Omega Navigation Enterprises, Inc. Reports First Quarter 2009 Results

PIRAEUS, GREECE, Jun 01 (MARKET WIRE) --
Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SES: ONAV50), a
provider of global marine transportation services focusing on product
tankers, announced today its financial and operational results for the
first quarter ended March 31, 2009.

First Quarter 2009 Results

For the quarter ended March 31, 2009, Omega Navigation reported total
revenues of $18.7 million and Net Income of $6.3 million, or $0.41 per
basic share, excluding a loss on its interest rate derivative instruments,
a gain on warrants revaluation and incentive compensation grants expense.
Including these items the Company reported Net Income of $5.7 million or
$0.37 per basic share. EBITDA for the first quarter of 2009 was $13.2
million. Please see below for a reconciliation of EBITDA to Cash from
Operating Activities.

Operating Income included revenue of $1.7 million attributable to profit
sharing on charters of the Omega Lady Miriam and Omega Theodore generated
primarily in the fourth quarter of 2008.

The Company owned and operated an average of eight vessels, all product
carriers, during the first quarter of 2009, the same number as in the
first quarter of 2008. The Omega Lady Sarah completed its scheduled
drydock on February 16, 2009 and after 13 days of scheduled out of
service time went back on hire to ST Shipping at that time. Also, the
Omega Theodore was involved in a collision (no injuries incurred and no
pollution) and was offhire for 9 days in this quarter. Much of the
offhire time and expense related to the damage are expected to be
recovered in subsequent quarters through insurance and other recovery
proceeds. Excluding profit sharing, the Panamax product carriers in our
fleet earned an average time-charter equivalent rate of $24,486 per day
per vessel during the first quarter of 2009, versus $25,076 per day per
vessel during the first quarter of 2008. The Handymax product tankers in
our fleet earned an average time charter equivalent rate of $20,746 per
vessel per day during the first quarter of 2009, versus $20,759 per day
per vessel during the first quarter of 2008.

Since the inception of our product tankers' charters through the end of
the first quarter of 2009, the profit sharing element of those charters
that we have or are entitled to receive amounted to approximately $13.9
million. The Company has already received $12.4 million of cash and has
recorded profit share revenues of $12.5 million, and currently expects to
record an additional $1.4 million in quarters to follow for voyages
performed through the first quarter of 2009. The table below presents the
amount of profit share revenues recorded per quarter.

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

Total $ 12.5 million

Operating expenses for our MR product tankers averaged $5,248 per day
per vessel in the first quarter of 2009, versus $4,593 per day per vessel
in the first quarter of 2008. Our Panamax product tankers averaged
operating expenses of $6,180 per day per vessel in the first quarter of
2009, versus $5,278 per day per vessel in the first quarter of 2008. The
increase of the daily operating expenses of the vessels relates mainly
due to the maintenance expenses for the Omega Lady Sarah related to her
scheduled drydock in the first quarter of 2009 and insurance deductible
incurred related to the collision on the Omega Theodore.

Loan Covenant Compliance

As of March 31, 2009, the Company was fully compliant with all its loan
covenants.

Recent Fleet Developments

With the recent announcement of the delivery of the Omega Duke to a joint
venture in which Omega Navigation has a 50% shareholding, Omega's current
owned and 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 the additional announcements that the Omega
Queen and Omega King have been time chartered out, eight out of nine
product tankers are currently employed under time charters. The recent
time charters are to established counterparties, ST Shipping and Torm A/S,
respectively. Currently all 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 between the summer
of 2009 and mid 2010 time charter coverage of 78%, inclusive of the joint
venture. The Company is currently examining various chartering
alternatives for the two vessels whose current time charters expire later
this year.

Management Commentary:

George Kassiotis, President and Chief Executive Officer of Omega
Navigation, commented: "We are pleased to have concluded our twelfth
consecutive quarter with strong operating income, since our IPO in April
2006. We attribute our strong operating income 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 eight of our nine product tankers have profit
sharing has enabled us to participate in any upside of the charter market
and thereby maximize our profitability and the return for our
shareholders.

"We continue to return strong operating results even in this most
challenging economic environment. With oil prices significantly below the
highs we saw this past summer, we are cautiously optimistic that demand
for petroleum products in the short term will rebound and we continue to
be bullish about our sector going forward. 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. Rates have improved somewhat in
the second quarter from low levels seen in the first quarter and our
profit sharing agreements have continued to generate revenues above the
base rates.

"We also believe that we continue to have strong relationships with our
commercial lenders, which are large European and Asian banks that 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, 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."

Gregory McGrath, Chief Financial Officer of Omega Navigation, commented,
"As of March 31, 2009, the Company had a ratio of net debt to book
capitalization of about 64% with respect to the current eight vessel fleet
which we believe are modest ratios for industry standards given our strong
time charter coverage and the young age and quality of our fleet. As of
March 31, 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
-------------------------- --------------------------
March 31, March 31, March 31, March 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) 540 546 180 182
Available days (2) 527 546 180 182
Operating days (3) 517 546 180 182
Fleet Utilization (4) 98% 100% 100% 100%
Voyage revenues
(net of voyage
expenses) (7) $ 12,904,303 $ 13,691,500 $ 3,734,317 $ 3,778,216
Time charter
equivalent (TCE)
rate $/day (5)(7) 24,486 25,076 20,746 20,759
Vessel operating
expenses (net of
pre-delivery
expenses) $ 3,336,941 $ 2,882,029 $ 944,559 $ 835,991
Daily vessel
operating expenses
$/day(6) 6,180 5,278 5,248 4,593
------------ ------------ ------------ ------------

(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 March 31, 2009, excludes $ 1.7 million of
profit sharing revenue booked in the first quarter 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:*

Sister Dead- Latest
Vessel Ship Year weight Delivery Daily Hire Re
(1) Built (dwt) Type date rate (2) delivery
---- ----- ------- ---------- ------- ---------- -- --------
CURRENT FLEET
Panamax product
tankers
Evergreen
subject to
Base rate termination
plus profit notice of
Omega Queen A 2004 74,999 LR1 May-09 share 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 June-09 $ 25,500 (4) Q3-12

Omega Lady LR1-Ice $ 24,000/
Miriam C 2003 71,500 Class 1C Aug-06 $ 25,500 (5) Q3-12

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
MR1-Ice
Omega Prince B 2006 36,680 Class 1A

Omega MR1-Ice
Princess B 2006 36,680 Class 1A Jul-06 $ 21,000 (7) Jun-09
TOTAL (DWT): 512,358

Vessel owned through 50% controlled joint venture
Base rate
plus profit
Omega Duke F 2009 47,000 MR2 Apr-09 share Apr-14

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) In 3rd quarter 2009 the Omega Lady Miriam will enter into a new
charter with ST Shipping at a rate of $25,500. 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) Plus any additional income under profit sharing provisions of the
charter agreement with D/S Norden A/S.

(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 June 2, 2009 at 10:00am EDT to discuss its first 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 June 9,
2009 by dialling 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 ended
---------------------------
March 31, March 31,
2009 2008
(unaudited) (unaudited)
------------ ------------
CONTINUING OPERATIONS
Revenues:
Voyage revenue 18,678 18,859

Expenses:
Voyage expenses (300) (232)
Vessel operating expenses (4,291) (3,718)
Depreciation and amortization (4,690) (4,646)
Management fees (302) (307)
General and administrative expenses
(including non cash compensation expense of
$729, and $649 for the quarter ended March
31, 2008 and 2009 respectively ) (1,737) (1,836)
Foreign currency (gains) / losses 1 (66)
------------ ------------
Operating income 7,359 8,054
------------ ------------

Other income (expenses)
Interest and finance costs (1,793) (3,993)
Interest income 45 133
Change in fair value of warrants 1,127 20
Loss on derivative instruments (1,071) (1,997)
------------ ------------
Total other income /(expenses), net (1,692) (5,837)
------------ ------------

------------ ------------
INCOME FROM CONTINUING OPERATIONS 5,667 2,217
------------ ------------

DISCONTINUED OPERATIONS
Income/(Loss) from discontinued operations of
the bulk carrier fleet - 20

------------ ------------
INCOME/(LOSS) FROM DISCONTINUED OPERATIONS - 20
------------ ------------

------------ ------------
Net income 5,667 2,237
============ ============

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

March 31, December 31,
2009 2008
(unaudited)
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 19,293 16,811
Accounts receivable, trade 241 596
Inventories 718 602
Prepayments and other 1,010 506
Restricted cash 291 123
------------ ------------
Total current assets 21,553 18,638
------------ ------------

FIXED ASSETS:
Vessels, net 437,868 442,485
Property and equipment, net 86 64
Advances for vessels under construction
and acquisition 57,835 57,672
------------ ------------
Total fixed assets 495,789 500,221
------------ ------------

OTHER NON-CURRENT ASSETS:
Deferred charges 1,805 1,154
Restricted cash 5,109 5,174
Other non-current assets 120 109
------------ ------------
Total other non-current assets 7,034 6,437
------------ ------------

------------ ------------
Total assets 524,376 525,296
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt 663 138
Accounts payable 1,388 1,804
Accrued and other current liabilities 3,933 1,815
Deferred revenue 1,607 1,368
Warrants 1,000 3,941
Derivative liability 7,816 5,839
Dividends payable 184 87
------------ ------------
Total current liabilities 16,591 14,992
------------ ------------

NON-CURRENT LIABILITIES:
Long term debt, net of current portion 334,846 335,112
Derivative liability 5,842 8,409
Dividends payable 109 174
Other long term liabilities 7 5
------------ ------------
Total non-current liabilities 340,804 343,700
------------ ------------

COMMITMENTS AND CONTINGENCIES: -

Stockholders' equity:
Common stock 158 151
Additional paid-in capital 200,860 198,402
Accumulated deficit (34,037) (31,949)
------------ ------------
Total stockholders' equity 166,981 166,604
------------ ------------

------------ ------------
Total liabilities and stockholders' equity 524,376 525,296
============ ============

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

Three months ended
---------------------------
March 31, March 31,
2009 2008
(unaudited) (unaudited)
------------ ------------
Cash flows from operating activities
Net income from continuing operations 5,667 2,217

Net cash provided by continuing operating
activities 10,432 9,371
------------ ------------
Net cash provided by continuing and
discontinued operating activities 10,432 9,371
------------ ------------

Cash flows used in investing activities
Net cash used in investing
activities-continuing operations (211) (496)
------------ ------------
Net cash used in investing activities-
continuing and discontinued operations (211) (496)
------------ ------------

Cash flows used in financing activities
Net cash (used in)/provided by financing
activities-continuing operations (7,739) (6,793)
------------ ------------
Net cash used in financing
activities-continuing and discontinued
operations (7,739) (6,793)
------------ ------------

Net increase in cash and cash equivalents 2,482 2,082
Cash and cash equivalents at the beginning of
the period 16,811 8,893
------------ ------------
Cash and cash equivalents at end of period 19,293 10,975
============ ============

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,
2009 2008
(unaudited) (unaudited)
------------ ------------

Net cash from operating activities 10,432 9,371
Net increase in current assets and
non-current assets 276 236
Net (increase)/decrease in current
liabilities excluding bank debt (1,975) 166
Net interest (income)/expense 3,409 3,862
Warrants settled liability 1,127 20
Stock based compensation expense (649) (729)
Payments for drydocking costs 704 -
Amortization of financing costs (148) (206)
------------ ------------
EBITDA 13,176 12,720
============ ============

CONTINUING & DISCONTINUED OPERATIONS Three months ended
---------------------------
March 31, March 31,
2009 2008
(unaudited) (unaudited)
------------ ------------

Net cash from operating activities 10,432 9,371
Net increase in current assets and
non-current assets 276 236
Net (increase)/decrease in current
liabilities excluding bank debt (1,975) 186
Net interest (income)/expense 3,409 3,862
Warrants settled liability 1,127 20
Stock based compensation expense (649) (729)
Payments for drydocking costs 704 -
Amortization of financing costs (148) (206)
------------ ------------
EBITDA 13,176 12,740
============ ============

(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 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). Eight of 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.

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

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