April 21, 2005
OMI reports record profits
Stamford, Connecticut, based international tanker operator OMI Corporation (NYSE: OMM) reported net income of $75,781,000 or $0.88 basic and diluted EPS for the first quarter ended March 31, 2005 compared to net income of $56,409,000 or $0.70 basic and diluted EPS for the first quarter ended March 31, 2004. Net income reported for the first quarter of 2005 was higher than net income reported in any of the first quarters since the company's inception in 1998.
Revenue of $171,442,000 for the first quarter ended March 31, 2005 increased $43,426,000 or 34 percent compared to revenue of $128,016,000 for the first quarter ended March 31, 2004.
Chairman and CEO Craig H. Stevenson, Jr. commented that "Our results for the first quarter reflect both an excellent operating environment and strong performance by our ships and personnel. To date, rates for our Suezmaxes and spot product carriers have been approximately as strong as in 2004, and we have a 50 percent larger Suezmax fleet. We have fixed approximately 41 percent of our Suezmax days for the second quarter of 2005 at an average TCE of approximately $50,000 per day, above last year's average rate of $43,415 per day for the second quarter.
"Furthermore," he continued, "the fundamentals of the product tanker market have continued to improve, and oil majors have moved into the time charter market in a substantial manner. We are benefiting from this with new time charters and extensions.
"Our growth continues, with two new Suezmaxes to be time chartered in for seven years and three product carriers being added to the fleet this year, and five more product carriers next year.
"Additionally, this quarter marked the end of an era, as we disposed of our last two non-double hull vessels. Our fleet is the youngest large fleet of tankers in the world."