MCX MC Shipping

MC Shipping Inc. (AMEX: MCX) reported net income of $2,921,619 or $0.33 per share on gross revenues (excluding interest income) of $9,796,898 for the quarter that ended on September 30, 2005, compared to net income of $359,482 or $0.04 per share on gross revenue of $8,127,173 for the quarter ended September 30, 2004 (see Appendix 1 for the three months financial summary). The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $ 6.8 million and the ratio of EBITDA to interest expense was approximately 5.4 for the quarter that ended on September 30, 2005. In the corresponding quarter of 2004, EBITDA was approximately $ 2.9 million and the ratio of EBITDA to interest expense was approximately 3.1. Vessel operating expenses (inclusive of dry-dock amortization) were $3,835,790 in the third quarter 2005 compared to $4,463,744 in the third quarter 2004. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs decreased from 54.9% in the third quarter of 2004 to 39.2% in the third quarter of 2005. Commenting on the third quarter results, Tony Crawford, the CEO of the Company, observed, "the Company's net results in the last quarter were in line with our estimates but we did suffer an increase in vessel operating expenses that mostly related to general rise in the crew wages and the price of lube oils. Nevertheless, the consistent quarter-on-quarter improvements keep steadily forming solid foundation for further growth. The Company commenced the process of negotiating new contracts for the vessels whose charters expire in the near term and continues to be optimistic about its prospects." On November 7, 2005, the Board of Directors of the Company reviewed the management structure of the Company. Since V.Ships is no longer a major shareholder of the Company, the Board decided it was appropriate to terminate the service agreement with V.Investments Limited, whereby Mr. Crawford was seconded by V.Ships to MC Shipping. Furthermore, because of the Board's strong desire to grow the Company, Mr. Crawford was asked to accept the position as full time Chief Executive Officer of MC Shipping and should further select suitable supporting officers and staff to ensure the Company develops in line with the Board's requirements. 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 Appendix 1 Three months financial summary for the period ended September 30th, 2005 and 2004 (US$): 3 months ended 3 months ended 30-Sep-2005 30-Sep-2004 -------------- -------------- Charterhire and Other Income $9,796,898 $8,127,173 Commission on Charterhire (121,415) (186,890) Vessel Operating Expenses (3,659,226) (4,129,633) Depreciation and dry-dock amortization (2,649,480) (1,619,125) General and Administrative Expenses (469,745) (857,011) -------------- -------------- Operating Income 2,897,032 1,334,514 Interest Expense (1,255,384) (965,152) Interest Income 111,852 30,241 Recognized deferred gain on sale of vessels 1,189,597 - Equity in income of associated companies (21,478) - Loss on Repurchases of Notes - (40,121) -------------- -------------- Net Income $2,921,619 $359,482 ============== ============== Net Income per share $0.33 $0.04 Average Number of shares outstanding 8,913,658 8,736,197 Shareholders equity $37,856,608 $31,559,617 Reconciliation of EBITDA to Net Income Net Income $2,921,619 $359,482 Plus: interest expense 1,255,384 965,152 Plus: depreciation and amortization 2,649,480 1,619,125 -------------- -------------- EBITDA $6,826,483 $2,943,759 ============== ============== *T -0- *T Appendix 2 Nine months financial summary for the period ended September 30th, 2005 and 2004 (US$): 9 months ended 9 months ended 30-Sep-2005 30-Sep-2004 --------------- --------------- Charterhire and Other Income $25,664,119 $23,904,609 Net Income $7,830,373 $1,696,325 Net Income per share $0.89 $0.19 *T