SOURCE: Omega Navigation

March 06, 2007 10:55 ET

Omega Navigation Enterprises Announces Charters for the Two Recently Acquired Newbuildings, the "Omega Emmanuel" and "Omega Theodore"

PIRAEUS, GREECE -- (MARKET WIRE) -- March 6, 2007 -- Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing on product tankers, announced today that it has secured three year time charters at a daily rate of $25,500 for its two recently acquired newbuilding product tankers, the "Omega Emmanuel" and the "Omega Theodore," with ST Shipping & Transport Pte Ltd, a subsidiary of Glencore International AG.

Both time charters include profit sharing arrangements on quarterly basis, pursuant to which earnings from the vessels in excess of $25,500 per day will be divided equally between Omega Navigation and ST Shipping. This sharing ratio will be adjusted when the vessels trade in ice conditions, so that the profit sharing above the base rate of $25,500 per day between Omega Navigation and ST Shipping will be 65%/35%.

The three year charters on each vessel will commence after three voyages from delivery from the shipyard or after vetting approvals by two oil majors have been secured, whichever is earlier. During that period, the vessels will be employed by ST Shipping under a short-term time charter on the basis of commercial management. Omega Navigation has selected VShips as the vessels' technical manager.

The "Omega Emmanuel" and the "Omega Theodore" are two newbuilding Ice Class 1A panamax double hull product tankers, built by STX Shipbuilding Co., South Korea, each one with a capacity of 73,000 dwt. They are scheduled to be delivered to ST Shipping around March 23 and April 26, 2007, respectively, directly from the shipyard.

George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented, "These two time charters are consistent with our strategy of seeking long term employment for our fleet at profitable rates and with first class charterers. This strategy enables us to generate strong and predictable cash flows and execute our consistent dividend distribution policy while at the same time be able to participate in the upside of the market through a profit sharing arrangement which to date has proven beneficial on our other vessels which have similar profit sharing arrangements.

"With these arrangements, our entire fleet of 8 product tankers is under fixed employment by which we have secured 100% of our operating days for 2007 and 2008. The charters on these newbuilding vessels extend to 2010.

"The time charters for the 'Omega Emmanuel' and the 'Omega Theodore' are expected to contribute to cash flow available for the payment of dividends approximately $.22 per share in 2007 and $.33 per share in 2008, based solely on the floor rate of $25,500 per day. Our profit sharing arrangements for these two vessels together with those for four of our other vessels, enable us to share in the market's upside potential with positive impact on our profitability."

Fleet Profile and Employment: The table below describes the profile and employment of the Company's fleet:

Vessel       Sister Year Deadweight  Type   Delivery  Daily      Redelivery
             ------ ---- --------- -------- -------- -------- -- ----------
             Ships  Built    (dwt)          Date      Hire
             (1)                                      Rate(2)
             ------ ---- --------- -------- -------- -------- --  --------
CURRENT
 FLEET
             ------ ---- --------- -------- -------- -------- --  --------
Product
 Tankers
             ------ ---- --------- -------- -------- -------- --  --------
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
             ------ ---- --------- -------- -------- -------- --  --------
Handymax
 Product
 Tankers
             ------ ---- --------- -------- -------- -------- --  --------
                                     Ice
Omega 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):               366,358
             ----------- --------- ---------------------------------------
Additional Vessels (With Expected Delivery Date) (6)
             ------ ---- --------- -------- -------- -------- --  --------
Omega                              LR1 - Ice
 Emmanuel         D 2007    73,000 Class 1A Mar-2007 $ 25,500 (7)   Mar-10
             ------ ---- --------- -------- -------- -------- --  --------

Omega                             LR1 - Ice
 Theodore         D 2007    73,000 Class 1A Apr-2007 $ 25,500 (7)   Apr-10
             ------ ---- --------- -------- -------- -------- --  --------
Total (DWT):               146,000
             ----------- --------- ---------------------------------------
Additional Vessels on Option
             ------ ---- --------- -------- -------- -------- --  --------
Panamax TBN                        LR1 - Ice
 3                D 2007    73,000  Class 1A Sep-2007
             ------ ---- --------- -------- -------- -------- --  --------
Panamax TBN                       LR1 - Ice
 4                D 2007    73,000 Class 1A Oct-2007
             ------ ---- --------- -------- -------- -------- --  --------
Total (DWT):               146,000
             ----------- --------- ---------------------------------------


(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) Omega Navigation announced on February 12, 2007, that it has agreed to
acquire two newbuilding Ice Class 1A Panamax product tankers, named the
"Omega Emmanuel" and the "Omega Theodore". Both vessels are currently under
construction at STX Shipbuilding Co., South Korea and are scheduled to be
delivered to Omega Navigation in March and April 2007 respectively.

(7) 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.
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 six double hull product tankers with a carrying capacity of 366,358 dwt. These six product tankers are chartered out on three-year period time charters. Furthermore, with the delivery of the recently announced acquisition of "Omega Emmanuel" and "Omega Theodore," the Company will own eight product carriers with a combined cargo carrying capacity of 512,358 dwt. The Company also has options to acquire two additional double hull Ice Class 1A Panamax product carriers currently under construction at STX Shipbuilding in South Korea which are expected to be available for delivery between August 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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