MC Shipping Announces 2006 Year End Results and Dividend

  
    
  
  
    
      MC Shipping Inc. (AMEX:MCX) (the “Company”), 
      in conjunction with the filing of its Form 10-K for the fiscal year 
      ended December 31, 2006, to be filed on March 26, 2007, today reported 
      its financial and operating results for the year ended December 31, 2006 
      and for the fourth quarter 2006.
    
    
      The Company is an international liquefied petroleum gas (LPG) maritime 
      carrier. For the year ended December 31, 2006, gross revenues (excluding 
      interest income) were $52.4 million, a 48.1% increase from $35.4 million 
      in 2005. Net income for 2006 was $11.1 million or $1.17 per share, 
      compared to net income of $10.8 million or $1.16 per share in 2005 (see 
      Appendix 1 for the 12 months financial summary).
    
    
      The Company’s net earnings, before certain 
      non-recurring items, such as costs related to excess dry-dock off-hire, 
      change of managers, loss on debt extinguishment and lost income related 
      to late delivery of two vessels, were $14.2 million or $1.49 per share 
      in 2006. This figure is 31.9% higher than the similar non-GAAP measure 
      of $10.8 million for 2005 (see below for a discussion of these items and 
      the reconciliation of net earnings before non-recurring items to net 
      income). The Company believes that such supplementary non-GAAP 
      disclosure of earnings is useful for comparability to the prior year’s 
      earnings under normal operating conditions.
    
    
      The Company's earnings before interest, taxes, depreciation and 
      amortization (EBITDA) were approximately $32.9 million, a 38.7% increase 
      from $23.7 million in 2005, and the ratio of EBITDA to interest expense 
      was approximately 4.9 for 2006, compared to 5.9 in 2005.
    
    
      Vessel operating expenses (including dry-dock amortization) were $24.1 
      million in 2006 compared to $14.8 million in 2005. As a percentage of 
      revenue, vessel operating expenses plus amortization of dry-docking 
      costs increased from 41.8% in 2005 to 45.9% in 2006. The fleet on-hire 
      performance was 93.1%, down from 97.6% in 2005. The decrease in on-hire 
      performance was mainly due to the extended dry docking of La Forge.
    
    
      Tony Crawford, the Company’s CEO, commented on 
      the 2006 results, “We are pleased to have 
      improved year on year earnings for the second year in succession. More 
      importantly, we have built the fleet so as to have interests in 15 LPG 
      tankers, and four container ships, and increased revenue and EBIDTA by 
      significant amounts. We are confident that this enhanced fleet will 
      again increase both revenue and EBIDTA in 2007."
    
    
      Mr. Crawford also noted that a significant transaction initiated in 2006 
      was being fulfilled in 2007. “We delivered 
      five of our six small LPG tankers to a special purpose KG company formed 
      by the German finance house MPC Capital. This transaction significantly 
      improved our cash position and gave us the ability to continue to grow 
      in 2007,” continued Crawford.
    
    
      “We maintain our commitment to the LPG 
      shipping industry and intend to keep growing the business and the Company’s 
      value around this strategic focus. The Company expects to continue 
      investing in other LPG vessels when the right opportunities arise,” 
      concluded Crawford.
    
    
      In continuation of its policy to date, MC Shipping Inc. also announces 
      distribution of the following cash dividend on the below listed stock of 
      the Company in the first quarter of 2007:
    
    Title of Class of Stock     :    Common
Distribution per Share      :    6.25 cents for every share owned,
                                 rounded up to the nearest cent.
Dividend Payable to Shareholders of Record
at the close of business on :    April 16, 2007
Distribution Date           :    April 30, 2007
    
      ABOUT MC SHIPPING INC.
    
    
      MC Shipping Inc. is an international shipping company focused on 
      maritime transportation of liquefied petroleum gas (LPG), with 
      headquarters in Monaco and an office in London. MC Shipping fully or 
      partially owns and operates a fleet of 19 vessels that serve the world’s 
      major oil, gas, shipping and trading companies.
    
    
      FORWARD-LOOKING STATEMENTS
    
    
      Except for the historical information contained herein, the matters 
      discussed in this press release could contain “forward-looking 
      statements” that are based on current 
      expectations and assumptions that involve risks and uncertainties, which 
      could cause actual results to differ materially from those predicted. MC 
      Shipping Inc. undertakes no obligation to update any forward-looking 
      statement to conform to actual results or changes in the Company’s 
      expectations, whether as a result of new information, future events, or 
      otherwise.
    
    
      
        
          
            Appendix 1
          
        
      
      
        
          
            12 months financial summary for the period ended December 31 (US$):
          
        
      
      
        
          
             
          
        
      
      
        
        
        
        
        
           
        
        
          2006 
        
        
        
        
           
        
        
          2005 
        
      
      
        
          Charterhire and Other Income
        
        
        
        
          $
        
        
          52,417,310 
        
        
        
        
          $
        
        
          35,396,519 
        
      
      
        
          Commission on Charterhire
        
        
        
        
        
        
          (541,978)
        
        
        
        
        
        
          (532,281)
        
      
      
        
          Vessel Operating Expenses
        
        
        
        
        
        
          (22,281,177)
        
        
        
        
        
        
          (13,983,069)
        
      
      
        
          Depreciation and dry-dock amortization
        
        
        
        
        
        
          (15,038,374)
        
        
        
        
        
        
          (8,922,393)
        
      
      
        
          General and Administrative Expenses
        
        
        
        
           
        
        
          (2,689,630)
        
        
        
        
           
        
        
          (2,254,864)
        
      
      
        
          Income from vessel operations
        
        
        
        
        
        
          11,866,151 
        
        
        
        
        
        
          9,703,912 
        
      
      
        
          Gain on Disposal of Vessels
        
        
        
        
        
        
          1,035,642 
        
        
        
        
        
        
          - 
        
      
      
        
          Recognized deferred gain on sale of vessels
        
        
        
        
        
        
          4,763,338 
        
        
        
        
        
        
          4,515,383 
        
      
      
        
          Equity in income/(loss) of associated companies
        
        
        
        
           
        
        
          (288,627)
        
        
        
        
           
        
        
          113,983 
        
      
      
        
          Operating Income
        
        
        
        
        
        
          17,376,504 
        
        
        
        
        
        
          14,219,295 
        
      
      
        
          Interest Expense
        
        
        
        
        
        
          (6,784,088)
        
        
        
        
        
        
          (4,018,670)
        
      
      
        
          Interest Income
        
        
        
        
           
        
        
          462,084 
        
        
        
        
           
        
        
          454,037 
        
      
      
        
          Net Income
        
        
        
        
          $
        
        
          11,054,500 
        
        
        
        
          $
        
        
          10,768,645 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income per share (basic)
        
        
        
        
          $
        
        
          1.17 
        
        
        
        
          $
        
        
          1.16 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic average number of shares outstanding
        
        
        
        
        
        
          9,472,458 
        
        
        
        
        
        
          9,300,224 
        
      
      
        
          Shareholders equity
        
        
        
        
          $
        
        
          49,152,499 
        
        
        
        
          $
        
        
          40,466,810 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Reconciliation of EBITDA to Net Income
        
        
        
        
        
        
        
        
        
      
      
        
          Net Income
        
        
        
        
          $
        
        
          11,054,500 
        
        
        
        
          $
        
        
          10,768,645 
        
      
      
        
          Plus: interest expense
        
        
        
        
        
        
          6,784,088 
        
        
        
        
        
        
          4,018,670 
        
      
      
        
          Plus: depreciation and amortization
        
        
        
        
           
        
        
          15,038,374 
        
        
        
        
           
        
        
          8,922,393 
        
      
      
        
          EBITDA
        
        
        
        
          $
        
        
          32,876,962 
        
        
        
        
          $
        
        
          23,709,708 
        
      
      
        
          
            Reconciliation of net earnings before non-recurring items to Net 
            Income
          
        
        
        
        
        
        
        
        
        
      
      
        
          Net Income
        
        
        
        
          $
        
        
          11,054,500 
        
        
        
        
          $
        
        
          10,768,645 
        
      
      
        
          Per share
        
        
        
        
          $
        
        
          1.17 
        
        
        
        
          $
        
        
          1.16 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Plus: Excess dry-dock off-hire
        
        
        
        
        
        
          1,790,886 
        
        
        
        
        
        
          - 
        
      
      
        
          Plus: Costs related to change of managers
        
        
        
        
        
        
          687,530 
        
        
        
        
        
        
          - 
        
      
      
        
          Plus: write-off of debt issuance costs
        
        
        
        
        
        
          220,210 
        
        
        
        
        
        
          - 
        
      
      
        
          Plus: Lost income related to late delivery of two vessels acquired 
          in July 2006
        
        
        
        
           
        
        
          450,000 
        
        
        
        
           
        
        
          - 
        
      
      
        
          Net earnings before non-recurring items
        
        
        
        
          $
        
        
          14,203,126 
        
        
        
        
          $
        
        
          10,768,645 
        
      
      
        
          Per share
        
        
        
        
          $
        
        
          1.49 
        
        
        
        
          $
        
        
          1.16 
        
      
    
    
    
    
      
        
          
            Appendix 2
          
        
      
      
        
          
            3 months financial summary for the period ended December 31 (US$):
          
        
      
      
        
           
        
      
      
        
        
        
        
        
           
        
        
          2006 
        
        
        
        
           
        
        
          2005 
        
      
      
        
          Charterhire and Other Income
        
        
        
        
          $
        
        
          18,314,556 
        
        
        
        
          $
        
        
          9,732,400 
        
      
      
        
          Recognized deferred gain on sale of vessels
        
        
        
        
        
        
          1,200,622 
        
        
        
        
        
        
          1,200,622 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
        
        
           
        
        
          4,018,598 
        
        
        
        
           
        
        
          2,938,272 
        
      
      
        
          Net Income per share (basic)
        
        
        
        
          $
        
        
          0.42 
        
        
        
        
          $
        
        
          0.32