OMI reports record earnings

Stamford,Conn., based tanker giant OMI Corporation yesterday announced second quarter results. Highlights included:

• Net Income for the second quarter ended June 30, 2004 was $30,312,000 or $0.38 basic and diluted earnings per share ("EPS"). Excluding a non-recurring loss of $3,098,000 net income without non-recurring item was $33,410,000 or $0.42 basic and diluted EPS.
• Net income increased 19% over the second quarter last year.
• Revenues increased 26% over the second quarter last year. The average spot rates for the company's Suezmax fleet in the second quarter of 2004 proved to be strongest second quarter rates for Suezmax vessels in OMI's history.
• OMI continues to expand its fleet size through the acquisition of modern vessels. In June, OMI agreed to acquire 7 vessels and 7 vessels under construction, (the Athenian Sea Carriers Ltd ("Athenian") and Arcadia Ship Management ("Arcadia") transactions) which will increase the size of our fleet and reduce its average age from 6.0 years at June 30, 2004 to 4.1 years by year-end 2004.

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."

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