained earnings 6,581,264 4,377,993
-------------- --------------
Total shareholders’ equity 203,322,206 14,408,033
-------------- --------------
Total liabilities and shareholders’ equity 450,177,929 92,391,753
============== ==============
Omega Navigation Enterprises Inc
Consolidated Statement of Cash Flows
(All amounts expressed in U.S. Dollars)
Three months Nine months
ended ended
September September
30, 2006 30, 2006
------------- -------------
(audited) (unaudited)
Cash flows from operating activities:
Income from continuing operations 993,824 2,246,745
------------- -------------
Net cash from continuing operating activities 6,187,583 9,310,084
Net cash from discontinued operating
activities 2,217,162 5,975,282
------------- -------------
Net cash from continuing and discontinued
operating activities 9,398,569 15,285,366
------------- -------------
Cash flows used in investing activities:
------------- -------------
Net cash used in investing
activities-continuing operations (103,597,882) (358,052,263)
Net cash used in investing
activities-discontinued operations - -
------------- -------------
Net cash used in investing activities-
continuing and discontinued operations (103,597,882) (358,052,263)
------------- -------------
Cash flows from financing activities:
------------- -------------
Net cash provided by/ (used in) financing
activities-continuing operations 35,625,000 350,432,096
Net cash provided by/ (used in) financing
activities-discontinued operations - (3,679,968)
Net cash provided by/ (used in) financing
activities-continuing and discontinued
operations 35,625,000 346,752,128
------------- -------------
Net increase in cash and cash equivalents (58,574,313) 3,985,231
Cash and cash equivalents at the beginning of
the period 67,617,250 5,057,706
------------- -------------
Cash and cash equivalents at end of period 9,042,937 9,042,937
============= =============
Omega Navigation Enterprises Inc
Reconciliation of EBITDA (1) to Cash From Operating Activities
(Expressed in U.S. Dollars)
Three months Nine months
ended ended
September September
30, 2006 30, 2006
------------- -------------
Net cash from operating activities 9,398,569 15,285,366
Net increase / (decrease) in current assets (59,836) 858,909
Net increase / (decrease) in current
liabilities excluding bank debt (1,462,145) (3,057,235)
Gain on extinguishment of debt - 5,000,000
Loss on sale of vessels (1,685,297) (1,685,297)
Net interest expense 3,824,912 4,578,477
Amortization of financing costs (120,147) (151,265)
------------- -------------
EBITDA 9,896,056 20,828,955
============= =============
(1) EBITDA represents net income before interest, taxes, depreciation and
amortization. EDITDA 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 it is used by our lenders as a measure of our compliance with
certain loan covenants and 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 six product tankers and two dry bulk carriers with a total capacity of 471,958 dwt and an average age of approximately 1.6 years. The current fleet includes 6 double hull product tankers with a total cargo-carrying capacity of 366,358 dwt and 2 Handymax dry bulk carriers with a total cargo-carrying capacity of 105,600 dwt. Furthermore, the Company has options to acquire four additional double hull Ice Class 1A product carriers currently under construction and are expected to be available for delivery between March 2007 and September 2007. 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," "except," "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: nbornozis@capitallink.com www.capitallink.com