MC Shipping shrugs off lower revenues

MC Shipping shrugs off lower revenues

MC Shipping Inc. Wednesday reported its second-quarter net profits increased by 30.2 percent to $670,800 from $515,231 in the same period in 2003.

Second-quarter revenues, however, fell 20.2 percent to $7.9 million from $9.9 million.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $3.1 million, and the ratio of EBITDA to interest was 3.4. In the corresponding quarter of 2003, EBITDA was approximately $4.7 million and the ratio of EBITDA to interest was 3.7.

In the first six months of 2004, net profits totaled $1.5 million, an increase of 53 percent from the $983,959 reported in the first six months of 2003. But revenues were approximately $15.8 million, down 22 percent from approximately $20.2 million.

The fleet on-hire performance was 99 percent in the first half of 2004, compared to 94.6 percent in the same period of 2003.

"Our results this past quarter were severely impacted by the expenses incurred in relation to the change of ownership and the offers for additional equity received by the company. These expenses added approximately $400,000 to our overhead for the quarter." said Tony Crawford, MC's newly-appointed chief executive.

Crawford added: " At the same time the company has commenced the restructuring of its management team and that team plans to bring to the board in the near future a business plan that will reflect our intention to grow the company."

Based in Monaco, MC currently owns and operates a fleet of 11 gas carriers and mid- size container vessels that trade worldwide primarily under time-charter employment, and two sea-river vessels.