July 20, 2004
OMI reports record earnings
Stamford,Conn., based tanker giant OMI Corporation yesterday announced second quarter results. Highlights included:
Craig H. Stevenson, Jr., Chairman and Chief Executive Officer of the Company commented that "we are once again very pleased to announce another record for OMI. We achieved record net income for the first half of the year in comparison to prior fiscal years in our history."
"By staying focused on our core businesses and steadily increasing our tonnage for modern double hulled vessels through strategic acquisitions, we will have successfully implemented our plan to better serve our customers and enhance value to our shareholders," said Stevenson.
"Recently," continued Stevenson, "we have made significant capital expenditures for 14 vessels, yet our cash flow is sufficient to pay dividends and our Balance Sheet remains strong. These acquisitions by year end will reduce the average age of our fleet to approximately four years and to approximately three years when the Vessels Held for Sale are excluded."
"We continue to see strong rates in the third quarter, significantly higher than 2003 third quarter rates, and more importantly higher than the second quarter of 2004," said Stevenson. "The third quarter is usually seasonally weak so its present strength is a sign of continued significant demand growth. We have fixed approximately 50% of our current Suezmax fleet at an average TCE rate of $47,000 per day, significantly higher than the second quarter average TCE rate of $43,415 per day. We anticipate rates to remain strong throughout the rest of this year and next."