MCX MC Shipping

MC Shipping Inc. (AMEX: MCX) reported net income of $2,046,755 or $0.23 per share on revenues (excluding interest income) of $6,238,486 for the quarter that ended on March 31, 2005, compared to a net income of $800,398 or $0.09 per share on the gross revenue of $7,895,776 for the quarter ended March 31, 2004 (see three months financial summary attached below). The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $3.8 million and the ratio of EBITDA to interest expense was approximately 10.7 for the quarter that ended on March 31, 2005. In the corresponding quarter of 2004, EBITDA was approximately $ 3.45 million and the ratio of EBITDA to interest expense was approximately 3.4. EBITDA is defined by the Company as Net Income before income taxes, interest, depreciation and amortization and provision for impairment loss. Vessel operating expenses (inclusive of dry-dock amortization) were $2,944,535 in the first quarter 2005 compared to $4,741,061 in the first quarter 2004. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs decreased from 60.0% in the first quarter of 2004 to 47.2% in the first quarter of 2005. Tony Crawford, the CEO of the Company, stated, "The sale of the four containerships this January had the principal impact on the results of the first quarter 2005, and will provide a stable profit line within our income statement for the next four years, although we have already collected and reinvested a good part of this cash." Mr. Crawford added, "Given the delivery of 'Berge Flanders', 'Berge Kobe' and 'Isomeria' (renamed 'Galileo') we expect these ships to have a positive effect on the second quarter results. We anticipate those results to exceed the results of the first quarter with earnings building over the year such that the annual net income will exceed $1.35 per share." "Our Company's fleet earnings are being built on the back of long term charters with industrial players," Mr. Crawford went on to say. "The recent transformation has been tough, but we have a clear vision for 2005 and 2006 and our aim is for long term quarterly growth in both earnings and dividends. We are not spot market players but building the business so that investors can be relaxed about our results. We still have value to release within the Company and will do so as soon as we can." Presently, MC Shipping Inc. fully or partially owns and operates a fleet of 16 vessels that includes 10 liquefied petroleum gas (LPG) carriers from 3,000 to 78,000 m3, 4 container vessels of 2,300 TEU capacity and 2 small multipurpose/general cargo ships. This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. One can generally identify these forward-looking statements because they contain "expect", "believe", "anticipate", "estimate, ""confident" and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company's forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based. -0- *T 3 months financial summary for the period ended March 31st 2005 and 2004 (US$): 3 months 3 months ended 31- ended 31- Mar-2005 Mar-2004 ------------ ------------- Charterhire and Other Income $ 6,238,486 $ 7,895,776 Commission on Charterhire (153,856) (190,374) Vessel Operating Expenses (2,723,867) (4,385,901) Depreciation and dry-dock amortization (1,398,944) (1,640,747) General and Administrative Expenses (536,402) (332,228) ------------ ------------- Operating Income 1,425,417 1,346,526 Interest Expense (354,349) (1,005,221) Interest Income 133,571 35,498 Recognized deferred gain on sale of vessels 926,567 - Equity in losses of associated companies (84,451) - Gains on Repurchases of Notes - 423,595 ------------ ------------- Net Income $ 2,046,755 $ 800,398 ============ ============= Net Income per share $ 0.23 $ 0.09 Average Number of shares outstanding 8,772,857 8,724,021 Shareholders equity $33,280,027 $30,836,555 Reconciliation of EBITDA to Net Income Net Income $ 2,046,755 $ 800,398 Plus: interest expense 354,349 1,005,221 Plus: depreciation and amortization 1,398,944 1,640,747 ------------ ------------- EBITDA $ 3,800,048 $ 3,446,366 ------------ ------------- *T