January 31, 2001

Record earnings for Kirby
Tank barge operator Kirby Corporation today reported that for the fourth quarter ended December 31, 2000, net earnings were a record $9,088,000, or $.38 per share, compared with $3,974,000, or $.16 per share, for the 1999 fourth quarter. The results for both quarters include non-recurring charges and credits which are set out below.

For the 2000 year, net earnings were $34,113,000, or $1.39 per share, up from $21,441,000, or $1.01 per share, in 1999. The results for both years include non-recurring charges and credits.

President and CEO Joe Pyne, commented, “The 2000 fourth quarter net earnings of $.38 per share and 2000 year net earnings of $1.39 per share are record results for Kirby. Our EBITDA results of $33,615,000, or $1.39 per share, for the 2000 fourth quarter and $130,132,000, or $5.30 per share, for the 2000 year are also a record. Revenues for the 2000 fourth quarter and year were at record levels as well. This performance reflects the continuing benefits of the successful integration of Kirby and Hollywood Marine. We have taken the best of both companies and have emerged as a stronger company, positioned to capture future efficiencies and poised for future growth, both internally and externally.”

With a slowing U.S. economy, Kirby says it could see a more modest growth rate over the next year. Capital spending should be in the range of $55 to $60 million and will include six new tank barges to replace single skin barges scheduled to be retired. In addition, five asphalt capable barges will be built to satisfy new opportunities arising from the Hollywood merger.

Seacor Smit acquires Gilbert Cheramie Boat
Seacor Smit Inc. has signed a definitive agreement to acquire Gilbert Cheramie Boats, Inc. and related companies in a $61 million, all cash deal. Seacor will assume no long-term debt and the price is subject to certain adjustments. The transaction is expected to close in March 2001.

The Gilbert Cheramie companies are based in Golden Meadow, Louisiana, and their fleet is dedicated to serving the oil and gas industry in the Gulf of Mexico. The companies own one newly delivered offshore supply vessel, fourteen mini-supply vessels (half of which were delivered within the last five years) and eight utility vessels. In addition, another offshore supply vessel is under construction and scheduled for delivery in April 2001. Brian Cheramie, the president and CEO of the companies, will continue with SEACOR in an executive position.

Charles Fabrikant, Chairman of SEACOR, commented: "The acquisition of the Cheramie vessels will continue the process of expanding and modernizing our mini-supply vessel fleet. The vessels, along with the high standards for service and safety set by the Cheramie group, will complement SEACOR well. We are quite pleased to have Brian Cheramie join the SEACOR organization."

Korean yards again take world sales lead
The Korean shipbuilding industry last year again sucked in more orders than any other: 313 vessels with a total price tag of $15.2 billion according to figures released this week by the Korean Shipbuilders Association. In 1999, orders on Korean yards reached a total of $9.2 billion for 227 ships.

Output from Korea last year was 180 vessels of 6.05 million gross tonnage, for a total price tag of $9.6 billion last year.

The Korean backlog at the end of last year stood at 503 vessels with a total tonnage of 16.41 million, worth$23.1 billion in total. This represents 2.5 years work for Korean yards

Web-enabled ship management
Anglo-Eastern Ship Management Limited is using a new electronic system that allows for internet access to all ship details (technical and financial ship reports) and photographs showing conditions of the vessels pertaining to its fleet of over 70 vessels.

All the company's internal systems have been streamlined. Chairman, Peter Cremers says: "We believe strongly in creating added value services for our customers and the full use of modern web-based technology is part of our continuous improvement process, focused on each client's requirements.

Cremers says the system will save time for Anglo Eastern superintendents allowing them to check past records from anywhere in the world, for any ship they are on. They will also be able to update a ship's records immediately from anywhere in the world.

Cremers says that other ship managers have similar systems, but he believes Anglo Eastern's is the first with such an extensive database that allows superintendents (and owners) to access past and present technical reports, audits and relevant deck and engine photographs; as well as a range of accounting reports and financial analysis for each vessel.

The system was developed by Anglo-Eastern's in-house IT staff over a two year period. It has not only proven useful to Anglo Eastern's own staff, but provides the transparency owners have begun to look for when reviewing inspection, costs and general accounting details for their vessels.

Star Cruises plans disposals, more newbuilds
Star Cruises has announced that as part of its long term fleet modernization program, it will be disposing of some old tonnage as it continues to position itself to add more modern megaships.The 40,000-grt Star Aquarius has already been sold and will be delivered to her new owner in Laem Chabang, Bangkok end February 2001.

Star says it is "in advanced discussions with a number of shipyards for newbuildings for delivery post-2002."

OMI acquires three more ships
OMI Corporation has agreed to acquire three handysize product carriers from Osprey Maritime Limited (now controlled by John Fredriksen). One was built in 1989, the others in 1990. Deliveries to OMI are expected next month. The deal makes Fredriksen a substantial shareholder in OMI.

The acquisition price is $41.25 million in total. OMI will issue approximately 2.65 million shares of its common stock at $7.00 per share as partial payment and will finance the remainder of the purchase price. Unlike similar previous transactions, there are no stock price guarantees.

OMI's president, CEO and chairman Craig H. Stevenson, Jr., said "the three ships represent high quality tonnage in one of our strategic ship classes. They are currently part of our IPC pool and are well-known to us. We are obtaining them during a strong product market, making the transaction highly accretive to earnings immediately. Further, the company can benefit from cost savings of having additional sister ships to several of its handysize product carriers. We note that Osprey’s major shareholder is John Fredriksen, whose Frontline Ltd. is OMI’s Suezmax partner in Alliance Chartering and we are pleased to welcome him as a substantial shareholder.’’

OMI Corporation is a major international tanker owner and operator. Its fleet currently comprises 22 vessels, consisting of six wholly-owned Suezmaxes, one bareboat-chartered Suezmax, one time-chartered Suezmax, eight handysize product carriers, two handymax product carriers, three Panamax dwt product carriers which carry crude oil and one ultra large crude tanker. The company has agreed to acquire contracts for the construction of two Suezmaxes with delivery in September and October of 2002. It also has contracts for the construction of two handymax product carriers. It has options for two additional handymax product carriers which would be delivered in the first half of 2003. The owner of the time chartered Suezmax tanker gave notice of early termination of the charter, as permitted under the charter, and the vessel will be redelivered to the owner during the first half of 2001.

New partners in A.P. Møller
A.P. Møller has announces that Kjeld Fjeldgaard and Tommy Thomsen, will become partners in the firm as of July 1

Kjeld Fjeldgaard joined Mærsk Olie og Gas AS in 1972 as an engineer and was appointed its president in 1994. He will remain in charge of Mærsk Olie og Gas as president and CEO and, as a partner in A.P. Møller, will assume additional responsibilities.

Tommy Thomsen joined A.P. Møller as a trainee in 1978. After having held various positions in Denmark and abroad he was transferred to the Maersk Tanker Department in 1987. He remained with Maersk Tankers until 1995, the last three years as senior VP. In 1995 he was appointed president of Maersk Inc., USA.

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