SOURCE: Omega Navigation

November 16, 2006 16:29 ET

Omega Navigation Enterprises, Inc. Reports Third Quarter 2006 Results

PIRAEUS, GREECE -- (MARKET WIRE) -- November 16, 2006 -- Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing primarily on product tankers, announced today its financial and operational results for the third quarter and for the nine-month period ended September 30, 2006.

The company had previously announced the declaration of its quarterly dividend of $0.50 per share for shareholders of record as of November 15, 2006 and payable on November 30, 2006.

Omega Navigation Enterprises, Inc. was incorporated in the Marshall Islands in February 2005. On April 7, 2006 the Company successfully completed its Initial Public Offering of 12,000,000 Class A Common Shares at $17 per share raising a total of $204 million in gross proceeds. Omega Navigation's Class A common shares commenced trading on the NASDAQ National Market on April 7, 2006 and on the Singapore Exchange Securities Trading Limited on April 10, 2006.

Third Quarter 2006 Results

For the third quarter ended September 30, 2006, Omega Navigation reported Total Revenues from continuing and discontinued operations of $12.3 and $3.9 million respectively and Net Income of $3.8 million, or $0.25 per share before taking into account an unrealized non-cash loss related to an interest rate swap and collar entered into in April 2006 and a non-cash book loss on the previously announced sale of its two dry bulk vessels. Net income after those two non-cash items was $0.9 million or $0.06 per share. EBITDA for the quarter was $11.6 million before recording the non-cash book loss on the sale of the dry bulk vessels, and $9.9 million after recording the loss.

Please see further below for a reconciliation of EBITDA to Cash from Operating Activities.


     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.

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