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August 2, 2001

IACS moves to discourage "class hopping"
In a recent move to discourage "class hopping," the International Association of Classification Societies has recently strengthened its Transfer of Class Agreement (TOCA ). The most significant change is that when a ship changes class, the "gaining" classification society will get access to the vessel's full classification history.

IACS Permanent Secretary Robin Bradley says that the "losing" society, "as well as previous societies, when this is the case, have an obligation to ensure that all the existing class history is made available." This includes the results of steel thickness measurements.

Bradley says this addresses the anomaly whereby an owner buying a ship may know more about its classification history than the "gaining society."

The transfer of information may involve a representative of the gaining society visiting the losing society, as well as any previous societies.

The new TOCA also steps up requirements for "entry surveys" for older vessels. Societies gaining vessels 15 years of age or older that are subject to the enhanced survey program must perform a special survey or intermediate survey, depending on which is next due. A special survey is obligatory for all vessels of 20 years and over.


Jarrett to head Thomas Miller Americas


Mike Jarrett, currently Executive Vice President of Thomas Miller (Americas)

Inc, succeeded Tom Bradshaw as President and Chief Executive Officer at the

beginning of August.



After graduating in law, Mike worked with Hambros Bank in London and spent two

years on the staff of the Law Courts.



Joining Millers in 1980, he worked in the claims syndicate dealing with UK Club

members in Scandinavia, Finland, the UK, Switzerland and North America. He

managed the syndicate from 1986-1992, dealing particularly with members in North

and South America and Germany.



In 1993, Mike moved to Millers in New York as part of the policy of

regionalising the UK Club?s claims service. He has had particular

responsibility for service delivery to members in North America.



Now an American citizen, Mike is a member of the US Maritime Law Association,

the Canadian Maritime Law Association and the Connecticut Maritime Association,

and an associate member of the Risk & Insurance Management Society.





Leo Kirchner, Vice President and General Manager, will assume overall

responsibility for TT Club business throughout North, Central and South America.

He joined TMA in 1995, following 16 years? experience in shipping and logistics.




David Martowski continues as Chairman of the company. All three will continue to

be based at TMA?s Jersey City headquarters.



Tom Bradshaw has decided to leave Thomas Miller (Americas) to resume the broking

and service operation of Bradshaw & Associates Inc, which he carried on before

starting to work closely with Miller?s 23 years ago. He will specialise in

marine and intermodal transportation insurance which will enable him to continue

his relationship with Miller?s and the TT Club.



Note to editors: Thomas Miller (Americas) Inc is the US service outlet of

Millers, managers of the UK P&I and TT clubs. The UK Club is the largest

shipping mutual in the world, insuring over 100 million gross tons while the TT

Club is market leader for the intermodal container industry.

Tanker owner OMI Corporation reported net income of $39,645,000 or $0.59 basic ($0.58 diluted) earnings per share ("EPS") for the second quarter 2001 compared to net income of $9,328,000 or $0.16 basic (diluted) EPS for the second quarter 2000. Time charter equivalent ("TCE") revenue increased 59 percent in the second quarter 2001 compared to 2000. For the six months ended June 30, 2001, net income was $68,023,000 or $1.05 basic ($1.04 diluted) EPS compared to a net loss of $642,000 or $0.01 basic/diluted loss per share for the six months ended June 30, 2000.

Chairman, CEO and president Craig H. Stevenson, Jr.,said the second quarter results reflected 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.

"These uncertain times demonstrate the advantage of our strategy of placing vessels on long-term charter," he said. "The eleven OMI ships on time charter (including three newbuildings being delivered to us this fall) make OMI less susceptible to possible lower rates resulting from OPEC production cuts and smaller than expected increase in oil demand. This strategy allows us to retain the upside potential with the remainder of the fleet as market conditions improve.''

CURRENT HIGHLIGHTS

Rates in the second quarter 2001 improved significantly over the second quarter 2000. For the OMI crude fleet, however, second quarter rates softened compared to the first quarter of 2001 for the crude oil fleet, while remaining stable for the product carrier fleet.

In the second quarter 2001, OMI:

  • Sold two vessels for an aggregate gain of $18,069,000 and used part of the proceeds to repay debt of $37,700,000
  • Purchased one 2000 built product carrier in April that began a three year time charter and purchased two secondhand crude oil tankers in June, that are continuing time charters until 2005.
  • Contracted with two shipowners to purchase three product carriers under construction; two vessels are to be delivered in September and one in November 2001. 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, which will be chartered until 2006.

FLEET REPORT
OMI's fleet currently comprises 25 vessels consisting of six Suezmaxes, three Panamax tankers carrying crude oil, thirteen handysize and handymax product carriers, two handysize crude oil tankers and one ultra large crude carrier (``ULCC''). OMI has the following vessels under construction:

Vessels On Order:
Approximate
Expected Deadweight
Delivery Metric Charter
To Be Named Type of Vessel Date Tonnage Expiration
----------- ------------------------- ---------- ------- ----------
CHARENTE Product/Chemical Carrier 9/2001 35,000 3/2003
MARNE Product/Chemical Carrier 9/2001 37,000 9/2004
ASHLEY Product/Chemical Carrier 11/2001 37,000 11/2004
AMAZON Product Carrier 2/2002 47,000 2/2005
SAN JACINTO Product Carrier 3/2002 47,000 3/2005
DAKOTA Crude Oil Tanker 9/2002 159,000 Spot
DELAWARE Crude Oil Tanker 10/2002 159,000 Spot
MOSELLE Product Carrier 2/2003 47,000 2/2006
ROSETTA Product Carrier 3/2003 47,000 3/2006
OTTAWA Product Carrier 4/2003 69,000 Spot
TAMAR Product Carrier 5/2003 69,000 Spot
------
Total 753,000
=======



"ISMA considers the recent move to allow the "gaining society" right of access to the full classification history of the vessel being transferred, from all previous 'societies', a major move in the fight against sub-standard shipping," said Alan Ward.

"We would call upon all non-IACS classification societies to urge their members to participate in this initiative and to co-operate with the IACS societies whenever such cases arise."

Alan Ward further went on to also praise IACS comments in relation to reviewing the issue of "confidentiality clauses" between owners and class societies, bearing in mind the EU's review of their licensing regulations for auditing bodies. "We welcome the new Chairman's exchange of views with industry bodies on an alignment of safety issues amongst industry associations."

In an open invitation, Alan Ward stated: "As the industry association with the strictest safety and quality measures being upheld by all its members, ISMA would welcome the opportunity for an exchange of views with IACS on the way ahead for an alignment of higher standards of Quality Assurance systems."

American Commercial Lines LLC (ACL) reported second-quarter operating income of $17.2 million, compared with operating income of $16.1 million for the second quarter of 2000.

Second quarter operating revenue was $192.9 million, slightly below the $193.5 million for the same period last year. Revenue for the quarter reflects primarily the additional Peavey barges and higher long-term contract and spot rates, offset by lower volumes as a result of flooding on the Upper Mississippi River, lower revenue at Jeffboat, and reduced demand for liquid freight. The Peavey Barge Line assets, acquired May 26, 2000 and integrated during the subsequent weeks, had no significant effect on results during the second quarter of last year. Operating expense fell 1% to $175.7 million from $177.3 million in 2000. The expense level resulted from operation of an expanded barge fleet and cost increases in outside towing, offset by gains on asset sales. Second quarter operating results do not include the consolidated revenue and expenses of the Argentina barging operation conveyed to the UABL joint venture in the fourth quarter of 2000 and now accounted for under the equity method.

"The damaging build-up of ice on key river segments this past winter continued to hamper river operations through the first half of June as melting snowpack followed by heavy rainfall closed or significantly restricted the Upper Mississippi for eleven weeks during the quarter," said Mike Hagan, ACL's Chief Executive Officer. "Our results were disappointing as floods delayed the opening of the Twin Cities to the latest point on record. We were pleased, though, with our progress in reducing our level of debt, having prepaid or extinguished $31.6 million of outstanding obligations during the quarter.

"The next several weeks will be critical for crop development this season, but with forecasters expecting a notable increase in grain exports in the 2002 crop year over the depressed levels of 2001, we are hopeful of year-over-year improvement in the second half. Offsetting a stronger grain market will be some weakness in northbound shipments, primarily steel and industrial chemicals."

Interest expense increased to $18.5 million in the quarter, compared to $17.7 million in 2000. Interest expense was higher as a result of the increase in the revolver balance over the past year and a higher interest rate margin on the senior credit facility, partially offset by reduction in long- term debt and a lower base rate on the senior credit facilities. Total debt, net of cash, and cash equivalents, fell from $679.5 million as of June 30, 2000, to $666.9 million as of June 29, 2001. Net income for the quarter was $2.0 million, compared to a loss of $2.9 million in 2000.

Year-to-date, operating revenue was $366.0 million, compared to $360.9 million during the first two quarters of 2000. Operating expenses increased to $359.2 million from $336.8 million, and the net loss was $28.1 million compared to a net loss of $10.9 million in 2000.

OMI Corporation (NYSE:OMM - news) a major international tanker owner and operator today announced its financial results for the second quarter ended June 30, 2001.

OMI reported net income of $39,645,000 or $0.59 basic ($0.58 diluted) earnings per share (``EPS'') for the second quarter 2001 compared to net income of $9,328,000 or $0.16 basic (diluted) EPS for the second quarter 2000. Time charter equivalent (``TCE'') revenue increased 59 percent in the second quarter 2001 compared to 2000. Increases are reflective of improvements in the market, in addition to changes in the composition of OMI's fleet over the year by strategic acquisitions and disposals.

For the six months ended June 30, 2001, net income was $68,023,000 or $1.05 basic ($1.04 diluted) EPS compared to a net loss of $642,000 or $0.01 basic/diluted loss per share for the six months ended June 30, 2000.

Craig H. Stevenson, Jr., Chairman, Chief Executive Officer and President of the Company commented, ``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. These uncertain times demonstrate the advantage of our strategy of placing vessels on long-term charter. The eleven OMI ships on time charter (including three newbuildings being delivered to us this fall) make OMI less susceptible to possible lower rates resulting from OPEC production cuts and smaller than expected increase in oil demand. This strategy allows us to retain the upside potential with the remainder of the fleet as market conditions improve.''

CURRENT HIGHLIGHTS

Rates in the second quarter 2001 improved significantly over the second quarter 2000. Average market rates improved in the second quarter of 2001 as follows for OMI's spot market fleet (includes waiting days but excludes drydock days):

-0-

Fleet % Increase
------------------------- --------------
Suezmax Tankers 38%
Panamax Tankers 45%
Handysize Products Carriers 60%

Rates in the second quarter softened compared to the first quarter of 2001 for the crude oil fleet but remained stable for the product carrier fleet. Second quarter results are typically effected by seasonal declines and in 2001 were also effected by declines in oil exports from Iraq (see Market Summary).

During the second quarter 2001, OMI:

* (1) Sold two vessels for an aggregate gain of $18,069,000 and used part of the proceeds to repay debt of $37,700,000.
* (2) Purchased one 2000 built product carrier in April that began a three year time charter and purchased two secondhand crude oil tankers in June, that are continuing time charters until 2005.
* (3) Contracted with two shipowners to purchase three product carriers under construction; two vessels are to be delivered in September and one in November 2001. Two vessels have been committed to three year time charters and one to an 18-month time charter.
* (4) Contracted to build two Panamax vessels to be delivered in April and May 2003.
* (5) Exercised option to build a handymax product carrier to be delivered in March 2003, which will be chartered until 2006.

The following chart reflects OMI's contracted revenue (``TC revenue'') committed by time charters to 2004. OMI expects to increase such fixed revenue with additional contracts at attractive rates and secure extensions for current contracts. TC revenue in the chart below does not include profit sharing for the five vessels eligible for profit sharing under their time charter agreements. TC revenue includes OMI's projected requirements for offhire relating to drydock.

FLEET REPORT

OMI's fleet currently comprises 25 vessels consisting of six Suezmaxes, three Panamax tankers carrying crude oil, thirteen handysize and handymax product carriers, two handysize crude oil tankers and one ultra large crude carrier (``ULCC''). OMI has the following vessels under construction:

-0-


Vessels On Order:
Approximate
Expected Deadweight
Delivery Metric Charter
To Be Named Type of Vessel Date Tonnage Expiration
----------- ------------------------- ---------- ------- ----------
CHARENTE Product/Chemical Carrier 9/2001 35,000 3/2003
MARNE Product/Chemical Carrier 9/2001 37,000 9/2004
ASHLEY Product/Chemical Carrier 11/2001 37,000 11/2004
AMAZON Product Carrier 2/2002 47,000 2/2005
SAN JACINTO Product Carrier 3/2002 47,000 3/2005
DAKOTA Crude Oil Tanker 9/2002 159,000 Spot
DELAWARE Crude Oil Tanker 10/2002 159,000 Spot
MOSELLE Product Carrier 2/2003 47,000 2/2006
ROSETTA Product Carrier 3/2003 47,000 3/2006
OTTAWA Product Carrier 4/2003 69,000 Spot
TAMAR Product Carrier 5/2003 69,000 Spot
------
Total 753,000
=======

2000-2001 Acquisitions/Dispositions

The following were changes in the composition of OMI's fleet from January 1, 2000 to June 30, 2001 that are reflected in operating results for the periods reported:

* Sold four handysize product carriers, three in May 2000 and one in August 2000.
* Acquired two Suezmax newbuildings in March and May 2000.
* Acquired a joint venture partners' share of a ULCC vessel (previously owned 49 percent).
* Acquired two handymax product carriers in September and November 2000 (originally time chartered until 2002 and extended until 2004 during 2001).
* Acquired a Suezmax newbuilding January 2001.
* Redelivered two vessels previously chartered-in during January and March 2001.
* Acquired three secondhand handysize product carriers in February and March 2001.
* Sold one product carrier purchased in March 2001 during May 2001 at a gain of $596,000.
* Acquired a 2000 built handysize product carrier in April 2001 (time chartered until April 2004).
* Sold a Suezmax vessel in June 2001 at a gain of $17,473,000.
* Acquired two handysize crude oil tankers in June 2001 (time chartered until May/June 2005 not including options).

FINANCIAL INFORMATION

The following table summarizes OMI Corporation's results of operations for the three and six months ended June 30, 2001 compared to the three and six months ended June 30, 2000:

FOR THE FOR THE
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
RESULTS OF OPERATIONS 2001 2000 2001 2000
--------------------- ---- ---- ---- ----
(In thousands except
per share data)
(Unaudited)

Voyage revenues $ 55,685 $ 36,384 $ 115,654 $ 67,200
Voyage expenses 7,070 5,795 13,673 10,955
--------- --------- --------- ---------
Operating revenues
(TCE revenues) 48,615 30,589 101,981 56,245
Other revenue 150 -- 226 --
Operating expenses
(includes charter
hire expense) 11,789 9,629 23,129 21,912
--------- --------- --------- ---------
Net voyage revenues 36,976 20,960 79,078 34,333
Depreciation and
amortization 7,597 3,923 14,821 7,542
General and
administrative
expenses 3,137 3,005 5,845 5,711
(Gain) loss on
disposal/write down
of vessels-net (1) (18,069) -- (19,509) 12,619
--------- --------- --------- ---------
Operating income 44,311 14,032 77,921 8,461
--------- --------- --------- ---------
Loss on disposal/
write down of
investments (2) (500) -- (500) (536)
Net interest expense (4,223) (6,066) (9,940) (11,236)
Other-net 42 177 322 1,625
Equity in operations
of joint ventures 15 1,185 220 1,044
--------- --------- --------- ---------
Net income (loss) $ 39,645 $ 9,328 $ 68,023 $ (642)
========= ========= ========= =========
Basic earnings
(loss) per share $ 0.59 $ 0.16 $ 1.05 $ (0.01)
Diluted earnings
(loss) per share $ 0.58 $ 0.16 $ 1.04 $ (0.01)
Weighted average
shares outstanding-
basic 67,287 57,594 64,749 53,964
Adjusted EBITDA (3) $ 33,839 $ 17,955 $ 73,233 $ 28,622

* (1) The second quarter 2001 gain on disposal of $18,069,000 resulted from the sale of two vessels, a Suezmax vessel with a gain of $17,473,000 and gain on the sale of a product carrier of $596,000. Included in the six months ended June 30, 2001 gain on disposal was $1,440,000 gain resulting from the early termination of two time charters. Loss on disposal/write down of vessels-net for the six months ended June 30, 2000, included losses aggregating $12,619,000 for three vessels sold in the second quarter 2000 (two of which were previously classified as to be disposed of) and for the write down of two vessels to net realizable values.
* (2) The 2001 loss relates to the winding down of the International Product Carriers Limited (``IPC'') joint venture, and the 2000 loss on disposal of investments resulted from the sale of a joint venture.
* (3) Adjusted ``EBITDA'' represents Operating income (loss) from operations before depreciation and amortization expense and (gain) loss on disposal/write down of vessels-net. EBITDA is not required by generally accepted accounting principles and should not be considered as an alternative to net income or any other measure of performance required by generally accepted accounting principles or as an indicator of the Company's operating performance.

June 30, December 31,
CONDENSED BALANCE SHEETS 2001 2000
--------------------------- ----------------------------
(In thousands) (unaudited)
Cash and cash equivalents $ 45,753 $ 35,328
Other current assets 23,992 30,849
Vessels and other property-net 586,375 484,510
Construction in progress (newbuildings) 65,153 2,905
Other assets 25,320 37,912
---------- ----------
Total assets $ 746,593 $ 591,504
========== ==========
Current liabilities $ 68,959 $ 57,673
Long-term liabilities 283,936 279,128
Total stockholders' equity 393,698 254,703
---------- ----------
Total liabilities and
stockholders' equity $ 746,593 $ 591,504
========== ==========

RESULTS

Operating or TCE revenue, which is voyage revenue less voyage expenses, of $48,615,000 increased $18,026,000 for the three months ended June 30, 2001 over the $30,589,000 earned for the three months ended June 30, 2000. During the six months ended June 30, 2001, TCE revenue increased $45,736,000 over the same period in 2000. The net increase in both periods can be attributed to earnings from both the Crude and Clean fleets (see Tables by Fleet below).

Crude Fleet -- The net increase in TCE revenue was $9,998,000 for the three months ended June 30, 2001 and $30,854,000 for the six months ended June 30, 2001 over the comparable periods in 2000. The net increase in TCE revenues were attributed to (1) improvement in charter rates for Suezmax and Panamax vessels, (2) increase in earnings in 2001 for two Suezmaxes, which were delivered during the second quarter 2000, (3) increase in revenue for the Suezmax newbuilding delivered in January 2001 and (4) increase in revenue earned by the ULCC purchased by OMI on June 30, 2000, although revenue was reduced in the second quarter 2001 for 48 days that the vessel was offhire for drydock.

Increases in TCE revenue in the crude fleet were partially offset by lower TCE revenue in the three and six months ended June 30, 2001 compared to the same periods in 2000 for the two chartered-in Suezmax vessels that were redelivered to their owner in January and March 2001. One Suezmax TCE revenue declined in the second quarter 2001 because it was time chartered in March 2001 as the substitute vessel for one of the vessels redelivered. This time charter expires in August 2001.

Clean Fleet -- The net increase in TCE revenue was $8,028,000 for the three months ended June 30, 2001 and $14,882,000 for the six months ended June 30, 2001 over the comparable periods in 2000. Increases in TCE revenues were attributed to (1) improvement in charter rates for the six vessels operating in the spot market during the three and six months ended June 30, 2001 and 2000, (2) increase in earnings from three vessels that also operated in the spot market that were purchased February and March 2001 and (3) increased earnings for three new vessels that operate on time charters that were delivered September 2000, November 2000 and April 2001. Decreases in TCE revenue offsetting increases above during the three and six months ended June 30, 2001 were attributed to the sale of four vessels in 2000 that operated in the spot market. Higher earnings from 2001 acquisitions of product carriers have replaced the loss in earnings from the 2000 disposals.

Gains (losses) from disposals and write downs -- Second quarter 2001 net income of $39,645,000 includes a net gain from the sale of two vessels and the write down of a joint venture investment aggregating $17,569,000. Net income for the six months ended 2001 included gains from the sale of two vessels, a net gain on the redelivery of two chartered vessels and the disposal of a joint venture investment aggregating $19,009,000. The six months ended June 30, 2000 net loss included losses from the disposal of three vessels, the write down of two similar vessels and the disposal of a joint venture investment aggregating $13,155,000.

The following tables reflect OMI's principal operating activities:

-0-


CRUDE FLEET:

Breakdown by Fleet
In thousands, except FOR THE FOR THE
daily TCE's & number of THREE MONTHS SIX MONTHS
vessels/days ENDED JUNE 30, ENDED JUNE 30,
(Unaudited) 2001 2000 2001 2000
----------------------- ---- ---- ---- ----

Suezmaxes:
TCE Revenue $21,163 $15,643 $47,580 $27,638
------- ------- ------- -------
Operating Expenses 2,490 2,212 5,394 3,890
Charter Hire Expense 1,888 2,952 4,551 7,551
------- ------- ------- -------
Net Voyage Revenue 16,785 10,479 37,635 16,197
Depreciation &
Amortization 2,897 2,145 5,917 3,700
--------------------- ------- ------- ------- -------
Operating Income $13,888 $ 8,334 $31,718 $12,497
======= ======= ======= =======
Average Daily
TCE (Spot) $37,426 $27,185 $37,924 $25,199
Number of vessels
owned (1),(2) 5 5 5 5
Number of vessels
chartered-in (3) 1 3 1 3
Number of
operating days 621 580 1,313 1,120
ULCC:
TCE Revenue $ 2,004 $ -- $ 5,535 $ --
------- ------- ------- -------
Operating Expenses 1,103 -- 1,591 --
Charter Hire Expense -- -- -- --
------- ------- ------- -------
Net Voyage Revenue 901 -- 3,944 --
Depreciation &
Amortization 316 -- 631 --
------- ------- ------- -------
Operating Income $ 585 $ -- $ 3,313 $ --
======= ======= ======= =======
Average Daily TCE $46,615 $ -- $41,618 $ --
Number of vessels
owned (4) 1 1 1 1
Number of operating
days 43 -- 133 --



CRUDE FLEET:
Breakdown by Fleet
In thousands, except FOR THE FOR THE
daily TCE's & number of THREE MONTHS SIX MONTHS
vessels/days ENDED JUNE 30, ENDED JUNE 30,
(Unaudited) 2001 2000 2001 2000
----------------------- ---- ---- ---- ----

Panamaxes:
TCE Revenue $ 6,698 $ 4,607 $14,435 $ 8,365
------- ------- ------- -------
Operating Expense 1,418 1,246 2,915 2,739
Charter Hire Expense -- -- -- --
------- ------- ------- -------
Net Voyage Revenue 5,280 3,361 11,520 5,626
Depreciation &
Amortization 808 -- 1,617 --
------- ------- ------- -------
Operating Income $ 4,472 $ 3,361 $ 9,903 $ 5,626
======= ======= ======= =======
Average Daily TCE $24,536 $16,871 $26,585 $15,321
Number of vessels owned 3 3 3 3
Number of
operating days 273 273 543 543
Other Crude:
TCE Revenue $ 372 $ -- $ 372 $ 874
------- ------- ------- -------
Operating Expenses 85 -- 85 346
Charter Hire Expense -- -- -- --
------- ------- ------- -------
Net Voyage Revenue 287 -- 287 528
Depreciation &
Amortization 107 -- 107 --
------- ------- ------- -------
Operating Income $ 180 $ -- $ 180 $ 528
======= ======= ======= =======
Average daily TCE $16,564 $ -- $16,564 $ --
Number of vessels
owned (5) 2 -- 2 --
Number of
operating days 22 -- 22 81
Total Crude Fleet
Operating Income $19,125 $11,695 $45,114 $18,651
======= ======= ======= =======

Note: Number of operating days is net of offhire for drydock (includes
waiting days).

(1) In June 2001, a Suezmax vessel was sold. During January 2001,
a Suezmax newbuilding was delivered.

(2) During March and May 2000, two newly built Suezmax vessels
were delivered and started their first voyage charters in the
second quarter.

(3) In January and March 2001, OMI redelivered two chartered-in
vessels.

(4) On June 30, 2000, OMI acquired a ULCC from its joint venture
partner.

(5) In June 2001, two tankers were acquired with time charters. In
March 2000, an aframax vessel was delivered to new owners.

CLEAN FLEET:

In thousands, except FOR THE FOR THE
daily TCE's & number THREE MONTHS SIX MONTHS
of vessels/days ENDED JUNE 30, ENDED JUNE 30,
(Unaudited) 2001 2000 2001 2000
--------------------- ---- ---- ---- ----

Products (IPC Pool
in 2000):
TCE Revenue $12,556 $ 8,086 $23,394 $14,643
------- ------- ------- -------
Operating Expenses 3,480 2,676 6,098 6,257
Charter Hire Expense -- -- -- --
------- ------- ------- -------
Net Voyage Revenue 9,076 5,410 17,296 8,386
Depreciation &
Amortization 1,973 1,159 3,853 2,573
------- ------- ------- -------
Operating Income $ 7,103 $ 4,251 $13,443 $ 5,813
======= ======= ======= =======
Average Daily TCE $17,602 $11,031 $17,575 $ 8,966
Number of vessels
owned (1),(2) 8 7 8 7
Number of operating days 715 733 1,332 1,633
Products On Time Charter:
TCE Revenue $ 5,794 $ 2,236 $10,641 $ 4,510
------- ------- ------- -------
Operating Expenses 1,437 626 2,676 1,160
Charter Hire Expense -- -- -- --
------- ------- ------- -------
Net Voyage Revenue 4,357 1,610 7,965 3,350
Depreciation &
Amortization 1,413 543 2,535 1,085
------- ------- ------- -------
Operating Income $ 2,944 $ 1,067 $ 5,430 $ 2,265
======= ======= ======= =======
Average Daily TCE $13,474 $12,283 $13,470 $12,388
Number of vessels
owned (3),(4) 5 2 5 2
Number of operating days 431 182 791 362
Total Clean Fleet
Operating Income $10,047 $ 5,318 $18,873 $ 8,078
======= ======= ======= =======

Note: Number of operating days is net of offhire for drydock (includes waiting days).

* (1) During February and March 2001 three vessels were acquired (two built in 1990 and one in 1989), one was sold May 2001.
* (2) One vessel was sold in August 2000, and three vessels were sold in the second quarter 2000.
* (3) On April 25, 2001, a handysize product carrier was acquired.
* (4) The 2001 results include the delivery of two handymax vessels delivered in September 2000 and November 2000.

MARKET SUMMARY

Suezmax Tanker Market

After a strong tanker market throughout 2000, which continued in the first quarter of 2001, crude tanker TCEs declined in the second quarter but on average have remained at profitable levels higher than the first quarter of 2000. The TCEs have softened primarily as a result of seasonably lower demand, cessation of Iraqi oil exports beginning early June due to a dispute with the United Nations and OPEC's decisions to reduce its oil production quotas (by 1.5 million barrels per day (b/d) beginning February 1, 2001, an additional 1.0 million b/d beginning April 1, 2001, and again by 1.0 million b/d beginning September 1, 2001) to support oil prices in the phase of lower oil demand and a built-up of crude oil inventories. Lower freight rates, however, increased sales for scrap of old tankers in May and June.

At the end of the first half 2001, approximately 83 million dwt, or 29.2% of the total tanker fleet was 20 or more years old, and 43.3 million dwt or 15.2% of the existing tanker fleet was 25 or more years old. In addition, 49 Suezmaxes of about 7.0 million dwt, or 20.3% of the existing Suezmax fleet was 20 or more years old, including 30 Suezmaxes which are 25 or more years old. The International Maritime Organization (IMO) approved regulations recently that accelerate the phase out of single hull tankers for environmental protection reasons, beginning in 2003. According to Intertanko, an association of tanker owners, approximately 89.3 million dwt, or about 30% of tankers 5,000 dwt and above, will be effected in the 2003-2007 period.

World oil demand is expected to increase by about 0.5 million b/d in 2001, as a result of reduced world economic growth expected this year. World oil demand, however, is expected to improve beginning at the end of the current quarter. The expected gains in world oil demand later in the year, and a relatively modest tanker supply growth in 2001, given the fleet age profile and lower newbuilding deliveries, should result in an improved tanker freight environment in the latter part of 2001.

Product Tanker Market

The product tanker market continued its good performance in the second quarter of 2001, and the average TCE rate for handysize product tankers in the Caribbean, though below the very high level reached in the preceding quarter, was substantially above the TCE rate in the same period last year. This was the result of high U.S. imports of gasoline to build-up the very low gasoline inventory level prevailing at the end of the first quarter in advance of the summer driving season, continued reduced preference by charterers for old vessels in favor of quality product tanker tonnage and the modest product tanker fleet increase so far this year.

The strong product tanker market is expected to continue in the foreseeable future due to the expected increase in world oil demand, notwithstanding the current economic slowdown, the continued tight oil product markets in the Atlantic region, the expected modest product tanker fleet growth this year, given the orderbook for delivery in 2001 and the continued deletion of old product tankers due to stringent environmental regulations.

FINANCIAL ITEMS

Interest expense of $4,890,000 decreased $2,146,000 during the second quarter 2001 and decreased $1,364,000 during the six months ended June 30, 2001 from the three and six months ended June 30, 2000. Although the average outstanding debt for the three and six months ended June 30, 2001 was higher than the comparable periods in 2000 due to additional borrowings for acquisitions above that of the repayments from the disposal of vessels in 2000 and 2001, interest expense decreased. For the second quarter 2001, OMI's average interest rate (including margins and amortization of fees) was 7.360% on the Company's variable rate debt compared to 9.323% during the second quarter of 2000. During the six months ended June 30, 2001, OMI's average interest rate (including margins and amortization of fees) was 6.567% on the Company's variable rate debt compared to 9.767% during the six months ended June 30, 2000. Beginning in the second quarter of 2001, the Company's interest rate margin was reduced from 1.50% to 1.25% as a result of a decrease in the Company's pricing ratio on primarily all of its variable rate debt. Additionally, recent decreases in LIBOR (the London Interbank Offering Rate) rates will be recognized in the third quarter on which the variable rate credit facilities repriced (from mid-June to July 2001) at rates that ranged from 3.75% to 3.9375% (excluding margins and amortization of fees).

On July 27, 2001, OMI closed on a six year $348,000,000 reducing revolving credit facility. The Facility will be used to provide up to 65 percent financing of (i) pre-delivery installments, and final payments at delivery on twelve new building vessels (including one option, if exercised) with deliveries scheduled through the third quarter of 2003 (ii) acquisition financing and refinancing of four second hand vessels purchased in the first half of 2001 (iii) the exercise of the $45,000,000 purchase option on the COLUMBIA (following its sale and lease back to OMI for three years in 1999) and (iv) for general corporate purposes up to the applicable available amount under the Facility. The credit facility includes interest rate margins similar to existing credit facilities based on a pricing ratio grid (currently 125 basis points over LIBOR) and contains similar covenants. During the construction period (until September 2003) the Company will pay an additional margin of 25 basis points. The availability under the facility reduces quarterly based on a 17-year amortization schedule from delivery of the vessels until the end of the construction period, and thereafter $7,460,000 per quarter until July 27, 2007 at which time the entire facility is due.

FORWARD LOOKING INFORMATION

This release contains certain forward-looking statements. These statements are based on management's current expectations and observations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additional information concerning these statements and other matters is contained in the Company's periodic filings with the Securities and Exchange Commission.

OMI Corporation has made arrangements to use the service of DeraCom for its earnings presentation which is scheduled for August 2, 2001 at 10:00 a.m.. Conference participants should call 800/633-8638, and the international number is 609/450-1027. There will be a recorded playback available after the teleconference call for two weeks after the original call. The toll free number is 800/835-2663 and 609/896-8185 for international playbacks. Shareholders are invited to listen to the conference or its playback.
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