MCX MC Shipping

MC Shipping Inc. (AMEX: MCX) (the "Company"), a leading liquefied petroleum gas (LPG) maritime carrier, today reported net income of $2,022,865 or $0.21 per share on gross revenues (excluding interest income) of $9,940,984 for the quarter ended on June 30, 2006, compared to net income of $2,861,999 or $0.31 per share on gross revenues (excluding interest income) of $9,628,735 for the quarter ended June 30, 2005 (see Appendix 1 for the three months financial summary). The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $ 6.5 million and the ratio of EBITDA to interest expense was approximately 5.0 for the quarter ended on June 30, 2006. In the corresponding quarter of 2005, EBITDA was approximately $ 6.6 million and the ratio of EBITDA to interest expense was approximately 5.4. Vessel operating expenses (inclusive of dry-dock amortization) were $5,199,640 in the second quarter of 2006 compared to $3,922,463 in the second quarter 2005. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs increased from 40.7% in the second quarter of 2005 to 52.3% in the second quarter of 2006. "As expected, this quarter's results reflect the impact of an unusually high number of scheduled dry docks," commented Tony Crawford, CEO of MC Shipping. "The last two dockings (one of which on the vessel that is 50% owned) will be completed by mid August. However, during the quarter, we remained very active in securing future streams of revenue, renewing all contracts on vessels that were set to expire during the period at prevailing market rates. Due to the continued strength in the LPG rate environment, these charters represent on average a 26% premium over previous earnings on the same vessels." Crawford continued, "We were also pleased to note continued growth in the market adjusted value of our underlying assets, indicating about $62 million in excess of book value as of today, up from approximately $56.8 million on June 30, 2006 - something that we will consider in the Company's investment strategy. "Our chartering strategy and our investments in the fleet will provide a measure of return in the immediate term, and we expect will be fully reflected in our fourth quarter earnings. As we look forward to 2007, we remain optimistic that these latest announcements and initiatives will help MC Shipping to experience growth and stimulate increased shareholder value in 2007," concluded Crawford. This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. One can generally identify these forward-looking statements because they contain "expect", "believe", "anticipate", "estimate", "confident" and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company's forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based. ABOUT MC SHIPPING INC. MC Shipping Inc. is an international shipping company focused on maritime transportation of the liquefied petroleum gas (LPG), with headquarters in Monaco and an office in London. MC Shipping fully or partially owns and operates a diversified fleet of 19 vessels that serve the world's major oil, gas, shipping and trading companies. -0- *T Appendix 1 Three months financial summary for the period ended June 30th, 2006 and 2005 (US$): 3 months ended 3 months ended 30-Jun-2006 30-Jun-2005 ----------------- -------------- Charterhire and Other Income $ 9,940,984 $ 9,628,735 Commission on Charterhire (131,694) (131,887) Vessel Operating Expenses (4,721,267) (3,756,246) Depreciation and dry-dock amortization (3,174,671) (2,529,552) General and Administrative Expenses (673,185) (550,664) Recognized deferred gain on sale of vessels 1,187,572 1,187,572 Profit on sale of vessels 1,028,693 - Equity in income of associated companies (247,741) 148,872 ----------------- -------------- Operating Income 3,208,691 3,996,830 Interest Expense (1,301,278) (1,217,768) Interest Income 115,452 82,937 ================= ============== Net Income $ 2,022,865 $ 2,861,999 ---------------- -------------- Net Income per share (basic) $ 0.22 $ 0.31 Average Number of shares outstanding 9,499,086 9,238,979 Shareholders equity $ 47,684,169 $ 34,540,750 Reconciliation of EBITDA to Net Income Net Income $ 2,076,676 $ 2,861,999 Plus: interest expense 1,301,278 1,217,768 Plus: depreciation and amortization 3,174,671 2,529,552 ---------------- -------------- EBITDA $ 6,498,814 $ 6,609,319 ---------------- -------------- *T -0- *T Appendix 2 Six months financial summary for the period ended June 30th, 2006 and 2005 (US$): 6 months ended 6 months ended 30-Jun-2006 30-Jun-2005 -------------------- ------------------- Charterhire and Other Income $ 20,048,239 $ 15,867,221 Net Income $ 5,734,764 $ 4,908,754 Net Income per share $ 0.61 $ 0.53 *T