Net revenues of $51.29 million were double those of 1996, reflecting significant fleet expansion. MIF operated a fleet of twelve vessels in 1997, including a new building acquired at mid-year. This compared to a fleet of seven vessels in 1996.
Operating expenses as well as general and administrative expenses were well controlled, resulting in income from operations expanding some 90%. Interest costs and depreciation expanded proportionally less than income from operations, resulting in net income surging 162% to $8.57 million.
A portion of the recent expansion program was financed through the issuance of additional common stock near the end of 1996. Nevertheless, earnings per share grew from $0.77 in 1996 to $0.90 in 1997. This 17% increase in common share earnings reconfirmed the efficacy of MIF's plan of growth.
The company will take delivery of a second newbuilding this week and a third sister ship in July 1998. Thus, the mid-year status is projected at fourteen vessels with an average age of nine years. The fleet is a balance of crude oil tankers and varying-sized petroleum products carriers. The profile of the fleet (DWT of 1,012,231) is as follows:
BUILT BUILT BUILT
1981-85 1987-91 1997-98
Number of Vessels 5 6 3
Early months of 1998 have produced a soft market. The longer periods employment strategy of
MIF has cushioned the impact. Management is cautiously optimistic that the current year will
provide satisfactory profitability.