OMI bags ice PC newbuilding

OMI Corporation Stamford, Connecticut, has agreed to acquire one 2004 built 37,000dwt Ice Class 1-B product carrier from another owner. The vessel is nearing completion at Hyundai Mipo and scheduled to be delivered in October 2004. The Company now has 14 vessels with ice trading capabilities, including those on order at shipyards.

OMI has also taken delivery of the fifth of the six Suezmaxes it contracted to acquire from two owners, as previously announced. The Company has terminated the agreement to acquire the sixth Suezmax due to default by the seller and has commenced arbitration. The seller denies the default. Damage amounts, if any, for either party have not yet been asserted. Because the vessel was subject to a time charter for in excess of two more years at rates well below the current spot charter rates, the profit the OMI would have earned during the term of the time charter would not be material to its earnings.