MC Shipping Announces Year End Results

MC Shipping Inc. said net income for the year ended December 31, 2003 was a record $3,091,155 or $0.37 per share, compared to a net income of $2,241,906 or $0.27 per share in 2002. The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $20.1 million and the ratio of EBITDA to interest expense was approximately 4.1 for the year ended December 31, 2003. In 2002, EBITDA was approximately $20.0 million and the ratio of EBITDA to interest expense was approximately 3.1. EBITDA is defined by the Company as Net Income before income taxes, interest, depreciation and amortization and provision for impairment loss. Total revenues (excluding interest income) in 2003 were $35,797,522 compared to $41,858,999 in 2002. Vessel operating expenses were $17,875,984 for the year 2003 compared to $19,547,436 in 2002. Operating expenses were approximately 50.0% of revenues as compared to 46.7% in the prior year. The fleet on-hire performance was 95.1% in 2003 down from 97.6% in 2002. For the quarter ended December 31, 2003, net income was $742,744 or $0.09 per share, compared to a net income of $600,621 or $0.07 per share in the same quarter of 2002. Revenues for the quarter were $7,688,106, compared to $10,507,773 posted in the same quarter of 2002. In light of the continued profitable operations, the Company's Board of Directors has decided to distribute a stock dividend of 1 share for every 20 shares owned. A separate press release will outline the details of the dividend distribution. In January 2004, the Company received appraisals for its fleet from recognized independent shipping brokers. The average current market value of the company fleet was approximately $61.8 million. This value is approximately equal to the book value of the vessels.