MCX MC Shipping

MC Shipping Inc. (AMEX: MCX) (the �Company�), an international liquefied petroleum gas (LPG) maritime carrier, today reported its financial and operating results for the first quarter 2007. For the quarter ended March 31, 2007, gross revenues (excluding interest income) were $15.5 million, a 53.4% increase from $10.1 million for the quarter ended March 31, 2006. The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $11.6 million in the first quarter 2007, a 61.5% increase from $7.2 million in the first quarter 2006, and the ratio of EBITDA to interest expense was approximately 3.7 for the quarter ended March 31, 2007, compared to 6.3 for the same period in 2006. Net income for the first quarter 2007 was $2.7 million or $0.28 per share, compared to net income of $3.7 million or $0.40 per share or the same period in 2006 (see Appendix 1 for the three months financial summary). Vessel operating expenses (including dry-dock amortization) were $5.4 million in the first quarter 2007 compared to $4.1 million in the first quarter 2006, reflecting the larger fleet. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs decreased from 40.9% in the first quarter 2006 to 35.1% in the first quarter 2007. Commenting on the first quarter 2007 results, Tony Crawford, the Company�s CEO, stated, �We continue to build our business with revenues and EBITDA both up by over 50% as compared to the same quarter last year. Net income in the first quarter 2007 was affected by $1.3 million loss of revenue on the vessel Kew Bridge, which continues to be repaired in Dubai following a grounding incident in 2006. We are in discussions with the vessel�s charterers about recovering a portion of lost revenues in the first and second quarters 2007. The vessel is expected to return to service in July.� Mr. Crawford continued, �In January 2007, we delivered and simultaneously chartered back five of the six small LPG tankers sold at the end of 2006 to Beteiligungsgesellschaft LPG Tankerflotte mbH & Co. KG (�LTF�), a special purpose German KG company formed by the German finance house MPC Munchmeyer Petersen AG. Upon delivery of the vessels, the Company received $42 million; prepaid approximately $18 million of the debt on these vessels; and reinvested approximately $4.4 million in LTF for 25% of the equity, thereby remaining committed to the ships and its customers. The net proceeds to the Company were approximately $19.7 million, which has significantly strengthened our cash position. Consistent with our strategic focus on the LPG shipping sector, we expect to reinvest the excess proceeds in other LPG vessels and are considering several potential acquisitions.� �Charter contracts that were expiring in the first and early second quarter 2007 have been renewed at or above the budget and often at rates above those achieved in 2007, and we remain optimistic for the year�, concluded Crawford. ABOUT MC SHIPPING INC. MC Shipping Inc. is an international shipping company focused on maritime transportation of liquefied petroleum gas (LPG), with headquarters in Monaco and an office in London. MC Shipping fully or partially owns and operates a fleet of 19 vessels that serve the world�s major oil, gas, shipping and trading companies. FORWARD-LOOKING STATEMENTS Except for the historical information contained herein, the matters discussed in this press release could contain �forward-looking statements� that are based on current expectations and assumptions that involve risks and uncertainties, which could cause actual results to differ materially from those predicted. MC Shipping Inc. undertakes no obligation to update any forward-looking statement to conform to actual results or changes in the Company�s expectations, whether as a result of new information, future events, or otherwise. Appendix 1 Three months financial summary for the period ended March 31st 2007 and 2006 (US$): � Three months Ended March 31, 2007 Three months Ended March 31, 2006 � � Charterhire and Other Income $ 15,504,166� $ 10,107,255� Commission on Charterhire (107,966) (133,121) Vessel Operating Expenses (4,909,355) (3,899,134) Depreciation and dry-dock amortization (5,760,254) (2,338,531) General and Administrative Expenses � (783,253) � (513,987) � � Income from vessel operations 3,943,338� 3,222,482� � Recognized deferred gain on sale of vessels 1,174,522� 1,174,522� Equity in income/(loss) of associated companies � 537,047� � 291,982� � � Operating Income 5,654,907� 4,688,986� Interest Expense (3,172,809) (1,150,649) Interest Income � 213,972� � � 173,562� Net Income $ 2,696,070� � $ 3,711,899� � Net Income per share (basic) $ 0.28� $ 0.40� � Basic average number of shares outstanding 9,509,183� 9,372,582� Shareholders equity $ 50,131,059� $ 48,247,207� � Reconciliation of EBITDA to Net Income Net Income 2,696,070� 3,711,899� Plus: interest expense 3,172,809� 1,150,649� Plus: depreciation and amortization � 5,760,254� � � 2,338,531� EBITDA $ 11,629,133� � $ 7,201,079�