costs, Bermuda-registered MC Shipping Inc. reports a "substantially improved performance.'' The company posted profit of $1.01 million or 18 cents a share for the year ended December 31, 1994 compared to a loss of $650,150 or 21 cents per share last year, according to Bloomberg business news service.

Revenue of $18 million in 1994 was down from $19.9 million for the year earlier.

All 1994 figures are based on 5,482,849 average weighted shares outstanding while 1993 figures are based on 3,060,000 average weighted shares outstanding.

For fourth quarter profit was $496,088 or eight cents per share compared to $109,187 or four cents per share a year earlier while revenues were $4.5 million and $5.3 million respectively.

The $1.9 million drop in revenue is due to MC Gem and MC Pearl fixed on bareboat charter in 1994.

MC Diamond was placed on bareboat charter in October 1994 while Sapphire was acquired and fixed on bareboat charter in September 1994. Under bareboat charter the charterer is responsible for the operation of the vessel and all associated costs.

Included in the 1994 revenues is a non-recurrent item of $470,000 representing net proceeds accruing to the company from insurance covering a collision of MC Emerald in 1990.

Vessel operating expenses decreased by about $3.2 million from $12.9 million to $9.7 million.

Income from vessel operations increased 88 percent to $3.2 million compared to $1.7 million.

MC Shipping achieved 2,930 on-hire days in 1994 out of a potential 2,920 days or 90.4 percent.

Average daily vessel expenses in 1994 were $4,585 compared to $4,789 in 1993, a decrease of four percent, while in 1993 vessel expenses had jumped six percent.

MC Shipping, based in Monaco, owns operates and charters second-hand vessels and a bulk carrier, and is the only US-listed feeder container ship specialist.

Its fleet includes four feeder container ships, six multi-purpose vessels, and a bulk carrier.

A statement on dividends is due soon.