B+H Ocean Carriers, Ltd. Announces Losses on Sales of Vessels and Unaudited Results for Third Quarter and Nine Months Ended September 30, 2009

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NEW YORK--(Business Wire)--
B+H Ocean Carriers Ltd. (NYSE AMEX:BHO) Today reported that for the three months
ended September 30, 2009, it incurred charges against earnings totaling $35.0
million from the sale of five non-core vessels either sold in that period or
held out for sale or sold in October 2009. The Company added that it was
considering the sale of one additional non-strategic vessel and that it
estimated that at present fair market value levels such sale, if concluded,
would generate a charge against earnings of approximately $19 million.

The Company today reported net loss of $36.9 million or $6.65 per share basic
and diluted, for the three months ended September 30, 2009 as compared to a net
income of $8.8 million, or $1.28 per share basic and diluted, for the three
months ended September 30, 2008. EBITDA for the three months ended September 30,
2009 was $5.8 million as compared to $10.6 million for the comparable period of
2008. Basic earnings per share calculations are based on weighted average shares
outstanding of 5,555,426 and 6,853,826 respectively, for the three months ended
September 30, 2009 and 2008. There were no dilutive securities at September 30,
2009.

The net loss of $36.9 million for the three months ended September 2009 as
compared with the net income of $8.8 million in the comparable period of 2008 is
predominantly due to a $9.8 million loss on sale of three MR product tankers and
total impairment charges of $25.2 million on one of the Company`s bulk carriers
and the last remaining MR tanker in the third quarter of 2009 versus an
unrealized gain of $13.2 million on the fair value of put options purchased to
hedge charter rates and reduced by an impairment charge of $5.9 million in the
comparable 2008 period.

The Company reported net loss of $41.5 million or $7.47 per share basic and
diluted, for the nine months ended September 30, 2009 as compared to net income
of $14.7 million or $2.15 per share basic and diluted, for the nine months ended
September 30, 2008. EBITDA for the nine months ended September 30, 2009 was
$16.9 million as compared to $53.2 million for the comparable period of 2008.
Basic earnings per share calculations are based on weighted average shares
outstanding of 5,555,426 and 6,856,871, respectively, at September 30, 2009 and
December 31, 2008. There were no dilutive securities at September 30, 2009.

The net loss of $41.5 million for the nine months ended September 2009 as
compared with net income of $14.7 million in the comparable 2008 period is
primarily due to a $9.8 million loss on sale of three product tankers and total
impairment charges of $25.2 million on one of the Company`s bulk carriers and
the last remaining MR tanker in third quarter of 2009 versus a gain on sale of
vessels of $13.3 million, an impairment charge of $5.9 million and an unrealized
gain of $8.5 million in the fair value of put options purchased to hedge charter
rates in the same 2008 period. In addition, Time Charter Equivalent revenue
decreased by $10.9 million in the nine months ended September 30, 2009 as
compared with the comparable period of 2008.

Summary Operating Data (unaudited)

Nine Months ended September 30, Three Months ended September 30,

2009 2008 2009 2008
Revenues:
TCE revenue $ 49,377,321 $ 60,250,175 $ 15,488,074 $ 21,812,876
Other revenue 28,777 529,672 25,532 303,164
Total revenues 49,406,098 60,779,847 15,513,606 22,116,040

Operating expenses:
Vessel operating expenses, drydocking and survey costs 28,607,980 30,766,706 8,339,972 10,463,046

Total ship days 3,174 3,649 1,105.32 1,196.00
Total on hire days 2,912 3,107 922.47 1,051.51
Total off hire days 263 541 182.85 144.49

Time charter equivalent 16,959 19,390 16,790 20,744
Vessel operating expenses ( daily) $ 9,012 $ 8,432 $ 7,545 $ 8,748

Nine months ended September 30, 2009 (unaudited) versus September 30, 2008
(unaudited)

Net Voyage Revenues

Net voyage revenues (voyage revenues minus voyage expenses) decreased by $10.9
million to $49.4 million for the nine-month period ended September 30, 2009, as
compared to $60.3 million for the nine-month period ended September 30, 2008.
The decrease is mainly attributable to the substantially lower freight market
rates for the product tankers and bulk carriers during the first nine months of
2009 as compared to the first nine months of 2008. The Company`s OBO fleet and
M/T Sagamore are fully fixed for the remainder of 2009 through various dates in
2011 and 2012 at profitable levels.

Vessel operating expenses

Vessel operating expenses decreased $2.2 million or 7% for the nine month period
ended September 30, 2009 compare to the same period of 2008. The decrease is
mainly due to ownership of fewer vessels during the period.

Loss on sale of vessels and impairment charge

The Company reported loss on sale of vessels of $9.8 million for the nine-month
period ended September 30, 2009 compared to an aggregate gain on sale of vessels
of $13.3 million reduced by an impairment charge of $5.9 million for the same
period ended September 30, 2008. During the third quarter of 2009, the Company
sold three MR tankers.

On October 29, 2009, the Company completed the sale of one of its two bulk
carriers for $10.2 million. As a result of this sale, the vessel is classified
as held for sale at September 30, 2009 and an impairment charge of $23.0 million
is reflected in the Consolidated Statements of Income for the third 2009
quarter. The fourth MR is held for sale at September 30, 2009 and an estimated
impairment charge of $ 2.2 million is also reflected in Consolidated Statements
of Income in the third quarter 2009.

Equity in income of Nordan OBO II

The Company received a dividend amounting to $3.5 million from Nordan OBO 2 Inc
during the second quarter of 2009. BHO owns 50% of Nordan OBO 2 Inc.

Three months ended September 30, 2009 (unaudited) versus September 30, 2008
(unaudited)

Net Voyage Revenues

Net voyage revenues (voyage revenues minus voyage expenses) decreased by $6.3
million to $15.5 million for the three-month period ended September 30, 2009, as
compared to $21.8 million for the three-month period ended September 30, 2008.
The decrease is mainly attributable to the substantially lower freight market
for the product tankers and bulk carriers during the third quarter of 2009 as
compared to the third quarter of 2008.

Vessel operating expenses

Vessel operating expenses decreased $2.1 million or 20% from the three month
period ended September 30, 2009 compare to the same period of 2008. The decrease
is mainly due to ownership of fewer vessels during the period.

Recent Developments

During the third quarter of 2009, the Company decided strategically that all its
wet and dry vessels not covered by profitable period time charters should be
sold, due to the their negative effect on the Company`s cash flow. The Company
believes it is taking the necessary steps to eliminate loss making operational
assets of the Company.

Three of Company`s four 25-year old product tankers were sold in August and
September 2009 and a $9.8 million loss on the sale was reflected in the third
quarter of 2009. The fourth of the product tankers, M/T Aquidneck is expected to
be sold during the fourth quarter 2009. The Company prepared an undiscounted
cash flow analysis for the M/T Aquidneck and determined that the carrying value
of the vessel will not be recoverable and an estimated $2.2 million impairment
charge was recorded in the third quarter 2009.

One of the Company`s two bulk carriers was sold in October 2009 for $10.2
million and an impairment charge of $23.0 million is reflected in the third
quarter of 2009. The second bulk carrier is under consideration for sale, which
could result in a further impairment charge of approximately $19 million.
Earnings relating to operations of the bulk carriers were adversely affected by
the bankruptcy of charterers during 2008.

After the sale of these vessels, the Company looks forward to a return to
satisfactory levels of EBITDA in 2010 from its remaining six vessels and from
its new Accommodation Field Development Vessel, which is due for delivery in the
second quarter of 2010.

Following the sale of the bulk carrier in October 2009, the $26.7 million term
loan facility of Cliaship Holdings Ltd, a wholly-owned subsidiary, which was the
subject of a breach of the EBITDA/Fixed Charges ratio covenant at June 30, 2009,
was repaid in full.

With respect to the Company`s $34 million term loan facility, Boss Tankers Ltd,
a wholly-owned subsidiary, was in breach of the EBITDA/Fixed Charges ratio and
the Minimum Value Ratio covenants at June 30, 2009. With the consent of the
lender, it sold three of its four product tankers held as collateral during the
third quarter, which resulted in a loss of $9.8 million in the third quarter
ended September 30, 2009, and expects to sell the fourth vessel during the
fourth quarter of 2009. Following the sale of the four vessels, it is expected
there will be a remaining loan balance of approximately $5 million. The Company
is in negotiations with the lender to revise the terms of this loan.

With respect to the Company`s $202 million reducing revolving credit facility,
OBO Holdings Ltd, a wholly-owned subsidiary, was in breach of the EBITDA/Fixed
Charges ratio covenant at June 30, 2009. The Company, on behalf of OBO Holdings
Ltd, is in negotiations with its lenders to revise the terms of this loan.

With respect to the Company`s $8,000,000 term loan facility, Seapowet Trading
Ltd., a wholly-owned subsidiary, was in breach of the EBITDA/Fixed Charges ratio
covenant at June 30, 2009. The Company, on behalf of Seapowet Trading Ltd, is in
negotiations with the lender to revise the covenants of this loan.

With respect to the $27,300,000 term loan, Sakonnet Shipping Ltd., a
wholly-owned subsidiary, was in breach of the EBITDA/Fixed Charges ratio
covenant at June 30, 2009. The lender has conditionally agreed to waive this
breach.

Financial Statements
Consolidated Balance Sheets

Unaudited Audited
ASSETS September 30, 2009 December 31, 2008
CURRENT ASSETS:
Cash and cash equivalents 5,717,689 30,483,501
Marketable securities 233,779 233,779
Trade accounts receivable, less allowance for doubtful accounts of $253,000 at September 30, 2009 and December 31, 2008 3,480,021 2,534,775
Vessel held for sale 10,185,000 17,735,000
Inventories 1,048,350 2,828,070
Prepaid expenses and other current assets 949,015 3,486,587
Total current assets 21,613,854 57,301,712

Vessels, at cost:
Vessels 280,898,014 358,800,247
Less - Accumulated depreciation (66,684,196) (76,596,657)
214,213,818 282,203,590

Investment in Nordan OBO II Ltd 9,706,282 12,425,182
Other assets 2,070,135 2,858,860

Total assets $ 247,604,089 $ 354,789,344

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable 10,560,976 19,800,732
Accrued liabilities 2,464,757 5,611,280
Accrued interest 641,217 510,754
Current portion of mortgage payable and unsecured debt 110,928,454 160,291,230
Floating rate bonds payables 13,500,000 15,500,000
Deferred income 3,708,904 6,818,299
Other liabilities 66,896 109,523
Unsecured loan 1,250,000 -
Total current liabilities 143,121,204 208,641,818

Fair value of derivative liability 3,772,626 4,982,914

SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 20,000,000 shares authorized; - -
no shares issued and outstanding
Common stock, $0.01 par value; 30,000,000 shares authorized;
7,557,268 shares issued, 5,555,426 shares outstanding as of
September 30, 2009 and December 31, 2008 75,572 75,572
Paid-in capital 93,863,095 93,863,095
Retained earnings 25,066,591 66,564,545
Other Comprehensive income (2,183,198) (3,226,799)
Treasury stock (16,111,801) (16,111,801)
Total shareholders' equity 100,710,259 141,164,612
Total liabilities and shareholders' equity $ 247,604,089 $ 354,789,344

Unaudited Consolidated Income Statements

For the nine For the nine For the three For the three
months ended months ended months ended months ended
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008
Revenues:
Voyage, time and bareboat charter revenues $ 62,103,239 85,333,408 19,498,019 32,632,364
Other revenue 28,777 529,672 25,532 303,164
Total revenues 62,132,016 85,863,080 19,523,551 32,935,528

Operating expenses:
Voyage expenses 12,725,918 25,083,233 4,009,945 10,819,488
Vessel operating expenses, drydocking and survey costs 28,607,980 30,766,706 8,339,972 10,463,046
Vessel depreciation 13,148,749 15,476,061 4,210,948 5,929,624
Loss (gain) on sale of vessel 9,779,568 (13,262,590 ) 9,779,568 -
Charge for vessel impairment 25,245,440 5,853,447 25,245,440 5,673,447
Amortization of deferred charges 6,904,446 3,591,079 1,887,487 1,085,504
General and administrative:
Management fees to related party 849,716 905,104 274,248 304,977
Consulting and professional fees, and other expenses 3,069,934 3,454,757 1,063,352 1,008,797
Total operating expenses 100,331,751 71,867,797 54,810,960 35,284,883

(Loss) income from vessel operations (38,199,735 ) 13,995,283 (35,287,409 ) (2,349,355 )

Other income (expense):
Equity in income of Nordan OBO II 781,101 1,017,864 470,527 379,961
Interest expense (5,688,927 ) (8,993,862 ) (2,057,011 ) (2,569,487 )
Interest income 18,032 1,052,255 1,435 233,835
(Loss) gain on trading marketable securities 63,205 (306,216 ) (57,145 ) (24,270 )
Loss on value of put option contracts - 8,519,699 - 13,182,314
Gain on foreign currency hedging transactions - (336,427 ) - (162,931 )
Settlement of foreign currency hedging transactions - 253,276 - 379
(Loss) gain on fair value of interest rate swap 109,870 (566,763 ) - (24,168 )
Gain on debt extinguishment 1,418,500
Other income - 93,058 - 93,058
Total other expenses, net (3,298,219 ) 732,884 (1,642,194 ) 11,108,691

Net income (loss) $ (41,497,954 ) $ 14,728,167 $ (36,929,603 ) $ 8,759,336

Basic earnings (loss) per common share $ (7.47 ) $ 2.15 $ (6.65 ) $ 1.28
$ (7.47 ) $ 2.15 $ (6.65 ) $ 1.28
Diluted earnings (loss) per common share

Weighted average number of common shares outstanding: 5,555,426 6,856,871 5,555,426 6,853,826
Diluted 5,555,426 6,856,871 5,555,426 6,853,826

EBITDA $ 16,896,500 $ 53,230,715 $ 5,837,469 $ 10,573,055

Unaudited Consolidated Statement of Cash Flows

For the nine For the nine
months ended months ended
September 30, 2009 September 30, 2008

CASH FLOWS FROM OPERATING ACTIVITIES:
Net (Loss) income $ (41,497,954 ) $ 14,728,167
Adjustments to reconcile net income to net cash provided by operating activities:
Vessel depreciation 13,148,749 15,476,061
Gain (loss) on sale of vessel 9,779,568 (13,262,590 )
Charge for vessel impairment 25,245,440 5,853,447
Amortization of deferred charges 6,904,446 3,591,079
(Gain) loss on fair value of marketable securities (63,205 ) 190,948
(Gain) on fair value of put option contracts - (8,519,699 )
Loss on fair value of foreign currency exchange contracts - 336,427
(Gain) loss on fair value of interest rate swaps (109,870 ) 566,763
Gain on debt extinguishment (1,418,500 ) -

Changes in assets and liabilities:
(Increase) decrease in trade accounts receivable (945,246 ) 2,501,155
Decrease (increase) in inventories 1,779,720 (867,989 )
Decrease in prepaid expenses and other assets 2,537,572 175,674
(Decrease) in accounts payable (9,239,756 ) (31,538,791 )
(Decreased) Increase in accrued liabilities (3,146,523 ) 4,694,916
Increase (decrease) in accrued interest 130,463 (416,385 )
(Decrease) in deferred income (3,109,395 ) (592,012 )
(Decrease) in other liabilities (42,627 ) (90,748 )
Payments for special surveys (3,423,905 ) (6,620,492 )
Total adjustments 38,026,931 (28,522,236 )
Net cash used by operating activities (3,471,023 ) (13,794,069 )

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of vessel 29,693,993 38,116,601
Purchase and investment in vessels (4,656,899 ) (6,163,982 )
Investment in vessel conversions (335,158 ) (16,849,315 )
Investment in Nordan OBO II (781,101 ) (1,017,864 )
Dividend received from Nordan OBO II 3,500,000 1,500,000
Redemption of marketable equity securities, net - 641,764
Net cash provided in investing activities 27,420,835 16,227,204

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for debt issuance costs (21,348 ) (594,999 )
Mortgage proceeds - 30,000,000
Proceed from unsecured loan 1,250,000 -
Purchase of debt securities (581,500 ) -
Issuance of treasury shares - (284,349 )
Payments of long-term debt (49,362,776 ) (45,831,456 )
Net cash used in financing activities (48,715,624 ) (16,710,804 )

Net decrease in cash and cash equivalents (24,765,812 ) (14,277,669 )
Cash and cash equivalents, beginning of period 30,483,501 61,672,953
Cash and cash equivalents, end of period $ 5,717,689 $ 47,395,284

About B+H Ocean Carriers Ltd.

The Company was organized as a corporation under Liberian law on April 28, 1988
to engage in the business of acquiring, investing in, owning, operating and
selling vessels for dry bulk and liquid cargo transportation. As of November 1,
2009, the Company owned and operated one dry bulkcarrier, one medium-range
product/chemical tanker, one Panamax product tanker and five ore/bulk/oil
combination carriers ("OBOs"). The Company also owns a 50% interest in a company
which is the disponent owner of a 1992-built 75,000 DWT Combination Carrier,
effected through a lease structure. Each vessel accounts for a significant
portion of the Company`s revenues. On July 29, 2008, the Company, through a
wholly-owned subsidiary, agreed to acquire an Accommodation Field Development
Vessel ("AFDV") under construction, for delivery in the second quarter of 2010.

We provide EBITDA (earnings before interest expense, taxes, depreciation and
amortization) information as a guide to the operating performance of the
Company. EBITDA, which is not a term recognized under generally accepted
accounting principles, is calculated as net income plus interest expense, income
taxes (benefit), depreciation and amortization, and an adjustment for book value
gains and losses. Included in the depreciation and amortization for the purpose
of calculating EBITDA is depreciation of vessels, including capital improvements
and amortization of mortgage fees. EBITDA, as calculated by the Company, may not
be comparable to calculations of similarly titled items reported by other
companies. The Company believes that this measurement is meaningful because it
is widely applied by research analysts for shipping company valuations. TCE
revenue represents gross revenue less voyage related expenses. This measure is
used to compare time-charter and voyage revenues. Changes in the composition of
the Company`s fleet and type of revenue make it necessary to use the TCE measure
for period to period analysis.

Safe Harbor Statement

Certain statements contained in this press release, including, without
limitation, statements containing the words "believes," "anticipates,"
"expects," "intends," and words of similar import, constitute "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of 1995
or by the Securities and Exchange Commission in its rules, regulations and
releases, regarding the Company`s financial and business prospects. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
the Company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not limited to, those
set forth in the Company`s Annual Report and other filings with the Securities
and Exchange Commission. Given these uncertainties, undue reliance should not be
placed on such forward-looking statements. The Company disclaims any obligation
to update any such factors or to publicly announce the result of any revisions
to any of the forward-looking statements contained or incorporation by reference
herein to reflect future events or developments.

For further information, including the Company`s Annual Report on Form 20F, as
amended and previous announcements, access the Company`s website:
www.bhocean.com

B+H Ocean Carriers Ltd.
John LeFrere, 917-225-2800

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