M C Shipping (AMEX:MCX)
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From May 2019 to May 2024
MC Shipping Inc. (AMEX: MCX) (the "Company"), a leading
liquefied petroleum gas (LPG) maritime carrier, today reported net
income of $2,022,865 or $0.21 per share on gross revenues (excluding
interest income) of $9,940,984 for the quarter ended on June 30, 2006,
compared to net income of $2,861,999 or $0.31 per share on gross
revenues (excluding interest income) of $9,628,735 for the quarter
ended June 30, 2005 (see Appendix 1 for the three months financial
summary).
The Company's earnings before interest, taxes, depreciation and
amortization (EBITDA) were approximately $ 6.5 million and the ratio
of EBITDA to interest expense was approximately 5.0 for the quarter
ended on June 30, 2006. In the corresponding quarter of 2005, EBITDA
was approximately $ 6.6 million and the ratio of EBITDA to interest
expense was approximately 5.4.
Vessel operating expenses (inclusive of dry-dock amortization)
were $5,199,640 in the second quarter of 2006 compared to $3,922,463
in the second quarter 2005. As a percentage of revenue, vessel
operating expenses plus amortization of dry-docking costs increased
from 40.7% in the second quarter of 2005 to 52.3% in the second
quarter of 2006.
"As expected, this quarter's results reflect the impact of an
unusually high number of scheduled dry docks," commented Tony
Crawford, CEO of MC Shipping. "The last two dockings (one of which on
the vessel that is 50% owned) will be completed by mid August.
However, during the quarter, we remained very active in securing
future streams of revenue, renewing all contracts on vessels that were
set to expire during the period at prevailing market rates. Due to the
continued strength in the LPG rate environment, these charters
represent on average a 26% premium over previous earnings on the same
vessels."
Crawford continued, "We were also pleased to note continued growth
in the market adjusted value of our underlying assets, indicating
about $62 million in excess of book value as of today, up from
approximately $56.8 million on June 30, 2006 - something that we will
consider in the Company's investment strategy.
"Our chartering strategy and our investments in the fleet will
provide a measure of return in the immediate term, and we expect will
be fully reflected in our fourth quarter earnings. As we look forward
to 2007, we remain optimistic that these latest announcements and
initiatives will help MC Shipping to experience growth and stimulate
increased shareholder value in 2007," concluded Crawford.
This news release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. One can generally identify
these forward-looking statements because they contain "expect",
"believe", "anticipate", "estimate", "confident" and other words that
convey a similar meaning. One can also identify these statements as
statements that do not relate strictly to historical or current facts.
One should understand that it is not possible to predict or identify
all factors that could cause actual results to differ from the
Company's forward-looking statements. The Company expressly disclaims
any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with respect thereto
or any change in events, conditions or circumstances on which any such
statement is based.
ABOUT MC SHIPPING INC.
MC Shipping Inc. is an international shipping company focused on
maritime transportation of the liquefied petroleum gas (LPG), with
headquarters in Monaco and an office in London. MC Shipping fully or
partially owns and operates a diversified fleet of 19 vessels that
serve the world's major oil, gas, shipping and trading companies.
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Appendix 1
Three months financial summary for the period ended June 30th,
2006 and 2005 (US$):
3 months ended 3 months ended
30-Jun-2006 30-Jun-2005
----------------- --------------
Charterhire and Other Income $ 9,940,984 $ 9,628,735
Commission on Charterhire (131,694) (131,887)
Vessel Operating Expenses (4,721,267) (3,756,246)
Depreciation and dry-dock amortization (3,174,671) (2,529,552)
General and Administrative Expenses (673,185) (550,664)
Recognized deferred gain on sale of
vessels 1,187,572 1,187,572
Profit on sale of vessels 1,028,693 -
Equity in income of associated
companies (247,741) 148,872
----------------- --------------
Operating Income 3,208,691 3,996,830
Interest Expense (1,301,278) (1,217,768)
Interest Income 115,452 82,937
================= ==============
Net Income $ 2,022,865 $ 2,861,999
---------------- --------------
Net Income per share (basic) $ 0.22 $ 0.31
Average Number of shares outstanding 9,499,086 9,238,979
Shareholders equity $ 47,684,169 $ 34,540,750
Reconciliation of EBITDA to Net Income
Net Income $ 2,076,676 $ 2,861,999
Plus: interest expense 1,301,278 1,217,768
Plus: depreciation and amortization 3,174,671 2,529,552
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EBITDA $ 6,498,814 $ 6,609,319
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Appendix 2
Six months financial summary for the period ended June 30th,
2006 and 2005 (US$):
6 months ended 6 months ended
30-Jun-2006 30-Jun-2005
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Charterhire and Other Income $ 20,048,239 $ 15,867,221
Net Income $ 5,734,764 $ 4,908,754
Net Income per share $ 0.61 $ 0.53
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