MIF has a fleet of sixteen tankers (including one chartered - in Aframax) comprising 1,420,000 DWT with an average tonnage age of approximately eight years which is much younger than the world's tanker tonnage. The MIF fleet was basically unchanged during the past year. Nevertheless, a very strong charter market and high fleet utilization lifted revenues by $9.05 million. Highly effective cost containment management held operating costs and overhead expenses to $22.48 million up a slight 1.5% from the first nine months of 1999. Thus, virtually all the gain in revenues enhanced Income from Operations.
Income from Operations reached $39.82 or $8.72 million above the level of the first nine months of 1999. Interest expense for the first three quarters of 2000 was $13.33 million representing a $1.89 million increase from the 1999 period reflecting somewhat higher interest rates during the past year. Depreciation costs declined $0.69 million. Earnings per share Before Depreciation were $2.69 in the first nine months of 2000 up 37.2% from $1.96 in the same period of 1999. Net earnings per share were $1.12 in the 2000 period up 220.0% from the first nine months of 1999.
Third quarter results for 2000 were exceptional. Revenues for the period rose $7.14 million for a gain of 40.6% from the year earlier quarter. Operating costs and overhead declined $0.33 million
reflecting successful cost containment and the benefits of a strong U.S. dollar. Interest costs were higher in the third quarter of 2000, as interest costs in the third quarter of 1999 benefitted from fortuitous interest rate swaps. Depreciation charges were $0.35 million lower. Overall Net Income Before Depreciation rose to $12.46 million in the third quarter of 2000 versus $7.36 million in the year earlier quarter and Net Income quadrupled to $7.27 million.
The strong recovery in charter rates that emerged in early 2000 and extended through the third quarter has contributed to the sharp rebound in profits to new record levels. Only a year ago the industry was operating in a very depressed environment which restricted MIF's profitability. Despite operating with a profit the prospects for significant recovery were dim. Since that time we have witnessed developments and solid progress on many fronts. Virtually all regions of the globe are enjoying economic growth and a related increase in energy demand. This demand combined with the availability of petroleum and petroleum products has spurred demand for transport by tankers. Additionally, quality managed, modern tonnage is enjoying modestly expanded premiums. The managed slowdown in the growth rate of the economy in the United States, combined with the perceived deceleration of growth in Europe, and the uncertainties emerging in the Pacific Rim could moderate growth in demand for energy products. However the overall supply/demand factors for tanker tonnage should sustain basic equilibrium over the coming year. Thus, in sharp contrast to a year ago, near term prospects suggest a healthy charter market and MIF plans to share in this prosperity.
MIF presently has on order three newbuilding Suezmaxes to be delivered in 2002, as well as an additional Suezmax under contract option. MIF is also selectively exploring other opportunities to add young, modern vessels to its fleet.
MIF has advised the Oslo Stock Exchange that its Board Of Directors has allocated a fund which may be employed to repurchase shares through year-end 2000.