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 second quarter and
the first six months of 2007.
Second Quarter Results
For the quarter ended June 30, 2007, gross revenues (excluding interest
income) were $16.4 million, compared to $9.9 million for the quarter
ended June 30, 2006.
The Company's earnings before interest, taxes, depreciation and
amortization (EBITDA) were approximately $11.6 million in the second
quarter 2007 ($6.5 million in the second quarter 2006), and the ratio of
EBITDA to interest expense was approximately 3.7 for the quarter ended
June 30, 2007 compared to 5 for the same period in 2006.
Net income for the first quarter 2007 was $2.4 million or $0.26 per
share, compared to net income of $2 million or $0.21 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 $6
million in the second quarter 2007 compared to $5.2 million in the
second quarter 2006. As a percentage of revenue, vessel operating
expenses plus amortization of dry-docking costs decreased from 52.3% in
the second quarter 2006 to 36.4% in the second quarter 2007.
Tony Crawford, the Company’s President and CEO
commented on the second quarter results, “We
are pleased to note a substantial increase in revenues reflecting the
larger fleet and higher charter rates.”
“We expect a continued revenue and EBITDA
growth in the third quarter 2007 as we take delivery of three new LPG
vessels acquired from the Komaya Group, as previously announced. We also
expect a positive contribution from the Kew Bridge once she returns to
service in August and improved earnings on the La Forge as the freight
market for VLGC tankers improves”, concluded
Crawford.
Acquisition of LPG Vessel
The Company also announced that it has agreed to acquire another LPG
vessel from a subsidiary of Vitol SA, a major international oil and gas
trading company. The vessel, Kendal is a sister ship to the m/v Keswick
that the Company contracted to acquire a month ago. The Kendal is also
built in 2003 and has a capacity of 11,000 cbm. The vessel is expected
to be delivered at the end of 2008. Simultaneously with the purchase,
she will be time-chartered back to Vitol SA for a minimum period of
three years. The Company expects to finance the acquisition with a
combination of bank debt and internal cash resources. The Company will
not be paying any of the purchase price until third quarter 2008.
“Maintaining our strategic focus on the LPG
shipping, we are pleased to invest in this second modern vessel that
will further improve our fleet’s age profile
as we continue expanding our presence in the mid-size LPG sector.
Similarly to the Keswick, this vessel is expected to generate
approximately $4.6 million in additional revenues and $3.3 million in
EBITDA per year”, commented CEO Tony 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 offices in London and Singapore. MC Shipping
fully or partially owns and operates a fleet of 19 vessels and has
contracted to purchase five additional vessels that serve the world’s
major oil, gas, shipping and trading companies.
On July 30, 2007, MC Shipping Inc. and Bear Stearns Merchant Banking (“BSMB”)
announced the signing of a merger agreement providing for the Company to
be acquired by a newly-formed entity controlled by BSMB, as detailed in
the Company’s Form 8-K filed on July 31, 2007.
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.
For example, (i) MC Shipping Inc. may be unable to obtain the
shareholder approval required for the merger and (ii) conditions to the
closing may not be satisfied. In addition, additional factors that could
affect MC Shipping’s results, levels of
activity, performance or achievements and cause them to materially
differ from those contained in the forward looking statements can be
found in MC Shipping’s filings with the U.S.
Securities and Exchange Commission, including MC Shipping’s
annual report on Form 10-K, current reports on Form 8-K and quarterly
reports on Form 10-Q. 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.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed merger, MC Shipping Inc. will make a
proxy statement available to all shareholders. INVESTORS ARE URGED TO
READ THE PROXY STATEMENT CAREFULLY WHEN IT BECOMES AVAILABLE BECAUSE IT
WILL CONTAIN IMPORTANT INFORMATION ABOUT MC SHIPPING AND THE PROPOSED
MERGER. Investors will be able to obtain free copies of the proxy
statement and white proxy card (when available) at the MC Shipping Web
site at www.mcshipping.com.
Appendix 1
Three months financial summary for the period ended June 30th
(US$):
2007
2006
Charterhire and Other Income
$16,395,174
$9,940,984
Commission on Charterhire
(184,109
)
(131,694
)
Vessel Operating Expenses
(5,439,900
)
(4,721,267
)
Depreciation and dry-dock amortization
(6,059,372
)
(3,174,671
)
General and Administrative Expenses
(880,623
)
(673,185
)
Income From Vessel Operations
3,831,170
1,240,167
Profit on sale of vessels
-
1,028,693
Recognized deferred gain on sale of vessels
1,187,572
1,187,572
Equity in income / (losses) of associated companies
386,537
(247,741
)
Operating Income
5,405,279
3,208,691
Interest Expense
(3,113,800
)
(1,301,278
)
Interest Income
133,979
115,452
Net Income
$2,425,458
$2,022,865
Net Income per share (basic)
$0.26
$0.21
Average Number of shares outstanding
9,510,017
9,499,086
Shareholders equity
$52,935,832
$47,684,169
Reconciliation of EBITDA to Net Income
Net Income
$2,425,458
$2,022,865
Plus: interest expense
3,113,800
1,301,278
Plus: depreciation and amortization
6,059,372
3,174,671
EBITDA
$11,598,630
$6,498,814
Appendix 2
Six months financial highlights for the period ended June 30th
(US$):
2007
2006
Charterhire and Other Income
$31,899,340
$20,048,239
Operating Income
11,060,186
7,897,677
Net Income
$5,121,528
$5,734,764
Net Income per share (basic)
$0.54
$0.61