Omega Navigation Q3 2009 Results
For the quarter ended September 30, 2009, Omega Navigation reported total revenues of $14.3 million and Net Income of $1.9 million, or $0.12 per basic share, excluding losses on interest rate derivative instruments and incentive compensation grants expense. Including these items the Company reported Net Income of $ 0.1 million or $0.01 per basic share. Adjusted EBITDA for the third quarter of 2009 was $8.0 million. Please see below for a reconciliation of Adjusted EBITDA to Cash from Operating Activities. Operating Income included revenue of $0.8 million attributable to profit sharing. The company owned and operated an average of eight product carriers during the third quarter of 2009, the same number as in the third quarter of 2008.
Omega Navigation Q2 2009 Results
Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing on product tankers, announced its financial and operational results for the quarter ended June 30, 2009. For the quarter ended June 30, 2009, Omega Navigation reported total revenues of $16.7 million and Net Income of $3.4 million, or $0.23 per basic share, excluding a loss related to the termination of a purchase agreement, a loss on interest rate derivative instruments and incentive compensation grants expense. Including these items the Company reported Net Loss of $1 million or $0.06 per basic share. EBITDA for the second quarter of 2009 was $6.6 million. Please see below for a reconciliation of EBITDA to Cash from Operating Activities.
U.S. Shipbuilding: Prospects Abound, but Where’s the Money?
While the U.S. commercial shipbuilding industry outperformed the U.S. economy between 1992 and 2001, this period witnessed the construction of barely a dozen large ocean going vessels for our U.S. domestic trades with an aggregate cost of not much more than $500 million. In contrast, U. S. national transportation needs for the current decade will require the construction of four to five dozen such commercial vessels which, taken together with the building of smaller vessels to meet our other domestic needs, will involve shipbuilding contracts in excess of $6 to $7 billion. The majority of this work is federally mandated by the Oil Pollution Act of 1990, or involves the replacement of vessels in our U.S. non-contiguous trades that have reached the end of their useful lives.
Hyper-Accelerated Corrosion Found In Doomed Tanker
Investigators hoping to find the cause of why an assumed healthy ship developed a near fatal deckplate crack - an incident which led to a 39-day saga which will serve as an impetus for change in the rules of the way ships in distress are handled - have issued a preliminary report. Following an exhaustive inspection and analysis of the damaged product tanker Castor, the Cyprus Department of Merchant Shipping and ABS have jointly announced preliminary findings that point to hyper-accelerated corrosion as the probable principal cause behind the structural failure. "The Castor has become a floating laboratory which is providing us with some surprising findings," said ABS Chairman and CEO Frank J. Iarossi.
Castor's Downfall: Hyper-Accelerated Corrosion
Few marine incidents have vexed the collective international marine community as much as the recent situation with the damaged product tanker Castor, a ship, which experienced a near fatal deckplate crack in mid-voyage and then was denied safe harbor for fear of the ship splitting open and spewing its gasoline cargo. Though the ship was eventually docked safely without environmental incident, the name Castor will serve as a lightning rod in the IMO to more firmly establish rules and procedures for ships in distress at sea. As the political wrangling and finger pointing start to subside, attention is now turned on the ship itself, and more accurately finding out the reason that an assumed healthy ship developed a near fatal deckplate crack.
