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15-02-2011, 12:44 PM
Omega Navigation Enterprises, Inc. is an international provider of global marine transportation services through the ownership and operation of double hull product tankers. The current fleet includes fifteen double hull product tankers, which includes seven that are owned through joint ventures with wholly owned subsidiaries of Glencore International AG, with an aggregate carrying capacity of 902,358 dwt., six of which are under fixed rate time charter contracts with an average age of the entire fleet of less than five years. In addition, the Company, through its joint venture Megacore, is scheduled to take delivery of 4 additional LR1 product carriers in 2011 and 2012. With the addition of these four vessels, Omega's fleet will expand to 19 product tankers with a total deadweight capacity of 1,198,358 dwt.
OMEGA NAVIGATION ENTERPRISES, INC. ANNOUNCES THAT THE JOINT VENTURE COMPANY, MEGACORE SHIPPING LTD., HAS TAKEN DELIVERY OF THREE LR1 PANAMAX PRODUCT TANKERS AND THE ADDITION OF A NEW MINORITY JOINT VENTURE PARTNER
http://info.sgx.com/webcoranncatth.nsf/V...70077EDD3/$file/02142011ONAV.pdf?openelement
Omega Navigation primary listing is in NASDAQ with secondary listing in SGX. It used to pay very handsome dividend of US$0.50 per quarter for 11 quarters until 4Q 2008. Its extremely high distribution policy caused its equity to shrink and it now faces loan problems and inability to adequately fund its new-building project. Its share price has tanked from from over $35 in Jul 2007 to a mere $1.51 today ! ( http://sg.finance.yahoo.com/echarts?s=O5...off;source=; )
Despite the bad news, things are starting to turn around for the company. The loan refinancing (if successful) would be a major catalyst for its share price. Similarly, the delivery of vessels and subsequent improvement in charter rates should boost its operating profits going forward.
Certainly a high risk stock with potentially high returns. I merely wanted to point out how a high yielding stock may be a fatal investment if the payout policy is terribly flawed !
Recent 1H 10 results - http://info.sgx.com/webcoranncatth.nsf/V...1007142FA/$file/101910ONAV.pdf?openelement
(Not Vested)
OMEGA NAVIGATION ENTERPRISES, INC. ANNOUNCES THAT THE JOINT VENTURE COMPANY, MEGACORE SHIPPING LTD., HAS TAKEN DELIVERY OF THREE LR1 PANAMAX PRODUCT TANKERS AND THE ADDITION OF A NEW MINORITY JOINT VENTURE PARTNER
http://info.sgx.com/webcoranncatth.nsf/V...70077EDD3/$file/02142011ONAV.pdf?openelement
Omega Navigation primary listing is in NASDAQ with secondary listing in SGX. It used to pay very handsome dividend of US$0.50 per quarter for 11 quarters until 4Q 2008. Its extremely high distribution policy caused its equity to shrink and it now faces loan problems and inability to adequately fund its new-building project. Its share price has tanked from from over $35 in Jul 2007 to a mere $1.51 today ! ( http://sg.finance.yahoo.com/echarts?s=O5...off;source=; )
Despite the bad news, things are starting to turn around for the company. The loan refinancing (if successful) would be a major catalyst for its share price. Similarly, the delivery of vessels and subsequent improvement in charter rates should boost its operating profits going forward.
Certainly a high risk stock with potentially high returns. I merely wanted to point out how a high yielding stock may be a fatal investment if the payout policy is terribly flawed !
Recent 1H 10 results - http://info.sgx.com/webcoranncatth.nsf/V...1007142FA/$file/101910ONAV.pdf?openelement
(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
