Omega Navigation Enterprises (ONAVQ) Inactive
Filed: 5 Jul 06, 12:00am
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July 2006
Omega Navigation Enterprises, Inc.
24 Kaningos Street
Piraeus 185 34 Greece
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto as Exhibit 1 is a copy of the release issued by Omega Navigation Enterprises, Inc. on July 5, 2006
![[onav6k070506001.jpg]](https://capedge.com/proxy/6-K/0001317861-06-000148/onav6k070506001.jpg)
OMEGA NAVIGATION ANNOUNCES DELIVERY OF
TWO PRODUCT TANKERS
PIREAUS, GREECE. July 05, 2006. – Omega Navigation Enterprises, Inc. (NASDAQ:ONAV), a provider of global marine transportation services (the “Company”), announced today that it has taken delivery of two product tankers the “Iasonas”, to be renamed the “Omega Lady Sarah”, and the “Adonis”, to be renamed the “Omega Princess”.
As of today, Omega Navigation has taken delivery of five double hull product tankers and has agreements to acquire one additional double hull product tanker with expected delivery by the end of July 2006.
The “Omega Lady Sarah” is a Panamax (LR1) double hull product tanker of 71,500 deadweight tons (“dwt”), built by STX, South Korea in 2004. This is the third Panamax product tanker delivered to Omega and follows the delivery of the “Omega Queen” and “Omega King” announced on May 31, 2006 and June 16, 2006, respectively.
The “Omega Lady Sarah” is employed under a long-term time charter to ST Shipping & Transport (Glencore International AG), until June 2009 at a daily time charter hire rate of $24,000, with a profit sharing arrangement. Under the profit sharing arrangement, Omega Navigation will receive 100% of the vessel’s daily time charter earnings between $24,000 and $25,500 per day and time charter earnings in excess of $ 25,500 will be divided equally between Omega Navigation and Glencore International AG.
The “Omega Princess” is a Handymax (Ice Class 1A, IMOII &III) double hull product tanker of 36,680 deadweight tons (“dwt”), built by Hyundai, South Korea in 2006. This is the second Handymax product tanker delivered to Omega and follows the delivery of the sister vessel “Omega Prince”announced on June 27, 2006.
The “Omega Princess” is employed under a long term time charter to D/S Norden A/S (Norden) until June 2009 at a daily time charter hire rate of $21,000 with profit sharing during the months of January through April of each year of the time charter pursuant to which Omega Navigation will be paid 25% of any earnings of the vessel in excess of $27,000 per day. The Company has granted D/S Norden an option to extend the charter for an additional period of 12 months at a minimum daily time charter hire rate of $24,000.
The “Omega Lady Sarah” and “Omega Princess” acquisitions were funded in part with a portion offrom the net proceeds of the Company’s initial public offering and in part withfrom debt under a senior secured credit facility provided by HSH-Nordbank AG. Omega Navigation has selected VShips as the technical manager for the “Omega Lady Sarah” and the “Omega Princess”. VShips also manages the “Omega Prince”.
George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented, “We are very pleased to take delivery of “Omega Lady Sarah” and the “Omega Princess”, two of six product tankers that we have agreed to acquire. “Omega Lady Sarah” and “Omega Princess”, will complement our current fleet of two dry bulk carriers, two Panamax product tankers and one Handymax product tanker. We are also pleased to have one of the world’s largest and best known technical managers, VShips, manage the “Omega Lady Sarah” and “Omega Princess” along with the “Omega Prince”. Once we take the delivery of our sixth double hull product tanker, we will have a young, modern and diversified fleet, primarily oriented towards product tankers.
Furthermore, we believe that the addition of the “Omega Lady Sarah” and “Omega Princess” to our current fleet enhances our ability to generate cash flow and reinforces the growth prospects of our company as well as our ability to implement our quarterly dividend policy, with the first dividend payment of $0.50 per share expected in August 2006. As of today, 100% of our operating days in 2006 and 82% in 2007 are fixed under period employment.”
Fleet Profile and Employment:
The table below describes the profile and employment of the Company’s fleet:
Vessel | Sister | Year | Deadweight | Type | Delivery | Daily | Redelivery | |
| Ships (1) | Built | (dwt) |
| Date | Hire Rate (2) |
|
|
CURRENT FLEET (Vessels already delivered to ONAV) | ||||||||
Dry Bulk Carrier | ||||||||
Ekavi I | A | 2004 | 52,800 | Handymax | Apr-05 | $17,000 | Mar-May-07 | |
Electra I | A | 2004 | 52,800 | Handymax | Apr-05 | $25,000 | Apr-Jun-07 | |
Panamax Product Tanker | ||||||||
Omega Queen | D | 2004 | 74,999 | LR1 | May-06 | $26,500 | (5) | May-09 |
Omega King | D | 2004 | 74,999 | LR1 | Jun-06 | $26,500 | (5) | Jun-09 |
Omega Lady Sarah(ex Iasonas) | C | 2004 | 71,500 | LR1 | Jun-06 | $24,000 | (4) | Jun-09 |
Handymax Product Tankers | ||||||||
Omega Prince (ex Aris) | B | 2006 | 36,680 | Ice Class 1A | Jun-06 | $21,000 | (3) | Jun-09 |
Omega Princess (ex Adonis) | B | 2006 | 36,680 | Ice Class 1A | Jun-06 | $21,000 | (3) | Jun-09 |
Current Fleet Total (dwt): | 400,458 |
|
|
|
|
| ||
REMAINING IDENTIFIED VESSELS (with expected delivery date) | ||||||||
Panamax Product Tankers | ||||||||
Omega Lady Myriam(ex Miltiadis) | C | 2003 | 71,500 | LR1 | Jul-06 | $24,000 | (4) | Jul-09 |
Remaining Fleet Total (dwt): |
|
| 71,500 |
|
|
|
|
|
FLEET TOTAL: | 471,958 | |||||||
1) Each vessel is a sister ship of each other vessel that has the same letter.
(2) This table shows gross charter rates and does not include brokers’ commissions, which are 5.0% of the daily time charter hire rate for the dry bulk carriers and 1.25% of the daily time charter rate for the product tankers.
(3) Plus any additional income under profit sharing provisions of the charter agreements with D/S Norden A/S. The Company has granted the charterers the option to extend the charter for 12 months at a minimum daily time charter hire rate of $24,000.
(4) Plus any additional income under profit sharing provisions of the Company’s charter agreement.
(5) The Company has granted Torm the option to extend the charter for 24 months at a minimum daily time charter hire rate of $28,500.
About Omega Navigation Enterprises, Inc.
Omega Navigation Enterprises, Inc. is an international provider of global marine transportation services through the ownership and operation of four product tankers and two dry bulk carriers.
The Company was incorporated in the Marshall Islands in February 2005. Its principal executive offices are located in Piraeus, Greece and it also maintains an office in the United States.
The Company has agreements to acquire one additional double hull product tanker with delivery expected by the end of July 2006. Once the Company has completed the acquisition of the vessel, its fleet will consist of eight vessels with a total capacity of 471,958 dwt and an average age of approximately 1.5 years. Furthermore, the Company has options to acquire four additional double hull Ice Class 1A product carriers currently under construction and are expected to be available for delivery between March 2007 and September 2007.
Omega Navigation’s Class A common shares are traded on the NASDAQ National Market under the symbol "ONAV" and are also listed on the Singapore Exchange Securities Trading Limited under the symbol “ONAV 50”.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "except," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" pending and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, the Company’s management's examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that the Company will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for product tanker and dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Contacts:
Company Contact:
Gregory A. McGrath
Chief Financial Officer
Omega Navigation Enterprises, Inc.
PO Box 272
Convent Station, NJ 07961
Tel. (551) 580-0532
E-mail: gmcgrath@omeganavigation.com
www.omeganavigation.com
Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: nbornozis@capitallink.com
www.capitallink.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Omega Navigation Enterprises, Inc.
(Registrant)
Dated: July 5, 2006 By: /sGregory A. McGrath
------------------------
Gregory A. McGrath
Chief Financial Officer
6/30/06 04:16 PM