Ardmore Shipping Corporation Announces Financial Results for First Quarter 2014

  Ardmore Shipping Corporation Announces Financial Results for First Quarter
  2014

Business Wire

HAMILTON, Bermuda -- May 13, 2014

Ardmore Shipping Corporation (NYSE:ASC) (“Ardmore” or the “Company”) today
announced results for the three months ended March 31, 2014.

Highlights

  *Reported EBITDA (see Non-GAAP Measures section below) of $4.0 million for
    the three months ended March 31, 2014, an increase of $1.4 million from
    $2.6 million for the three months ended March 31, 2013. The Company
    reported a net loss of $0.40 million for the three months ended March31,
    2014, or $0.021 basic and diluted net loss per share, as compared to a net
    loss of $0.04 million, or $0.005 basic and diluted net loss per share, for
    the three months ended March 31, 2013.
  *Reported adjusted EBITDA (see Non-GAAP Measures section below) of $4.3
    million for the three months ended March 31, 2014, an increase of $1.7
    million from $2.6 million for the three months ended March 31, 2013. The
    Company reported an adjusted net loss (see Non-GAAP Measures section
    below) of $0.06 million for the three months ended March31, 2014, or
    $0.003 basic and diluted adjusted loss per share (see Non-GAAP Measures
    section below), as compared to an adjusted net loss of $0.04 million, or
    $0.005 basic and diluted adjusted loss per share, for the three months
    ended March 31, 2013.
  *Successful completion of a follow-on equity offering raising gross
    proceeds of $108.7 million including over-allotment option exercised by
    underwriters on March 17, 2014.
  *Closed a senior debt facility on March 19, 2014 with ABN AMRO Bank N.V.,
    Nordea Bank Finland Plc and Skandinaviska Enskilda Banken AB in the amount
    of $172 million to finance eight of our vessels currently on order.
  *Declared a cash dividend of $0.10 per share for the quarter ended
    March31, 2014.
  *Took delivery of two MR product and chemical newbuildings in the first
    quarter 2014. TheArdmore Seavantage and Ardmore Seavanguard are the third
    and fourth of Ardmore’s eco-design vessels, which delivered from SPP
    Shipbuilding Co., Ltd. inSouth Korea in January and February,
    respectively.
  *Took delivery of the Ardmore Seamariner, a 45,726 Dwt MR product tanker
    built in October 2006 at Minami Nippon Shipbuilding Co., Ltd., Japan, on
    January 7, 2014. Following delivery the vessel underwent a scheduled
    drydock and upgrading to Eco-mod and, on completion, commenced a time
    charter at $16,050 per day.
  *Completed a series of upgrades on the Ardmore Centurion which, following
    completion, commenced a time charter with an oil major trading in product
    and chemicals at $13,500 per day.
  *Commenced a one-year time charter for the Ardmore Seavaliant at a rate of
    $17,100 per day starting in February 2014.

Anthony Gurnee, the Company’s Chief Executive Officer, commented:

“We are pleased with the Company’s first quarter 2014 results, which reflect
improvement in our chartering performance as well as continued fleet
expansion. We took delivery of two newbuildings and one second-hand vessel
during the quarter, so that now 52% of our fleet is on the water generating
cash flow. Complementing our fleet growth during the quarter, we increased our
financial flexibility significantly by raising $108.7 million from an upsized
follow-on equity offering to fund vessel acquisitions, as well as closing on a
$172 million senior debt facility to fund our existing newbuilding program. We
believe Ardmore is well positioned to benefit from favorable long-term
fundamentals for product and chemical tankers by continuing to engage in
well-timed fleet growth.”

Summary of Recent and First Quarter Events

Fleet Operations

On January7, 2014, Ardmore took delivery of the 2006-builtArdmore
Seamariner, a 45,726 Dwt MR product tanker built at Minami-Nippon Shipbuilding
Co., Ltd. inJapan, which was acquired by the Company in October 2013. On
delivery, the vessel entered drydock, where it was upgraded to Eco-mod in
conjunction with its scheduled intermediate survey.On completion of drydock,
the vessel commenced employment on a three-month time charter at a rate
of$16,050per day.

We also took delivery of the Ardmore Seavantage and Ardmore Seavanguard on
January 17, 2014 and February 14, 2014, respectively. These vessels are 49,997
Dwt IMO 3 Eco-design MR product and chemical tankers built at SPP Shipbuilding
Co., Ltd.in South Korea.Following delivery, both vessels commenced
employment under existing charter arrangements with a major oil trader.

On January30, 2014, Ardmore completed upgrades to the Ardmore Centurion. The
upgrades further improve fuel efficiency, allow carriage of a broader range of
cargos and reduce cleaning time, which will enhance the vessel’s earnings
potential.

As a result of the above deliveries, Ardmore’s fleet currently stands at 11
ships in operation and 10 Eco-design product and chemical tankers on order,
with our next vessel on order scheduled to deliver in November 2014.

Financing

On March 11, 2014, Ardmore closed an equity offering of 7,000,000 shares at
$13.50 per share, an upsized offering from the initially launched offering of
6,000,000 shares on March 3, 2014. Our underwriters subsequently exercised an
over-allotment option for an additional 1,050,000 shares, also at $13.50 per
share, on March 17, 2014. Total gross proceeds to Ardmore amounted to $108.7
million.

On March19, 2014, Ardmore closed a senior debt facility with ABN AMRO Bank
N.V., Nordea Bank Finland Plc and Skandinaviska Enskilda Banken AB (“SEB”) in
the amount of $172 million. The proceeds will be used to finance up to 65% of
the purchase price of eight vessels that Ardmore currently has on order. The
margin is 3.15% above LIBOR and the terms include an accordion option whereby,
subject to lenders approval, Ardmore may request to increase the facility to
finance the acquisition of additional vessels.

Dividend

On April15, 2014, Ardmore’s Board of Directors announced a cash dividend of
$0.10 per share for the quarter ended March 31, 2014. The cash dividend is
payable on May15, 2014 to all shareholders of record on April 30, 2014.
Ardmore currently intends to pay our shareholders quarterly dividends of $0.10
per share, or $0.40 per share per year.

Results for the three months ended March 31, 2014 and 2013

For the three months ended March31, 2014, the Company reported EBITDA (see
Non-GAAP Measures section below) of $4.0 million, an increase of $1.4 million
from $2.6 million for the three months ended March31, 2013. The Company
reported a net loss of $0.40 million, or $0.021 basic and diluted loss per
share, for the three months ended March31, 2014, as compared to a net loss of
$0.04 million, or $0.005 basic and diluted loss per share, for the three
months ended March31, 2013.

For the three months ended March31, 2014, the Company reported adjusted
EBITDA (see Non-GAAP Measures section below) of $4.3 million, an increase of
$1.7 million from $2.6 million for the three months ended March31, 2013.
Adjusted net loss (see Non-GAAP Measures section below) was $0.06 million, or
$0.003 basic and diluted adjusted loss per share (see Non-GAAP Measures
section below), for the three months ended March31, 2014 as compared to an
adjusted net loss of $0.04 million, or $0.005 basic and diluted adjusted loss
per share for the three months ended March31, 2013. EBITDA and net loss were
adjusted for share based compensation (non-cash item) in each period, as
applicable.

Management’s Discussion and Analysis of Financial Results

Revenue for the three months ended March31, 2014 was $12.4 million, an
increase of $5.1 million from $7.3 million for the three months ended
March31, 2013. Time charter revenue was $10.1 million for the three months
ended March 31, 2014, an increase of $4.9 million from $5.2 million for the
three months ended March 31, 2013. The increase primarily relates to
additional revenue attributable to the Ardmore Seaventure, Ardmore Seavantage,
Ardmore Seamariner and Ardmore Seavanguard, which commenced trading on June7,
2013, January 18, 2014, February 1, 2014 and February 17, 2014, respectively,
along with increases in rates for time charter renewals since the three months
ended March31, 2013. Pool revenue was $2.3 million for the three months ended
March 31, 2014, an increase of $0.2 million from $2.1 million for the three
months ended March 31, 2013. This increase is due to increased rates earned by
the pool.

Commissions and voyage related costs were $0.25 million for the three months
ended March31, 2014, as compared to $0.18 million for the three months ended
March31, 2013. This increase is due to increases in revenue days in-line with
vessel deliveries outlined above.

Vessel operating expenses were $5.9 million for the three months ended
March31, 2014, an increase of $2.0 million from $3.9 million for the three
months ended March31, 2013. This increase is primarily due to an increase in
the number of vessels in operation for the three months ended March31, 2014
in addition to the timing of operating expenses between quarters. Fleet
operating costs per day, including technical management fees, were $6,520 for
the three months ended March 31, 2014 as compared to $6,502 for the three
months ended March 31, 2013.

Depreciation expense for the three months ended March31, 2014 was $3.0
million, an increase of $1.3 million from $1.7 million for the three months
ended March31, 2013. The increase is due to an increase in the average number
of owned vessels to 9.9 for the three months ended March 31, 2014 from 6.4 for
the three months ended March31, 2013.

Amortization of deferred dry dock expenditure for the three months ended
March31, 2014 was $0.4 million, as compared with $0.3 million for the three
months ended March31, 2013. The capitalized costs of drydocking are
depreciated on a straight line basis to the next scheduled drydocking. As
such, movement in amortization of deferred drydock expenditure is in-line with
timing of vessels undergoing drydock.

General and administrative expenses for the three months ended March31, 2014
were $2.3 million, as compared to $0.7 million for the three months ended
March31, 2013. The increase is primarily due to costs associated with being a
publicly listed company along with one-off overhead costs incurred with our
most recent equity offering in March 2014.

Interest expense and finance costs, which include loan interest, capital lease
interest and amortization of deferred financing fees, were$0.9 millionfor
the three months ended 31 March, 2014, an increase of$0.4 millionfrom$0.5
millionfor the three months ended March31, 2013. The increase relates to an
increase in average debt balance following the delivery of vessels since March
31, 2013, additional interest costs associated with the capital lease facility
for theArdmore CalypsoandArdmore Capellaentered into in April 2013, and an
increase in deferred financing fees amortization due to new debt drawdowns and
financing arrangements. These increases were offset by an increase in the
amount of capitalized interest in line with deposits paid for Ardmore’s
current vessels on order. Capitalized interest amounted to $0.9 million for
the three months ended March 31, 2014, an increase of$0.7 millionfrom$0.2
millionfor the three months ended March31, 2013.

Liquidity

As of March31, 2014, the Company had $128.1 million (December 31, 2013: $56.9
million) available in cash and cash equivalents.

The following debt and capital lease liabilities were outstanding as of:

                
                   As of
                   Mar 31, 2014   Dec 31, 2013
Debt               131,585,000      88,860,000
Capital Leases     30,008,544     30,379,015
Total              161,593,544      119,239,015
                                    

Conference Call

The Company plans to have a conference call on Tuesday, May 13, 2014 at 10:00
a.m. Eastern Time to discuss its results for the quarter ended March 31, 2014.
All interested parties are invited to listen to the live conference call and
slide presentation by choosing from the following options:

1.By dialing 888-510-1765 (U.S.) or 719-325-2361 (International) and
    entering the conference participant passcode 9150205.
2.By accessing the live webcast at Ardmore Shipping’s website at
    www.ardmoreshipping.com.

Participants should dial into the call 10 minutes before the scheduled time.

If you are unable to participate at this time, a replay of the call will be
available for two weeks at 888-203-1112 or 719-457-0820. Enter the passcode
9150205 to access the audio replay. The information provided on the
teleconference is only accurate at the time of the conference call, and the
Company will take no responsibility for providing updated information.

About Ardmore Shipping Corporation

Ardmore Shipping owns and operates a fleet of mid-size product and chemical
tankers ranging from 17,500 Dwt to 50,300 Dwt. We provide seaborne
transportation of petroleum products and chemicals worldwide to oil majors,
national oil companies, oil and chemical traders, and chemical companies, with
our modern, fuel-efficient fleet of tankers.

Ardmore’s core strategy is to develop a modern, high-quality fleet of product
and chemical tankers, build key long-term commercial relationships, maintain
our cost advantage in assets, operations and overhead, while creating
significant synergies and economies of scale as the Company grows. We provide
our services to customers through voyage charters, commercial pools and time
charters and enjoy close working relationships with key commercial and
technical management partners. We view the continued development of these
relationships as crucial to our long-term success.


Ardmore Shipping Corporation
Unaudited Condensed Interim Consolidated Balance Sheet
(Expressed in U.S. dollars, unless otherwise stated)
                                             
                                                 As at
ASSETS                                           Mar 31, 2014   Dec 31, 2013
Current assets
Cash and cash equivalents                        128,117,346      56,860,845
Receivables, trade                               535,822          743,406
Working capital advances                         516,937          534,571
Prepayments                                      593,148          471,563
Advances and deposits                            1,316,909        1,894,317
Other receivables                                454,277          321,810
Inventories                                      1,161,805        1,131,466
Total current assets                             132,696,244      61,957,978
                                                                  
Non-current assets
Vessels and vessel equipment, net                298,783,941      201,700,229
Deferred dry dock expenditure, net               2,219,550        1,339,238
Vessels under construction                       67,113,541       89,015,139
Other non-current assets, net                    170,660          158,308
Deferred finance charges, net                    5,887,026        3,794,741
Total non-current assets                         374,174,718      296,007,655
                                                                 
TOTAL ASSETS                                     506,870,962      357,965,633
                                                                  
LIABILITIES AND EQUITY
Current liabilities
Payables, trade                                  9,267,319        3,999,311
Charter revenue received in advance              2,208,877        1,806,600
Other payables                                   17,985           5,436
Accrued interest on loans                        730,338          557,160
Current portion of long-term debt                11,916,000       9,100,000
Current portion of capital lease                 1,608,882        1,578,686
obligations
Total current liabilities                        25,749,401       17,047,193
                                                                  
Non-current liabilities
Non-current portion of long-term debt            119,669,000      79,760,000
Non-current portion of capital lease             28,399,662       28,800,329
obligations
Total non-current liabilities                    148,068,662      108,560,329
                                                                  
Equity
Share capital                                    261,000          180,500
Additional paid in capital                       345,730,317      244,702,577
Accumulated deficit                              (12,938,418)     (12,524,966)
Total equity                                     333,052,899      232,358,111
                                                                 
TOTAL LIABILITIES AND EQUITY                     506,870,962      357,965,633
                                                                  


Ardmore Shipping Corporation
Unaudited Condensed Statement of Operations
(Expressed in U.S. dollars, unless otherwise stated)
                                             
                                                 Three months ended
                                                 Mar 31, 2014   Mar 31, 2013
REVENUE
Revenue                                          12,386,264       7,275,085
                                                                  
OPERATING EXPENSES
Commissions and voyage related costs             246,599          175,736
Vessel operating expenses                        5,899,991        3,876,809
Depreciation                                     3,021,762        1,704,017
Amortization of deferred dry dock                441,585          348,896
expenditure
General and administrative expenses              2,289,266        662,016
Total operating expenses                         11,899,203       6,767,474
                                                                 
Profit from operations                           487,061          507,611
                                                                  
Interest expense and finance costs               (889,986)        (542,536)
Interest income                                  2,022            881
                                                                 
Loss before taxes                                (400,903)        (34,044)
                                                                  
Income tax                                       (12,549)         (6,648)
                                                                 
Net loss                                         (413,452)        (40,692)
                                                                  
Loss per share, basic and diluted                (0.021)          (0.005)
Weighted average number of shares, basic         19,858,333       8,050,000
and diluted
                                                                  


Ardmore Shipping Corporation
Unaudited Condensed Interim Statement of Cash Flows
(Expressed in U.S. dollars, unless otherwise stated)
                                             
                                                 Three months ended
                                                 Mar 31, 2014   Mar 31, 2013
OPERATING ACTIVITIES
Net loss                                         (413,452)        (40,692)
Non-cash items:
Depreciation                                     3,021,762        1,704,017
Amortization of deferred dry dock                441,585          348,896
expenditure
Share based compensation                         353,855          -
Amortization of deferred finance charges         201,451          90,356
Changes in operating assets and
liabilities:
Receivables, trade                               207,584          232,577
Working capital advances                         17,634           490,189
Prepayments                                      (121,585)        (45,493)
Advances and deposits                            577,408          (1,391,786)
Other receivables                                (132,467)        (591,921)
Inventories                                      (30,339)         (163,372)
Payables, trade                                  5,268,008        733,729
Charter revenue received in advance              402,277          82,996
Other payables                                   12,549           6,648
Accrued interest on loans                        173,178          70,357
Deferred dry dock expenditure                    (1,321,897)      (193,996)
Net cash provided by operating activities        8,657,551        1,332,505
                                                                  
INVESTING ACTIVITIES
Payments for acquisition of vessels and          (68,532,225)     (27,291,840)
equipment
Payments for vessels under construction          (9,658,375)      (15,695,292)
Payments for other non-current assets            (25,628)         (11,868)
Net cash used in investing activities            (78,216,228)     (42,999,000)
                                                                  
FINANCING ACTIVITIES
Short-term revolving credit facility             -                8,500,000
Proceeds from long-term debt                     45,000,000       26,290,000
Repayments of long-term debt                     (2,275,000)      (1,205,000)
Repayments of capital leases                     (370,471)        -
Payments for deferred finance charges            (2,293,736)      (677,663)
Net proceeds from equity offering                102,559,385      -
Payment of dividend                              (1,805,000)      -
Net cash provided by financing activities        140,815,178      32,907,337
                                                                 
Net increase / decrease in cash and cash         71,256,501       (8,759,158)
equivalents
                                                                  
Cash and cash equivalents at the beginning       56,860,845       15,334,123
of the year
                                                                 
Cash and cash equivalents at the end of          128,117,346      6,574,965
the period
                                                                  


Ardmore Shipping Corporation
Unaudited Other Operating Data
(Expressed in U.S. dollars, unless otherwise stated)
                                            
                                                Three months ended
                                                Mar 31, 2014   Mar 31, 2013
                                                                 
ADJUSTED EBITDA^(1)                             4,304,263        2,560,524
                                                                 
AVERAGE DAILY DATA
Fleet time charter equivalent per day^(2)       14,378           13,004
                                                                 
Fleet operating costs per day^(3)               6,156            6,109
Technical management fees per day^(4)           364              393
                                                6,520            6,502
                                                                 
MR Tankers “Eco-Design”
TCE per day^(2)                                 15,522           15,378^(6)
Vessel operating costs per day^(5)              6,148            5,899
                                                                 
MR Tankers “Eco-Mod"
TCE per day^(2)                                 14,447           13,507
Vessel operating costs per day^(5)              6,561            6,507
                                                                 
Chemical Tankers “Eco-Mod”
TCE per day^(2)                                 12,870           12,021
Vessel operating costs per day^(5)              6,877            6,585
                                                                 
FLEET
Average number of owned operating vessels       9.9              6.4
                                                                 

    
(1)   Adjusted EBITDA is reconciled under the “Non-GAAP Measures” section
      below.
      Time Charter Equivalent (“TCE”) daily rate is the gross charter rate or
      gross pool rate, as appropriate, per revenue day plus Communication
(2)   Victualing and Entertainment Income (“CVE”). For vessels employed on
      voyage charters, TCE is the net rate after deducting voyage costs
      incurred by commercial managers.
      Fleet operating costs per day are routine operating expenses and
(3)   comprise, crewing, repairs and maintenance, insurance, stores, lube
      oils, communication costs. They do not include additional costs related
      to upgrading or enhancement of the vessels that are not capitalized.
(4)   Technical management are fees paid to third-party technical managers.
(5)   Vessel operating costs per day includes technical management fees.
      Charter rate for the Ardmore Seavaliant averaged $15,378 per day
(6)   commencing in February 2013. The rate was a blended rate of $17,049 per
      day for the first 60 days plus $15,049 thereafter.
      


Ardmore Shipping Corporation
Fleet List as at March31, 2014
                                                                                                 
                                                                                    Charter
Vessel Name   Type               Dwt       IMO   Month         Country       Flag   Rate      Charter      Specification
                                                 Constructed   Constructed          $ / day   Expires
                                                                                    ^(1)
In
Operation
Ardmore       Product/Chemical   49,998    3     Feb-13        Korea         MI     17,149    Feb-15       Eco-design
Seavaliant
Ardmore       Product/Chemical   49,998    3     Jun-13        Korea         MI     15,873    Jun-14       Eco-design
Seaventure
Ardmore       Product/Chemical   49,997    3     Jan-14        Korea         MI     15,600    Jan-15^(2)   Eco-design
Seavantage
Ardmore       Product/Chemical   49,998    3     Feb-14        Korea         MI     15,600    Feb-15^(2)   Eco-design
Seavanguard
Ardmore       Product            47,141    —     Dec-02        Japan         MI     14,299    Aug-14       Eco-mod
Seatrader
Ardmore       Product/Chemical   45,840    3     Sep-04        Japan         MI     14,299    Jul-14       Eco-mod
Seamaster
Ardmore       Product            45,744    —     Aug-04        Japan         MI     13,783    Jul-14       Eco-mod
Seafarer
Ardmore       Product            45,726    —     Oct-06        Japan         MI     16,099    Apr-14^(3)   Eco-mod
Seamariner
Ardmore       Product/Chemical   29,006    2     Nov-05        Korea         MI     13,549    Feb-15       Eco-mod
Centurion
Ardmore       Product/Chemical   17,589    2     Jan-10        Korea         MI     Pool      N/A          Eco-mod
Calypso
Ardmore       Product/Chemical   17,567    2     Jan-10        Korea         MI     Pool      N/A          Eco-mod
Capella
                                                                                                           
On Order
SPP Hull      Product/Chemical   50,300    3     1Q15          Korea         MI     Pool                   Eco-design
S-1162
SPP Hull      Product/Chemical   50,300    3     2Q15          Korea         MI     Pool                   Eco-design
S-1163
SPP Hull      Product/Chemical   50,300    3     2Q15          Korea         MI     Pool                   Eco-design
S-1171
SPP Hull      Product/Chemical   50,300    3     3Q15          Korea         MI     Pool                   Eco-design
S-1172
HMD Hull      Product/Chemical   37,000    2     1Q15          Korea         MI     TBD                    Eco-design
H-2480
HMD Hull      Product/Chemical   37,000    2     1Q15          Korea         MI     TBD                    Eco-design
H-2481
FKA Hull      Product/Chemical   25,000    2     4Q14          Japan         MI     TBD                    Eco-design
N-2062
FKA Hull      Product/Chemical   25,000    2     1Q15          Japan         MI     TBD                    Eco-design
N-2063
FKA Hull      Product/Chemical   25,000    2     3Q15          Japan         MI     TBD                    Eco-design
N-2065
FKA Hull      Product/Chemical   25,000    2     4Q15          Japan         MI     TBD                    Eco-design
N-2067
                                                                                                           
Total         21                 823,804
                                                                                                           

    
      This table shows gross charter rates, averaged over the duration, as
(1)   applicable, plus CVE income and does not include commissions payable by
      us at a rate of 1.25%, where applicable.
(2)   Option to extend at a market based rate for a second and third year.
(3)   Option to extend at a market based rate.
      

Non-GAAP Measures

This press release describes EBITDA, adjusted EBITDA, adjusted net loss and
adjusted net loss per share, which are not measures prepared in accordance
with U.S. GAAP. These Non-GAAP measures are presented in this press release as
we believe that they provide investors with a means of evaluating and
understanding how Ardmore’s management evaluate operating performance. These
Non-GAAP measures should not be considered in isolation from, as substitutes
for, or superior to financial measures prepared in accordance with U.S. GAAP.
All amounts are expressed in U.S. dollars, unless otherwise stated.

                                             
EBITDA & Adjusted EBITDA                         Three months ended
                                                 Mar 31, 2014   Mar 31, 2013
Net loss                                         (413,452)        (40,692)
Interest income                                  (2,022)          (881)
Interest expense and finance costs               889,986          542,536
Income tax                                       12,549           6,648
Depreciation                                     3,021,762        1,704,017
Amortization of deferred dry dock                441,585          348,896
expenditure
EBITDA                                           3,950,408        2,560,524
Share based compensation (non-cash)              353,855          -
Adjusted EBITDA                                  4,304,263        2,560,524
                                                                  
Adjusted net loss                                Three months ended
                                                 Mar 31, 2014     Mar 31, 2013
Net loss                                         (413,452)        (40,692)
Share based compensation (non-cash)              353,855          -
Adjusted net loss                                (59,597)         (40,692)
                                                                  
Adjusted loss per share, basic and diluted       (0.003)          (0.005)
Adjusted weighted average number of              19,858,333       8,050,000
shares, basic and diluted
                                                                  

Forward Looking Statements

Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical facts. The
Company desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words
“believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “may,” “should,” “expect,” “pending” and similar expressions
identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management’s examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include the failure of counterparties to fully
perform their contracts with us, the strength of world economies and
currencies, general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for tanker vessel capacity, changes in
our operating expenses, including bunker prices, drydocking and insurance
costs, the market for our vessels, competition in the tanker industry,
availability of financing and refinancing, charter counterparty performance,
ability to obtain financing and comply with covenants in such financing
arrangements, changes in governmental rules and regulations or actions taken
by regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions, potential
disruption of shipping routes due to accidents, piracy or political events,
vessels breakdowns and instances of off-hires and other factors. Please see
our filings with the Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties.

Contact:

Investor Relations Enquiries:
The IGB Group
Mr.Leon Berman, 212-477-8438
Fax: 212-477-8636
lberman@igbir.com
 
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