MIF Ltd. On Course To Record Year And Continued Expansion

Hamilton, Bermuda 31 August, 1998: MIF reported unaudited results for the first half of 1998. Net income was $4.645 million, versus $4,734 million in the first six months of 1997. Earnings per share were $0.46 in the first half of 1998 versus $0.49 per share in the first six months of 1997 (adjusted for the 2.2% bonus shares paid in June 1998). Meanwhile earnings before depreciation expanded to $12.213 million in the first half of 1998 versus $11.001 million in the first six months of 1997.

These results were very gratifying as they reflected growth in revenues of 16.6% despite the dry-docking for special surveys by three vessels. In addition the Athens 2004 required a ballast trip to its initial revenue voyage. Combined, those events represented 118 days of off-hire, or 5.17% of available employment days. By comparison the off-hire rate was only 1.8% for full year 1997. Only one additional vessel is expected to dry dock for special survey in the second half of 1998 and the Maria Tsakos earned her initial revenues within 12 days of delivery.

Operating and G&A expenses rose 10.5% reflecting effective cost containment. As a result income from operations was up over $3 million or 20%. Net interest expense rose sharply, up 47% reflecting fleet expansion through debt financing.

Since mid-1997, MIF has added three newly built 107,000 DWT Aframaxes. A fourth sister vessel is to be delivered in March 1999. In addition a newly built 304,000 DWT, VLCC will be delivered next month and immediately commence extended term employment. Reflecting these additions, MIF's assets of sixteen vessels will represent a young, modern, diversified fleet of crude oil and product tankers. The average tonnage age of the fleet is six years.

This strategic strength is critical. The second half of 1998 is burdened by a hostile economic environment. The tanker charter market is impacted by the woes of the energy industry. Charter rates for both crude oil and product tankers are unsettled reflecting slack demand and excessive inventories. It may require some time for the situation to stabilize.

Near term, MIF is well positioned. Including the newly built VLCC the company will operate a fleet of fifteen vessels during the second half of 1998. Ten of these ships will operate on term employment through the end of the second half of 1998, of which five extend through1999. Based on the relative stability of revenues and keen attention to expenses, management is guardedly optimistic that full year profits and earnings per share from operations will reach record levels in 1998.