MCX MC Shipping

MC Shipping Inc. (AMEX: MCX) reported net income of $3,711,899 or $0.40 per share on gross revenues (excluding interest income) of $10,107,255 for the quarter ended on March 31, 2006, compared to net income of $2,046,755 or $0.22 per share on gross revenues (excluding interest income) of $6,238,486 for the quarter ended March 31, 2005 (see Appendix 1 for the three months financial summary). The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $ 7.2 million and the ratio of EBITDA to interest expense was approximately 6.2 for the quarter ended on March 31, 2005. In the corresponding quarter of 2005, EBITDA was approximately $ 3.8 million and the ratio of EBITDA to interest expense was approximately 10.7. Vessel operating expenses (inclusive of dry-dock amortization) were $4,137,899 in the first quarter of 2006 compared to $2,944,535 in the first quarter 2005. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs decreased from 47.2% in the first quarter of 2005 to 40.9% in the first quarter of 2006. Reviewing the first quarter results, Tony Crawford, the Company's CEO, commented, "The quarter represents another record result, almost double the corresponding result for the same period in 2005. "At the end of the quarter we purchased two additional LPG vessels, which increases our fleet to 18 vessels and will positively contribute to earnings going forward. "In the second quarter, three large vessels and one small vessel will undergo scheduled periodic surveys, which will result in off hire time and a reduction in our second quarter results. While it is unusual to have four dockings occur in one quarter, this work has been long planned and will ensure the ships are able to trade to high standards for the next five years without additional shipyard work." "In the second quarter, we also expect to enter into discussions for charter renewals which will reflect recent market improvements, and this, coupled with our latest investments, bodes well for the third quarter and beyond." MC Shipping Inc. fully or partially owns and operates a fleet of 18 vessels that includes 12 liquefied petroleum gas (LPG) carriers from 3,000 to 78,000 cbm, 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. Appendix 1 -0- *T Three months financial summary for the period ended March 31st, 2006 and 2005 (US$): 3 months ended 3 months ended 31-Mar-2006 31-Mar-2005 ----------------- --------------- Charterhire and Other Income $10,107,255 $6,238,486 Commission on Charterhire (133,121) (153,856) Vessel Operating Expenses (3,899,134) (2,723,867) Depreciation and dry-dock amortization (2,338,531) (1,398,944) General and Administrative Expenses (513,987) (536,402) Recognized deferred gain on sale of vessels 1,174,522 926,567 Equity in income of associated companies 291,982 (84,451) ----------------- --------------- Operating Income 4,688,986 2,267,533 Interest Expense (1,150,649) (354,349) Interest Income 173,562 133,571 --------------------------------- Net Income $3,711,899 $2,046,755 --------------------------------- Net Income per share $0.40 $0.22 Average Number of shares outstanding 9,372,582 9,226,270 Shareholders equity $44,847,318 $40,466,810 Reconciliation of EBITDA to Net Income Net Income $3,711,899 2,046,755 Plus: interest expense 1,150,649 354,349 Plus: depreciation and amortization 2,338,531 1,398,944 --------------------------------- EBITDA $7,201,079 $3,800,048 --------------------------------- *T