OceanFreight Inc. Reports Financial Results for the First Quarter 2010

May 12, 2010, Athens, Greece. OceanFreight Inc. (NASDAQ: OCNF), a global provider of marine transportation services, announced today its financial results for the quarter ended March 31, 2010.

Financial Highlights

For the three-month period ended March 31, 2010, the Company reported a Net Income of $2.03 million or basic and diluted earnings per share of $0.01. EBITDA excluding vessel sale results for the quarter amounted to $14.3 million.

Anthony Kandylidis, the Company’s Chief Executive Officer, commented:

“We are pleased to report a profitable quarter for the first three months of 2010. This is the result of steps taken during 2009 to restore the Company’s balance sheet and operations:

• We have raised equity needed to shore up our balance sheet.
• We have disposed aged assets thereby improving operational efficiency.
• We have deployed the equity raised and the available credit lines from the vessel sales to invest in modern assets with accretive earnings.
• We have set a foundation for long-term growth with the order of three Very Large Ore Carriers to focus on the expanding Brazil to China iron ore trade. Going forward we believe that these actions will continue to provide favorable results for our shareholders.”

Recent Developments

• On March 13, 2010 we agreed to sell the M/T Olinda to a third party for a gross sale price of $19.00 million. The vessel is scheduled for delivery to the new owners no later than December 31, 2010.

• On April 14, 2010 we delivered to her new owners the M/V Pierre which was committed for sale on December 11, 2009.

• On April 20, 2010, we agreed to sell the M/T Tigani to a third party for a gross sale price of $12.25 million The vessel was delivered to its new owners on May 4, 2010. Of the sale proceeds $8.6 million was used to partially repay the vessel’s loan with DVB Bank SE. The sale resulted in a gain of $2.5 million of which approximately $1.0 million has been recognized in this quarter and $1.5 million will be recognized in the second quarter of 2010.

First Quarter 2010 Results

For the first quarter ended March 31, 2010, Voyage Revenue amounted to $28.8 million. Operating Income amounted to $7.1 million and Net Income amounted to $2.03 million or $0.01 per share.

djusted EBITDA for the first quarter of 2010 was $14.3 million.

An average of 13 vessels were owned and operated during the first quarter of 2010, earning an average Time Charter Equivalent, or TCE rate, of $21,163 per day.

Capitalization

On March 31, 2010, debt (debt, net of deferred financing fees) to total capitalization (debt and stockholders' equity) was 47.9% and net debt (debt less cash, cash equivalents and restricted cash) to total capitalization was 39.4%.

Financing

Following the sale of the M/T Tigani, $8.6 million of the sale proceeds were utilized to repay the outstanding balance of the vessel’s loan. As of the date of this release the aggregate outstanding balance of our loans is $236.8 million.

The Company has not raised any new equity since its last earnings report on February 22, 2010. Liquidity

As of March 31, 2010, the Company had total liquidity of approximately $45.3 million.

Detailed report at: www.oceanfreightinc.com

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 (3 Capesize, 6 Panamaxes) and 4 crude carrier tankers (1 Suezmax, 3 Aframaxes) with a combined deadweight tonnage of about 1.4 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