OMI expands fleet

The US-based tanker operator, OMI Corporation, has reached an agreement to purchase four newly built Suezmax tankers and eight product carriers under construction at Hyundai Mipo Shipyard from Athenian Sea Carriers. OMI will pay the Greek shipping company approximately $585 million cash, including $393 million by August 2004 and the remaining $192 million of payments to the shipyard between November 2004 and June 2006.

The Suezmax vessels were built in 2003 and 2004 while the first of the 47,000 dwt Handymax product tankers will be delivered this month with the last unit in the eight ship series scheduled for completion in June 2006.

Craig Stevenson, chairman and ceo commented, “We are pleased to have the opportunity to grow our core Suezmax and product carrier fleets with these high quality, modern vessels, many of which are sister ships to those in our current fleet. In aggregate, we are acquiring 1,012,000 dwt of additional capacity, all of which is double-hulled. Importantly, we expect this purchase to be accretive to our 2004 and 2005 earnings. This purchase, together with the disposition of the ELBE and VOLGA, will lower the average age of our fleet from 6.6 years to 4.8 years by the end of the year and increase the percentage of our fleet which is double-hulled to 85%.”

OMI is also in advanced negotiations for the acquisition of two additional modern Suezmax vessels, which are sister ships to others in the company?s existing fleet, from another seller.