OMIÆS FLEET CHANGES YIELD 2ND-QUARTER EARNINGS BOOST
OMI Corp., the international tanker and owner operator, said second quarter net income of $39.6 million, up dramatically from the $9.3 million reported in the second quarter of 2000.
The Stamfort, Conn.-based company credited improvement in the market and changes in the composition of OMI's fleet over the year due to strategic acquisitions and disposals.
“The second quarter results reflect continued strong rates for product carriers as rates for crude oil tankers weakened due to OPEC production cuts and Iraq not producing oil for part of the quarter,” said Craig H. Stevenson Jr., chairman, chief executive and president of the company.
During the second quarter, the company:
* Sold two vessels for an aggregate gain of $18.1 million and used part of the proceeds to repay debt of $37.7 million.
* Bought a product carrier in April that began a three-year time charter and purchased two second-hand crude oil tankers in June that are continuing time charters until 2005.
* Contracted with two shipowners to purchase three product carriers under construction, two to be delivered in September and one in November. Two vessels have been committed to three-year time charters and one to an 18-month time charter.
* Contracted to build two Panamax vessels to be delivered in April and May 2003.
* Exercised an option to build a Handymax product carrier to be delivered in March 2003 and time chartered until 2006.
Stevenson noted the advantage of OMI's strategy of placing vessels on long-term charter. “The 11 OMI ships on time charter make OMI less susceptible to possible lower rates resulting from OPEC production cuts and smaller than expected increase in oil demand.”
Average market rates for its spot market fleet improved by 38 percent fur Suezmax tankers, 45 percent for Panamax tankers, and 60 percent for handysize products carriers.
For the first six months of 2001, net income was $68.0 million, compared to a net loss of $642,000 for the year-earlier period.