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Marine Log

August 15, 2008

Red ink at B+H

B+H Ocean Carriers Ltd. (AMEX: BHO) reported red ink for the quarter ended June 30, 2008, and said it had purchased an assignment of a newbuilding contract for a 300 person, d.p. accommodation unit to be delivered fourth quarter 2009.

The company reported an unaudited net loss of $4.9 million or $(0.72) per share basic and diluted for the three months ended June 30, 2008, compared to unaudited net income of $4.3 million or $0.61 per share basic and diluted, for the three months ended June 30, 2007. EBITDA for the three months ended June 30, 2008 was $8.3 million as compared to $12.8 million for the comparable period of 2007.

B+H had a $4.3 million loss on the unrealized value of put option contracts and also reported decreased on-hire days, a decrease in TCE rates and a decrease in voyage days compared with the year-ago quarter, while a 110% increase in bunker expenses pushed up voyage expenses. It also reported losses on interest rate swaps and foreign currency exchange contracts.

The Accommodation Unit is to be delivered fourth quarter 2009, and the entire project cost is expected to be approximately $40 million. The construction is being financed by approximately 15% from corporate cash and the balance with a letter of credit from HSH-Nordbank. B+H says that at present, there is no permanent financing arrangement and that it expects to obtain employment closer to the time of completion of the unit.

Getting into the floatel business would appear to take B+H into new territory, but it says it intends to continue its vessel acquisition program to expand its presence in its two current sectors, combination carriers capable of transporting both wet and dry bulk cargoes, and chemical/product carriers.

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