B+H Ocean Carriers Ltd. (AMEX: BHO) reported preliminary unaudited
net income of $1.98 million for the year ending December 31, 2007 as
compared to $18.8 million for the year ended December 31, 2006, and a
loss of $440,000 for the three months ending December 31, 2007 as
compared to income of $1.9 million for the three months ending
December 31, 2006. The Company noted that there were 6,866,614 shares
outstanding as of December 31, 2007. The Company stated that its
EBITDA for the 2007 year was $40.9 million vs. $45.1 million for the
2006 year, and that for the three months ending December 31, 2007, it
was $9.05 million vs. $10.1 million for the three months ending
December 31, 2006. The Company added that it would provide a
comparative analysis of the reported results with prior periods when
its audit was completed.
The Company said that it was presently converting two of its
single-hull tankers to geared dry bulk carriers, with completion for
both expected within June 30. It added that one of the vessels has
been committed to a three year Time Charter commencing upon completion
of the conversion. The Company said it was pleased with the progress
of these two conversions but added that the changeover from
double-hull tanker conversions to dry cargo would increase the
conversion offhire by an estimated 90 to 100 days for each vessel.
This offhire significantly impacted the 4Q results, the Company said.
It added that it intends to carry out a dry cargo conversion on a
third single-hull tanker, commencing in May. The Company noted that
the large number of offhire days that will be incurred for these three
dry cargo conversions will have a significant negative impact on
revenues in the first three quarters of 2008.
The Company announced that it had contracted to sell two vessels,
SACHUEST and ACUSHNET for fairly prompt delivery to the buyers. It
added that while it considered the sale of SACHUEST to be a correct
decision, the price was lower by an estimated $10 million than it
would have been if the Company had not extended the Time Charter on
the vessel by 12 months, to March 2009, last summer. The Company noted
that its conservative approach of having extensive fixed rate
employment on much of its fleet has, over the past 24 months, largely
prevented the Company from enjoying the benefits of the unprecedented
run up in dry cargo rates.
The Company added that last summer, it had also extended Time
Charter employment on five of its OBO´s, each by 12 months. As a
result, the Charter expirations of these vessels are now: three in 1Q
2011, one in 3Q 2011 and, one in 3Q 2009.
The Company noted that it had completed the conversion of a total
of four single-hull MR Product Tankers to IMO II / III Product
Chemical Carriers, now trading in vegetable oils and petroleum
products. No more of this type of conversion are presently planned.
The Company´s fleet currently consists of sixteen vessels: four Medium
Range IMO II / III Product/Chemical Carriers, seven combination
carriers of which one is contracted for sale, one Panamax Product
Tanker, one Panamax Product Tanker under conversion to a Supramax Dry
Bulk Carrier, and three MR Product Tankers, of which one is under
conversion to a Handysize Dry Bulk Carrier and one is awaiting
delivery to a buyer.
We provide EBITDA (earnings before interest expense, taxes,
depreciation and amortization) information as a guide to the operating
performance of the Company. EBITDA, which is not a term recognized
under generally accepted accounting principles, is calculated as net
income plus interest expense, income taxes (benefit), depreciation and
amortization, and an adjustment for book value gains and losses on the
sale of vessels. Included in the depreciation and amortization for the
purpose of calculating EBITDA is depreciation of vessels, including
capital improvements and amortization of mortgage fees. EBITDA, as
calculated by the Company, may not be comparable to calculations of
similarly titled items reported by other companies.
Safe Harbor Statement
Certain statements contained in this press release, including,
without limitation, statements containing the words "believes,"
"anticipates," "expects," "intends," and words of similar import,
constitute "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995 or by the Securities and
Exchange Commission in its rules, regulations and releases, regarding
the Company´s financial and business prospects. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements
of the Company, or industry results, to be materially different from
any future results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, but are not
limited to, those set forth in the Company´s Annual Report and filings
with the Securities and Exchange Committee. Given these uncertainties,
undue reliance should not be placed on such forward-looking
statements. The Company disclaims any obligation to update any such
factors or to publicly announce the result of any revisions to any of
the forward-looking statements contained or incorporation by reference
herein to reflect future events or developments.
For further information, including the Company´s 2006 Annual
Report on Form 20F and previous announcements, access the Company´s
website: www.bhocean.com.
