TAX CONFERENCE

The recently enacted "American Jobs Creation Act" gives significant tax breaks to a number of U.S. industries--including shipping.

MARINE LOG and BLANK ROME will present a senior level seminar CHANGES IN U.S. TAXATION OF SHIPPING INCOME in Stamford, Conn. on April 5 & 6, 2004

Make sure you know how the new tax rules work!

February 15, 2005

OMI reports record earnings

OMI Corporation (NYSE: OMM) yesterday reported net income of $108,510,000 or $1.21 basic and diluted EPS for the fourth quarter ended December 31, 2004. Net income for the fourth quarter ended December 31, 2003 was $14,531,000 or $0.18 basic and diluted EPS. For the year ended December 31, 2004 net income was $245,695,000 or $2.87 basic and $2.86 diluted EPS. Net income for the year ended December 31, 2003 was $76,471,000 or $0.98 basic and diluted EPS. Net income for 2004 was higher than net income reported in any of the fiscal years from the company's inception in 1998.

Revenue of $207,898,000 for the three months ended December 31, 2004 increased $121,722,000 or 141 percent compared to revenue of $86,176,000 for the three months ended December 31, 2003. Revenue of $564,674,000 for the year ended December 31, 2004 increased $241,521,000 or 75 percent compared to revenue of $323,153,000 for the year ended December 31, 2003.

Craig H. Stevenson, Jr., Chairman and Chief Executive Officer of the Company commented that "this is the highest earnings ever for us in a given quarter and fiscal year, significantly exceeding previous record quarterly earnings. Rates achieved in 2004, especially in the fourth quarter, were some of the highest historically in the oil tanker industry, as a result of higher than expected demand for oil products increasing the demand for tankers. We have fixed approximately 67 percent of our Suezmax days for the first quarter of 2005 at an average TCE of approximately $63,000 per day, slightly above last year's average rate for the first quarter. Rates have been trending down, however, and we expect the remainder of the quarter to be lower. We have instituted new environmental initiatives, which are costly, in order to assure our operations are as high quality and environmentally friendly as our ships are. Other costs have also been rising. Nonetheless, with a 50% larger Suezmax fleet than in the first quarter of 2004, we anticipate greater earnings in the quarter than in last year's first quarter. As we look at 2005, we see continuing growth in world oil demand, which we expect to lead to a strong year overall, though with normal seasonal declines in the second and third quarters.

"Additionally, OMI has completed the sale of our last two non-double hull vessels in January 2005; we now have an entire fleet of double hull vessels. OMI prides itself in having a modern well maintained tanker fleet. Compliance with 2003 International Maritime Organization ("IMO") regulations for the phasing out of the majority of single hull vessels by 2010 is no longer an issue to be addressed by the Company, customers or investors. OMI currently operates the youngest large fleet of double hull vessels in the world. At year end, taking into account a vessel delivered to us in early 2005 and these last dispositions the average age of OMI's fleet was 2.6 years old. "

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