General Maritime Announces First Quarter Results

Thursday, April 24, 2003
General Maritime Corporation reported its financial results for the first quarter 2003. They reported net income of $34.4 million, or $0.93 basic earnings per share, for the first quarter 2003 compared to net income of $575,000, or $0.02 basic earnings per share, for the prior year period. The weighted average number of basic shares used in the computation was 36,964,770 for the first quarter 2003 and 37,000,000 for the prior year period. Peter C. Georgiopoulos, Chairman, Chief Executive Officer and President, commented, “I am very pleased with the performance of our fleet this past quarter and with our Company’s growth and development, both of which are the product of hard work, discipline and strategic decision making. During the quarter, we agreed to acquire 19 modern tankers from Metrostar which will materially increase our Company’s profit potential going forward. Our strong financial results for the quarter are even more significant considering that the newly acquired tankers contributed only 2.6% or 68 days out of a total of 2,586 calendar days for our fleet this past quarter. The full impact of this acquisition in terms of top line performance and economies of scale will begin to be felt during the second and third quarters, as our newly acquired tankers will be available to operate for these entire periods.” Net voyage revenue, which is gross voyage revenues minus voyage expenses (including port, canal and fuel costs), was $69.7 million for the first quarter 2003 compared to $35.7 million for the prior year period. The Company’s average time charter equivalent, or TCE6 rate for the fleet was $27,512 per vessel day for the first quarter 2003 as compared to $14,098 per vessel day for the prior year period. The Company’s TCE rates during the first quarter were stronger than during the prior year period and were stronger than the fourth quarter 2002. Total vessel operating expenses, which are vessel operating expenses and general and administrative expenses, increased 8.0% to $17.8 million for the first quarter 2003 from $16.6 million for the prior year period. Total daily vessel operating expenses increased to $6,851 per vessel day during the first quarter of 2003 from $6,345 per vessel day during the prior year period. This increase is the result of an increase in daily general and administrative costs associated with our increase in staff during the quarter in preparation to integrate and operate 19 tankers as well as the timing of purchases, repairs and services during the first quarter 2003 compared to the prior year period. Adjusted EBITDA1 for the first quarter 2003 was $52.1 million compared to $19.1 million for the prior year period. Please see a reconciliation of Adjusted EBITDA and EBITDA to net income below. Same Fleet Financial and Operational Review General Maritime Corporation uses “Same Fleet” data to compare financial and operational results from those vessels that were part of the Company’s fleet for the complete periods under comparison. Same Fleet net voyage revenue for the first quarter 2003 was $66.3 million compared to Same Fleet net voyage revenue of $33.7 million for the prior year period, which reflected higher average tanker spot market rates for the first quarter 2003 compared to the prior year period. Same Fleet direct vessel operating expenses increased 4.9% to $13.4 million or $5,516 per vessel day for the first quarter 2003 compared to $12.8 million or $5,257 per vessel day for the prior year period as a result of the timing of purchases, repairs and services during the first quarter 2003 compared to the prior year period. Same Fleet Adjusted EBITDA for the first quarter 2003 was $50.3 million compared to $18.4 million for the prior year period. The Same Fleet was comprised of 27 vessels, 22 Aframax and 5 Suezmax, for the first quarter 2003 and 2002. Average Daily Time Charter and Spot Rate Review The average daily time charter equivalent, or TCE, rates obtained by the Company’s full fleet increased 95.1% to $27,512 per day for the first quarter 2003 from $14,098 for the prior year period. Average daily rates for vessels on time charter increased 21.9% to $21,763 and average daily rates for vessels on spot market voyage charters increased 118% to $28,479 for the first quarter 2003 compared to $17,852 and $13,079 respectively for the prior year period. Mr. Georgiopoulos continued, “The Metrostar Vessel acquisition will increase the size of our fleet by approximately 70% and make General Maritime the second largest mid-sized tanker owner in the world, with 46 tankers and a carrying capacity of more than 5.5 million deadweight tons. General Maritime has a proven track record of utilizing its integrated commercial and technical infrastructure to seamlessly integrate tankers into our fleet. We have built on this past success and have made significant progress integrating the Metrostar tankers into our operations. We will receive ownership of the remaining tankers and integrate them into the fleet as they conclude their last voyages with their current owner.” Summary Consolidated Financial and Other Data The following table summarizes General Maritime Corporation’s selected consolidated financial and other data for the first quarter 2003 and 2002. Attached to this press release is an Appendix, which contains additional financial, operational and other data for the first quarter 2003 and 2002.
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