Arlington Tankers Ltd., a sea borne transporter of crude oil and petroleum products, reported a net loss for the first quarter 2007, reversing a profit the previous year.

The Bermuda-based company's first quarter non-GAAP net income dropped to $4.64 million or $0.30 per share from $4.93 million or $0.32 per share in the same quarter a year ago.

Net loss for the quarter was $2.48 million or $0.16 per share, compared to net income of $3.85 million or $0.25 per share in the prior year quarter.

The company said its net income for the first quarter of 2008 declined by an unrealised loss of about $7.1 million, representing the change in the fair value of the company's interest rate swap arrangement pertaining to its secured credit facility with The Royal Bank of Scotland Plc. As such, the company's net loss for the first quarter of 2008 was $2.5 million or $0.16 per share.

Revenues for the quarter were $17.56 million, up from $17.34 million last year, while total operating expenses advanced to $9.64 million from $9.26 million in the prior year, and operating income declined to $7.92 million from $8.09 million in the comparable quarter a year ago.

The company's cash and cash equivalents were $15.87 million as of March 31, 2008, compared to $6.27 million as of December 31, 2007.

The director board of the company has announced a cash dividend of $0.56 per share to stockholders of record as of May 2, 2008. The company said the dividend would be paid on May 6, 2008.

Arlington expects to declare its next dividend on July 22, 2008 and to pay the dividend on or about August 5, 2008.