General Maritime Corporation GMR reported its financial results for the three and six months ended June 30, 2006. The company had net income of $26.1m, or $0.83 basic and $0.81 diluted earnings per share, for the three months ended June 30, 2006 compared to net income of $32.1m, or $0.86 basic and $0.84 diluted earnings per share, for the three months ended June 30, 2005. The decrease in net income was principally the result of lower voyage revenues attributable to a 53.3 percent decrease in fleet size.
Included in the net income of $26.1m are certain non-recurring items as well as expenses associated with derivative financial instruments such as a gain on the sales of vessels of $11.2m; Other expense of $2.4m related to the anticipated settlement of a claim arising from the February 4, 2005 collision of the Genmar Kestrel involving a claim by a subsidiary of the Exxon Mobil Corporation (XOM)
; and Other expense of $0.7 principally comprised of non-cash mark to market for freight and other derivatives. Additionally there was a $3.7m reduction in net voyage revenue associated with an increase in reserves relating to customer claims on the time charter contracts of the company's OBO vessels.
Net voyage revenue, which is gross voyage revenues minus voyage expenses unique to a specific voyage (including port, canal and fuel costs), decreased 49.1 percent to $51m for the three months ended June 30, 2006 compared to $100.1m for the three months ended June 30, 2005. EBITDA for the three months ended June 30, 2006 was $36m compared to $65m for the three months ended June 30, 2005. Net cash provided by operating activities was $38.3m for the three months ended June 30, 2006 compared to $58.2m for the prior year period. As of June 30, 2006, the company's net debt-to-book capitalization was reduced to 0 percent from 3.8 percent as of December 31, 2005.