OMI CORP. 1ST-QUARTER INCOME PLUNGES
OMI Corp., the Stamford, Conn.-based international tanker owner and operator reported a first-quarter net income of $377,000, down from $28.4 million in the year-earlier period.
The company faced 'the weakest environment for larger crude carriers since the mid 1980s,' said Craig H. Stevenson Jr., chairman and chief executive officer. OMI also suffered from warmer than northern weather and low natural gas prices, which reduced oil demand from a year ago.
The company anticipates freight markets improving in the second half of 2002 and through 2003, as demand improves and vessel scrapings continue due to age regulations and weak tanker markets.
'We expect the second quarter to be the weakest remaining this year; we have scheduled the majority of our 2002 drydockings to be done during this quarter,' Stevenson said. 'The reduced revenues from off-hire days associated with the drydockings will likely offset improvements in the market and we currently expect that any earnings gains will come during the second half of the year, when rates are expected to improve in all vessel categories.'
OMI CORP. 1ST-QUARTER INCOME PLUNGES