News

Results For the Fiscal Year Ended May 31, 2007
31 July 2007

ATHENS, GREECE - July 31, 2007 – Global Oceanic Carriers Limited (AIM:GOC), a global provider of marine transportation services for dry bulk cargoes, announces today its audited financial and operational results for the fiscal year ended May 31, 2007.

The Company's management has scheduled a conference call today, July 31, 2007, at 4:00 p.m. GMT, 11:00 a.m. EDT, 6:00 p.m. Athens time to discuss the results. Details of the conference call are available further in this release.

Fiscal Year 2007 Highlights

• Net profit of US$5.5 million in 2007 (2006: US$2.2 million) or US$0.1739 per share (2006: US$0.1627) calculated on 31,692,627 shares outstanding (2006: 13,798,963 shares outstanding) for the period on revenue from operations of US$27.1 million (2006: US$20.9 million). EBITDA in 2007 was US$15.1 million (2006: US$11.3 million).
  
  
• An average of 4 vessels were operated during 2007 earning an average time charter equivalent (TCE) rate of US$17,250 per day compared to an average of 2.7 vessels earning an average TCE rate of US$20,616 per day during 2006.
  
  
• Initiation of a fleet expansion and renewal program. The company acquired two dry bulk carriers, expanding the fleet to five vessels with a total carrying capacity of 367,742 dwt thus reducing the overall average age to 17.4 years from 20 years. Specifically, GOC acquired the M/V GO Patoro, a 1991 built, 150,108 dwt capesize vessel, and the M/V GO Trader, a 1996 built, 45,693 dwt handymax vessel, which were delivered in October and December 2006 respectively. In June 2007, the company entered into agreements to acquire two additional dry bulk carriers, expanding the fleet to seven vessels, as described further in this press release.
  
  
• Successful rights offering in October 2006 with net proceeds of US$24.5 million utilized to fund fleet expansion.
  
  
• Restructured fleet and corporate management operations reducing the average daily vessel operating expenses by 6% and the total general and administrative expenses by 23%. Following the termination of previous agreements, fleet management is now conducted by Antares Ship Management S.A., an affiliated party.
  
  
• Established a new chartering subsidiary to increase the efficiency of own chartering operations while creating a new profit center for chartering activities.
  
  
• A new Board of Directors to achieve the highest standards of corporate governance and a new management team focusing on maximizing operational and financial results and shareholder value.

Recent Fleet Expansion

• In June 2007, the Company entered into agreements for the acquisition of two additional dry bulk carriers (the M/V GO Star, a 1994 built,  43,656 dwt handymax, and the M/V GO Friendship, a 1994 built, 44,875 dwt handymax) at purchase prices of US$ 38.3 million and US$37 million respectively that are scheduled to be delivered in October 2007 and August 2007, expanding the fleet to seven vessels with a total carrying capacity of 456,273 dwt and reducing the overall average age to 16 years from 17.4 years.

Management Commentary

Commenting on the annual 2007 results, Michael Tartsinis, Chief Executive Officer of Global Oceanic Carriers Limited, said: "2007 was a transition year in the development of GO Carriers. Since our management team took over in June 2006, we embarked on a complete corporate restructuring program aimed at improving the effectiveness and efficiency of our operations, expanding and renewing our fleet, enhancing our financial disclosure and investor relations and following corporate governance best practices.

Our objective has been to create a solid foundation which will enable our company to continue growing prudently, taking full advantage of the positive fundamentals of the dry bulk shipping sector. Our management team has a substantial ownership stake in the company thereby aligning our interests to those of all shareholders.

We are pleased to report tangible results with significant improvements across the board. Our revenues for 2007 increased by approximately 30% over those of 2006, while EBITDA increased by 34% and net profit by 150%.  

In fiscal year 2007, we initiated a fleet expansion and renewal program acquiring two vessels, and in June 2007 we entered into agreements to acquire two additional vessels. This expands our fleet to a total of seven vessels and reduces the overall average age to 16 years. Our fleet acquisition strategy currently focuses on mid aged vessels (10 to15 years old), since we believe that this enables us to maximize returns on investment and profitability and take full advantage of current market fundamentals and long term perspectives.

We seek to employ our vessels under medium to long term period charters with reputable charterers. This strategy enables us to generate visible and predictable cash flows and enhances our profitability. In this context, 100% of our fleet operating days for calendar 2007 and 83% for calendar 2008 are already secured under fixed rate period employment.

The new fleet management and corporate structure we put in place enabled us to reduce our daily vessel operating expenses by 6% and our general and administrative expenses by 23%.

The establishment in March 2007 of a new chartering subsidiary, Global Oceanic Chartering Limited, is indicative of our ongoing focus on pursuing new business opportunities while improving our own operational efficiency. This new subsidiary is expected to streamline our chartering operations, lower the chartering commission charges on our fleet and create a new profit center in relation to charter-in activities.

Looking ahead, the sustainable demand for commodities should translate into continued strong dry bulk markets in 2007 and 2008. On the demand side, China is expected to continue to be the driving force of the dry bulk market, with the demand for core commodities related to its infrastructure development. This is complemented by demand from the economically developed countries of South East Asia (Japan, Korea and Taiwan) as well as the developing economies of India and Indonesia. It is further enhanced by growing demand among the developed economies in Europe and the United States. On the supply side, the deliveries of new buildings are expected to be firm for 2007 and 2008 and equally strong for 2008 onwards. However, we believe that the demand side will be increased enough at least for the rest of 2007 and 2008 to absorb any perspective delivery of new vessels as there is actually an increase in new buildings from 2007 to 2008. In addition, attention should be paid on the fact that new slots (yards) without previous experience are being created. Port congestion and longer trade routes between exporting and consuming regions, with iron ore for example shipped from Brazil to China, also impact the supply and demand balance and make it easier to absorb any excess new fleet capacity.

We believe that our company is strategically positioned to benefit from the positive fundamentals of dry bulk shipping and take advantage of market opportunities as they arise. We believe that our strategy of pursuing further fleet expansion through the acquisition of mid-aged vessels for which we will seek to secure long term period charters can be optimally executed in the current strong freight rate environment, enabling us to maximize return on investment, generate strong and predictable cash flows and proceed with the initiation of our stated dividend policy as of June 1, 2007".

Christina Anagnostara, Chief Financial Officer of Global Oceanic Carriers Limited, added: "On May 31, 2007, our net debt to book capitalization was 34%, a moderate level for industry standards. Our moderate leverage, coupled with sufficient access to bank financing, will enable us to finance the two vessel acquisitions we announced in June 2007 entirely with bank financing, raising our net debt to book capitalization to about 56%  and enabling us to maximize shareholder value.

We intend to take advantage of the current strong market environment and to proceed with our fleet expansion plans financing them in an appropriate manner. Recognizing the significance of attracting new shareholders to GOC, we have recently embarked on a proactive investor relations program to communicate to the investment community the development, progress and potential of our company.

The high charter coverage of our fleet for the long term translates into stable and predictable cash flows enabling us to reward our shareholders with an attractive and sustainable dividend. Therefore, as of June 1, 2007 we intend to commence with our dividend policy, according to which our Board has the discretion to pay dividends up to 50% of net income, excluding profits or possible losses from vessel acquisitions and disposals. GOC intends to declare approximately a third of the annual dividend at the release of half year 2008 results with the balance being declared at the fiscal year end."

Review of Results for Fiscal Year Ended May 31, 2007

During the twelve month period ended May 2007 total revenues were US$27.1 million compared to US$20.8 million in the relevant period in 2006. This corresponds to US$26 million charter income plus an additional US$1.1 million which has been recognized as revenue in relation to the amortization of the purchase value allocated to the time-charter agreement attached to the M/V GO Patoro upon acquisition.

The vessels were employed at an average rate of US$17,250 per day, as compared to the average rate of US$20,616 in 2006. This is a result of the M/V GO Pride and the M/V GO Public being fixed in May 2006 under unfavorable market conditions at time charter rates of US$9,275 and US$15,750 per day respectively (M/V Pride for the rest of the financial year and M/V Public until end of December 2006). In addition, the M/V GO Patoro and the M/V GO Trader were delivered in late October and December 2006 at charter rates of US$ 25,500 and US$19,250 respectively and as a result they had a contribution only during the second interim of the fiscal year.

Average vessel operating expenses decreased by 6% or US$298 per day per vessel for the twelve months ended May 2007 to US$5,145 (2006: US$5,443 per day) partially reflecting the change of the ship management and tighter control over costs.

The company has a management agreement with Antares, an affiliated party, to provide shipping management services for a fee of US$550 per vessel per day. The amount paid for management fees for the year ended May 2007 was US$1.0 million (2006: US$521thousand).  Management fees paid to Antares Ship Management SA during the year were US$654 thousand (for a total of 1,185 days). US$380 thousand (for a total of 289 days and according to previous arrangements) was paid to the previous ship manager until the change of ship management agreements.

Furthermore, the company has an agreement with Antares for the provision of administrative services for a fee of US$16,700 per month. The administrative fee paid to Antares during the year was US$100,200.

General and administrative expenses (inclusive of fees paid to affiliated party) decreased by 23% to US$1.7 million (2006: US$2.2 million) reflecting a reduction of US$514 thousand for the period to 31 May 2007. The decrease reflects the management change, cost control measures and renegotiation of management agreements for the provision of professional, administrative and other services. US$146 thousand out of the total relates to the costs of setting up and general and administrative expenses of GO Chartering Limited (our recently established subsidiary).

Effective June 1, 2006 the Group's policy of accounting for the vessels' cost at the date of acquisition was changed in order to separately identify the component of the vessel's cost at the date of acquisition that can be attributed to special survey and dry docking elements.  The net effect of the accounting policy change was a decrease to retained earnings as of June 1, 2006 amounting to US$137 thousand resulting from the additional amortization charged on the special survey and dry docking element.  This change in accounting policy has been made by the Management in order to provide greater transparency and is consistent with industry practice.
Depreciation of dry docking / special survey costs increased by US$290 thousand to US$731 thousand for the year ended 31 May 2007 (2006: US$441 thousands).

Vessels' depreciation charged increased by US$1.6 million or 37% to US$5.9 million for the year ended 31 May 2007 (2006: US$4.3 million) due to the new vessels additional charges.

Finance expense increased by US$2.0 million or 136% to US$3.4 million for the year ended 31 May 2007 (2006: US$1.4 million) mainly due to the finance of the increased fleet, amortization of deferred loan charges and the write off of previous loan arrangement and legal fees.

Conference Call details

The Company's management has scheduled a conference call today, July 31, 2007, at 4:00 p.m. GMT, 11:00 a.m. EDT, 6:00 p.m. Athens time to discuss the results.

Participants should dial into the call 10 minutes prior to the scheduled time using the following numbers: 0800-953-0329 (from the UK) 1-866-819-7111 (from the US), or +44 (0)1452-542-301 (all other callers). Please quote "Global Oceanic Carriers".
In case of any problem with the above numbers, please dial 0800-694-1503 (from the UK) 1-866-223-0615 (from the US), or +44 (0)1452-586-513 (all other callers). Quote "Global Oceanic Carriers".

A telephonic replay of the conference call will be available until August 7, 2007 by dialing 0800-953-1533 (from the UK), 1-866-247-4222 (from the US), or +44 1452-550-000 (all other callers). Access Code: 6478074#

Slides and audio webcast

There will also be a live -and then archived- webcast of the conference call, accessible through the Global Oceanic Carriers website (www.gocarriers.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

The slides to be used at the conference call and webcast will be available on the company's website under the section "Investor Relations – Presentations" one hour prior to the conference call, i.e. as of 3:00 p.m. GMT, 10:00 a.m. EDT, 5:00 p.m. Athens time. You can also directly access the slides at that time, by clicking on the link below, or by copying and pasting in your computer's browser:

www.gocarriers.com/html/investor_relations/presentations.asp

Fleet profile

As of July 31, 2007, the composition and employment of our fleet is as follows:

Vessel Name	Type	DWT	Year Built	Charter Commencement	Charter Period	Expected Redelivery (Minimum Period)	Daily Charter Hire (US$)
GO Patoro	Capesize	150,108	1991	Jun-07	36 months	Jun-10	32,000 (1)
GO Public	Panamax	71,761	1993	Dec-06	23-25 months	Nov-08	21,000
GO Faith	Panamax	65,125	1984	May-07	12-14 months	May-08	28,000
GO Trader	Handymax	45,693	1996	Jan-07	26-29 months	Mar-09	19,250
GO Pride	Handysize	35,055	1982	Jun-07	12 months	Jun-08	18,500
Fleet Total: 5 Vessels		367,742
Additional Vessels (with expected delivery dates and with charters commencing upon delivery)
GO Friendship (2)	Handymax	44,875	1994	Aug-07	36 months	Aug-10	26,850
Go Star (3)	Handymax	43,656	1994	Oct-07	36 months	Oct-10	27,000
Grand Total: 7 Vessels		456,273

(1) The M/V "GO Patoro" is currently employed under a Time Charter until June 2010. For the first year of the time charter ending June 2008, the daily charter rate is US$32,000. The rate for the second and third years ending June 2009 and 2010 will be US$27,000 and US$22,000 respectively.
(2) The M/V "GO Friendship" is scheduled for delivery in August 2007.
(3) The M/V "GO Star" is scheduled for delivery in October 2007.

Forward Charter Coverage

As of July 31, 2007, the percentage of available calendar days of the fleet already fixed under contracts (assuming latest charter expiration and exercise of all additional hire periods under charter) is as follows:

Total Fleet	2007	2008
Charter Coverage	100%	83.5%

Fleet Operating Data

Operating Data	12 Months Ended May 31, 2007	12 Months Ended May, 31, 2006
Fleet data:
Average number of vessels (1)	4	2.7
Number of vessels at end of period	5	3
Number of vessels in operation at end of period	5	3
Ownership days (2)	1,474	981
Available days (3)	1,474	941
Operating days (4)	1,459	937
Fleet utilisation (5)	99%	99%
Average daily results (in US$):
Time Charter Equivalent (TCE) rate (6)	17,250	20,616
Average daily vessel operating expenses (7)	5,145	5,443

Explanatory Note

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

(2) Ownership days are the cumulative number of days in a period during which each vessel in our fleet has been owned by us.  Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.

(3) Available days are the number of our ownership days less the cumulative number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the cumulative amount of time that we spend positioning our vessels.  Available days are used to measure the number of days in a period during which vessels should be capable of generating revenues.

(4) Operating days are the number of available days in a period less the cumulative number of days that our vessels are off-hire due to any reason, including unforeseen circumstances.  Operating days are used to measure the cumulative number of days in a period during which vessels actually generate revenues.

(5) Fleet utilization is measured by dividing the number of our operating days during a period by the number of our available days during the period.  The shipping industry uses fleet utilization to measure a company's efficiency in obtaining suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning.

(6) TCE rates are defined as our time and voyage charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards.  Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and commissions.

(7) Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period (operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other expenses).

Consolidated Balance Sheet
For the year ended 31 May 2007
(Expressed in US Dollars)

Consolidated Income Statement
For the year ended 31 May 2007
(Expressed in US Dollars)

	Notes	12 months ended 31 May 2007 US$	12 months ended 31 May 2006 US$
Revenue	14	27,098,059	20,854,164
Expenses:
Voyage Expenses	18	1,670,100	1,420,546
Vessels' Operating Expenses	19	7,583,895	5,339,672
Management fees	23	1,034,137	521,065
Administrative fees	23	100,200	-
Depreciation and amortisation	7	6,674,005	4,813,047
General and Administration expenses	20	1,614,242	2,228,557
		18,676,579	14,322,887
Operating profit before exceptional items		8,421,480	6,531,277
Exceptional items	26	-	(3,202,266)
Profit from operations before finance costs		8,421,480	3,329,011
Finance expenses	21	(3,423,600)	(1,448,866)
Finance income		513,728	365,017
Net Profit for the year		5,511,608	2,245,162
Profit for the year attributable to parent company shareholders		5,527,703	2,245,162
Loss for the year attributable to Minority Shareholders	25	(16,095)	-
		5,511,608	2,245,162
Earnings per share (US$):	12	0.1739	0.1627
Weighted average number of ordinary shares outstanding		31,692,627	13,798,963

Consolidated Cash Flow Statement
For the year ended 31 May 2007
Expressed in US Dollars)

	Notes	Year ended May 31, 2007 US$	Year ended May 31, 2006 US$  (restated)
Operating Activities		5,511,608	2,245,162
Profit/(loss) for the year
Adjustments to reconcile profit to net cash flows:
Depreciation	7	6,674,005	4,813,047
Amortization of time charter premium contract	7	(1,173,383)	-
Amortization of deferred loan charges	13	138,495	399,596
Interest expense	21	2,799,675	1,049,270
Finance income		(513,728)	(365,017)
Foreign currency loss	22	(48,641)	-
Operating profit before working capital changes		13,388,031	8,142,058
Movement in working capital balances
Inventories		(230,436)	(182,834)
(Increase)/Decrease Trade receivables, pre-paid expenses & other assets		(921,157)	(50,043)
Increase in Trade payables, accrued liabilities & other payables		169,220	1,258,231
Deferred Revenue	14	616,104	161,363
Net cash flows from operating activities before movement in amounts due/from to related parties		13,021,762	9,328,775
Due from related parties		1,152,917	(1,106,199)
Net cash flows generated from operating activities		14,174,679	8,222,576
Investing activities
Acquisition of vessels and vessel improvements	7	(62,973,738)	(65,058,400)
Dry docking costs		(191,667)	-
Special survey costs		(618,333)	-
Acquisition of other non-current assets		(37,172)	-
Interest received		513,727	365,017
Net cash flows used in investing activities		(63,307,183)	(64,693,383)
Financing activities
Proceeds from issue of long term debt		61,500,000	28,000,000
Repayment of long term debt		(25,375,000)	(9,575,000)
Share Capital Increase	11	118	106
Proceeds from rights offering	11	24,524,464	44,832,697
Loan issuance costs		(272,225)	(818,518)
Restricted cash (deposits)/withdrawals	9	(1,298,441)	(629,519)
Interest paid		(2,435,541)	(949,468)
Net cash flows generated from financing activities		56,643,375	60,860,298
Net increase in cash and cash equivalents		7,510,871	4,389,491
Exchange gains on cash and cash equivalents		48,641	-
Cash and cash equivalents at June 1, 2006		4,389,491	-
Cash and cash equivalents at May 31, 2007	8	11,949,002	4,389,491

Financial Statements and notes to the accounts will be available on the Company's website under Investor Relations Section – Latest Results, at 8.30 a.m. (UK)

 

For further information:

Global Oceanic Carriers Limited
Michael Tartsinis, Chief Executive Officer	Tel: 00 30 210 898 6362
mtartsinis@gocarriers.com	www.gocarriers.com
Jefferies International Limited
Nick Davies	Tel. + 44 (0) 207 618 3706
ndavies@jefferies.com	www.jefferies.com

Media enquiries:

Taylor Rafferty - Capital Link (London)
Natassa Markopoulou	Tel. +44 (0)20 7614 2950
gocarriersuk@capitallink.com
Capital Link, Inc. (New York)
Paul Lampoutis	Tel. +1-212-661-7566
plampoutis@capitallink.com	www.capitallink.com

Notes to Editors

About the Company
Global Oceanic Carriers Limited is a global provider of marine transportation services for dry bulk cargoes through the ownership, management and chartering of dry bulk carriers. The company is incorporated in Jersey and has its principal executive offices in Athens, Greece.

The company's current fleet includes five dry bulk carriers, comprised of one Capesize, two Panamax, one Handymax and one Handysize vessel. Global Oceanic Carriers has also entered into two agreements to acquire two Handymax vessels scheduled for delivery in August and October 2007, thereby expanding its fleet to a total of seven dry bulk carriers with an aggregate carrying capacity of 456,273 dwt.

GO Carriers is listed on the AIM market and its stock code is GOC.L

Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect the current views of Global Oceanic Carriers Limited ("the Company") with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in the Company's operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. The Company does not assume, and expressly disclaims, any obligation to update these forward-looking statements.