MONACO (August 7, 2007): MC Shipping Inc. (AMEX: MCX) (the “Company”), an international liquefied petroleum gas (LPG) maritime carrier, today reported its financial and operating results for the second quarter and the first six months of 2007.
Second Quarter Results

For the quarter ended June 30, 2007, gross revenues (excluding interest income) were $16.4 million, compared to $9.9 million for the quarter ended June 30, 2006.
The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $11.6 million in the second quarter 2007 ($6.5 million in the second quarter 2006), and the ratio of EBITDA to interest expense was approximately 3.7 for the quarter ended June 30, 2007 compared to 5 for the same period in 2006.
Net income for the first quarter 2007 was $2.4 million or $0.26 per share, compared to net income of $2 million or $0.21 per share or the same period in 2006 (see Appendix 1 for the three months financial summary).

Vessel operating expenses (including dry-dock amortization) were $6 million in the second quarter 2007 compared to $5.2 million in the second quarter 2006. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs decreased from 52.3% in the second quarter 2006 to 36.4% in the second quarter 2007.
Tony Crawford, the Company’s President and CEO commented on the second quarter results, “We are pleased to note a substantial increase in revenues reflecting the larger fleet and higher charter rates.”

“We expect a continued revenue and EBITDA growth in the third quarter 2007 as we take delivery of three new LPG vessels acquired from the Komaya Group, as previously announced. We also expect a positive contribution from the Kew Bridge once she returns to service in August and improved earnings on the La Forge as the freight market for VLGC tankers improves”, concluded Crawford.

Acquisition of LPG Vessel
The Company also announced that it has agreed to acquire another LPG vessel from a subsidiary of Vitol SA, a major international oil and gas trading company. The vessel, Kendal is a sister ship to the m/v Keswick that the Company contracted to acquire a month ago. The Kendal is also built in 2003 and has a capacity of 11,000 cbm. The vessel is expected to be delivered at the end of 2008. Simultaneously with the purchase, she will be time-chartered back to Vitol SA for a minimum period of three years. The Company expects to finance the acquisition with a combination of bank debt and internal cash resources. The Company will not be paying any of the purchase price until third quarter 2008.

“Maintaining our strategic focus on the LPG shipping, we are pleased to invest in this second modern vessel that will further improve our fleet’s age profile as we continue expanding our presence in the mid-size LPG sector. Similarly to the Keswick, this vessel is expected to generate approximately $4.6 million in additional revenues and $3.3 million in EBITDA per year”, commented CEO Tony Crawford.