Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50)
("Omega Navigation" or the "Company"), a provider of global marine
transportation services focusing on product tankers, announced
today its financial and operational results for the second quarter
and six months ended June 30, 2010.
Second Quarter 2010 Results
For the quarter ended June 30, 2010, Omega Navigation reported
total revenues of $19.0 million and Net Income of $2.4 million, or
$0.15 per basic share, excluding losses on interest rate derivative
instruments, incentive compensation grants expense and a one time
settlement fee for the termination of a purchase agreement.
Including these items, the Company reported Net Loss of $0.9
million or $0.05 per basic share. Adjusted EBITDA for the second
quarter of 2010 was $6.1 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 second quarter of 2010, the same number as in
the second quarter of 2009. In addition, in the second quarter of
2010, the Company has held and continues to hold a 50% interest in
three double hull product / chemical tankers, namely the Omega
Duke, the Megacore Honami and the Megacore Hibiscus, which are
discussed in greater detail under "Recent Developments -- Fleet
Development" below. The Omega Duke is accounted for by the equity
method and is not consolidated in the Company's financial
statements, while the Megacore Honami is reflected in the
consolidated earnings. The results of the Megacore Honami will be
deconsolidated in future quarters. The Omega King entered into a
fixed rate time charter in the second quarter of 2010. Also, the
Omega Queen, the Omega Prince and the Princess have been operating
under floating rate time charters in the second quarter of 2010,
with rates determined based on pools of similar vessels trading in
the spot market. The Panamax vessels averaged $18,552 per vessel
per day and the MR's averaged $16,686 per vessel per day (for each
period net of voyage expenses) for the second quarter of 2010. In
the second quarter of 2009, the Panamax vessels averaged $22,898
per vessel per day and the MR's averaged $19,083 per day per vessel
(for each period net of voyage expenses).
Operating expenses for the Company's MR product tankers averaged
$5,169 per vessel per day in the second quarter of 2010, as
compared to $5,304 per vessel per day in the second quarter of
2009. Operating expenses for the Company's Panamax product tankers
averaged $5,158 per vessel per day in the second quarter of 2010,
as compared to $5,735 per vessel per day in the second quarter of
2009.
Six Months 2010 Results
For the six months ended June 30, 2010, Omega Navigation
reported total revenues of $34.4 million and Net Income of $4.5
million, or $0.28 per basic share excluding a loss on interest rate
derivative instruments, non cash incentive compensation grants
expense and a loss related to the termination of a purchase
agreement. Including these items, Net loss was $0.4 million or
$0.02 per share. Adjusted EBITDA for six months ended June 30, 2010
was $14.4 million. Please see below for a reconciliation of
Adjusted EBITDA to Cash from Operating Activities.
Excluding profit sharing, the Company's Panamax product carriers
earned an average time-charter equivalent rate of $19,807 per
vessel per day during the first six months of 2010, as compared to
$23,692 per vessel per day (in each period net of voyage expenses),
during the first six months of 2009. The Company's Handymax product
tankers earned an average time charter equivalent rate of $16,370
per vessel per day during the first six months of 2010, as compared
to $19,910 per vessel per day (in each period net of voyage
expenses) during the first six months of 2009.
Operating expenses for the Company's MR product tankers averaged
$5,241 per vessel per day in the first six months of 2010, as
compared to $5,298 per vessel per day in the first six months of
2009. Operating expenses for the Company's Panamax product tankers
averaged $5,679 per vessel per day in the first six months of 2010,
as compared to $5,957 per vessel per day in the first six months of
2009.
Recent Developments
Fleet Development
The Company's current fleet includes 12 double hull product
tankers with an aggregate carrying capacity of approximately
680,000 dwt. Eight of the vessels are wholly owned by the Company
and four of the vessels 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
37,000 dwt Handysize double hull chemical / product tankers and
seven Panamax double hull product tankers to be constructed at
Hyundai Mipo Dockyard in South Korea. The two Handysize vessels,
the Megacore Honami and the Megacore Hibiscus, were delivered in
February and May 2010, respectively, to companies owned by Megacore
Shipping Ltd. One LR1 Panamax tanker is expected to be delivered in
October 2010. Four Panamax vessels are scheduled for delivery in
2011 and two Panamax vessels are scheduled for delivery in
2012.
The construction and acquisition of the remaining seven LR1
newbuildings, owned by Megacore Shipping Ltd, that are currently
under construction are 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 which bank debt financing commitments have been
secured, including pre-delivery as well as post delivery
financing.
Moreover, the Company and Glencore International AG (through
wholly-owned subsidiaries) have entered into an equal partnership
joint venture, which on July 8, 2010, took delivery of one
newbuilding 47,000 dwt double hull product/ chemical tanker, the
Alpine Marina (sister ship to the Omega Duke), which was
constructed at the Hyundai Mipo Dockyard in South Korea. The
acquisition of the Alpine Marina was funded with previously secured
bank debt financing and with equity contributions among the
shareholders and will not be consolidated on the Company's balance
sheet. The Alpine Marina is currently operating under 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 and Junior Credit Facilities are non
amortizing until their respective maturity. While both loans will
mature in six months, the Company believes it will reach a
satisfactory outcome prior to the loans' maturity as the Company is
currently in negotiations to extend or restructure the Company's
debt.
As of June 30, 2010, the Company was fully compliant with all
its loan covenants. Also, as of June 30, 2010, the Company's total
debt, including pre-delivery advances for newbuildings, the debt on
the Megacore Honami and other vessels under construction which will
be deconsolidated in future quarters, was $359.1 million, while the
outstanding balance under the Senior and Junior Credit Facilities
was $242.7 million and $38.3 million, respectively.
Fleet Data
Panamax Tankers Handymax Tankers
---------------------- ----------------------
Three months ended Three months ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
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) 546 546 273 182
Available days (2) 546 527 273 182
Operating days (3) 546 521 273 182
Fleet Utilization (4) 100% 99% 100% 100%
Voyage revenues (net of
voyage expenses) (7) 10,129,614 12,067,119 4,555,234 3,473,156
Time charter equivalent
(TCE) rate $/day (5)(7) 18,552 22,898 16,686 19,083
Vessel operating expenses 2,816,105 3,131,227 1,411,077 965,343
Daily vessel operating
expenses $/day(6) 5,158 5,735 5,169 5,304
Six months ended Six months ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
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) 1,086 1,086 488 362
Available days (2) 1,086 1,054 488 362
Operating days (3) 1,086 1,038 488 361
Fleet Utilization (4) 100% 98% 100% 100%
Voyage revenues (net of
voyage expenses) (7) 21,510,116 24,971,422 7,988,491 7,207,473
Time charter equivalent
(TCE) rate $/day (5)(7) 19,807 23,692 16,370 19,910
Vessel operating expenses 6,167,390 6,469,399 2,557,626 1,917,794
Daily vessel operating
expenses $/day(6) 5,679 5,957 5,241 5,298
(1) Ownership days are the aggregate number of days in a period during
which each vessel in the Company's fleet has been owned by the Company.
Ownership days are an indicator of the size of the Company's fleet over
a period and affect both the amount of revenues and the amount of
expenses that the Company records during a period.
(2) Available days are the number of the Company's ownership days less the
aggregate number of days that the Company's 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 the Company's 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) The Company calculates fleet utilization by dividing the number of the
Company's fleet's operating days during a period by the number of its
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. The six month period ended
June 30, 2010 excludes an amount of $0.3 million relating to the
predelivery expenses of Megacore Honami.
(7) The three month period ended June 30, 2009, excludes $0.7 million of
profit sharing revenue related to profit sharing on charters of the
vessels, the Omega Lady Sarah, the Omega Lady Miriam, the Omega
Emmanuel and the Omega Theodore. The six month period ended June 30,
2009 excludes $2.4 million of profit sharing revenue related to profit
sharing on charters of the vessels the Omega Lady Sarah, the Omega Lady
Miriam, the Omega Emmanuel and the Omega Theodore.
Omega Navigation Enterprises Inc
Consolidated Statements of Income/(Loss)
(All amounts expressed in thousands of U.S. Dollars)
Three months ended Six months ended
------------------------ ------------------------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
CONTINUING OPERATIONS (unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Voyage revenue 18,940 16,711 34,445 35,388
Revenue from related
parties 94 - 119 -
Expenses:
Voyage expenses 4,255 469 4,947 769
Vessel operating
expenses 4,025 4,097 8,900 8,388
Depreciation and
amortization 5,227 4,787 10,142 9,476
Management fees 311 349 692 651
General and
administrative
expenses (including
non cash
compensation expense
of $118, $260 for
the quarter ended
June 30, 2010 and
2009 respectively
and $291 and
$910 for the six
months ended June
30, 2010 and 2009
respectively) 1,412 1,595 2,844 3,333
Foreign currency
(gains)/losses (80) 80 (104) 79
----------- ----------- ----------- -----------
Income from vessels
operation 3,884 5,334 7,143 12,692
----------- ----------- ----------- -----------
Loss on Termination
of purchase
agreements (3,000) (3,000) (3,000) (3,000)
Income/(Loss) from
Joint Venture
companies (7) (479) 126 (479)
----------- ----------- ----------- -----------
Operating
Income/(Expense) 877 1,855 4,269 9,213
Other income (expenses)
Interest and finance
costs (1,569) (2,123) (3,197) (3,915)
Interest income 14 35 34 80
Change in fair value
of warrants - - - 1,127
Gain/(Loss) on
derivative
instruments (182) (737) (1,500) (1,808)
----------- ----------- ----------- -----------
Total other income
/(expenses), net (1,737) (2,825) (4,663) (4,516)
----------- ----------- ----------- -----------
INCOME/(LOSS) FROM
CONTINUING OPERATIONS (860) (970) (394) 4,697
DISCONTINUED OPERATIONS
Income/(Loss) from
discontinued
operations of the bulk
carrier fleet - - - -
----------- ----------- ----------- -----------
INCOME/(Loss) FROM
DISCONTINUED
OPERATIONS - - - -
----------- ----------- ----------- -----------
Net income/(Loss) (860) (970) (394) 4,697
=========== =========== =========== ===========
Omega Navigation Enterprises Inc
Consolidated Balance Sheets
(All amounts expressed in thousands of US dollars)
June 30,
2010 December 31,
(unaudited) 2009
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 907 15,564
Accounts receivable, trade 2,198 1,720
Inventories 819 614
Prepayments and other 1,736 1,419
Due from related parties - 90
Restricted cash 5,543 5,807
Derivative asset 6 -
------------ ------------
Total current assets 11,209 25,214
------------ ------------
FIXED ASSETS:
Vessels, net 459,261 423,762
Property and equipment, net 91 54
Advances for vessels' under construction and
acquisition 56,943 70,620
------------ ------------
Total fixed assets 516,295 494,436
------------ ------------
OTHER NON CURRENT ASSETS:
Deferred charges 1,653 2,110
Restricted cash 32 105
Investments in Joint Ventures 11,163 5,347
Intangible assets 267 221
------------ ------------
Total other non current assets 13,115 7,783
------------ ------------
============ ============
Total assets 540,619 527,433
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 285,531 343,252
Accounts payable 3,535 2,401
Accrued and other current liabilities 3,802 3,211
Deferred revenue 49 594
Derivative liability 6,504 9,909
Dividends payable 73 166
Due to related parties 399 -
------------ ------------
Total current liabilities 299,893 359,533
------------ ------------
NON-CURRENT LIABILITIES:
Long term debt, net of current portion 73,001 -
Dividends payable 32 105
Other long term liabilities 1 1
------------ ------------
Total non-current liabilities 73,034 106
------------ ------------
------------ ------------
COMMITMENTS AND CONTINGENCIES: - -
------------ ------------
Stockholders' equity:
Common stock 159 158
Additional paid-in capital 201,910 201,618
Accumulated deficit (34,377) (33,982)
------------ ------------
Total stockholders' equity 167,692 167,794
------------ ------------
------------ ------------
Total liabilities and stockholders' equity 540,619 527,433
============ ============
Omega Navigation Enterprises Inc
Consolidated Statements of Cash Flows
(All amounts expressed in thousands of U.S. Dollars)
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Cash flows from
operating activities
Net income/(loss) from
continuing operations (860) (970) (394) 4,697
Net cash provided by
continuing operating
activities 4,445 2,152 7,633 12,584
----------- ----------- ----------- -----------
Net cash provided by
continuing and
discontinued
operating activities 4,445 2,152 7,633 12,584
----------- ----------- ----------- -----------
Cash flows (used
in)/provided by
investing activities
Net cash (used
in)/provided by
investing
activities-continuing
operations (8,936) 163 (37,653) (47)
----------- ----------- ----------- -----------
Net cash (used
in)/provided by
investing activities-
continuing and
discontinued
operations (8,936) 163 (37,653) (47)
----------- ----------- ----------- -----------
Cash flows provided
by /(used in)
financing activities
Net cash provided
by/(used in)
financing
activities-continuing
operations 2,995 (5,804) 15,363 (13,544)
----------- ----------- ----------- -----------
Net cash provided
by/(used in)
financing
activities-continuing
and discontinued
operations 2,995 (5,804) 15,363 (13,544)
----------- ----------- ----------- -----------
Net (decrease in cash
and cash equivalents
(1,496) (3,489) (14,657) (1,007)
Cash and cash
equivalents at the
beginning of the
period 2,403 19,293 15,564 16,811
----------- ----------- ----------- -----------
Cash and cash
equivalents at end of
period 907 15,804 907 15,804
=========== =========== =========== ===========
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 Six months ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Net cash from operating
activities 4,445 2,152 7,633 12,584
Net increase/(decrease)
in current assets and
non current assets (1,572) 3,093 510 3,367
Net (increase)/decrease
in current liabilities
excluding bank debt (265) (2,911) (1,014) (4,885)
Net interest expense 3,966 4,080 8,074 7,490
Warrants settled
liabilities - - - 1,127
Stock based
compensation expense (118) (260) (291) (910)
Payments for
drydocking costs - 823 - 1,528
Amortization of
financing costs (352) (336) (501) (484)
----------- ----------- ----------- -----------
Adjusted EBITDA 6,104 6,641 14,411 19,817
=========== =========== =========== ===========
(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 the Company's 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 the Company assesses
its liquidity position because the Company believes Adjusted EBITDA
presents useful information to investors regarding the Company's
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.
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. (MM) (NASDAQ:ONAV)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Omega Navigation Enterprises, Inc. (MM) (NASDAQ:ONAV)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024