Amount of
profit share
revenues
recorded per
Quarter quarter
---------------- --------------
1st Quarter 2007 $ 1.1 million
2nd Quarter 2007 $ 1.0 million
3rd Quarter 2007 $ 1.3 million
4th Quarter 2007 $ 0.6 million
1st Quarter 2008 $ 1.2 million
2nd Quarter 2008 $ 1.6 million
3rd Quarter 2008 $ 1.8 million
4th Quarter 2008 $ 2.2 million
1st Quarter 2009 $ 1.7 million
2nd Quarter 2009 $ 0.7 million
Total $ 13.2 million
Operating expenses for our MR product tankers averaged $5,304 per day per
vessel in the second quarter of 2009, versus $5,073 per day per vessel in
the second quarter of 2008. Our Panamax product tankers averaged operating
expenses of $5,735 per day per vessel in the second quarter of 2009, versus
$5,201 per day per vessel in the second quarter of 2008. The increase of
the daily operating expenses of the vessels relates mainly to the
maintenance expenses related to the drydockings of the Omega King and Omega
Queen in the second quarter of 2009 and an increase in crew wages.
First Six Months 2009 Results
For the six months ended June 30, 2009, Omega Navigation reported total
revenues of $35.4 million and Net Income of $9.7 million, or $0.63 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 $4.7 million or $0.31 per share. EBITDA for the
first six months of 2009 was $19.8 million. Please see below for a
reconciliation of EBITDA to Cash from Operating Activities.
Operating Income included revenue of $2.4 million attributable to profit
sharing.
The Company owned and operated an average of eight vessels, all of which
were product carriers, during the first half of 2009, the same as in the
first half of 2008. In addition, since April 2009, the Company holds a 50%
interest in a joint venture, which owns an additional product carrier
vessel. Excluding profit-sharing, the Company's Panamax product tankers
earned an average time-charter equivalent rate of $23,692 per day per
vessel during the first half of 2009, versus $25,063 per day per vessel
(net of voyage expenses), during the first six months of 2008. The
Company's Handymax product tankers earned an average time-charter
equivalent rate of $19,910 per vessel per day during the first half of 2009
versus $20,751 per day per vessel (net of voyage expenses) during the first
six months of 2008.
Operating expenses for the MR product tankers averaged $5,298 per day per
vessel in the first half of 2009 versus $4,833 per day per vessel in the
first six months of 2008. Panamax product tankers averaged operating
expenses of $5,957 per day per vessel in the first six months of 2009
versus $5,240 per day per vessel in the first half of 2008. The increase
in operating expenses was primarily related to maintenance expenses
incurred during scheduled drydockings in the first half of 2009, insurance
deductible incurred related to the collision on the Omega Theodore and an
increase in crew wages.
Loan Covenant Compliance
As of June 30, 2009, the Company was fully compliant with all its loan
covenants.
Recent Fleet Developments
With the recent announcement of the delivery of the newbuilding vessel
Omega Duke to a joint venture, in which Omega Navigation has a 50%
shareholding, Omega's current operated fleet includes nine double hull
product tankers with an aggregate carrying capacity of 559,358 dwt. The
Omega Duke has been time chartered to ST Shipping (Glencore International
AG) for a period of 5 years until mid 2014, with a base rate which fully
covers operating expenses and debt service plus profit sharing arrangement.
With the additional announcements that the Omega Queen and Omega King have
been time chartered out, seven out of nine product tankers are currently
employed under fixed rate time charters. The recent time charters are to
established counterparties, ST Shipping and Torm A/S. Currently seven out
of nine of the vessels have
profit-sharing arrangements associated with them which enable the Company
to share in the charter market's upside potential.
With these recent charters concluded, the Company has for the remainder of
2009 and until mid 2010 fixed rate time charter coverage of 78%, inclusive
of the joint venture, all with profit-sharing arrangements allowing the
Company to take advantage of any upside in the charter market. The Company
has entered the Omega Prince and Omega Princess into floating rate time
charters with rates based on the market results of a pool of similar
vessels commercially managed by ST Shipping and through these arrangements
enjoy excellent utilization rates and above spot market charter rates. All
of the time charters recently concluded are for relatively short periods of
time, which increases the Company's flexibility to terminate those on short
notice in case the market improves and thereby take advantage of better
market conditions. Also, with these time charters we have continued full
utilization of the fleet without experiencing any unscheduled offhire time.
In the first six months of the year, the turmoil which prevailed in the
global economy had a severe impact on the entire tanker industry, and
specifically on rates and asset values. Omega's strategy of owning young,
high quality assets and employing its vessels through term time charters
has enabled the Company to present profitable operating results, even in
these uncertain times and depressed tanker market. While oil demand has
contracted and oil product inventories remain high, there has been recent
evidence that the economic climate may be recovering. As the economic
recovery progresses, we would expect to see an increase in oil demand, and
the resultant increase in rates and asset values.
Management Commentary:
George Kassiotis, President and Chief Executive Officer of Omega
Navigation, commented: "We are pleased to have concluded our thirteenth
consecutive quarter with profitable operating results, since our IPO in
April 2006. We attribute our profitable operating results to our strategy
of acquiring high quality modern vessels and seeking predictable and stable
cash flows through the term employment of our vessels. In addition, the
fact that the charters on seven of our nine product tankers have
profit-sharing provisions has enabled us to participate in any upside of
the charter market and thereby maximize our profitability.
"We continue to return profitable operating results even in this most
challenging economic environment. We have seen signs that the economic
environment is improving and with that demand for oil and oil products
should gradually return as well. We would expect that once demand improves
and current high inventory levels decrease, we should see an improving rate
environment and asset values should also improve. Based on our current
charter rates and the continued performance of each of our charterers, we
believe that we are well positioned to continue to show profitable
operating results even in this economic climate. While rates remain
somewhat depressed, we believe we are now seeing evidence of a rebound in
demand for oil products, which should help stimulate rates going forward.
"We seek to optimize the management of our capital exposure, deliver our
balance sheet and create synergies, which will enhance our ability to fund
our growth plans and take advantage of opportunities during challenging
times.
"In this respect, we are pleased to enjoy a strong business relationship
with Glencore, one of the largest commodities traders in the world. The
joint ownership of the Omega Duke is further evidence of the high standards
of operating performance that our Company offers to its customers and end
users of its vessels and also demonstrates our ability to create synergies
in a challenging environment.
"We also believe that we continue to have strong relationships with our
commercial lenders, that are large European and Asian banks, which have
continued to offer their support to the Company.
"We would like to reiterate that we are continuing to pursue a strategy of
prudent growth, gradually expanding our fleet and our revenue and profit
generation potential.
"We remain optimistic about the long term fundamentals of the product
tanker market, the area of our strategic focus. We believe that we enjoy
strong competitive advantages in this market with our focused business
strategy, our fleet of young high quality vessels, term employment with
established charterers, a solid and flexible capital structure and a strong
management team, enabling us to continue delivering strong, stable and
predictable results for our shareholders."
Gregory McGrath, Chief Financial Officer of Omega Navigation, commented,
"As of June 30, 2009, the Company had a ratio of net debt to net
capitalization of about 64%, with respect to the current eight vessel fleet
and including debt already incurred for the pre-delivery financing of the
remaining six newbuildings, which we believe is modest for industry
standards given our strong time charter coverage and the young age and
quality of our fleet. As of June 30, 2009 we were fully compliant with all
our loan covenants.
"We continue to have a strong relationship with our commercial lenders and
have received their ongoing support and commitment to the Company, even in
this very challenging credit market. Our balance sheet was also recently
strengthened by the formation of the joint venture company which owns the
Omega Duke and the consequent novation of the debt associated with that
vessel from Omega to the joint venture."
Fleet Data
Panamax Tankers Handymax Tankers
------------------------ ------------------------
Three months ended Three months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
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) 546 546 182 182
Available days (2) 527 546 182 182
Operating days (3) 521 546 182 182
Fleet Utilization (4) 99% 100% 100% 100%
Voyage revenues (net
of voyage
expenses) (7) $12,067,119 $13,677,135 $ 3,473,156 $ 3,775,006
Time charter
equivalent (TCE) rate
$/day (5)(7) 22,898 25,050 19,083 20,742
Vessel operating
expenses $ 3,131,227 $ 2,839,632 $ 965,343 $ 923,371
Daily vessel operating
expenses $/day(6) 5,735 5,201 5,304 5,073
----------- ----------- ----------- -----------
Six months ended Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
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) 1,086 1,092 362 364
Available days (2) 1,054 1,092 362 364
Operating days (3) 1,038 1,092 361 364
Fleet Utilization (4) 98% 100% 100% 100%
Voyage revenues (net
of voyage
expenses) (7) $24,971,422 $27,368,632 $ 7,207,473 $ 7,553,222
Time charter
equivalent (TCE) rate
$/day (5)(7) 23,692 25,063 19,910 20,751
Vessel operating
expenses $ 6,469,399 $ 5,721,663 $ 1,917,794 $ 1,759,361
Daily vessel operating
expenses $/day(6) 5,957 5,240 5,298 4,833
----------- ----------- ----------- -----------
(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.
(7) For the three months ended June 30, 2009, excludes $0.7 million of
profit sharing revenue booked in the second quarter of 2009 related to
profit sharing on charters of the vessels Omega Lady Sarah, Omega Lady
Miriam, Omega Emmanuel and Omega Theodore. For the six months ended June
30, 2009 excludes $2.4 million of profit sharing revenue booked in the
first six months of 2009 related to profit sharing on charters of the
vessels Omega Lady Sarah, Omega Lady Miriam, Omega Emmanuel and Omega
Theodore.
Fleet Profile and Employment:
The table below describes the profile and employment of the Company's fleet
as of today:*
Daily
Sister Year Deadweight Delivery Hire Latest
Vessel Ship(1) Built (dwt) Type date rate(2) Redelivery
CURRENT FLEET
Panamax product tankers
Omega Queen A 2004 74,999 LR1 May-09 Base rate Evergreen,
plus profit subject to
share termination
notice of
2 months
Omega King A 2004 74,999 LR1 May-09 16,500 (3) May-10
Omega Lady LR1-Ice
Sarah C 2004 71,500 Class 1C July-09 $ 25,500 (4) Aug-12
Omega Lady R1-Ice
Miriam C 2003 71,500 Class 1C Sep-09 $ 25,500 (5) Oct-12
Omega LR1-Ice
Emmanuel D 2007 73,000 Class 1A Mar-07 $ 25,500 (6) Apr-10
Omega LR1-Ice
Theodore D 2007 73,000 Class 1A Apr-07 $ 25,500 (6) May-10
Handymax product tankers
Omega MR1-Ice
Prince B 2006 36,680 Class 1A (7)
Omega MR1-Ice
Princess B 2006 36,680 Class 1A (7)
TOTAL
(DWT): 512,358
Vessel owned through 50% controlled joint venture
Omega Duke F 2009 47,000 MR2 Apr-09 Base rate plus Apr-14
profit share
Handymax vessels under construction
TBN1 E 2010 37,000 MR1 Mar-10 Confidential Mar-13
TBN2 F 2010 47,000 MR2 Jul-10 $ 21,135 (8) Jul-13
TBN3 E 2010 37,000 MR1 Jul-10
TBN4 E 2010 37,000 MR1 Sep-10
TBN5 E 2010 37,000 MR1 Dec-10
TBN6 E 2011 37,000 MR1 Feb-11
TOTAL (DWT): 232,000
* This table assumes the full performance by each our current and
anticipated customers under our current and contracted charters.
(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) Average base rate for the first year is $16,500 plus profit share. Torm
has the option to extend the charter for an additional year at a daily rate
of $20,000 with a profit sharing arrangement with earnings above that base
level shared equally between Omega and Torm.
(4) Plus any additional income under profit sharing agreements, according
to which charter earnings in excess of $25,500 per day will be divided
equally between Omega Navigation and ST Shipping.
(5) Plus any additional income under profit sharing agreement, according to
which charter earnings in excess of $25,500 per day will be divided equally
between Omega Navigation and ST Shipping.
(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.
(7) The actual earnings of these vessels will be pooled with 7 vessels of
similar operating characteristics all managed by ST.
(8) Plus 50% of any trading income in excess of the daily hire.
Conference Call Details:
As previously announced, the Company's management will host a conference
call tomorrow September 9, 2009 at 10:00am EDT to discuss its second
quarter 2009 results.
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."
A telephonic replay of the conference call will be available until
September 16, 2009 by dialing 1-866-247-4222 (US Toll Free Dial In),
0800-953-1533 (UK Toll Free Dial In) or +44(0)1452-55-00-00 (Standard
International Dial In). Access Code: 3663884#.
Omega Navigation Enterprises Inc
Consolidated Statements of Income / (Loss)
(All amounts expressed in thousands of U.S. Dollars)
Three months Six months
ended ended
June June June June
30, 30, 30, 30,
2009 2008 2009 2008
(unaudited) (unaudited)
-------------- --------------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 16,711 19,293 35,388 38,152
Expenses:
Voyage expenses (469) (246) (769) (478)
Vessel operating expenses (4,097) (3,763) (8,388) (7,481)
Depreciation and amortization (4,787) (4,697) (9,476) (9,343)
Management fees (349) (314) (651) (621)
General and administrative expenses
(including non cash compensation expense
of $260, and $214 for the quarter ended
June 30, 2009 and 2008 respectively and
$910 and $944 for the six months ended
June 30, 2009 and 2008 respectively) (1,595) (1,614) (3,333) (3,450)
Foreign currency losses (80) (9) (79) (75)
------ ------ ------ ------
Income from vessels operation 5,334 8,650 12,692 16,704
------ ------ ------ ------
Loss on Termination of purchase agreements (3,000) - (3,000) -
Income/(Loss) from Joint Venture companies (479) - (479) -
------ ------ ------ ------
Operating Income/(Expense) 1,855 8,650 9,213 16,704
------ ------ ------ ------
Other income (expenses)
Interest and finance costs (2,123) (3,200) (3,915) (7,193)
Interest income 35 128 80 261
Change in fair value of warrants - (756) 1,127 (736)
Gain/(Loss) on derivative instruments (737) 3,161 (1,808) 1,164
Total other income /(expenses), net (2,825) (667) (4,516) (6,504)
------ ------ ------ ------
INCOME/(LOSS) FROM CONTINUING OPERATIONS (970) 7,983 4,697 10,200
------ ------ ------ ------
DISCONTINUED OPERATIONS
Income/(Loss) from discontinued operations
of the bulk carrier fleet - - - 20
------ ------ ------ ------
INCOME/(LOSS) FROM DISCONTINUED OPERATIONS - - - 20
------ ------ ------ ------
------ ------ ------ ------
Net income/(Loss) (970) 7,983 4,697 10,220
====== ====== ====== ======
Omega Navigation Enterprises Inc
Consolidated Balance Sheets
(All amounts expressed in thousands of U.S. Dollars)
June 30, December 31,
2009 2008
(unaudited)
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 15,804 16,811
Accounts receivable, trade 1,667 596
Inventories 681 602
Prepayments and other 2,591 506
Restricted cash 219 123
Due from related parties 116 -
----------- -----------
Total current assets 21,078 18,638
----------- -----------
FIXED ASSETS:
Vessels, net 433,182 442,485
Property and equipment, net 130 64
Advances for vessels under construction and
acquisition 52,466 57,672
----------- -----------
Total fixed assets 485,778 500,221
----------- -----------
OTHER NON CURRENT ASSETS:
Deferred charges 2,403 1,154
Restricted cash 5,109 5,174
Investments in Joint Venture companies 5,146 -
Other non current assets 125 109
----------- -----------
Total other non current assets 12,783 6,437
----------- -----------
----------- -----------
Total assets 519,639 525,296
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 605 138
Accounts payable 2,237 1,804
Accrued and other current liabilities 3,760 1,815
Deferred revenue 3,845 1,368
Warrants - 3,941
Derivative liability 8,771 5,839
Dividends payable 183 87
----------- -----------
Total current liabilities 19,401 14,992
----------- -----------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 330,225 335,112
Derivative liability 3,631 8,409
Dividends payable 109 174
Other long term liabilities 2 5
----------- -----------
Total non-current liabilities 333,967 343,700
----------- -----------
----------- -----------
COMMITMENTS AND CONTINGENCIES: - -
----------- -----------
Stockholders' equity:
Common stock 158 151
Additional paid-in capital 201,120 198,402
Accumulated deficit (35,007) (31,949)
----------- -----------
Total stockholders' equity 166,271 166,604
----------- -----------
----------- -----------
Total liabilities and stockholders' equity 519,639 525,296
=========== ===========
Omega Navigation Enterprises Inc
Consolidated Statements of Cash Flows
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited)
-------------------- --------------------
Cash flows from operating
activities
Net income/(Loss) from
continuing operations (970) 7,983 4,697 10,200
Net cash provided by
continuing operating
activities 2,152 9,678 12,584 19,049
--------- --------- --------- ---------
Net cash provided by
continuing and discontinued
operating activities 2,152 9,678 12,584 19,049
--------- --------- --------- ---------
Cash flows provided by/used in
investing activities
Net cash provided by/(used in)
investing activities-continuing
operations 163 (11,505) (47) (12,001)
--------- --------- --------- ---------
Net cash provided by/(used in)
investing activities-
continuing and discontinued
operations 163 (11,505) (47) (12,001)
--------- --------- --------- ---------
Cash flows (used in)/provided
by financing activities
Net cash (used in)/provided by
financing activities-continuing
operations (5,804) 2,079 (13,544) (4,714)
--------- --------- --------- ---------
Net cash (used in)/provided by
financing activities-continuing
and discontinued operations (5,804) 2,079 (13,544) (4,714)
--------- --------- --------- ---------
Net (decrease)/ increase in
cash and cash equivalents (3,489) 252 (1,007) 2,334
Cash and cash equivalents at
the beginning of the period 19,293 10,975 16,811 8,893
--------- --------- --------- ---------
Cash and cash equivalents at
end of period 15,804 11,227 15,804 11,227
========= ========= ========= =========
Reconciliation of EBITDA (1) to Cash from Operating Activities
(All amounts expressed in thousands of U.S. Dollars)
CONTINUING & DISCONTINUED
OPERATIONS Three months ended Six months ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited)
-------------------- --------------------
Net cash from operating
activities 2,152 9,678 12,584 19,049
Net increase/(decrease) in
current assets and non
current assets 3,093 (89) 3,367 147
Net (increase)/decrease in
current liabilities excluding
bank debt (2,911) 994 (4,885) 1,180
Net interest (income)/expense 4,080 3,128 7,490 6,990
Warrants settled liability - (756) 1,127 (736)
Stock based compensation
expense (260) (214) (910) (944)
Payments for drydocking costs 823 - 1,528 -
Amortization of financing
costs (336) (150) (484) (355)
--------- --------- --------- ---------
EBITDA 6,641 12,591 19,817 25,331
========= ========= ========= =========
(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 of eight double hull
product tankers. In addition, since April 2009 the Company holds a 50%
interest in a 50/50 joint venture with Glencore International AG, which
owns an additional double hull product tanker. The current operated fleet
includes nine double hull product tankers with a carrying capacity of
559,358 dwt., of which one double hull product tanker, with a capacity of
47,000 dwt, is owned through a 50/50 joint venture with Glencore
International AG (through wholly owned subsidiaries). The nine product
tankers are chartered out under period time charters. Furthermore, the
company has also announced the signing of shipbuilding contracts in June of
2007 to construct and acquire five additional product tankers with a
capacity of 37,000 dwt each scheduled for delivery between March 2010 and
early in 2011. The company also announced in May of 2008 that it had
entered into an agreement with an unrelated third party to purchase one
newbuilding 47,000 dwt. coated product / chemical tanker under construction
at Hyundai Mipo Dockyard in South Korea, scheduled to be delivered in the
third quarter of 2010.
The Company was incorporated in the Marshall Islands in February 2005. Its
principal executive offices are located in Piraeus, Greece and it also
maintains an office in the United States.
Omega Navigation's Class A common shares are traded on the NASDAQ National
Market under the symbol "ONAV" and are also listed on the Singapore
Exchange Securities Trading Limited under the symbol "ONAV 50."
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides
safe harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of
historical facts.
The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intends," "estimate," "forecast,"
"project," "plan," "potential," "will," "may," "should," "expect" "pending"
and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, the Company's management's examination of
historical operating trends, data contained in the Company's records and
other data available from third parties. Although the Company believes that
these assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond the Company's control,
the Company cannot assure you that the Company will achieve or accomplish
these expectations, beliefs or projections.
In addition to these important factors other important factors that, in the
Company's view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including fluctuations
in charter rates and vessel values, changes in demand for product tanker
and dry bulk shipping capacity, changes in the Company's operating
expenses, including bunker prices, drydocking and insurance costs, the
market for the Company's vessels, availability of financing and
refinancing, changes in governmental rules and regulations or actions taken
by regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political
events, vessels breakdowns and instances of off-hires and other factors.
Please see the Company's filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks and
uncertainties.
Contact Information: Contacts: Company Contact: Gregory A. McGrath Chief Financial Officer Omega Navigation Enterprises, Inc. PO Box 272 Convent Station, NJ 07961 Tel. (551) 580-0532 E-mail: gmcgrath@omeganavigation.com www.omeganavigation.com Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com www.capitallink.com