Fleet Data Three Months Ended December 31, 2006 Product Carriers Drybulk Carriers Panamax Handymax Tankers Tankers Number of vessels at end of period 4 2 2 Average age of fleet (in years) 2 0 2 Ownership days (2) 368 184 184 Available days (3) 368 184 184 Operating days (4) 368 184 184 Fleet Utilization (5) 100% 100% 100% Voyage revenues (net of voyage expenses) $ 9,170,954 $ 3,817,936 $ 3,654,463 Time charter equivalent (TCE) rate $/day (6) 24,921 20,750 19,861 Vessel operating expenses (net of predelivery expenses) $ 1,830,411 $ 766,516 $ 782,265 Daily Vessel operating expenses $/day (7) 4,974 4,166 4,251 Twelve Months Ended December 31, 2006 Product Carriers Drybulk Carriers Panamax Handymax Tankers Tankers Number of vessels at end of period 4 2 2 Average age of fleet (in years) 2 0 2 Ownership days (2) 753 369 730 Available days (3) 753 369 730 Operating days (4) 753 369 730 Fleet Utilization (5) 100% 100% 100% Voyage revenues (net of voyage expenses) $ 18,897,176 $ 7,628,272 $ 14,686,479 Time charter equivalent (TCE) rate $/day (6) 25,096 20,673 20,118 Vessel operating expenses (net of predelivery expenses) $ 3,523,869 $ 1,436,252 $ 2,756,912 Daily Vessel operating expenses $/day (7) 4,680 3,892 3,777(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 December 31, 2006, predelivery expenses amounted to $ 64,298 for Panamax tankers and $54,809 for Handymax tankers. For the twelve months ended December 31, 2006, predelivery expenses amounted to $385,362 for Panamax tankers and $323,014 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 -- ---- ------- ------------ ------ ------- -- ---------- Additional Vessels (With Expected Delivery Date) (7) -- ---- ------- ------------ ------ ------- -- ---------- Omega Emmanuel D 2007 73,000 Ice Class 1A Mar- 2007 -- ---- ------- ------------ ------ ------- -- ---------- Omega Theodore D 2007 73,000 Ice Class 1A Apr- 2007 -- ---- ------- ------------ ------ ------- -- ---------- Total (DWT): 146,000 -- ---- ------- ------------ ------ ------- -- ---------- Additional Vessels on Option -- ---- ------- ------------ ------ ------- -- ---------- Panamax TBN 3 D 2007 73,000 Ice Class 1A Sep- 2007 -- ---- ------- ------------ ------ ------- -- ---------- Panamax TBN 4 D 2007 73,000 Ice Class 1A Oct- 2007 -- ---- ------- ------------ ------ ------- -- ---------- Total (DWT): 146,000 -- ---- ------- ------------ ------ ------- -- ---------- Dry Bulk Carriers (Sold and delivered to new owners in January 2007) (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): 105,6001) 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) Omega Navigation sold its two dry bulk carriers, the "Ekavi" and the "Electra," in January 2007. (7) 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. Quarterly Dividend On February 8, 2007, the Board of Directors of the Company approved the Company's third quarterly dividend since it went public, of $0.50 per share, payable on February 28, 2007 to shareholders of record as of February 15, 2007. 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 shareholder, 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 or declared three quarterly dividends in the amount of $0.50 per share per quarter, or $ 1.50 per share in total, and our next quarterly dividend is estimated for payment in May 2007." Conference Call and Webcast: As already announced, tomorrow, February 21, 2007 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: (866) 819-7111 (from the US), 0800 953 0329 (from the UK) or +44(0)1452 542 301 (from outside the US). Please quote "Omega Navigation". 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 February 28, 2007 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). Access Code: 1859591# 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 Year Ended Ended December 31, December 31, 2006 2006 ------------- ------------- (unaudited) (unaudited) CONTINUING OPERATIONS Revenues: Voyage revenue 13,153,520 26,866,609 Expenses: Voyage expenses (164,630) (341,161) Vessel operating expenses (2,716,034) (5,668,497) Depreciation and amortization (3,571,261) (7,235,909) Management fees (267,883) (568,303) Option premium (200,000) (200,000) General and administrative expenses (813,666) (2,354,220) Foreign currency losses (18,444) (32,328) ------------- ------------- Operating income 5,401,602 10,466,191 ------------- ------------- Other income (expenses) Interest and finance costs (3,386,600) (7,425,485) Interest income 145,225 1,837,073 Unrealized gain / (loss) on derivative instruments 158,073 (312,734) ------------- ------------- Total other income / (expenses), net (3,083,302) (5,901,146) ------------- ------------- ------------- ------------- INCOME FROM CONTINUING OPERATIONS 2,318,300 4,565,045 ------------- ------------- DISCONTINUED OPERATIONS Income from discontinued operations of the bulk carrier fleet (including a gain on extinguishment of debt of $5,000,000 in 2006) 2,031,445 11,248,268 Impairment loss on disposal of dry bulk carrier vessels in 2006 - (1,685,297) ------------- ------------- INCOME FROM DISCONTINUED OPERATIONS 2,031,445 9,562,971 ------------- ------------- ------------- ------------- Net income 4,349,745 14,128,016 ============= ============= Earnings per common share, basic and diluted: - From continuing operations Earnings per Class A common share, basic and diluted 0.15 0.42 Earnings per Class B common share, basic and diluted 0.15 0.30 Weighted average number of Class A common shares, basic and diluted 12,010,000 8,689,452 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 0.13 0.87 Earnings per Class B common share, basic and diluted 0.13 0.63 Weighted average number of Class A common shares, basic and diluted 12,010,000 8,689,452 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 0.29 1.29 Earnings per Class B common share, basic and diluted 0.29 0.93 Weighted average number of Class A common shares, basic and diluted 12,010,000 8,689,452 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) December 31, December 31, 2006 2005 ------------- ------------- (unaudited) (audited) ASSETS ------ CURRENT ASSETS: Cash and cash equivalents 3,861,610 5,057,706 Accounts receivable, trade 145,074 178,089 Inventories 504,838 - Prepayments and other 517,839 2,202 Restricted cash 930,739 500,000 Vessels held for sale 81,468,750 - ------------- ------------- Total current assets 87,428,850 5,737,997 ------------- ------------- FIXED ASSETS: Vessels, net 350,286,884 85,490,799 Property and equipment, net 142,691 - Advances for vessels acquisition 200,000 - ------------- ------------- Total fixed assets 350,629,575 85,490,799 ------------- ------------- OTHER NON CURRENT ASSETS: Initial Public Offering related costs - 1,162,957 Deferred charges 226,069 - Restricted cash 5,546,642 - ------------- ------------- Total other non current assets 5,772,711 1,162,957 ------------- ------------- Total assets 443,831,136 92,391,753 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES: Bank credit facility - 38,994,035 Seller's notes - 36,000,000 Current portion of long-term debt 49,133,236 - Accounts payable, trade and other 1,495,247 345,647 Due to stockholder - 121,731 Accrued and other liabilities 1,129,473 2,383,945 Deferred revenue 2,719,334 138,362 Derivatives liability 312,734 - ------------- ------------- Total current liabilities 54,790,024 77,983,720 ------------- ------------- ------------- ------------- LONG-TERM DEBT, net of current portion 188,944,162 - ------------- ------------- ------------- ------------- COMMITMENTS AND CONTINGENCIES: - - ------------- ------------- Stockholders' equity: Preferred stock, $0.01 par value; 25,000,000 shares authorized, none issued - - Common stock: Class A shares, par value $0.01 per share, 75,000,000 shares authorized; 10,000 shares issued and outstanding as at December 31, 2005, and 12,010,000 shares issued and outstanding as at December 31, 2006 120,100 100 Class B shares, par value $0.01 per share, 25,000,000 shares authorized; 3,140,000 shares issued and outstanding 31,400 31,400 Additional paid-in capital 196,589,442 9,998,540 Retained earnings 3,356,008 4,377,993 ------------- ------------- Total stockholders' equity 200,096,950 14,408,033 ------------- ------------- Total liabilities and stockholders' equity 443,831,136 92,391,753 ============= ============= Omega Navigation Enterprises, Inc. Consolidated Statement of Cash Flows (All amounts expressed in U.S. Dollars) Three months Year ended ended December 31, December 31, 2006 2006 ------------ ------------ (unaudited) (unaudited) Cash flows from operating activities Income from continuing operations 2,318,300 4,565,045 ------------ ------------ Net cash from continuing operating activities 5,492,176 14,802,260 Net cash from discontinued operating activities 1,751,517 7,726,799 ------------ ------------ Net cash from continuing and discontinued operating activities 7,243,693 22,529,059 ------------ ------------ Cash flows used in investing activities ------------ ------------ Net cash provided by / (used in) investing activities-continuing operations 186,778 (357,865,484) Net cash used in investing activities-discontinued operations - - ------------ ------------ Net cash used in investing activities- continuing and discontinued operations 186,778 (357,865,484) ------------ ------------ Cash flows from financing activities ------------ ------------ Net cash provided by / (used in) financing activities-continuing operations (12,006,269) 338,425,827 Net cash used in financing activities-discontinued operations (605,529) (4,285,498) Net cash provided by / (used in) financing activities-continuing and discontinued operations (12,611,798) 334,140,329 ------------ ------------ Net increase in cash and cash equivalents (5,181,327) (1,196,096) Cash and cash equivalents at the beginning of the period 9,042,937 5,057,706 ------------ ------------ Cash and cash equivalents at end of period 3,861,610 3,861,610 ============ ============ Omega Navigation Enterprises, Inc. Reconciliation of EBITDA (1) to Cash From Operating Activities (Expressed in U.S. Dollars) Three months Year ended ended December 31, December 31, 2006 2006 --------------- --------------- Net cash from operating activities 7,243,693 22,529,059 Net increase in current assets 128,551 987,460 Net increase / (decrease) in current liabilities excluding bank debt 581,135 (2,476,100) Gain on extinguishment of debt - 5,000,000 Impairment loss on sale of vessels - (1,685,297) Net interest expense 3,986,351 8,564,828 Amortization of financing costs (190,447) (341,712) --------------- --------------- EBITDA 11,749,283 32,578,238 =============== ===============(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 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 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.
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