Euronav MI II Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - GENERAL MARITIME CORP 8-K 5-10-2011 - Euronav MI II Inc.	form8k.htm

EXHIBIT 99.1

CONTACT:

Jeffrey D. Pribor

Chief Financial Officer

General Maritime Corporation

(212) 763-5600

GENERAL MARITIME CORPORATION ANNOUNCES

FIRST QUARTER 2011 FINANCIAL RESULTS

Completes $200 Million Oaktree Investment and Syndication of $550 Million Revolving Credit Facility

Completes $50 million Equity Offering

Takes Delivery of Final Metrostar Vessel

Completes Sale of Four Vessels

New York, New York, May 10, 2011 - General Maritime Corporation (NYSE: GMR) today reported its financial results for the three months ended March 31, 2011.

Financial Review: 2011 First Quarter

Excluding the $3.3 million non-cash loss relating to the disposal of vessels and vessel equipment as well as the $1.8 million impairment of goodwill and $0.1 million other income, the Company recorded a net loss of $26.5 million or $0.31 basic and $0.31 diluted loss per share for the three months ended March 31, 2011, compared to net loss of $9.3 million or $0.17 basic and $0.17 diluted loss per share for the three months ended March 31, 2010, excluding $0.2 million in other income and gain in disposal of vessel or vessel equipment from that period. This increased loss was primarily due to a decrease in our net voyage revenue compared to the prior year period, as well as increased direct vessel operating expenses and net interest expense relating to the addition of the seven vessels acquired from Metrostar vessels.

Net loss for the three months ending March 31, 2011 was $31.5 million or $0.36 basic and diluted loss per share compared to a net loss of $9.1 million or $0.16 basic and diluted loss per share from the prior year period.

John P. Tavlarios, President of General Maritime Corporation, commented, “During the first quarter and year-to-date, we took important steps to bolster the Company’s future prospects. First, we completed the previously announced refinancing initiatives, strengthening our balance sheet and capital structure. Second, we continued to successfully implement our flexible fleet deployment strategy, positioning the Company to both achieve a level of stability in its results and capitalize on future rate increases. Finally, we completed the seven-vessel Metrostar acquisition enabling the company to expand both the size of our fleet and future earnings potential, while broadening and diversifying our service offerings to customers. In addition, the completion of the acquisition combined with our fleet modernization efforts, enabled General Maritime to reduce the weighted average age of its fleet by approximately two years, while growing overall tonnage capacity by 37 percent.”

Net voyage revenue, which is gross voyage revenues minus voyage expenses unique to a specific voyage (including port, canal and fuel costs), decreased by $6.9 million or 10% to $59.0 million for the three months ended March 31, 2011 compared to $65.9 million for the three months ended March 31, 2010. This was primarily due to an increase in voyage expenses from $31.7 million for the three months ending March 31, 2010, to $44.0 million for the three months ending March 31, 2011. This increase in voyage expenses was primarily due to higher bunker costs as well as an increase in percentage of spot market operating days for the first quarter 2011, compared to the prior year period. Excluding the non-cash items mentioned above as well as restricted stock compensation (a non-cash portion of general and administrative expense), EBITDA for the three months ended March 31, 2011 was $20.8 million compared to $34.1 million for the three months ended March 31, 2010. Please see below for a reconciliation of EBITDA to net loss. Net cash provided by operating activities was $24.5 million for the three months ended March 31, 2011 compared to $20.0 million for the prior year period. As of March 31, 2011, the Company’s net debt (calculated as total long term debt, including current portion, less cash) was $1,254.5 million.

The average daily time charter equivalent, or TCE, rates obtained by the Company’s fleet decreased by 18% to $19,833 per day for the three months ended March 31, 2011 compared to $24,321 for the prior year period. The Company’s average daily rates for vessels on spot charters decreased by 24% to $19,673 for the three months ended March 31, 2011 compared to $25,911 for the prior year period.

Daily direct vessel operating expenses increased 6% to $9,244 for the quarter ended March 31, 2011 compared to $8,696 for the prior year period. This increase was primarily due to the growth of the fleet from the prior year period consisting of 5 VLCC and 2 Suezmax vessels which have higher per day costs than the prior fleet average.

General and administrative costs decreased by 10% to $8.8 million for the quarter ended March 31, 2011 compared to $9.7 million for the prior year period. This decrease is primarily due to a reduction in personnel costs which were slightly offset by an increase in professional fees that were incurred during the quarter associated with the sale and sale-leaseback transactions involving seven vessels.

Summary Consolidated Financial and Other Data

The following table summarizes General Maritime Corporation’s selected consolidated financial and other data for the three months ended March 31, 2011 and 2010 as well as selected consolidated balance sheet data as of March 31, 2011 and December 31, 2010. Attached to this press release is an Appendix, which contains additional financial, operational and other data for the three months ended March 31, 2011 and 2010.

	Three months ended
	March-11			March-10
	(Unaudited)
INCOME STATEMENT DATA
(Dollars in thousands, except share data)
Voyage revenues	$	102,933		$	97,556
Voyage expenses		(43,951	)		(31,670	)
Net voyage revenues	$	58,982		$	65,886
Direct vessel expenses		29,840			24,261
Bareboat lease expense		1,584			-
General and administrative expenses		8,787			9,727
Depreciation and amortization		22,434			22,307
Goodwill impairment		1,818			-
Loss (gain) on disposal of vessels and equipment		3,285			(13	)
Operating income	$	(8,766	)	$	9,604
Net interest expense		22,858			18,855
Other (Income)/Expense		(84	)		(172	)
Net (Loss)/Income	$	(31,540	)	$	(9,079	)
Basic (Loss)/Earnings per share	$	(0.36	)	$	(0.16	)
Diluted (Loss)/Earnings per share	$	(0.36	)	$	(0.16	)
Weighted average shares outstanding, thousands		86,623			55,661
Diluted average shares outstanding, thousands		86,623			55,661

	March-11			December-10
BALANCE SHEET DATA, at end of period	(Unaudited)			(Audited)
(Dollars in thousands)
Cash	$	62,765		$	16,858
Current assets, including cash		137,913			168,538
Total assets		1,721,824			1,781,785
Current liabilities		228,033			1,442,593
Total long-term debt, including current portion		1,317,270			1,353,243
Shareholders' equity		304,255			332,046
	Three months ended
	March-11			March-10
OTHER FINANCIAL DATA	(Unaudited)
(dollars in thousands)
Net cash provided by operating activities	$	24,499		$	19,971
Net cash provided (used) by investing activities		82,563			1,514
Net cash provided (used) by financing activities		(61,065	)		(7,409	)
Capital expenditures
Drydocking or capitalized survey or improvement costs		(4,402	)		(1,203	)
Weighted average long-term debt		1,343,286			1,018,659

FLEET DATA
Total number of vessels at end of period		34			31
Average number of vessels (1)		35.9			31.0
Total voyage days for fleet (2)		2,974			2,709
Total time charter days for fleet		1,445			1,614
Total spot market days for fleet		1,529			1,095
Total calendar days for fleet (3)		3,228			2,790
Fleet utilization (4)		92.1	%		97.1	%

AVERAGE DAILY RESULTS
Time Charter equivalent (5)	$	19,833		$	24,321
Direct vessel operating expenses per vessel (6)		9,244			8,696

(1)	Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was part of our fleet during the period divided by the number of calendar days in that period.

(2)	Voyage days for fleet are the total days our vessels were in our possession for the relevant period net of off hire days associated with major repairs, drydockings or special or intermediate surveys.

(3)	Calendar days are the total days the vessels were in our possession for the relevant period including off hire days associated with major repairs, drydockings or special or intermediate surveys.

(4)	Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by calendar days for the relevant period.

(5)	Time Charter Equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing net voyage revenue by voyage days.

(6)	Daily direct vessel operating expenses, or DVOE, is calculated by dividing DVOE, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance and maintenance and repairs, by calendar days for the relevant time period.

General Maritime Corporation’s Fleet

As of March 31, 2011, General Maritime Corporation’s fleet was comprised of 31 wholly-owned tankers, consisting of 7 VLCC, 11 Suezmax, 10 Aframax, 2 Panamax and 1 Products tankers, with a total carrying capacity of approximately 5.1 million deadweight tons, or dwt. The average age of the Company’s fleet as of March 31, 2011, weighted by dwt was 8.2 years compared to 9.9 years as of March 31, 2010. Additionally, General Maritime has chartered-in 3 products tankers with purchase options. As of March 31, 2011, including the chartered-in vessels, the total controlled DWT was 5.2 million.

Subsequently to the end of the first quarter, the Company sold 1 Aframax vessel and took delivery of the final Metrostar Suezmax vessel. The total controlled DWT of General Maritime is currently 5.3 million.

The table below outlines the employment of the Company’s fleet with respect to vessels employed under time charter contracts having terms of more than six months.

Time Charter Profile

Vessel	Vessel Type	Expiration Date		Daily Rate (1)

Genmar Alexandra	Aframax	June 22, 2012		$	13,750
Genmar Argus	Suezmax	October 24, 2011	(2)	$	27,500	(3)
Genmar Companion	Panamax	February 10, 2013		$	13,500	(4)
Genmar Compatriot	Panamax	February 23, 2013		$	13,500	(4)
Genmar Concept	Handymax	July 4, 2011		$	15,000	(5)
Genmar Concord	Handymax	March 30, 2013		$	10,000	(6)
Genmar Consul	Handymax	February 7, 2013		$	10,000	(6)
Genmar Contest	Handymax	July 4, 2011		$	15,000	(5)
Genmar Daphne	Aframax	November 1, 2011	(2)	$	18,750	(7)
Genmar Defiance	Aframax	October 30, 2011	(2)	$	18,750	(7)
Genmar Elektra	Aframax	August 14, 2011		$	18,500
Genmar Hercules	VLCC	October 29, 2011	(2)	$	35,500	(8)
Genmar Spyridon	Suezmax	October 16, 2011	(2)	$	27,500	(3)
Genmar Strength	Aframax	August 31, 2012		$	18,500
Genmar Victory	VLCC	February 11, 2012	(2)	$	40,500	(9)

(1)	Before brokers' commissions.

(2)	Charter end date excludes periods that are at the option of the charterer.

(3)	Optional 12 month period begins in October 2011 at $29,000 per day

(4)	Beginning in September, charter adjusts to $16,500 per day for 6 months, then to $15,000 per day for 12 months with 50/50 profit sharing

(5)	Optional 12 month period begins July 2011 at $14,000 per day

(6)	After 6 months, charter adjusts to $12,000 per day for 6 months, then to $14,000 per day for 6 months, then to $16,000 per day for 6 months

(7)	Optional 12 month period begins in October/November 2011 at $20,500 per day

(8)	Optional 12 month period begins in October 2011 at $40,000

(9)	Optional 12 month period begins January 2012 at $40,000 per day with 50/50 profit sharing

Note: As of May 10, 2011

Bank Financing and Oaktree Investment

On May 9, 2011, General Maritime announced that it had successfully completed its previously announced refinancing plan. Specifically, General Maritime completed the syndication of an amendment of its 2005 revolving credit facility of $550 million and a $200 million payment-in-kind toggle floating rate secured loan with an affiliate of Oaktree Capital Management L.P. (“Oaktree”). Together, the Oaktree credit facility and the amended revolving credit facility are expected to enable the Company to improve its liquidity and operational flexibility, while reducing its near-term cash requirements. The Oaktree agreement was reached after an extensive process, overseen by an independent committee of the Board and its financial and legal advisors, designed to generate options that would allow the Company to significantly improve its financial flexibility while preserving shareholder equity.

Consistent with our previous announcement, the amended facility provides for an extended maturity as well as changes to certain provisions including financial covenants and amortization schedule. Nordea Bank Finland plc, DnB NOR and HSH Nordbank AG acted as the lead arrangers of the facility.

The amended facility has a cash flow sweep of amounts in excess of $100 million (taking into account outstanding borrowing capacity) for the first two years and quarterly fixed amortization for years three through five. The facility matures in 2016 and pays an interest rate of LIBOR +400 or +375 based on its leverage ratio. The facility’s covenants include a minimum cash balance, a maximum leverage ratio, a minimum interest coverage ratio (beginning in 2013), a collateral maintenance covenant, a restriction on voluntary prepayment of the Oaktree credit facility, a requirement that interest under the Oaktree credit facility be paid-in-kind and other customary covenants.

The Company used $115.8 million of the $200 million proceeds from the Oaktree credit facility to repay debt on the 2005 credit facility, used $25 million to repay debt on the 2010 credit facility and will use a portion of the proceeds for working capital purposes. The Oaktree credit facility matures in 2018, outside the Company’s other scheduled debt maturities. Interest on the Oaktree credit facility will pay-in-kind or in cash at the Company’s option. There is no amortization on the Oaktree credit facility.

As part of the investment by Oaktree’s affiliate, the Company issued Warrants to purchase up to 19.9% of our outstanding common stock (measured immediately prior to closing), at an initial exercise price of $0.01 per share.

The Company also amended its 2010 Credit Facility to conform to the aforementioned covenants, security and guaranty arrangements set forth under the newly amended and restated $550 million revolving credit facility.

The Oaktree credit facility and the bank refinancing are designed to increase the Company’s liquidity and operational flexibility while lowering its near-term debt commitments and allow it to reduce near-term pressures from a challenging tanker market. The excess cash flow sweep is designed to eliminate the semi-annual step-downs that existed in the 2005 revolving credit facility and the Oaktree credit facility provides the Company with capital which has no amortization or mandatory cash interest requirements until its maturity in 2018.

Jeffrey D. Pribor, Chief Financial Officer, commented, “We are pleased to have completed the $200 million Oaktree investment and the amendment and extension of our $550 million 2005 credit facility. Together, these important transactions are expected to enable the Company to improve its liquidity and operational flexibility, while reducing its near-term cash requirements. Specifically, we refinanced our existing 2005 credit facility under favorable terms and ahead of the $600 million balloon maturity in October 2012. In addition, the Oaktree investment provides capital with no amortization or mandatory cash interest requirements until its maturity in 2018. We appreciate the strong support we continue to receive from both the capital markets and our banking syndicate, underscoring our industry leadership and strong future prospects.”

Equity Offering

On March 31, 2011, General Maritime announced it had successfully priced a registered follow-on offering of 23 million shares of common stock at a price of $2.00 per share. The net proceeds to the Company after the initial offering were $43.5 million. Subsequently, the Company announced that the underwriters had fully exercised their over-allotment option to purchase an additional 3.5 million shares. The total net proceeds including the over-allotment were $50 million. The offering, including the over-allotment, closed on April 8, 2011.

Vessel Sales and Bridge Loan Repayment

On January 18, 2011, the Company announced that it had agreed to sell and lease-back the Genmar Concord, Stena Concept and Stena Contest for total net proceeds of $61.7 million. Under the agreement, the vessels will be chartered back to the Company for $6,500 per day for the first 2 years and $10,000 for the next 5 years.

The Company has options to repurchase the vessels for $24 million per vessel at the end of year two of the charter period, $21 million per vessel at the end of year three of the charter period, $19.5 million per vessel at the end of year four of the charter period, $18 million per vessel at the end of year five of the charter period, $16.5 million per vessel at the end of year six of the charter period, and $15 million per vessel at the end of year seven of the charter period.

The transaction was completed by February 10, 2011. Upon the completion of the final sale, the Company repaid the $22.8 million Bridge Loan.

Pursuant to its plan to monetize older assets, the Company has sold the Genmar Princess (’91 Aframax), the Genmar Gulf (’91 Suezmax), the Genmar Constantine (’92 Aframax) and the Genmar Progress (’91 Aframax). Total net proceeds from these sales are approximately $33.6 million, all of which has gone to repay debt under the 2005 revolving credit facility. Taking into account these sales on a pro forma basis, the average age of the fleet as of December 31, 2010 decreased from 8.6 to 7.7 years old.

Additionally, the Company successfully took delivery of the Genmar Spartiate, a Suezmax newbuild, on April 12, 2011. The Company funded the remaining purchase price (after having paid a 10% deposit in June 2010), with $22.8 million from the proceeds from the equity offering mentioned above and $45.6 million from borrowing under its 2010 Credit Facility.

About General Maritime Corporation

General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 31 tankers - seven VLCC, nine Aframax, twelve Suezmax tankers, two Panamax and one product tanker - with a total carrying capacity of approximately 5.2 million dwt. The Company also has three Product tankers that are chartered-in with options to purchase the vessels. The Company controls tonnage totaling 5.3 million dwt, including the owned fleet and the chartered-in fleet.

Conference Call Announcement

General Maritime Corporation announced that it will hold a conference call on Wednesday May 11, 2011 at 8:30 a.m. Eastern Daylight Savings Time to discuss its 2011 first quarter financial results. To access the conference call, dial (913) 312-1398 and enter the passcode 9206809. A replay of the conference call can also be accessed until May 25, 2011 by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers, and entering the passcode 9206809. The conference call will also be simultaneously webcast and will be available on the Company’s website, www.GeneralMaritimeCorp.com. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: loss or reduction in business from the Company’s significant customers; the failure of the Company’s significant customers to perform their obligations owed to us; changes in demand; a material decline in rates in the tanker market; changes in production of or demand for oil and petroleum products, generally or in particular regions; greater than anticipated levels of tanker newbuilding orders or lower than anticipated rates of tanker scrapping; changes in rules and regulations applicable to the tanker industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; actions taken by regulatory authorities; actions by the courts, the U.S. Coast Guard, the U.S. Department of Justice or other governmental authorities and the results of the legal proceedings to which the Company or any of its vessels may be subject; changes in trading patterns significantly impacting overall tanker tonnage requirements; changes in the typical seasonal variations in tanker charter rates; changes in the cost of other modes of oil transportation; changes in oil transportation technology; increases in costs including without limitation: crew wages, insurance, provisions, repairs and maintenance; changes in general domestic and international political conditions; changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, the company's anticipated drydocking or maintenance and repair costs); changes in the itineraries of the Company’s vessels; adverse changes in foreign currency exchange rates affecting the Company’s expenses; financial market conditions; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2010 and its subsequent reports on Form 10-Q and Form 8-K.

	THREE MONTHS ENDED
	VLCC Fleet									Suezmax Fleet									Aframax Fleet
				March-11			March-10						March-11			March-10						March-11			March-10
	% Change From Prior Period			Amount % of Total for Period			Amount % of Total for Period			% Change From Prior Period			Amount % of Total for Period			Amount % of Total for Period			% Change From Prior Period			Amount % of Total for Period			Amount % of Total for Period

Net Voyage Revenues		155.7	%		16,058			6,280			-27.2	%		24,477			33,607			-36.6	%		11,574			18,249
$ 1,000's					27	%		10	%					41	%		51	%					20	%		28	%

Average Daily TCE		-23.6	%		26,943			35,284			-31.7	%		24,502			35,867			-20.5	%		13,665			17,184


Net Time Charter Revenues		257.7	%		7,443			2,081			-54.0	%		7,709			16,758			-28.1	%		7,699			10,701
$ 1,000's					26	%		6	%					27	%		45	%					27	%		29	%

Net Spot Charter Revenues		105.2	%		8,615			4,199			-0.5	%		16,768			16,849			-48.7	%		3,875			7,548
$ 1,000's					29	%		15	%					56	%		59	%					13	%		27	%

Calendar Days		250.0	%		630			180			5.5	%		1,044			990			-6.1	%		1,014			1,080
					20	%		6	%					32	%		35	%					31	%		39	%

Vessel Operating Days		234.8	%		596			178			6.6	%		999			937			-20.2	%		847			1,062
					20	%		7	%					34	%		35	%					28	%		39	%

Capacity Utilization		-4.3	%		94.6	%		98.9	%		1.1	%		95.7	%		94.6	%		-15.1	%		83.5	%		98.3	%


# Days Vessels on Time Charter		300.0	%		236			59			-37.1	%		282			448			-21.6	%		460			587
					16	%		4	%					20	%		28	%					32	%		36	%

# Days Vessels on Spot Charter		202.5	%		360			119			46.6	%		717			489			-18.5	%		387			475
					24	%		11	%					47	%		45	%					25	%		43	%

Average Daily Time Charter Rate		-10.6	%		31,537			35,269			-26.9	%		27,338			37,406			-8.2	%		16,738			18,230


Average Daily Spot Charter Rate		-32.2	%		23,931			35,283			-32.1	%		23,386			34,456			-37.0	%		10,013			15,892


Daily Direct Vessel Expenses		25.7	%		11,465			9,122			0.7	%		8,463			8,406			-3.4	%		9,207			9,531
(per Vessel)

Average Age of Fleet at End of Period		-27.3	%		6.4			8.8			-8.4	%		7.6			8.3			-0.7	%		13.4			13.5
(Years)

# Vessels at End of Period		250.0	%		7.0			2.0			0.0	%		11.0			11.0			-16.7	%		10.0			12.0
					21	%		6	%					32	%		35	%					29	%		39	%

Average Number of Vessels		250.0	%		7.0			2.0			5.5	%		11.6			11.0			-5.8	%		11.3			12.0
					19	%		6	%					32	%		35	%					33	%		39	%

DWT at End of Period		247.6	%		2,183			628			0.9	%		1,707			1,691			-16.5	%		1,009			1,208
1,000's					42	%		16	%					33	%		44	%					19	%		31	%

	THREE MONTHS ENDED
	Panamax Fleet									Product Carriers									Total Fleet
				March-11			March-10						March-11			March-10						March-11			March-10
	% Change From Prior Period			Amount % of Total for Period			Amount % of Total for Period			% Change From Prior Period			Amount % of Total for Period			Amount % of Total for Period			% Change From Prior Period			Amount			Amount

Net Voyage Revenues		-15.8	%		2,287			2,717			-8.9	%		4,586			5,033			-10.5	%		58,982			65,886
$ 1,000's					4	%		4	%					8	%		8	%

Average Daily TCE		-16.3	%		12,775			15,264			-8.6	%		12,992			14,218			-18.5	%		19,833			24,321


Net Time Charter Revenues		-38.8	%		1,799			2,940			-15.5	%		4,252			5,033			-23.0	%		28,902			37,513
$ 1,000's					6	%		8	%					15	%		13	%

Net Spot Charter Revenues		-318.8	%		488			(223	)					334			-			6.0	%		30,080			28,373
$ 1,000's					2	%		-1	%					1	%		0	%

Calendar Days		0.0	%		180			180			0.0	%		360			360			15.7	%		3,228			2,790
					6	%		6	%					11	%		13	%

Vessel Operating Days		0.6	%		179			178			-0.3	%		353			354			9.8	%		2,974			2,709
					6	%		7	%					12	%		13	%

Capacity Utilization		0.6	%		99.4	%		98.9	%		-0.3	%		98.1	%		98.3	%		-5.1	%		92.1	%		97.1	%


# Days Vessels on Time Charter		-15.1	%		141			166			-7.9	%		326			354			-10.5	%		1,445			1,614
					10	%		10	%					23	%		22	%

# Days Vessels on Spot Charter		216.7	%		38			12						27			-			39.6	%		1,529			1,095
					2	%		1	%					2	%		0	%

Average Daily Time Charter Rate		-28.0	%		12,759		$	17,710			-8.3	%		13,043			14,218			-13.9	%		20,002			23,242


Average Daily Spot Charter Rate		-169.1	%		12,835		$	-18,579						12,369			-			-24.1	%		19,673			25,911


Daily Direct Vessel Expenses		14.3	%		9,040			7,906			9.2	%		7,831			7,170			6.3	%		9,244			8,696
(per Vessel)

Average Age of Fleet at End of Period		16.4	%		7.1			6.1			18.2	%		6.5			5.5			-17.2	%		8.2			9.9
(Years)

# Vessels at End of Period		0.0	%		2.0			2.0			0.0	%		4.0			4.0			9.7	%		34			31
					6	%		6	%					12	%		13	%

Average Number of Vessels		0.0	%		2.0			2.0			0.0	%		4.0			4.0			15.8	%		35.9			31.0
					6	%		6	%					11	%		13	%

DWT at End of Period		0.0	%		145			145			0.0	%		190			190			35.5	%		5,234			3,862
1,000's					3	%		4	%					4	%		5	%

Please see below for a reconciliation of the following adjusted amounts to Net Income

	Three Months Ended
	Mar-11			Mar-10

Net (loss) Income	$	(31,540	)	$	(9,079	)
+ Other Non-cash (income) / expense		84			172
+ Goodwill impairment		1,818			-
+ Loss (gain) on disposal of vessels or vessel equipment		3,285			(13	)
Adjusted Net (loss) Income	$	(26,521	)	$	(9,264	)

Weighted average shares outstanding, thousands		86,623			55,661
Diluted average shares outstanding, thousands		86,623			55,661

Basic (loss) earnings per share	$	(0.31	)	$	(0.17	)
Diluted (loss) earnings per share	$	(0.31	)	$	(0.17	)

Please see below for a reconciliation of the following adjusted amounts to EBITDA

	Three Months Ended
	Mar-11			Mar-10

Net (loss) Income	$	(31,540	)	$	(9,079	)
+ Net Interest (income) expense		22,858			18,855
+ Depreciation and amortization		22,434			22,307
EBITDA	$	13,752		$	32,083
+ Other Non-cash (income) / expense		84			172
+ Goodwill impairment		1,818			-
+ Loss (gain) on disposal of vessels or vessel equipment		3,285			(13	)
+ Restricted stock compensation expense		2,013			2,182
Adjusted EBITDA	$	20,784		$	34,080

EBITDA represents net income plus net interest expense and depreciation and amortization. EBITDA is included because it is used by management and certain investors as a measure of operating performance. EBITDA is used by analysts in the shipping industry as a common performance measure to compare results across peers. Management of the Company uses EBITDA as a performance measure in consolidating monthly internal financial statements and is presented for review at our board meetings. The Company believes that EBITDA is useful to investors as the shipping industry is capital intensive which often brings significant cost of financing. EBITDA is not an item recognized by GAAP, and should not be considered as an alternative to net income, operating income or any other indicator of a company's operating performance required by GAAP. The definition of EBITDA used here may not be comparable to that used by other companies.

Management believes that these measures enhance the understanding of the effect of net loss and EBITDA on the Company’s liquidity.

Euronav MI II Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 10, 2011

Attached files

Euronav MI II Inc. Reports