Omega Nav Time Charter, Omega King

Omega Navigation Enterprises, Inc. (NASDAQ:ONAV, SGX:ONAV50), a provider of global marine transportation services focusing on product tankers, announced that it has entered in to a new time charter agreement on the Omega King for a period of one year with an option period of one year with Torm A/S (Torm).

Effective May 23, 2009, the Omega King entered into a new one year time Charter with its current charterer, Torm, with Torm having the option to extend the charter for an additional year at a higher rate. The vessel will be chartered for the first year at an average base rate of $16,500 per day with a profit sharing arrangement between Omega and Torm. That base rate the second year increases to $20,000 per day with a profit sharing arrangement with earnings above that base level shared equally between Omega and Torm.

This charter gives the company 100% time charter coverage currently. For the second half of 2009 until mid 2010 the company currently has 75% time charter coverage on its current fleet.

George Kassiotis, President and CEO of Omega commented, "We are extremely pleased to continue our excellent relationship with Torm, who has been chartering the Omega King since its delivery from the shipyard. Torm is a valuable partner in the product tanker market and an extremely good counterparty, having been founded in 1889 and is listed on both the Copenhagen stock exchange and the NASDAQ. This recent fixture is expected to generate EBITDA, before any additional income from the profit sharing arrangement, of approximately $3.9 million in the first year and $5.1 million in the second year if the option is declared. Even in this very challenging economic climate and difficult shipping markets, Omega is coming closer to having its entire fleet chartered out to be better able to weather these current conditions."