MCX MC Shipping

MC Shipping Inc. (AMEX:MCX) (the �Company�), in conjunction with the filing of its Form 10-K for the fiscal year ended December 31, 2006, to be filed on March 26, 2007, today reported its financial and operating results for the year ended December 31, 2006 and for the fourth quarter 2006. The Company is an international liquefied petroleum gas (LPG) maritime carrier. For the year ended December 31, 2006, gross revenues (excluding interest income) were $52.4 million, a 48.1% increase from $35.4 million in 2005. Net income for 2006 was $11.1 million or $1.17 per share, compared to net income of $10.8 million or $1.16 per share in 2005 (see Appendix 1 for the 12 months financial summary). The Company�s net earnings, before certain non-recurring items, such as costs related to excess dry-dock off-hire, change of managers, loss on debt extinguishment and lost income related to late delivery of two vessels, were $14.2 million or $1.49 per share in 2006. This figure is 31.9% higher than the similar non-GAAP measure of $10.8 million for 2005 (see below for a discussion of these items and the reconciliation of net earnings before non-recurring items to net income). The Company believes that such supplementary non-GAAP disclosure of earnings is useful for comparability to the prior year�s earnings under normal operating conditions. The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $32.9 million, a 38.7% increase from $23.7 million in 2005, and the ratio of EBITDA to interest expense was approximately 4.9 for 2006, compared to 5.9 in 2005. Vessel operating expenses (including dry-dock amortization) were $24.1 million in 2006 compared to $14.8 million in 2005. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs increased from 41.8% in 2005 to 45.9% in 2006. The fleet on-hire performance was 93.1%, down from 97.6% in 2005. The decrease in on-hire performance was mainly due to the extended dry docking of La Forge. Tony Crawford, the Company�s CEO, commented on the 2006 results, �We are pleased to have improved year on year earnings for the second year in succession. More importantly, we have built the fleet so as to have interests in 15 LPG tankers, and four container ships, and increased revenue and EBIDTA by significant amounts. We are confident that this enhanced fleet will again increase both revenue and EBIDTA in 2007." Mr. Crawford also noted that a significant transaction initiated in 2006 was being fulfilled in 2007. �We delivered five of our six small LPG tankers to a special purpose KG company formed by the German finance house MPC Capital. This transaction significantly improved our cash position and gave us the ability to continue to grow in 2007,� continued Crawford. �We maintain our commitment to the LPG shipping industry and intend to keep growing the business and the Company�s value around this strategic focus. The Company expects to continue investing in other LPG vessels when the right opportunities arise,� concluded Crawford. In continuation of its policy to date, MC Shipping Inc. also announces distribution of the following cash dividend on the below listed stock of the Company in the first quarter of 2007: Title of Class of Stock : Common Distribution per Share : 6.25 cents for every share owned, rounded up to the nearest cent. Dividend Payable to Shareholders of Record at the close of business on : April 16, 2007 Distribution Date : April 30, 2007 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 12 months financial summary for the period ended December 31 (US$): � � 2006� � 2005� Charterhire and Other Income $ 52,417,310� $ 35,396,519� Commission on Charterhire (541,978) (532,281) Vessel Operating Expenses (22,281,177) (13,983,069) Depreciation and dry-dock amortization (15,038,374) (8,922,393) General and Administrative Expenses � (2,689,630) � (2,254,864) Income from vessel operations 11,866,151� 9,703,912� Gain on Disposal of Vessels 1,035,642� -� Recognized deferred gain on sale of vessels 4,763,338� 4,515,383� Equity in income/(loss) of associated companies � (288,627) � 113,983� Operating Income 17,376,504� 14,219,295� Interest Expense (6,784,088) (4,018,670) Interest Income � 462,084� � 454,037� Net Income $ 11,054,500� $ 10,768,645� � Net Income per share (basic) $ 1.17� $ 1.16� � Basic average number of shares outstanding 9,472,458� 9,300,224� Shareholders equity $ 49,152,499� $ 40,466,810� � Reconciliation of EBITDA to Net Income Net Income $ 11,054,500� $ 10,768,645� Plus: interest expense 6,784,088� 4,018,670� Plus: depreciation and amortization � 15,038,374� � 8,922,393� EBITDA $ 32,876,962� $ 23,709,708� Reconciliation of net earnings before non-recurring items to Net Income Net Income $ 11,054,500� $ 10,768,645� Per share $ 1.17� $ 1.16� � Plus: Excess dry-dock off-hire 1,790,886� -� Plus: Costs related to change of managers 687,530� -� Plus: write-off of debt issuance costs 220,210� -� Plus: Lost income related to late delivery of two vessels acquired in July 2006 � 450,000� � -� Net earnings before non-recurring items $ 14,203,126� $ 10,768,645� Per share $ 1.49� $ 1.16� Appendix 2 3 months financial summary for the period ended December 31 (US$): � � 2006� � 2005� Charterhire and Other Income $ 18,314,556� $ 9,732,400� Recognized deferred gain on sale of vessels 1,200,622� 1,200,622� � Net Income � 4,018,598� � 2,938,272� Net Income per share (basic) $ 0.42� $ 0.32�