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Excluding this item, net income for the first quarter of 2011 would amount to $1.1 million or 1 cent basic and diluted earnings per share. Recent Developments The previously announced sale of the M/T Olinda was cancelled due to the Buyers default. As a result the Company retained the initial deposit of approximately $1.9 million. Subsequently, on May 12th, 2011 the Company entered into a new contract to sell the vessel and on May 25th, 2011 the vessel was delivered to its new owners. The sale will result in an additional loss of $4 million which will be recorded in the second quarter of 2011. Anthony Kandylidis, the Company’s Chief Executive Officer, commented: “We are happy to announce a profitable quarter for the first three months of 2011 despite the challenging environment that the drybulk market is facing today. This is a result of our conscious decision to lock our fleet in long term time charters, which today stand well above the spot and period freight rates. In May 2011 we also finalized the sale of the M/T Olinda, the last tanker in our fleet. The cancellation of the original sale illustrates the challenges in the industry where lack of financing for shipping transactions is becoming more evident.” First Quarter 2011 Results For the first quarter ended March 31, 2011, Voyage Revenues amounted to $16.0 million and Operating Income amounted to $1.7 million. Net Income amounted to $0.1 million. Adjusted EBITDA (*) for the first quarter of 2011 was $6.5 million. An average of 8.6 vessels were owned and operated during the first quarter of 2011, earning an average Time Charter Equivalent, or TCE rate, of $18,972 per day. Full report in: www.oceanfreightinc.com (*) Please see later in this release for a reconciliation of adjusted EBITDA to net cash provided by operating activities. OceanFreight Inc. press release |
OceanFreight Inc. Reports Financial Results for the First Quarter of 2011