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: omeganavigation@capitallink.com www.capitallink.com
Omega Navigation Enterprises, Inc. Announces New Time Charter on the Omega King
| Source: Omega Navigation
PIRAEUS, GREECE--(Marketwire - May 26, 2009) - Omega Navigation Enterprises, Inc. (NASDAQ : ONAV ) (SES : ONAV50 ), a provider of global marine transportation services
focusing on product tankers, announced today that it has entered in to a
new time charter agreement on the Omega King for a period of one year with
an option period of one year with Torm A/S (Torm).
Time Charter of the Omega King
Effective May 23, 2009, the Omega King entered into a new one year time
Charter with its current charterer, Torm, with Torm having the option to
extend the charter for an additional year at a higher rate. The vessel
will be chartered for the first year at an average base rate of $16,500 per
day with a profit sharing arrangement between Omega and Torm. That base
rate the second year increases to $20,000 per day with a profit sharing
arrangement with earnings above that base level shared equally between
Omega and Torm.
This charter gives the Company 100% time charter coverage currently. For
the second half of 2009 until mid 2010 the Company currently has 75% time
charter coverage on its current fleet.
George Kassiotis, President and CEO of Omega commented, "We are extremely
pleased to continue our excellent relationship with Torm, who has been
chartering the Omega King since its delivery from the shipyard. Torm is a
valuable partner in the product tanker market and an extremely good
counterparty, having been founded in 1889 and is listed on both the
Copenhagen stock exchange and the NASDAQ. This recent fixture is
expected to generate EBITDA, before any additional income from the profit
sharing arrangement, of approximately $3.9 million in the first year and
$5.1 million in the second year if the option is declared. Even in this
very challenging economic climate and difficult shipping markets, Omega is
coming closer to having its entire fleet chartered out to be better able to
weather these current conditions."
About Omega Navigation Enterprises, Inc.
Omega Navigation Enterprises, Inc. is an international provider of global
marine transportation services through the ownership and operation of nine
double hull product tankers. The current 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). These 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.