London shipping company sees small rise in revenues in 2006
But Britannia Bulk sees huge rises in expenditure due to bunker and port costs

Britannia Bulk Plc. announced recently its results for the year ended December 31, 2006.

Total voyage revenues were US$191.5 million for the year ended December 31, 2006 compared to US$184.6 million for the year ended December 31, 2005, an increase of 4%. The increase in revenues was largely due to an increase in the total number of operating days offset by a weakening dayrate market from 2005 to 2006.

Total voyage expenses for the year ended December 31, 2006 were US$71.8 million compared with US$49.3 million for the year ended December 31, 2005, an increase of US$22.5 million. This increase is primarily a result of an US$11.5 million increase in bunker costs and US$7.6 million increase in port costs for 2006 as compared with 2005. In addition, total vessel operating expenses for the year ended December 31, 2006 were US$12.9 million compared with US$12.1 million for the year ended December 31, 2005, an increase of US$0.8 million.

General and administrative expenses for the year ended December 31, 2006 were US$9.4 million compared to US$3.7 million for the year ended December 31, 2005, an increase of US$5.7 million. This increase was primarily a result in increased salary and office costs to manage their expanding fleet, as well as increases in travel, legal and accounting fees and expenses.

Commenting on the results, Arvid Tage, Chief Executive Officer, stated, "We are pleased with our 2006 performance. Completion of the Company's notes issuance in 2006 provided the Company with a solid financial foundation and the ability to expand our fleet and further grow our business. We believe the market for our services is strong and we see continued growth opportunities within the Baltic region market as well as new opportunities to expand our service offerings and customer base."

The company also announced they have acquired and taken delivery of two additional Panamax bulkers in 2007 for US$28.5 million and US$36.7 million, respectively. In addition, they have contracted for the purchase of a third Panamax bulker and Handysize vessel for US$36.7 million and US$10.8 million, respectively. Delivery of the third Panamax and Handymax vessels expected in May 2007.