SOURCE: Omega Navigation

Omega Navigation

July 09, 2010 08:59 ET

Omega Navigation Enterprises, Inc. Reports Fourth Quarter 2009 and First Quarter 2010 Results

ATHENS, GREECE--(Marketwire - July 9, 2010) - Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing on product tankers, announced today its financial and operational results for the quarter and twelve months ended December 31, 2009 and the first quarter ended March 31, 2010.

Fourth Quarter 2009 Results

For the quarter ended December 31, 2009, Omega Navigation reported total revenues of $14.8 million and Net Income of $2.2 million, or $0.14 per basic share, excluding losses on interest rate derivative instruments and incentive compensation grants expense. Including these items the Company reported Net Income of $0.9 million or $0.06 per basic share. Adjusted EBITDA for the fourth quarter of 2009 was $8.3 million. Please see below for a reconciliation of Adjusted EBITDA to Cash from Operating Activities.

The Company fully owned and operated an average of eight product carriers during the fourth quarter of 2009, the same number as in the fourth quarter of 2008. In addition, as previously announced, since April 2009, the Company, through Stone Shipping Ltd, holds a 50% interest in Omega Duke, a 47,000 dwt double hull product / chemical tanker built in 2009. Stone Shipping Ltd is an equal partnership joint venture between Omega and a wholly owned subsidiary of Glencore International, A. G. Omega Duke is accounted for by the equity method and is not consolidated in the Company's financial statements. While all nine vessels were on time charter, the results of two of the vessels', the Omega Prince and the Omega Princess, were based on the actual earnings of a pool of nine vessels of similar characteristics which were operating in the spot market. The earnings for these vessels have been above spot market indices but below the level of earnings achieved in the fourth quarter of 2008. In addition, the Omega King and the Omega Queen had entered into new time charters during the second quarter of 2009 but these rates were also lower than those in the fourth quarter of 2008. These lower rates were partially offset by somewhat higher time charter rates on the Omega Lady Sarah and the Omega Lady Miriam, which commenced toward the end of the third quarter of 2009. Excluding profit share, the Panamax vessels averaged $21,586 per vessel per day and the MR's averaged $12,297 per vessel per day (for each period net of voyage expenses) for the fourth quarter of 2009. In the fourth quarter of 2008, the Panamax vessels averaged $24,949 per vessel per day and the MR's averaged $20,798 per day per vessel (for each period net of voyage expenses).

Operating expenses for the Company's MR product tankers averaged $5,454 per vessel per day in the fourth quarter of 2009, versus $5,110 per vessel per day in the fourth quarter of 2008. Our Panamax product tankers averaged operating expenses of $6,171 per vessel per day in the fourth quarter of 2009, versus $5,564 per vessel per day in the fourth quarter of 2008. The increase of the daily operating expenses of the vessels relates primarily to increased crew wages.

Twelve Months 2009 Results

For the twelve months ended December 31, 2009, Omega Navigation reported total revenues of $64.5 million and Net Income of $13.7 million, or $0.88 per basic share excluding a loss on interest rate derivative instruments, a gain on warrants revaluation, non cash incentive compensation grants and a loss related to the termination of a purchase agreement. Including these items, Net income was $5.7 million or $0.37 per share. Adjusted EBITDA for the twelve months of 2009 was $39.1 million, excluding loss from termination of a purchase agreement. Please see below for a reconciliation of Adjusted EBITDA to Cash from Operating Activities.

Operating Income included revenue of $ 3.2 million attributable to profit sharing.

The Company fully owned and operated an average of eight product carriers during the twelve months of 2009, the same as in the twelve months of 2008. In addition the Company holds a 50% interest in the Omega Duke. Excluding profit sharing, the Company's Panamax product carriers earned an average time-charter equivalent rate of $22,267 per vessel per day during the twelve months of 2009, versus $25,027 per vessel per day (in each period net of voyage expenses), during the twelve months of 2008. The Company's Handymax product tankers earned an average time charter equivalent rate of $15,981 per vessel per day during the twelve months of 2009 versus $20,772 per vessel per day (in each period net of voyage expenses) during the twelve months of 2008.

Operating expenses for the MR product tankers averaged $5,352 per vessel per day in the twelve months of 2009, versus $4,938 per vessel per day in the twelve months of 2008. The Company's Panamax product tankers averaged operating expenses of $6,097 per vessel per day in the twelve months of 2009, versus $5,406 per vessel per day in the twelve months of 2008. The increase in operating expenses was primarily related to maintenance expenses incurred during scheduled drydockings in the first half of 2009, an insurance deductible incurred related to a minor collision involving the Omega Theodore, an increase in crew wages and other maintenance and repair expenses during the third quarter of 2009.

First Quarter 2010 Results

For the quarter ended March 31, 2010, Omega Navigation reported total revenues of $15.5 million and Net Income of $2.1 million, or $0.13 per basic share, excluding losses on interest rate derivative instruments and incentive compensation grants expense. Including these items the Company reported Net Income of $0.5 million or $0.03 per basic share. Adjusted EBITDA for the first quarter of 2010 was $8.3 million. Please see below for a reconciliation of Adjusted EBITDA to Cash from Operating Activities.

The Company fully owned and operated an average of eight double hull product carriers during the first quarter of 2010, the same number as in the first quarter of 2009. In addition, the company held during the first quarter of 2010, and continues to hold, a 50% interest in two additional vessels, the Omega Duke and the Megacore Honami, as described in detail in the Fleet Development section.

Six of the vessels, including the ones owned through the 50% controlled joint ventures, were on fixed rate time charters. The Omega Prince, Omega Princess and Omega Queen were on time charter the rate of which was based on the actual earnings of a pool of vessels of similar characteristics which are operating in the spot market. In June 2010 Omega King has entered into a one year time charter agreement with Cape Tankers Inc., whose performance is guaranteed by SONAP at a daily rate of $16,000. There was no revenue from profit share in the first quarter of 2010, versus $1.7 million in the first quarter of 2009. Also, revenues in the first quarter of 2009 were adversely affected by offhire time related to a minor collision on the Omega Theodore as well as the scheduled drydocking of the Omega Lady Sarah.

Excluding profit share, the Panamax vessels averaged $ 21,075 per vessel per day and the MR's averaged $15,969 per vessel per day (in each period net of voyage expenses) for the first quarter of 2010. In the first quarter of 2009, the Panamax vessels averaged $24,486 per vessel per day and the MR's averaged $20,746 per vessel per day (in each period net of voyage expenses).

Operating expenses for our MR product tankers averaged $5,555 per vessel per day in the first quarter of 2010, versus $5,248 per vessel per day in the first quarter of 2009. Our Panamax product tankers averaged operating expenses of $6,209 per vessel per day in the first quarter of 2010, versus $6,180 per vessel per day in the first quarter of 2009. The increase of the daily operating expenses of the vessels relates primarily to increased crew wages and travelling expenses. Also, first quarter 2009 operating expenses included maintenance expenses for the Omega Lady Sarah related to her scheduled drydock and the insurance deductible on the Omega Theodore related to the minor collision mentioned above.

Recent Developments

Fleet Development

The Company's current fleet includes twelve double hull product tankers with a carrying capacity of 680,000 dwt. Eight of the vessels are fully owned by Omega and four are owned through equal partnership joint ventures with a wholly owned subsidiary of Glencore International AG.

The Company has previously announced that it has entered into an equal partnership joint venture named Megacore Shipping Ltd. with a wholly owned subsidiary of Glencore International AG to acquire two Handysize double hull chemical / product tankers and seven Panamax double hull product tankers to be constructed at Hyundai Mipo Dockyard in South Korea. Two of the Handysize vessels, the 37,000 dwt. Megacore Honami and Megacore Hibiscus, were delivered in February and May, 2010, respectively, to companies owned by Megacore and the first LR1 Panamax tanker is expected to be delivered later in 2010, with an addition four Panamax vessels scheduled for delivery in 2011 and two in 2012.

The Megacore Honami and the Megacore Hibiscus were funded with Bank debt and equity contributions from the shareholders. Upon delivery, the Megacore Honami commenced a three year time charter with NYK Line. The Megacore Hibiscus is currently trading in the spot market.

As mentioned, MegaCore has contracted to take delivery of one LR1 Panamax vessel in the third quarter of 2010, two LR1's in the first quarter of 2011 and another two LR1's in the third quarter of 2011 and finally two LR1's are scheduled for delivery in the first quarter of 2012. The payment terms contracted with the shipyard provide for five installments, each of 20% of the contract price, with the last three installments, amounting in total to 60% of the contract price, payable within five months before the final delivery date.

The construction and acquisition of the remaining seven LR1 newbuildings, owned by Megacore Shipping Ltd, that are currently under construction are being funded by debt and equity contributions by the shareholders. The Company is funding the pre-delivery construction schedule with respect to three and a half of these vessels, for all of which bank debt financing commitments are already in place, including pre-delivery as well as post delivery financing. Based on prevailing market conditions and also taking into account our current liquidity and short term debt obligations, these capital expenditure commitments, as also discussed under Financial Developments section below, may be funded with a combination of debt financing, internally generated cash flow and other capital raises which are currently being explored.

Moreover, the Company and Glencore International, AG (through wholly owned subsidiaries) have entered into an equal partnership joint venture and took delivery on July 8, 2010 of one newbuilding 47,000 dwt double hull product/ chemical tanker named Alpine Marina (sister ship to the Omega Duke) constructed at Hyundai Mipo Dockyard in South Korea. The acquisition has been funded with previously secured bank debt financing and with equity contributions among the shareholders and will not be consolidated on Omega's balance sheet. The Alpine Marina, has commenced a five year time charter to ST Shipping with an excess earnings arrangement.

Financial Developments

The Company is currently in advanced discussions with its lenders to extend the term of its loans under the Senior Credit Facility and the Junior Credit Facility beyond the current maturity of April 2011. Both the Senior as well as the Junior Facility are non amortizing until the maturity. While both loans will mature in nine months, we believe we will reach a satisfactory outcome well in advance as we are in negotiations to reach a final agreement to obtain waivers and extend or restructure our debt.

As of December 31, 2009 the Company has been in breach of financial loan covenant, due to the security value maintenance (also known as loan to value) in respect of the Junior loan facility with BTMU and NIBC, that matures in April 2011. However, the Junior lenders have not declared any event of default. Moreover, the Junior loan facility is fully subordinated to the senior loan facility with HSH Nordbank and as a result any rights of recourse of the Junior lenders are subject to the assent of the Senior lenders. In the accompanying financial statements, we present our debt as current and will do so until we reach an agreement for the extension of both loans with the lenders.

As of March 31, 2010 our total debt, including predelivery advances for newbuildings and debt incurred on delivery for the MegaCore Honami which we will not consolidate in the ensuing quarters, was $355.5 million, and our Net Debt to Book Capitalization ratio was in compliance with our loan covenants.

As of June 30, 2010, our total debt including predelivery advances for newbuildings was $331 million while the outstanding balance under the senior and junior facility was $242.7 million and $38.3 million respectively. The facilities are secured by 1st and 2nd mortgages of our wholly owned fleet of eight vessels. As of June 30, 2010, the Company is in compliance with its Minimum Liquidity Requirements under its financial covenants with its lenders.

Notwithstanding the above and while delivery dates and respective capital expenditures are staggered within a time frame of 20 months from today, the Company is currently in negotiations to reach a final agreement to obtain waivers and extend or restructure its debt, and is also exploring, amidst challenging capital market conditions, various alternatives including capital raising in order to improve both its short term and long term liquidity, meet short term commitments and manage its overall capital exposure.


Fleet Data
                         Panamax Tankers             Handymax Tankers

                        Three months ended          Three months ended
                    --------------------------  --------------------------
                      March 31,     March 31,     March 31,     March 31,
                        2010          2009          2010          2009
                    ------------  ------------  ------------  ------------
Number of vessels
 at end of period              6             6             3             2
Average age of
 fleet (in years)              5             4             3             3
Ownership days (1)           540           540           215           180
Available days
 (2)                         540           527           215           180
Operating days  (3)          540           517           215           180
Fleet Utilization
 (4)                         100%           98%          100%          100%
Voyage revenues
 (net of voyage
 expenses) (7)      $ 11,380,502  $ 12,904,303  $  3,433,256  $  3,734.317
Time charter
 equivalent (TCE)
 rate $/day (5)(7)        21,075        24,486        15,969        20,746
Vessel operating
 expenses           $  3,352,621  $  3,336,941  $  1,194,343  $    944,559
Daily vessel
 operating expenses
 $/day(6)                  6,209         6,180         5,555         5,248


                        Three months ended          Three months ended
                    --------------------------  --------------------------
                    December 31,  December 31,  December 31,  December 31,
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
Number of vessels
 at end of period              6             6             2             2
Average age of
 fleet (in years)              4             3             3             2
Ownership days (1)           552           552           184           184
Available days
 (2)                         552           551           184           184
Operating days  (3)          552           551           184           184
Fleet Utilization
 (4)                         100%          100%          100%          100%
Voyage revenues
 (net of voyage
 expenses) (7)      $ 11,915,228  $ 13,746,951  $  2,262,685  $  3,826,791
Time charter
 equivalent (TCE)
 rate $/day (5)(7)        21,586        24,949        12,297        20,798
Vessel operating
 expenses           $  3,406,208  $  3,071,240  $  1,003,538  $    940,185
Daily vessel
 operating expenses
 $/day(6)                  6,171         5,564         5,454         5,110


                            Year ended                  Year ended
                    --------------------------  --------------------------
                    December 31,  December 31,  December 31,  December 31,
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
Number of vessels
 at end of period              6             6             2             2
Average age of
 fleet (in years)              4             3             3             2
Ownership days (1)         2,190         2,196           730           732
Available days
 (2)                       2,158         2,186           730           732
Operating days  (3)        2,142         2,186           729           732
Fleet Utilization
 (4)                          99%          100%          100%          100%
Voyage revenues
 (net of voyage
 expenses) (7)      $ 48,047,635  $ 54,714,307  $ 11,666,142  $ 15,204,973
Time charter
 equivalent (TCE)
 rate $/day (5)(7)        22,267        25,027        15,981        20,772
Vessel operating
 expenses           $ 13,352,678  $ 11,871,230  $  3,906,862  $  3,614,449
Daily vessel
 operating expenses
 $/day(6)                  6,097         5,406         5,352         4,938


(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 pre-delivery 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 first quarter 2010
     excludes an amount of $0.3 million relating to the predelivery
     expenses of Megacore Honami.

(7)  For the year ended December 31, 2009 excludes $ 3.2 million of profit
     sharing revenue booked in the first nine months of 2009 related to
     profit sharing on charters of the vessels Omega Lady Sarah, Omega Lady
     Miriam, Omega Emmanuel and Omega Theodore. For the year ended December
     31, 2008, excludes $ 6.8 million of profit sharing revenue booked in
     the year 2008 related to profit sharing on charters of the vessels
     Omega Lady Sarah, Omega Lady Miriam, Omega Emmanuel, Omega Theodore,
     Omega Prince and Omega Princess. For the three months ended December
     31, 2008, excludes $ 2.2 million of profit sharing revenue booked in
     the fourth quarter of 2008 related to profit sharing on charters of
     the vessels Omega Lady Sarah, Omega Lady Miriam, Omega Emmanuel and
     Omega Theodore.




                     Omega Navigation Enterprises Inc
                    Consolidated Statements of Income
           (All amounts expressed in thousands of U.S. Dollars)



                  3 month period      3 month period
                      ended               ended             Year ended
                ------------------  ------------------  ------------------
                  March     March   December  December  December  December
                31, 2010  31, 2009  31, 2009  31, 2008  31, 2009  31, 2008
                --------  --------  --------  --------  --------  --------
CONTINUING    (unaudited)(unaudited)(unaudited)        (unaudited)
 OPERATIONS
Revenues:
  Voyage
   Revenue        15,505    18,678    14,746    20,066    64,456    77,713

Expenses:
  Voyage
   expenses          691       300       568       292     1,535     1,032
  Vessel
   operating
   expenses        4,875     4,291     4,410     4,011    17,260    15,486
  Depreciation
   and
   amortization    4,915     4,690     4,850     4,776    19,173    18,868
  Management
   fees              382       302       314       310     1,283     1,243
  General and
   administrative
   expenses
   (including
   non cash
   compensation
   expense of
   $174, $649,
   $237, and
   $203 for the
   quarter
   ended March
   31, 2010,
   March 31,
   2009,
   December 31,
   2009 and
   2008
   respectively
   and $1,408
   and $1,354
   for the year
   ended
   December 31,
   2009 and
   2008
   respectively)   1,406     1,737     1,294     1,290     6,018     6,085
  Foreign
   currency
   (gains)/losses    (24)       (1)       28       (31)      122       (44)
                --------  --------  --------  --------  --------  --------
  Income from
   vessels
   operation       3,260     7,359     3,282     9,418    19,065    35,043
                --------  --------  --------  --------  --------  --------
  Loss on
   Termination
   of purchase
   agreements          -         -         -         -    (3,000)        -
  Income/(Loss)
   from Joint
   Venture
   companies         132         -       118         -      (278)        -
                --------  --------  --------  --------  --------  --------
Operating
 Income/(Expense)  3,392     7,359     3,400     9,418    15,787    35,043
                --------  --------  --------  --------  --------  --------

Other income
 (expenses)
  Interest and
   finance
   costs          (1,627)   (1,793)   (1,563)   (4,046)   (7,181)  (14,385)
  Interest
   income             20        45        35       245       138       711
  Change in
   fair value
   of warrants         -     1,127         -     2,787     1,127     3,156
  Gain/(Loss)
   on
   derivative
   instruments    (1,319)   (1,071)     (972)  (12,846)   (4,149)  (13,586)
                --------  --------  --------  --------  --------  --------
  Total other
   Income/
   (expenses),
   net            (2,926)   (1,692)   (2,500)  (13,860)  (10,065)  (24,104)
                --------  --------  --------  --------  --------  --------
INCOME/(LOSS)
 FROM
 CONTINUING
 OPERATIONS          466     5,667       900    (4,442)    5,722    10,939

DISCONTINUED
 OPERATIONS
Income from
 discontinued
 operations of
 the bulk
 carrier fleet         -         -         -         -         -        20
                --------  --------  --------  --------  --------  --------
 INCOME FROM
  DISCONTINUED
  OPERATIONS           -         -         -         -         -        20
                --------  --------  --------  --------  --------  --------
Net income           466     5,667       900    (4,442)    5,722    10,959
                ========  ========  ========  ========  ========  ========




               Omega Navigation Enterprises Inc
                   Consolidated Balance Sheets
       (All amounts expressed in thousands of U.S. Dollars)

                                    March 31,   December 31,  December 31,
                                      2010          2009          2008
                                  (unaudited)   (unaudited)
                                  ------------  ------------  ------------
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents              2,403        15,564        16,811
  Accounts receivable, trade             3,221         1,720           596
  Inventories                            1,232           614           602
  Prepayments and other                  1,474         1,419           506
  Due from related parties                   -            90             -
  Restricted cash                        5,631         5,807           123
                                  ------------  ------------  ------------
Total current assets                    13,961        25,214        18,638
                                  ------------  ------------  ------------

FIXED ASSETS:
  Vessels, net                         464,359       423,762       442,485
  Property and equipment, net               96            54            56
  Advances for vessels' under
   construction and acquisition         53,730        70,620        57,672
                                  ------------  ------------  ------------
Total fixed assets                     518,185       494,436       500,213
                                  ------------  ------------  ------------

OTHER NON CURRENT ASSETS:
  Deferred charges                       1,941         2,110         1,154
  Restricted cash                           32           105         5,174
  Investments in Joint Venture
   companies                             5,479         5,347             -
  Other non current assets                   -             -           109
  Intangible assets                        248           221             8
                                  ------------  ------------  ------------
Total other non current assets           7,700         7,783         6,445
                                  ------------  ------------  ------------

                                  ------------  ------------  ------------
Total assets                           539,846       527,433       525,296
                                  ============  ============  ============

LIABILITIES AND STOCKHOLDERS'
 EQUITY
CURRENT LIABILITIES:
  Current portion of long term
   debt                                355,457       343,252           138
  Accounts payable                       3,167         2,401         1,804
  Accrued and other current
   liabilities                           3,711         3,212         1,815
  Deferred revenue                         243           594         1,368
    Warrants                                 -             -         3,941
  Derivative liability                   8,726         9,909         5,839
  Dividends payable                         75           166            87
                                  ------------  ------------  ------------
Total current liabilities              371,379       359,534        14,992
                                  ------------  ------------  ------------

NON-CURRENT LIABILITIES:
   Long term debt, net of current
    portion                                  -             -       335,112
   Derivative liability                      -             -         8,409
   Dividends payable                        32           105           174
   Other long term liabilities               -             -             5
                                  ------------  ------------  ------------
Total non-current liabilities               32           105       343,700
                                  ------------  ------------  ------------

                                  ------------  ------------  ------------
COMMITMENTS AND CONTINGENCIES:               -             -             -
                                  ------------  ------------  ------------

Stockholders' equity:
  Common stock                             159           158           151
  Additional paid-in capital           201,792       201,618       198,402
  Accumulated deficit                  (33,516)      (33,982)      (31,949)
                                  ------------  ------------  ------------
Total stockholders' equity             168,435       167,794       166,604
                                  ------------  ------------  ------------

                                  ------------  ------------  ------------
Total liabilities and
 stockholders' equity                  539,846       527,433       525,296
                                  ============  ============  ============




                 Omega Navigation Enterprises Inc
               Consolidated Statements of Cash Flows
        (All amounts expressed in thousands of U.S. Dollars)

            Three months ended   Three months ended       Year ended

              March     March    December  December   December   December
               31,       31,        31,       31,        31,        31,
              2010      2009       2009      2008       2009       2008
            --------  --------  ---------  ---------  ---------  ---------
          (unaudited)(unaudited)(unaudited)          (unaudited)

Cash flows
 from
 operating
 activities

Net income/
 (loss) from
 continuing
 operations      466     5,667        900     (4,442)     5,722     10,939

Net cash
 provided
 by/(used in)
 continuing
 operating
 activities    3.353    10,400        (97)    10,656     19,283     40,055
            --------  --------  ---------  ---------  ---------  ---------
Net cash
 provided
 by /(used in)
 continuing
 and
 discontinued
 operating
 activities    3,353    10,400        (97)    10,656     19,283     40,055
            --------  --------  ---------  ---------  ---------  ---------

Cash flows
 used in
 investing
 activities
Net cash
 used in
 investing
 activities-
 continuing
 operations  (28.717)     (211)   (18,269)      (475)   (18,605)   (12,820)
            --------  --------  ---------  ---------  ---------  ---------
Net cash
 used in
 investing
 activities-
 continuing
 and
 discontinued
 operations  (28,717)     (211)   (18,269)      (475)   (18,605)   (12,820)
            --------  --------  ---------  ---------  ---------  ---------

Cash flows
 provided
 by /(used in)/
 financing
 activities
Net cash
 (used in)/
 provided by
 financing
 activities-
 continuing
 operations   12,203    (7,707)    11,574     (7,212)    (1,925)   (19,317)
            --------  --------  ---------  ---------  ---------  ---------
Net cash
 (used in)/
 provided by
 financing
 activities-
 continuing
 and
 discontinued
 operations   12,203    (7,707)    11,574     (7,212)    (1,925)   (19,317)
            --------  --------  ---------  ---------  ---------  ---------

Net
 (decrease)/
 increase in
 cash and cash
 equival-
 ents        (13,161)    2,482     (6,792)     2,969     (1,247)     7,918

Cash and
 cash
 equivalents
 at the
 beginning
 of the
 period       15,564    16,811     22,356     13,842     16,811      8,893
            --------  --------  ---------  ---------  ---------  ---------
Cash and
 cash
 equivalents
 at end of
 period        2,403    19,293     15,564     16,811     15,564     16,811
            ========  ========  =========  =========  =========  =========



  Reconciliation of Adjusted EBITDA (1) to Cash from Operating Activities
         (All amounts expressed in thousands of U.S. Dollars)

CONTINUING & DISCONTINUED OPERATIONS                 Three months ended
                                                   March 31,   March  31,
                                                      2010         2009
                                                  -----------  -----------

                                                  (unaudited)  (unaudited)
Net cash from operating activities                      3,353       10,400
Net increase/(decrease) in current assets and non
 current assets                                         2,082          276
Net (increase)/decrease in current liabilities
 excluding bank debt                                     (914)      (1,943)
Net interest expense                                    4.108        3,409
Warrants settled liabilities                                -        1,127
Stock based compensation expense                         (174)        (649)
Payments for drydocking costs                               -          704
Amortization of financing costs                          (148)        (148)
                                                  -----------  -----------
Adjusted EBITDA                                         8,307       13,176
                                                  ===========  ===========



CONTINUING
 OPERATIONS             Three months ended              Year ended
                    December 31,  December 31,  December 31,  December 31,
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
                    (unaudited)                 (unaudited)
Net cash from
 operating
 activities                  (97)       10,656        19,283        40,055
Net
 increase/(decrease)
 in current
 assets and non
 current assets            1,234           377         2,030           285
Net
 (increase)/decrease
 in current
 liabilities
 excluding bank
 debt                      3,533          (461)       (1,216)          466
Net interest
 expense                   3,965         3,973        15,532        14,591
Warrants settled
 liabilities                   -         2,787         1,127         3,156
Stock based
 compensation
 expense                    (237)         (203)       (1,408)       (1,355)
Payments for
 drydocking costs              -            10         1,521           538
Loss on
 termination of
 purchase
 agreement                     -             -         3,000             -
Amortization of
 financing costs            (149)         (157)         (782)         (668)
                    ------------  ------------  ------------  ------------
Adjusted EBITDA            8,249        16,982        39,087        57,068
                    ============  ============  ============  ============




CONTINUING &
 DISCONTINUED
 OPERATIONS             Three months ended              Year ended
                    December 31,    December    December 31,    December
                        2009        31, 2008        2009        31, 2008
                    ------------  ------------  ------------  ------------
                    (unaudited)                 (unaudited)
Net cash from
 operating
 activities                  (97)       10,656        19,283        40,055
Net
 increase/(decrease)
 in current
 assets and non
 current assets            1,234           377         2,030           285
Net
 (increase)/decrease
 in current
 liabilities
 excluding bank
 debt                      3,533          (461)       (1,216)          486
Net interest
 expense                   3,965         3,973        15,532        14,591
Warrants settled
 liabilities                   -         2,787         1,127         3,156
Stock based
 compensation
 expense                    (237)         (203)       (1,408)       (1,355)
Payments for
 drydocking costs              -            10         1,521           538
Loss on
 termination of
 purchase
 agreement                     -             -         3,000             -
Amortization of
 financing costs            (149)         (157)         (782)         (668)
                    ------------  ------------  ------------  ------------
Adjusted EBITDA            8,249        16,982        39,087        57,088
                    ============  ============  ============  ============

(1) Adjusted EBITDA represents net income before interest, taxes,
    gains/losses on derivative instruments, depreciation and amortization.
    Adjusted 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 adjusted EBITDA may not be
    comparable to that reported by other companies. Adjusted 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 double hull product tankers. The current fleet includes twelve hull product tankers with a carrying capacity of about 680,000 dwt, of which two double hull product / chemical tankers, with a capacity of 47,000 dwt, and two double hull product / chemical tankers, with a capacity of 37,000 dwt., are owned through equal partnership joint ventures with a wholly owned subsidiary of Glencore International, A.G..Furthermore, as previously announced, the joint venture company has entered into shipbuilding contracts with Hyundai Mipo Dockyard in South Korea, to construct and acquire seven additional double hull product tankers with a capacity of 74,000 dwt each scheduled for delivery between October 2010 and early 2012.

The Company was incorporated in the Marshall Islands in February 2005. Its principal executive offices are located in Athens, Greece and it also maintains an office in the United States.

Omega Navigation's 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.

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