Fleet Data Three Months Ended March 31, 2007 Product Carriers Panamax Handymax Tankers Tankers Number of vessels at end of period 5 2 Average age of fleet (in years) 3 1 Ownership days (2) 364 180 Available days (3) 364 180 Operating days (4) 364 180 Fleet Utilization (5) 100% 100% Voyage revenues (net of voyage expenses) (8) 9,089,615 3,747,436 Time charter equivalent (TCE) rate $/day (6)(8) 24,971 20,819 Vessel operating expenses (net of predelivery expenses) 1,762,620 773,599 Daily vessel operating expenses (7) 4,842 4,298(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 March 31, 2007, pre-delivery expenses amounted to $0.4 million for Panamax product tankers and $0 for Handymax product tankers. (8) Excludes $ 1.1 million of profit sharing revenue booked in the first quarter of 2007 on the "Omega Lady Sarah" and the "Omega Lady Miriam" related to voyages carried out during the second and third quarters of 2006.
Fleet Profile and Employment: The table below describes the profile and employment of the Companys fleet as of today: Sister Dead- Ship Year weight Delivery Daily Hire Re- Vessel (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 ------ ------ -------- ------ -------- ---------- -- -------- LR1 - Ice Omega Lady Class Sarah C 2004 71,500 1C Jun-06 $ 24,000 (4) Jun-09 ------ ------ -------- ------ -------- ---------- -- -------- LR1 - Ice Omega Lady Class Miriam C 2003 71,500 1C Aug-06 $ 24,000 (4) Jul-09 ------ ------ -------- ------ -------- ---------- -- -------- LR1 - Ice Omega Class Emmanuel D 2007 73,000 1A Mar-07 $ 25,500 (6) Apr-10 ------ ------ -------- ------ -------- ---------- -- -------- LR1 - Ice Omega Class Theodore D 2007 73,000 1A Apr-07 $ 25,500 (6) May-10 ------ ------ -------- ------ -------- ---------- -- -------- Handymax Product Tankers ------ ------ -------- ------ -------- ---------- -- -------- Ice Class Omega Prince B 2006 36,680 1A Jun-06 $ 21,000 (5) Jun-09 ------ ------ -------- ------ -------- ---------- -- -------- Ice Omega Class Princess B 2006 36,680 1A Jul-06 $ 21,000 (5) Jun-09 ------ ------ -------- ------ -------- ---------- -- -------- TOTAL (DWT): 512,358 ------ ------ -------- ------ -------- ---------- -- -------- Additional Vessels ------ ------ -------- ------ -------- ---------- -- -------- LR1 - Ice Panamax TBN Class 3 D 2007 73,000 1A Aug-07 ------ ------ -------- ------ -------- ---------- -- -------- LR1 - Ice Panamax TBN Class 4 D 2007 73,000 1A Sep-07 ------ ------ -------- ------ -------- ---------- -- -------- 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) 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 first quarter 2007 results on May 15, 2007 at 9:00 A.M. EDT. 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 (866) 869-2352 (from the US), 0800 694 1449 (from the UK) or + 44 (0) 1452 560 304 (from outside the US). Quote "Omega Navigation." A telephonic replay of the conference call will be available until May 22, 2007 by dialing 1-866-223-0615 (US Toll Free Dial In), 0800-694-1503 (UK Toll Free Dial In) or +44(0)1452-586-513 (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-except shares and per share data) Omega Navigation Enterprises Inc Three Months Ended March 31, 2007 -------------- (unaudited) CONTINUING OPERATIONS --------------------- Revenues: Voyage revenue 14,139 Expenses: Voyage expenses (195) Vessel operating expenses (2,943) Depreciation and amortization (3,522) Management fees (248) Options premium (100) General and administrative expenses (1,157) Foreign currency losses (8) -------------- Operating income 5,966 -------------- Other income (expenses) Interest and finance costs (3,823) Interest income 946 Loss on derivative instruments (234) -------------- Total other income /(expenses), net (3,111) -------------- -------------- INCOME FROM CONTINUING OPERATIONS 2,855 -------------- DISCONTINUED OPERATIONS ----------------------- Loss from discontinued operations of the bulk carrier fleet (166) -------------- LOSS FROM DISCONTINUED OPERATIONS (166) -------------- -------------- Net income 2,689 ============== Earning / (Loss) per common share, basic and diluted: - From continuing operations Earnings per Class A common share, basic and diluted 0.19 Earnings per Class B common share, basic and diluted 0.19 Weighted average number of Class A common shares, basic 12,010,000 Weighted average number of Class A common shares, diluted 12,188,502 Weighted average number of Class B common shares, basic and diluted 3,140,000 - From discontinued operations Loss per Class A common share, basic and diluted (0.01) Loss per Class B common share, basic and diluted (0.01) Weighted average number of Class A common shares, basic 12,010,000 Weighted average number of Class A common shares, diluted 12,188,502 Weighted average number of Class B common shares, basic and diluted 3,140,000 - From continuing and discontinued operations Earnings per Class A common share, basic and diluted 0.18 Earnings per Class B common share, basic and diluted 0.18 Weighted average number of Class A common shares, basic 12,010,000 Weighted average number of Class A common shares, diluted 12,188,502 Weighted average number of Class B common shares, basic and diluted 3,140,000 Consolidated Balance Sheet (All amounts expressed in thousands of U.S. Dollars - except shares and per share data) March 31, December 31, 2007 2006 -------------- --------------- (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 26,206 3,862 Accounts receivable, trade 284 145 Inventories 581 504 Prepayments and other 629 518 Restricted cash 304 931 Vessels held for sale - 81,468 -------------- --------------- Total current assets 28,004 87,428 -------------- --------------- FIXED ASSETS: Vessels, net 410,961 350,288 Property and equipment, net 128 143 Advances for vessels acquisition 6,100 200 -------------- --------------- Total fixed assets 417,189 350,631 -------------- --------------- OTHER NON CURRENT ASSETS: Deferred charges 130 226 Restricted cash 5,539 5,546 -------------- --------------- Total other non current assets 5,669 5,772 -------------- --------------- Total assets 450,862 443,831 ============== =============== LIABILITIES AND STOCKHOLDERS EQUITY CURRENT LIABILITIES: Current portion of long term debt 11,180 49,133 Accounts payable 1,410 1,496 Accrued and other current liabilities 1,483 1,129 Deferred revenue 3,303 2,719 Derivatives liability 587 313 -------------- --------------- Total current liabilities 17,963 54,790 -------------- --------------- NONCURRENT LIABILITIES: LONG-TERM DEBT, net of current portion 233,668 188,944 Warrants 3,982 - -------------- --------------- Total noncurrent liabilities 237,650 188,944 -------------- --------------- -------------- --------------- COMMITMENTS AND CONTINGENCIES: - - -------------- --------------- Stockholders equity: Common stock: 151 151 Additional paid-in capital 196,654 196,590 Retained earnings (1,556) 3,356 -------------- --------------- Total stockholders equity 195,249 200,097 -------------- --------------- Total liabilities and stockholders equity 450,862 443,831 ============== =============== Omega Navigation Enterprises Inc Consolidated Statement of Cash Flows (All amounts expressed in thousands of U.S. Dollars-except shares and per share data) Three months ended March 31, 2007 -------------- (unaudited) Cash flows from operating activities Income from continuing operations 2,855 -------------- Net cash from continuing operating activities 8,068 Net cash from discontinued operating activities (885) -------------- Net cash from continuing and discontinued operating activities 7,183 -------------- Cash flows from investing activities -------------- Net cash used in investing activities-continuing operations (70,082) Net cash provided by investing activities-discontinued operations 81,469 -------------- Net cash (used in) /provided by investing activities- continuing and discontinued operations 11,387 -------------- Cash flows from financing activities -------------- Net cash provided by financing activities-continuing operations 42,583 Net cash used in financing activities-discontinued operations (38,809) -------------- Net cash provided by/ (used in) financing activities-continuing and discontinued operations 3,774 -------------- Net increase in cash and cash equivalents 22,344 Cash and cash equivalents at the beginning of the period 3,862 -------------- Cash and cash equivalents at end of period 26,206 ============== Omega Navigation Enterprises Inc Reconciliation of EBITDA (1) to Cash From Operating Activities (All amounts expressed in thousands of U.S. Dollars-except shares and per share data) Three months ended March 31, 2007 ------------------------------ Continuing operations Total -------------- -------------- Net cash from operating activities 8,068 7,183 Net increase in current assets 177 326 Net decrease in current liabilities excluding bank debt (1,462) (851) Stock based compensation (64) (64) Net interest expense 2,837 2,966 Amortization of financing costs (67) (108) -------------- -------------- EBITDA 9,489 9,452 ============== ==============(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. The Company also has or had 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.
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