OceanFreight Reports Financial Results for the 4Q and Year Ended 2010

OceanFreight Inc., a global provider of marine transportation services, yesterday announced its financial results for the quarter and year ended December 31, 2010.
Financial Highlights

For the three-month period ended December 31, 2010 the Company reported a Net Income of $0.2 million. Included in these results is a loss of $1.6 million associated with the prior classification of four vessels as held for sale.
Excluding this item, net income for the fourth quarter of 2010 would amount to $1.8 million or $0.02 basic and diluted earnings per share.
Recent Developments
We recently signed a commitment letter with a major Chinese bank for the financing of up to 60% of the aggregate construction cost of three Very Large Ore Carriers (VLOCs) that we agreed to acquire in March 2010 and which are scheduled to be delivered in the first, second and third quarter of 2012. The facility includes a pre-delivery portion that is equal to the sum of all the yard installments prior to delivery.
Anthony Kandylidis, the Company's Chief Executive Officer, commented:
"We are pleased to secure pre-delivery and permanent financing for our first three VLOCs. With our secured contract backlog, no issues with loan covenants and with the purchase of the additional two VLOCs to be delivered in 2013, OceanFreight is uniquely positioned to take advantage of the drybulk market through the next cycle."
Fourth Quarter 2010 Results
For the fourth quarter ended December 31, 2010, Voyage Revenues amounted to $23.0 million and Operating Income amounted to $2.3 million. Net Income amounted to $0.2 million. Adjusted EBITDA(*) for the fourth quarter of 2010 was $8.5 million.
An average of 11.4 vessels were owned and operated during the fourth quarter of 2010, earning an average Time Charter Equivalent, or TCE rate, of $21,015 per day.
(*) Please see later in this release for a reconciliation of adjusted EBITDA to net cash provided by Operating activities.
Year Ended December 31, 2010 Results
For the year ended December 31, 2010, Voyage Revenue amounted to $100.6 million. Operating Loss was $46.3 million, which includes the effect of the loss from the sale of vessels and vessels held for sale $63.0 million. Net Loss amounted to $61.6 million or $(0.87) basic and diluted loss per share. Adjusted EBITDA for the year was $41.0 million as adjusted for the effect of the loss from the sale of vessels and vessels held for sale.
An average of 12.0 vessels were owned and operated during the year ended 2010, earning an average TCE rate of $23,022 per day.
Source: OceanFreight Inc.