OceanFreight Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2008

March 11, 2009, Athens, Greece. OceanFreight Inc. (NASDAQ: OCNF), a global provider of marine transportation services, today announced its financial results for the fourth quarter and the year ended December 31, 2008.

Financial Highlights

• For the fourth quarter of 2008, the Company reported a Loss of $11.6 million or $0.65 per share. Excluding a non-cash loss of $17.3 million associated with the valuation of the Company’s interest rate swaps, Net Income for the fourth quarter of 2008 amounted to $5.8 million or $0.32 per common share.

• For the year ended December 31, 2008, the Company reported Net Income of $27.7 million or $1.94 per share. Excluding a non-cash loss of $16.1 million associated with the valuation of the Company’s interest rate swaps, Net Income for the year ended December 31, 2008, amounted to $43.9 million or $3.06 per common share.

Anthony Kandylidis, the Company’s President and Chief Executive Officer, commented: “We are satisfied with our 4th Quarter and Year End 2008 financial results, which once again underline our operational efficiency. Oceanfreight is now well prepared to face the future. We have successfully amended our senior debt facility with Nordea to avoid any loan covenant breaches, we have secured our cash flow from a diversified client and sector base and we have demonstrated that despite the challenging times we can successfully tap both the commercial bank market to raise additional debt and the U.S. capital markets to raise fresh equity.”

Fourth Quarter 2008 Results


For the fourth quarter ended December 31, 2008, Gross Revenues amounted to $38.9 million. Operating Income was $11.1 million for the quarter ended December 31, 2008. Loss for the fourth quarter of 2008 was $11.6 million. EBITDA1 for the fourth quarter of 2008 was $21.2 million.

An average of 12.7 vessels were owned and operated during the fourth quarter of 2008, earning an average Time Charter Equivalent, or TCE rate, of $32,815 per day.

Year Ended December 31, 2008 Results

For the year ended December 31, 2008, Gross Revenue amounted to $157.4 million. Operating Income was $60.7 million for the year ended December 31, 2008. Net Income for the year ended December 31, 2008 was $27.7 million or $1.94 Earnings Per Share (EPS) calculated on 14,321,471 weighted average common shares outstanding. EBITDA for the year ended December 31, 2008 was $96.7 million.

An average of 11.4 vessels were owned and operated during the year ended December 31, 2008, earning an average TCE rate of $34,705 per day.

Capitalization

On December 31, 2008, debt (debt, net of deferred financing fees) to total capitalization (debt and stockholders' equity) was 57.4% and net debt (debt less cash, cash equivalents and restricted cash) to total capitalization was 52.3%.

As of December 31, 2008, the Company had a total liquidity of approximately $29.6 million.

Financing Activities

As of today, the Company has raised approximately $6.2 million in gross proceeds under the Standby Equity Purchase Agreement or SEPA with YA Global Advisors. The total current number of shares outstanding is 21,694,493 million.

Other Developments

Mr. Michael Gregos has resigned from the position of Chief Operating Officer to pursue other business interests. The Company has appointed a new Vice President, Mr. Demetris Nenes who will be in charge of Business Development.

Mr. Nenes began his career working at OMI’s vetting department. During his career at OMI he moved in the commercial side of the business being involved in FFA Trading and Sales and Purchase. After the sale of OMI, Mr. Nenes joined Ospraie’s shipping team headed by Mr. Robert Bugbee, ex President and COO of OMI. Mr. Nenes holds a diploma in Naval Architecture from the National Technical University of Athens and a Master’s Degree in Business Administration from the University of Connecticut.

For detailed report visit www.oceanfreightinc.com .

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1 Please see later in this release for a reconciliation of EBITDA to net cash provided by Operating activities.

About OceanFreight Inc.

OceanFreight Inc., is an owner and operator of both drybulk and tanker vessels that operate worldwide. As of the day of this release, OceanFreight owns a fleet of 13 vessels comprising of 9 drybulk vessels (1 Capesize, 8 Panamaxes) and 4 crude carrier tankers (1 Suezmax, 3 Aframaxes) with a combined deadweight tonnage of about 1.2 million tons.

OceanFreight Inc.'s common stock is listed on the NASDAQ Global Market where it trades under the symbol "OCNF".

OceanFreight Inc. press release