M C Shipping (AMEX:MCX)
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From May 2019 to May 2024
MC Shipping Inc. (AMEX: MCX) (the “Company”),
an international liquefied petroleum gas (LPG) maritime carrier, today
reported its financial and operating results for the first quarter 2007.
For the quarter ended March 31, 2007, gross revenues (excluding interest
income) were $15.5 million, a 53.4% increase from $10.1 million for the
quarter ended March 31, 2006.
The Company's earnings before interest, taxes, depreciation and
amortization (EBITDA) were approximately $11.6 million in the first
quarter 2007, a 61.5% increase from $7.2 million in the first quarter
2006, and the ratio of EBITDA to interest expense was approximately 3.7
for the quarter ended March 31, 2007, compared to 6.3 for the same
period in 2006.
Net income for the first quarter 2007 was $2.7 million or $0.28 per
share, compared to net income of $3.7 million or $0.40 per share or the
same period in 2006 (see Appendix 1 for the three months
financial summary).
Vessel operating expenses (including dry-dock amortization) were $5.4
million in the first quarter 2007 compared to $4.1 million in the first
quarter 2006, reflecting the larger fleet. As a percentage of revenue,
vessel operating expenses plus amortization of dry-docking costs
decreased from 40.9% in the first quarter 2006 to 35.1% in the first
quarter 2007.
Commenting on the first quarter 2007 results, Tony Crawford, the Company’s
CEO, stated, “We continue to build our
business with revenues and EBITDA both up by over 50% as compared to the
same quarter last year. Net income in the first quarter 2007 was
affected by $1.3 million loss of revenue on the vessel Kew Bridge, which
continues to be repaired in Dubai following a grounding incident in
2006. We are in discussions with the vessel’s
charterers about recovering a portion of lost revenues in the first and
second quarters 2007. The vessel is expected to return to service in
July.”
Mr. Crawford continued, “In January 2007, we
delivered and simultaneously chartered back five of the six small LPG
tankers sold at the end of 2006 to Beteiligungsgesellschaft LPG
Tankerflotte mbH & Co. KG (“LTF”),
a special purpose German KG company formed by the German finance house
MPC Munchmeyer Petersen AG. Upon delivery of the vessels, the Company
received $42 million; prepaid approximately $18 million of the debt on
these vessels; and reinvested approximately $4.4 million in LTF for 25%
of the equity, thereby remaining committed to the ships and its
customers. The net proceeds to the Company were approximately $19.7
million, which has significantly strengthened our cash position.
Consistent with our strategic focus on the LPG shipping sector, we
expect to reinvest the excess proceeds in other LPG vessels and are
considering several potential acquisitions.“
“Charter contracts that were expiring in the
first and early second quarter 2007 have been renewed at or above the
budget and often at rates above those achieved in 2007, and we remain
optimistic for the year”, concluded Crawford.
ABOUT MC SHIPPING INC.
MC Shipping Inc. is an international shipping company focused on
maritime transportation of liquefied petroleum gas (LPG), with
headquarters in Monaco and an office in London. MC Shipping fully or
partially owns and operates a fleet of 19 vessels that serve the world’s
major oil, gas, shipping and trading companies.
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters
discussed in this press release could contain “forward-looking
statements” that are based on current
expectations and assumptions that involve risks and uncertainties, which
could cause actual results to differ materially from those predicted. MC
Shipping Inc. undertakes no obligation to update any forward-looking
statement to conform to actual results or changes in the Company’s
expectations, whether as a result of new information, future events, or
otherwise.
Appendix 1
Three months financial summary for the period ended March 31st
2007 and 2006 (US$):
Three months Ended March 31, 2007
Three months Ended March 31, 2006
Charterhire and Other Income
$
15,504,166
$
10,107,255
Commission on Charterhire
(107,966)
(133,121)
Vessel Operating Expenses
(4,909,355)
(3,899,134)
Depreciation and dry-dock amortization
(5,760,254)
(2,338,531)
General and Administrative Expenses
(783,253)
(513,987)
Income from vessel operations
3,943,338
3,222,482
Recognized deferred gain on sale of vessels
1,174,522
1,174,522
Equity in income/(loss) of associated companies
537,047
291,982
Operating Income
5,654,907
4,688,986
Interest Expense
(3,172,809)
(1,150,649)
Interest Income
213,972
173,562
Net Income
$
2,696,070
$
3,711,899
Net Income per share (basic)
$
0.28
$
0.40
Basic average number of shares outstanding
9,509,183
9,372,582
Shareholders equity
$
50,131,059
$
48,247,207
Reconciliation of EBITDA to Net Income
Net Income
2,696,070
3,711,899
Plus: interest expense
3,172,809
1,150,649
Plus: depreciation and amortization
5,760,254
2,338,531
EBITDA
$
11,629,133
$
7,201,079