OMI Corporation - Introduction

Introduction

1 Station Place
Stamford, Connecticut 06902
U.S.A.
Telephone: (203) 602-6700
Fax: (203) 602-6701
Web site: http://www.omicorp.com

Public Company
Incorporated: 1968 as Ogden Marine, Inc.
Employees: 48
Sales: $199.1 million (2002)
Stock Exchanges: New York
Ticker Symbol: OMM
NAIC: 483111 Deep Sea Freight Transportation

Operating out of Stamford, Connecticut, OMI Corporation owns and operates a fleet of 39 international crude oil and petroleum transport vessels, with another four new builds scheduled for delivery in 2004. Of those 39 ships, 23 are product carriers and 16 are crude oil tankers, at least half of the latter being double-hull Suezmax carriers (approximately 160,000 deadweight tons). The company also owns one massive, single-hull ULCC class tanker (approximately 322,000 deadweight tons). OMI makes its vessels available for charters on a time charter, bareboat, or voyage basis. Under a time charter basis, an OMI vessel is at the disposal of a customer for a specific period of time at a set price but it is operated by OMI. A bareboat arrangement gives customers possession of the vessel; customers are then responsible for the vessel's operation and management. Under a voyage, or "spot market," basis, OMI makes a vessel available for a single voyage at a price determined by current market conditions. While spot market arrangements have the potential to be quite lucrative, they are not without risk. In order to maintain some stability in cash flow in the highly cyclical shipping industry, OMI tries to strike a balance between spot and long-term chartering. OMI maintains one of the youngest fleets in the industry.