Fleet Data Panamax Tankers Handymax Tankers -------------------------- -------------------------- Three months ended Three months ended -------------------------- -------------------------- September 30, September 30, September 30, September 30, 2007 2006 2007 2006 ------------ ------------ ------------ ------------ Number of vessels at end of period 6 4 2 2 Average age of fleet (in years) 2 2 1 0 Ownership days (1) 552 336 184 181 Available days (2) 552 336 184 181 Operating days (3) 552 336 184 181 Fleet Utilization (4) 100% 100% 100% 100% Voyage revenues (net of voyage expenses) (7) $ 13,826,103 $ 8,436,866 $ 3,822,940 $ 3,741,910 Time charter equivalent (TCE) rate $/day (5)(7) 25,047 25,110 20,777 20,673 Vessel operating expenses (net of predelivery expenses) $ 2,418,015 $ 1,410,522 $ 933,632 $ 641,601 Daily vessel operating expenses $/day(6) 4,380 4,197 5,074 3,545 ------------ ------------ ------------ ------------ Nine months ended Nine months ended -------------------------- -------------------------- September 30, September 30, September 30, September 30, 2007 2006 2007 2006 ------------ ------------ ------------ ------------ Number of vessels at end of period 6 4 2 2 Average age of fleet (in years) 2 2 1 0 Ownership days (1) 1,436.76 385 546 185 Available days (2) 1,436.76 385 546 185 Operating days (3) 1,436.76 385 546 185 Fleet Utilization (4) 100% 100% 100% 100% Voyage revenues (net of voyage expenses) (7) $ 35,925,253 $ 9,726,223 $ 11,355,851 $ 3,810,335 Time charter equivalent (TCE) rate $/day (5)(7) 25,004 25,263 20,798 20,596 Vessel operating expenses (net of predelivery expenses) $ 6,560,027 $ 1,693,461 $ 2,513,188 $ 669,733 Daily vessel operating expenses $/day (6) 4,566 4,399 4,603 3,620 ------------ ------------ ------------ ------------ (1) Ownership days are the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period. (2) Available days are the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues. (3) Operating days are the number of available days in a period less the aggregate number of days that our vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. (4) We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the number of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. (5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by available days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. (6) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, but excludes any predelivery expenses incurred at or prior to the delivery of the product tankers, are calculated by dividing vessel operating expenses by ownership days for the relevant period. For the three months ended September 30, 2007, pre-delivery expenses amounted to $0 million for Panamax product tankers and $0 for Handymax product tankers. For the nine months ended September 30, 2007, pre-delivery expenses amounted to $0.8 million for Panamax product tankers and $0 for Handymax product tankers. For the three months ended September 30, 2006, pre-delivery expenses amounted to $0.2 million for Panamax product tankers and $0.2 for Handymax product tankers. For the nine months ended September 30, 2006, pre-delivery expenses amounted to $0.3 million for Panamax product tankers and $0.3 for Handymax product tankers. (7) For the three months ended September 30, 2007 excludes $1.3 million of profit sharing revenue booked in the third quarter of 2007 on the "Omega Lady Sarah," the "Omega Lady Miriam" and the "Omega Theodore." For the nine months ended September 30, 2007 excludes $3.4 million of profit sharing revenue booked in the first, second and third quarter of 2007 on the "Omega Lady Sarah," "Omega Lady Miriam" 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 Re- Vessel Ship (1) Built (dwt) Type Date Rate(2) delivery -------- ----- ---------- -------- -------- ------- -- -------- CURRENT FLEET Panamax Product Tankers Omega Queen A 2004 74,999 LR1 May-06 $26,500 (3) May-09 -------- ----- ---------- -------- -------- ------- -- -------- Omega King A 2004 74,999 LR1 Jun-06 $26,500 (3) Jun-09 -------- ----- ---------- -------- -------- ------- -- -------- Omega Lady LR1 -Ice Sarah C 2004 71,500 Class 1C Jun-06 $24,000 (4) Jun-09 -------- ----- ---------- -------- -------- ------- -- -------- Omega Lady LR1 -Ice Miriam C 2003 71,500 Class 1C Aug-06 $24,000 (4) Jul-09 -------- ----- ---------- -------- -------- ------- -- -------- 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 Ice Prince B 2006 36,680 Class 1A Jun-06 $21,000 (5) Jun-09 -------- ----- ---------- -------- -------- ------- -- -------- Omega Ice Princess B 2006 36,680 Class 1A Jul-06 $21,000 (5) Jun-09 -------- ----- ---------- -------- -------- ------- -- -------- TOTAL (DWT): 512,358 -------------- ---------- -------------------------------------- Additional Handymax Vessels TBN1 E 2010 37,000 Mar-10 -------- ----- ---------- -------- -------- ------- -- -------- TBN2 E 2010 37,000 July-10 -------- ----- ---------- -------- -------- ------- -- -------- TBN3 E 2010 37,000 Sept-10 -------- ----- ---------- -------- -------- ------- -- -------- TBN4 E 2010 37,000 Dec-10 -------- ----- ---------- -------- -------- ------- -- -------- TBN5 E 2011 37,000 Feb-11 -------- ----- ---------- -------- -------- ------- -- -------- Total (DWT): 185,000 -------------- ---------- -------------------------------------- (1) Each vessel is a sister ship of each other vessel that has the same letter. (2) This table shows gross charter rates and does not include brokers' commissions, which are 1.25% of the daily time charter rate. (3) The Company has granted Torm the option to extend the charter for 24 months at a minimum daily time charter hire rate of $28,500. (4) Plus any additional income under profit sharing provisions of the Company's charter agreement. (5) Plus any additional income under profit sharing provisions of the charter agreements with D/S Norden A/S. The Company has granted the charterers the option to extend the charter for 12 months at a minimum daily time charter hire rate of $24,000. (6) Plus any additional income under profit sharing arrangements, according to which charter earnings in excess of $ 25,500 per day will be divided equally between Omega Navigation and ST Shipping. When the vessels trade in ice conditions, the profit sharing between Omega Navigation and ST Shipping is 65/35% respectively.Conference Call and Webcast: As previously announced, the Company's management will host a conference call to discuss its third quarter 2007 results on November 13, 2007 at 10:00 A.M. EST. Conference Call details: Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-866-819-7111 (US Toll Free Dial In), 0800-953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Omega." In case of any problem with the above numbers, please dial 1-866-223-0615 (from the US), 0800 694 1503 (from the UK) or + 44 (0) 1452 586 513 (all other callers). Please quote "Omega." A telephonic replay of the conference call will be available until November 20, 2007 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#. 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 thousands of U.S. Dollars) Three months ended Nine months ended -------------------- -------------------- September September September September 30, 2007 30, 2006 30, 2007 30, 2006 --------- --------- --------- --------- CONTINUING OPERATIONS Revenues: Voyage revenue 19,231 12,334 51,367 13,713 Expenses: Voyage expenses 242 155 673 177 Vessel operating expenses 3,326 2,396 9,847 2,952 Depreciation and amortization 4,750 3,322 12,809 3,665 Management fees 297 285 823 300 Options' premium - - 200 - General and administrative expenses 1,157 841 3,521 1,541 Foreign currency (gains)/losses 44 (1) 62 13 --------- --------- --------- --------- Operating income 9,415 5,336 23,432 5,065 --------- --------- --------- --------- Other income (expenses) Interest and finance costs (5,163) (3,372) (13,758) (4,039) Interest income 284 238 1,605 1,692 Change in fair value of warrants settled liability 685 - 233 - Loss on derivative instruments (938) (1,208) (572) (471) --------- --------- --------- --------- Total other income /(expenses), net (5,132) (4,342) (12,492) (2,818) --------- --------- --------- --------- --------- --------- --------- --------- INCOME FROM CONTINUING OPERATIONS 4,283 994 10,940 2,247 --------- --------- --------- --------- DISCONTINUED OPERATIONS Income/(Loss) from discontinued operations of the bulk carrier fleet (including a gain on extinguishment of debt of $5 million in 2006) - 1,587 (154) 9,216 Loss on disposal of dry bulk carrier vessels in 2006 - (1,685) - (1,685) --------- --------- --------- --------- INCOME/(LOSS) FROM DISCONTINUED OPERATIONS - (98) (154) 7,531 --------- --------- --------- --------- --------- --------- --------- --------- Net income 4,283 896 10,786 9,778 ========= ========= ========= ========= Omega Navigation Enterprises Inc Consolidated Balance Sheet (All amounts expressed in thousands of U.S. Dollars) September 30, December 31, 2007 2006 ------------ ------------- (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 9,624 3,862 Accounts receivable, trade 21 145 Inventories 552 504 Prepayments and other 547 518 Restricted cash 2,606 2,477 Vessels held for sale - 81,468 ------------ ------------- Total current assets 13,350 88,974 ------------ ------------- FIXED ASSETS: Vessels, net 465,988 350,288 Property and equipment, net 117 143 Advances for vessels' acquisition and other vessel costs 22,418 200 ------------ ------------- Total fixed assets 488,523 350,631 ------------ ------------- OTHER NON CURRENT ASSETS: Deferred charges 356 226 Restricted cash 5,000 4,000 ------------ ------------- Total other non current assets 5,356 4,226 ------------ ------------- Total assets 507,229 443,831 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long term debt 15,175 49,133 Accounts payable 1,006 1,496 Accrued and other current liabilities 2,487 1,129 Deferred revenue 1,719 2,719 Derivatives liability 929 313 ------------ ------------- Total current liabilities 21,316 54,790 ------------ ------------- NON-CURRENT LIABILITIES: Long term debt, net of current portion 289,590 188,944 Warrants settled liability 7,935 - ------------ ------------- Total non-current liabilities 297,525 188,944 ------------ ------------- ------------ ------------- COMMITMENTS AND CONTINGENCIES: - - ------------ ------------- Stockholders' equity: Common stock 151 151 Additional paid-in capital 196,901 196,590 Retained earnings/(Accumulated deficit) (8,664) 3,356 ------------ ------------- Total stockholders' equity 188,388 200,097 ------------ ------------- Total liabilities and stockholders' equity 507,229 443,831 ============ ============= Omega Navigation Enterprises Inc Consolidated Statement of Cash Flows (All amounts expressed in thousands of U.S. Dollars) Three months ended Nine months ended ---------------------- ---------------------- September September September September 30, 2007 30, 2006 30, 2007 30, 2006 ---------- ---------- ---------- ---------- Cash flows from operating activities Income from continuing operations 4,283 994 10,940 2,247 Net cash from continuing operating activities 9,579 7,182 25,359 9,310 Net cash from discontinued operating activities - 2,217 (692) 5,975 ---------- ---------- ---------- ---------- Net cash from continuing and discontinued operating activities 9,579 9,399 24,667 15,285 ---------- ---------- ---------- ---------- Cash flows from investing activities Net cash used in investing activities-continuing operations (22,400) (103,598) (142,734) (358,052) Net cash provided by investing activities-discontinued operations - - 81,468 - ---------- ---------- ---------- ---------- Net cash used in investing activities- continuing and discontinued operations (22,400) (103,598) (61,266) (358,052) ---------- ---------- ---------- ---------- Cash flows from financing activities Net cash provided by financing activities-continuing operations 3,757 35,625 79,755 350,432 Net cash used in financing activities-discontinued operations - - (37,394) (3,680) ---------- ---------- ---------- ---------- Net cash provided by financing activities-continuing and discontinued operations 3,757 35,625 42,361 346,752 ---------- ---------- ---------- ---------- Net increase/(decrease) in cash and cash equivalents (9,064) (58,574) 5,762 3,985 Cash and cash equivalents at the beginning of the period 18,688 67,617 3,862 5,058 ---------- ---------- ---------- ---------- Cash and cash equivalents at end of period 9,624 9,043 9,624 9,043 ========== ========== ========== ========== Omega Navigation Enterprises Inc Reconciliation of EBITDA (1) to Cash from Operating Activities (All amounts expressed in thousands of U.S. Dollars) CONTINUING OPERATIONS Three months ended Nine months ended ---------------------- ---------------------- September September September September 30, 2007 30, 2006 30, 2007 30, 2006 ---------- ---------- ---------- ---------- Net cash from operating activities 9,579 7,182 25,359 9,310 Net increase/(decrease) in current assets (29) (69) 123 1,030 Net decrease in current liabilities excluding bank debt (49) (1,517) (618) (3,830) Stock based compensation (136) - (311) - Write off of options premium - - (200) - Change in fair value of warrants settled liability 685 - 233 - Net interest (income)/expense 4,878 3,164 12,108 2,347 Amortization of financing costs (78) (102) (220) (127) EBITDA 14,850 8,658 36,474 8,730 CONTINUING & DISCONTINUED Three months ended Nine months ended OPERATIONS ---------------------- ---------------------- September September September September 30, 2007 30, 2006 30, 2007 30, 2006 ---------- ---------- ---------- ---------- Net cash from operating activities 9,579 9,399 24,667 15,285 Net increase/(decrease) in current assets (29) (61) (48) 859 Net decrease in current liabilities excluding bank debt (49) (1,462) 132 (3,057) Gain on extinguishment of debt - - - 5,000 Loss on sale of vessels - (1,685) - (1,685) Stock based compensation (136) - (311) - Write off of options premium - - (200) - Change in fair value of warrants settled liability 685 - 233 - Net interest (income)/expense 4,878 3,825 12,237 4,578 Amortization of financing costs (78) (120) (261) (151) EBITDA 14,850 9,896 36,449 20,829 (1) EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by US GAAP and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is included here because it is a basis upon which we assess our liquidity position because we believe it presents useful information to investors regarding our ability to service and/or incur indebtedness.About Omega Navigation Enterprises, Inc. Omega Navigation Enterprises, Inc. is an international provider of global marine transportation services through the ownership and operation of eight double hull product tankers. The current fleet includes eight double hull product tankers with a carrying capacity of 512,358 dwt. These eight product tankers are chartered out under three-year period time charters. Furthermore, the company recently announced the signing of shipbuilding contracts to construct and acquire five newbuilding double hull Handymax product tankers each with a capacity of 37,000 dwt scheduled for delivery between March 2010 and early in 2011. With the addition of these five vessels, the Omega fleet will expand to 13 product tankers with a total deadweight capacity of 697,358 tons. The Company was incorporated in the Marshall Islands in February 2005. Its principal executive offices are located in Piraeus, Greece and it also maintains an office in the United States. Omega Navigation's Class A Common Shares are traded on the NASDAQ National Market under the symbol "ONAV" and are also listed on the Singapore Exchange Securities Trading Limited under the symbol "ONAV 50." Cautionary Statement Regarding Forward-Looking Statements Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" "pending" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, the Company's management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that the Company will achieve or accomplish these expectations, beliefs or projections. In addition to these important factors other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for product tanker and dry bulk shipping capacity, changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company's vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see the Company's filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Contact 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