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
Total $ 5.2 million
The Company expects to receive approximately an additional $2.7 million in
cash related to the profit sharing agreements for voyages performed until
the end of the first quarter 2008 and book to income approximately an
additional $2.5 million in subsequent quarters.
Operating expenses for the Handymax product tankers averaged $4,593 per day
per vessel in the first quarter of 2008 versus $4,298 per day per vessel in
the first quarter of 2007. Panamax product tankers averaged operating
expenses of $5,278 per day per vessel in the first quarter of 2008 versus
$4,842 per day per vessel in the first quarter of 2007. We operated 6
Panamax and 2 Handymax tankers in the first quarter of 2008 versus 4
Panamax and 2 Handymax tankers in the first quarter of 2007. The increase
of the daily operating expenses of the Panamax as well as the Handymax
product tankers relates mainly to an increase in crew wages.
Debt Restructuring
We concluded our debt restructuring on March 28, 2008. The debt
restructuring reduced the outstanding balance of our current senior secured
facility by approximately $39.0 million, which was in turn replaced by a
long term junior secured credit facility of $42.5 along with certain other
changes in terms. Part of the proceeds were used to finance the repayment
of our $2.4 million short term obligations under our bridge loan facility.
Both senior and junior facilities are non-amortizing, providing for a final
repayment of principal in April 2011. The restructuring also contains loan
covenants which the Company believes are more favorable and more typical of
covenants entered into by listed shipping companies. Full details of the
debt restructuring were disclosed in a separate release dated March 31,
2008.
Interest Rate Hedging Arrangement
In March 2008 we entered into a swap transaction with the junior lenders
under which the interest rate under the junior secured credit facility was
fixed at 2.96% per annum until maturity. Further, in April 2008 we amended
the previous collar arrangement with HSH Nordbank which provided for a cap
at 5.55% and a floor at 4.80%, agreed for the bank to absorb any cash and
non-cash losses incurred until April 2008, and we entered into a
Participation Swap with a gradual alignment factor in the amount of $150
million with a cap at 5.1% and a floor at 2.5%. The term is coterminous
with the term of the senior credit facility, i.e., until April 2011. The
remainder of senior debt that amounts to $92.7 million will continue to
float with LIBOR.
We believe these arrangements will enable us to take advantage of the
current low interest rate environment and lower our overall interest
expense considerably compared to our previous hedging transactions.
Fleet Developments / Subsequent events
Current Fleet
Omega Navigation's current fleet includes eight double hull product tankers
with an aggregate carrying capacity of 512,358 dwt. All of the Company's
product tankers are employed under time charters having a minimum term of
three years from their respective delivery dates and are chartered to
established charterers including Norden, ST Shipping (Glencore) and Torm.
Six of the eight product tankers have profit sharing arrangements which
enable the Company to share in the charter market's upside potential.
Acquisition contracts
On May 19, 2008 the Company announced that it had entered into an agreement
with an unaffiliated third party to purchase two 47,000 dwt. newbuilding
double hull product tankers for $55.5 million each. The first vessel is
expected to be delivered on or about the second quarter of 2009 and the
second vessel is expected to be delivered on or about the third quarter of
2010. The purchase agreement requires a deposit of 10% of the purchase
price to be placed in a joint account with sellers and buyers by May 30,
2008. The Company has entered into an agreement with a commercial bank to
finance 90% of the above deposit payment with bank debt. Therefore, the
Company will only invest $1.1 million cash at the time of the deposit for
both vessels. The Company has also agreed with the same commercial bank for
the financing of up to 75% of the purchase price of the vessels at the time
of their respective deliveries. The agreed interest rate will range between
100 to 120 bps over LIBOR depending on the applicable ratio of loan to
vessels' market value and the financial covenants are in line with the
existing covenants under our other senior secured credit facilities. At
delivery, the vessels will each be chartered for three years to ST Shipping
(a subsidiary of Glencore International A.G.) for a gross base rate of
$21,135 per day per vessel. In addition, the charters also provide for
profit sharing, whereby the Company will share equally in any upside above
the base rate with the charterer, based on the vessels' actual quarterly
trading results.
Newbuilding contracts
On June 19, 2007, the Company announced that it had signed shipbuilding
contracts with Hyundai Mipo Dockyard, to construct and acquire five
newbuilding double hull Handymax product tankers each with a capacity of
37,000 dwt. Four of these vessels are scheduled for delivery in 2010 with
the fifth scheduled for delivery in early 2011. The purchase price is
$44.2 million per vessel and the payment terms are more attractive than,
what the Company believes to be industry standard.
With the addition of these seven vessels Omega's enlarged fleet will
consist of 15 product carriers with a total deadweight capacity of 791,358
tons.
Management Commentary:
George Kassiotis, President and Chief Executive Officer of Omega
Navigation, commented: "We are pleased to have concluded our eighth
consecutive profitable quarter since our IPO in April 2006. We attribute
our strong operational and financial results to our strategy of acquiring
high quality modern vessels and seeking predictable and stable cash flows
through the long term employment of our vessels. In addition, the fact that
the charters of six of our eight product tankers have profit sharing
enables us to participate in the upside potential of the charter market and
thereby maximize our profitability and the return for our shareholders.
"All of our vessels in our current fleet are under three year time charters
with established charterers pursuant to which we have secured 100% of our
operating days for 2008 and 63% in 2009. The charters on the two Panamax
Ice Class vessels delivered to us in March and April of 2007 extend to
2010. The recently announced acquisition of two newbuilding product
tankers to be delivered in the second quarter of 2009 and second or third
quarter of 2010 have also already been chartered out for three years,
thereby enhancing the stability and visibility of our cash flows.
"We would like to reiterate that we are pursuing a strategy of prudent
growth, gradually expanding our revenue and profit generation capabilities.
Based on the activity we have announced so far, we expect to add seven
newbuilding product carriers to our fleet, thereby expanding it to a total
of 15 vessels, and solidifying our position as a major player in the global
product tanker market. We will be taking delivery of these seven vessels
between the second quarter 2009 and the first quarter 2011, at a time when
newbuilding berths for product tankers around the world are becoming
increasingly hard to find. In addition, the two MR resale acquisitions are
favorably comparable to the current value of a similar prompt delivered
vessel and the newbuilding contract values for similar vessels to our five
newbuildings we ordered in June 2007 have already appreciated since we
contracted them.
"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, long 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.
"Finally, we continued with our stable dividend policy, declaring our
eighth consecutive quarterly dividend of $0.50 per common share."
Quarterly Dividend
On May 8, 2008 the Company announced its eighth consecutive quarterly
dividend since it went public, of $0.50 per common share, payable on May
30, 2008 to shareholders of record as of May 20, 2008.
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 other
discretionary reserves.
Gregory McGrath, Chief Financial Officer of Omega Navigation, commented "We
have now paid or declared on schedule eight consecutive quarterly dividends
since going public in the amount of $0.50 per common share, aggregating $
4.00 per common share. Our next quarterly dividend declaration is
anticipated for August 2008. Our overall objective is to pursue a strategy
of disciplined growth, while at the same time implementing a stable,
dividend payout. We believe this strategy will maximize shareholder value
over the long term.
"Our subordinated share structure enhances our Company's ability to pay
dividends to the public shareholders. The Class B shares held by the
initial shareholder, which were approximately 20.5% of the total
outstanding shares, are subordinated in respect of paying dividends to the
public shareholders.
"As of March 31, 2008, the Company had a ratio of debt to market value of
55% in respect to the current eight vessel fleet and a net debt to book
capitalization ratio of 63% including debt already incurred under the
predelivery financing of the five newbuildings which we believe are modest
ratios for industry standards given our strong time charter coverage and
the young age and quality of our fleet.
"The recent restructuring of our debt facility increases our financial
flexibility and will enhance our ability to pursue our strategy of prudent
growth aimed at increasing shareholder value in the longer term."
Fleet Data
Panamax Tankers Handymax Tankers
Three months ended Three months ended
-------------------------- --------------------------
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Number of vessels
at end of period 6 5 2 2
Average age of
fleet (in years) 3 3 2 1
Ownership days (1) 546 364 182 180
Available days (2) 546 364 182 180
Operating days (3) 546 364 182 180
Fleet Utilization (4) 100% 100% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 13,691,500 $ 9,089,615 $ 3,778,216 $ 3,747,436
Time charter
equivalent (TCE)
rate $/day (5)(7) 25,076 24,971 20,759 20,819
Vessel operating
expenses (net of
predelivery
expenses) $ 2,882,029 $ 1,762,620 $ 835,991 $ 773,599
Daily vessel
operating expenses
$/day (6) 5,278 4,842 4,593 4,298
------------ ------------ ------------ ------------
(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 predelivery expenses incurred at or prior to the
delivery of the product tankers, are calculated by dividing vessel
operating expenses by ownership days for the relevant period. For
the three months ended March 31, 2008, pre-delivery expenses
amounted to $0 million for Panamax product tankers and $0 for
Handymax product tankers. For the three months ended March 31, 2007,
pre-delivery expenses amounted to $0.4 million for Panamax product
tankers and $0 for Handymax product tankers.
(7) For the three months ended March 31, 2007 excludes $ 1.1 million of
profit sharing revenue booked in the first quarter of 2007 on the
"Omega Lady Sarah," and the "Omega Lady Miriam." For the three
months ended March 31, 2008 excludes $1.2 million of profit sharing
revenue booked in the first quarter of 2008 on the "Omega Lady
Miriam," and the "Omega Theodore."
Fleet Profile and Employment:
The table below describes the profile and employment of the Company's fleet
as of today:
Sister Daily
Ship Year Deadweight Delivery Hire Re-
Vessel (1) Built (dwt) Type Date Rate(2) delivery
------ ----- ------- ---------- ------- ------- -- ------
CURRENT FLEET
Panamax Product Tankers
Omega Queen A 2004 74,999 LR1 May-06 $26,500 (3) May-09
------ ----- ------- ---------- ------- ------- -- ------
Omega King A 2004 74,999 LR1 Jun-06 $26,500 (3) Jun-09
------ ----- ------- ---------- ------- ------- -- ------
LR1 - Ice
Omega Lady Sarah C 2004 71,500 Class 1C Jun-06 $24,000 (4) Jun-09
------ ----- ------- ---------- ------- ------- -- ------
Omega Lady LR1 - Ice
Miriam C 2003 71,500 Class 1C Aug-06 $24,000 (4) Jul-09
------ ----- ------- ---------- ------- ------- -- ------
LR1 - Ice
Omega Emmanuel D 2007 73,000 Class 1A Mar-07 $25,500 (6) Apr-10
------ ----- ------- ---------- ------- ------- -- ------
LR1 - Ice
Omega Theodore D 2007 73,000 Class 1A Apr-07 $25,500 (6) May-10
------ ----- ------- ---------- ------- ------- -- ------
Handymax Product Tankers
------ ----- ------- ---------- ------- ------- -- ------
Ice Class
Omega Prince B 2006 36,680 1A Jun-06 $21,000 (5) Jun-09
------ ----- ------- ---------- ------- ------- -- ------
Ice Class
Omega Princess B 2006 36,680 1A Jul-06 $21,000 (5) Jun-09
------ ----- ------- ---------- ------- ------- -- ------
TOTAL (DWT): 512,358
------------ ------- -------------------------------------
Additional Handymax Vessels
TBN1 E 2010 37,000 Mar-10
------ ----- ------- ---------- ------- ------- -- ------
TBN2 E 2010 37,000 July-10
------ ----- ------- ---------- ------- ------- -- ------
TBN3 E 2010 37,000 Sept-10
------ ----- ------- ---------- ------- ------- -- ------
TBN4 E 2010 37,000 Dec-10
------ ----- ------- ---------- ------- ------- -- ------
TBN5 E 2011 37,000 Feb-11
------ ----- ------- ---------- ------- ------- -- ------
TBN6 F 2009 47,000 Jun-09 $21,135 (7) Jun-12
------ ----- ------- ---------- ------- ------- -- ------
TBN7 F 2010 47,000 Aug-10 $21,135 (7) Aug-13
------ ----- ------- ---------- ------- ------- -- ------
Total (DWT): 279,000
------------ ------- -------------------------------------
(1) Each vessel is a sister ship of each other vessel that has the same
letter.
(2) This table shows gross charter rates and does not include brokers'
commissions, which are 1.25% of the daily time charter rate.
(3) The Company has granted Torm the option to extend the charter for 24
months at a minimum daily time charter hire rate of $28,500.
(4) Plus any additional income under profit sharing provisions of the
Company's charter agreement.
(5) Plus any additional income under profit sharing provisions of the
charter agreements with D/S Norden A/S. The Company has granted the
charterers the option to extend the charter for 12 months at a minimum
daily time charter hire rate of $24,000.
(6) Plus any additional income under profit sharing arrangements, according
to which charter earnings in excess of $25,500 per day will be divided
equally between Omega Navigation and ST Shipping. When the vessels trade in
ice conditions, the profit sharing between Omega Navigation and ST Shipping
is 65/35% respectively.
(7) Plus any additional income under profit sharing arrangements, according
to which charter earnings in excess of $21,135 per day will be divided
equally between Omega and ST Shipping.
Conference Call and Webcast:
As previously announced, the Company's management will host a conference
call to discuss its first quarter 2008 results on Wednesday 28, 2008 at
10:00 A.M. EDT.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1-866-819-7111 (US Toll Free Dial In),
0800-953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard
International Dial In). Please quote "Omega."
In case of any problem with the above numbers, please dial 1-866-223-0615
(from the US),
0800 694 1503 (from the UK) or + 44 (0) 1452 586 513 (all other callers).
Please quote "Omega."
A telephonic replay of the conference call will be available until June 4,
2008 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#.
Slides and audio webcast: There will also be a live, and then archived,
webcast of the conference call, through Omega Navigation's website
(www.omeganavigation.com) Participants into the live webcast should
register on the website approximately 10 minutes prior to the start of the
webcast.
Omega Navigation Enterprises Inc
Consolidated Statement of Income
(All amounts expressed in thousands of U.S. Dollars)
Three months ended
------------------------
March 31, March 31,
2008 2007
(unaudited) (unaudited)
----------- -----------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 18,859 14,139
Expenses:
Voyage expenses (232) (195)
Vessel operating expenses (3,718) (2,943)
Depreciation and amortization (4,646) (3,522)
Management fees (307) (248)
Options' premium - (100)
General and administrative expenses (1,107) (1,093)
Incentive Compensation (729) (64)
Foreign currency losses (66) (8)
----------- -----------
Operating income 8,054 5,966
----------- -----------
Other income / (expenses)
Interest and finance costs (3,993) (3,823)
Interest income 133 946
Change in fair value of warrants settled
liabilities 20 -
Loss on derivative instruments (1,997) (234)
----------- -----------
Total other income / (expenses), net (5,837) (3,111)
----------- -----------
----------- -----------
INCOME FROM CONTINUING OPERATIONS 2,217 2,855
----------- -----------
DISCONTINUED OPERATIONS
Income/(Loss) from discontinued operations of the
bulk carrier fleet 20 (166)
----------- -----------
INCOME/(LOSS) FROM DISCONTINUED OPERATIONS 20 (166)
----------- -----------
----------- -----------
Net income 2,237 2,689
=========== ===========
Omega Navigation Enterprises Inc
Consolidated Balance Sheet
(All amounts expressed in thousands of U.S. Dollars)
March 31, December 31,
2008 2007
----------- -----------
(unaudited) (unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 10,975 8,893
Accounts receivable, trade 570 179
Inventories 574 501
Prepayments and other 619 848
Restricted cash 74 417
----------- -----------
Total current assets 12,812 10,838
----------- -----------
FIXED ASSETS:
Vessels, net 456,632 461,251
Property and equipment, net 92 103
Advances for vessels' acquisition 45,355 44,869
----------- -----------
Total fixed assets 502,079 506,223
----------- -----------
OTHER NON CURRENT ASSETS:
Deferred charges 330 343
Restricted cash 5,067 5,081
----------- -----------
Total other non current assets 5,397 5,424
----------- -----------
Total assets 520,288 522,485
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt - 781
Accounts payable 1,172 869
Accrued and other current liabilities 1,834 2,740
Deferred revenue 2,235 1,869
Warrants 7,078 -
Derivative liability 3,431 1,151
Dividends payable 74 30
----------- -----------
Total current liabilities 15,824 7,440
----------- -----------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 323,998 322,565
Warrants - 7,097
Derivative liability 144 428
Long Term Dividends payable 68 81
Other Long Term Liabilities 18 -
----------- -----------
Total non-current liabilities 324,228 330,171
----------- -----------
----------- -----------
COMMITMENTS AND CONTINGENCIES: - -
----------- -----------
Stockholders' equity:
Common stock 152 151
Additional paid-in capital 197,776 197,047
Accumulated deficit (17,692) (12,324)
----------- -----------
Total stockholders' equity 180,236 184,874
----------- -----------
Total liabilities and stockholders' equity 520,288 522,485
=========== ===========
Omega Navigation Enterprises Inc
Consolidated Statement of Cash Flows
(All amounts expressed in thousands of U.S. Dollars)
Three months ended
------------------------
March 31, March 31,
2008 2007
----------- -----------
(unaudited) (unaudited)
Cash flows from operating activities
Income from continuing operations 2,217 2,855
Net cash provided by continuing operating
activities 9,371 8,168
Net cash provided by/(used in) discontinued
operating activities - (885)
----------- -----------
Net cash from continuing and discontinued
operating activities 9,371 7,283
----------- -----------
Cash flows from investing activities
Net cash (used in) investing
Activities -- continuing operations (496) (66,199)
Net cash provided by investing
Activities -- discontinued operations - 81,468
----------- -----------
Net cash (used in)/provided by investing
Activities -- continuing and discontinued
operations (496) 15,269
----------- -----------
Cash flows from financing activities
Net cash (used in)/provided by financing
Activities -- continuing operations (6,793) 38,601
Net cash (used in) financing
Activities -- discontinued operations - (38,809)
----------- -----------
Net cash (used in) financing
Activities -- continuing and discontinued
operations (6,793) (208)
----------- -----------
Net increase in cash and cash equivalents 2,082 22,344
Cash and cash equivalents at the beginning of the
period 8,893 3,862
----------- -----------
Cash and cash equivalents at end of period 10,975 26,206
=========== ===========
Omega Navigation Enterprises Inc
Reconciliation of EBITDA (1) to Cash from Operating Activities
(All amounts expressed in thousands of U.S. Dollars)
CONTINUING OPERATIONS Three months ended
------------------------
March 31, March 31,
2008 2007
----------- -----------
Net cash from operating activities 9,371 8,168
Net increase in current assets 236 177
Net increase/(decrease) in current liabilities
excluding bank debt 166 (1,462)
Stock based compensation (729) (64)
Write off of options’ premium - (100)
Change in fair value of warrants settled
liability 20 -
Net interest (income)/expense 3,862 2,837
Amortization of financing costs (206) (67)
EBITDA 12,720 9,489
CONTINUING & DISCONTINUED OPERATIONS Three months ended
------------------------
March 31, March 31,
2008 2007
----------- -----------
Net cash from operating activities 9,371 7,283
Net increase in current assets 236 326
Net increase/(decrease) in current liabilities
excluding bank debt 186 (851)
Stock based compensation (729) (64)
Write off of options' premium - (100)
Change in fair value of warrants settled
liability 20 -
Net interest (income)/expense 3,862 2,966
Amortization of financing costs (206) (108)
EBITDA 12,740 9,452
(1) EBITDA represents net income before interest, taxes, depreciation and
amortization. EBITDA does not represent and should not be considered as an
alternative to net income or cash flow from operations, as determined by US
GAAP and our calculation of EBITDA may not be comparable to that reported
by other companies. EBITDA is included here because it is a basis upon
which we assess our liquidity position because we believe it presents
useful information to investors regarding our ability to service and/or
incur indebtedness.
About Omega Navigation Enterprises, Inc.
Omega Navigation Enterprises, Inc. is an international provider of global
marine transportation services through the ownership and operation of
double hull product tankers. The current fleet includes eight double hull
product tankers with a carrying capacity of 512,358 dwt which are chartered
out under three-year time charters with an average age of less than three
years. The company has also announced the signing of shipbuilding contracts
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
and two additional product tankers with a capacity of 47,000 dwt the first
scheduled for delivery on or about the second quarter 2009 and the second
scheduled for delivery on or about the third quarter 2010. With the
addition of these seven vessels, Omega's fleet will expand to 15 product
tankers with a total deadweight capacity of 791,358 dwt.
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