Being Filed Pursuant to Rule 901(d) of Regulation S-T
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934.
For the period from to
Commission File Number
2-87930
OMI CORP.
(Exact name of registrant as specified in its charter)
Delaware 13-2625280
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
90 Park Avenue, New York, N.Y.10016
(Address of principal(Zip Code)
executive offices)
Registrant's telephone number, including area code (212) 986-1960
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities and Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of November 9, 1994:
Common Stock, par value 0.50 per share 30,682,268 shares
<PAGE>
OMI CORP. AND SUBSIDIARIES
INDEX
Page
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of
Operations for the three and nine months
ended September 30, 1994 and 1993 3
Condensed Consolidated Balance Sheets-
September 30, 1994 and December 31, 1993 4
Consolidated Statements of Changes in
Stockholders' Equity for the nine months
ended September 30, 1994 5
Condensed Statements of Consolidated Cash
Flows for the nine months ended September
30, 1994 and 1993 6
Notes to Condensed Consolidated Financial
Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
PART II: OTHER INFORMATION 16
SIGNATURES 17
<PAGE>
<TABLE>
OMI CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<CAPTION>
For the Three Months For the Nine Months
Ended September 30 Ended September 30
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenues:
Voyage revenues $ 63,297 $ 67,427 $194,436 $201,670
Other income 1,338 1,672 4,080 3,313
Total revenues 64,635 69,099 198,516 204,983
Operating Expenses:
Vessel and voyage 53,295 53,821 156,904 157,777
Depreciation and amor-
tization 9,191 9,030 28,794 26,541
Operating lease 1,051 1,159 4,888 4,984
General and administrative 4,180 4,014 12,814 11,565
Total operating expenses 67,717 68,024 203,400 200,867
Operating (loss) income (3,082) 1,075 (4,884) 4,116
Other Income (Expense):
Gain on disposal of assets-net 7,214 2,310 10,173 5,347
Interest expense-net (6,665) (4,410) (20,005) (13,682)
Minority interest in
income of subsidiary (160) (105) (261) (492)
Other-net (553) (553)
Net other expense ( 164) (2,205) (10,646) (8,827)
Loss before income taxes and equity
in operations of joint ventures (3,246) (1,130) (15,530) (4,711)
(Benefit)/provision for income taxes ( 751) 2,862 (5,138) 2,329
Loss before equity in operations of
joint ventures (2,495) (3,992) (10,392) (7,040)
Equity in operations of joint
ventures 1,997 2,095 2,756 6,228
Net loss $ ( 498) $ (1,897) $ (7,636) $ (812)
Net loss per common share $ (0.02) $ (0.06) $ (0.25) $ (0.03)
Weighted average number of shares
of common stock outstanding 30,406 30,601 30,378 30,583
See notes to condensed consolidated financial statements.
/TABLE
<PAGE>
<TABLE>
OMI CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<CAPTION>
SEPT. 30, DEC. 31,
1994 1993
(UNAUDITED)
<S> <C> <C>
ASSETS
Current assets:
Cash (including cash equivalents:
September 1994-$22,226 and December
1993-$34,848) $ 39,573 $ 45,321
Marketable securities 2,568 6,021
Traffic and other receivables 23,786 22,842
Other current assets 7,843 6,826
Total current assets 73,770 81,010
Capital construction and other
restricted funds 13,258 13,786
Vessels and other property, at cost 709,279 761,741
Less accumulated depreciation (285,997) (308,058)
Vessels and other property-net 423,282 453,683
Investments in, and advances to,
joint ventures 85,962 77,802
Long-term investments 19,507 16,912
Other assets and deferred charges 27,129 28,323
Total $ 642,908 $ 671,516
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 39,378 $ 32,751
Current portion of long-term debt 18,106 15,302
Total current liabilities 57,484 48,053
Long-term debt 261,107 282,325
Deferred income taxes payable 98,717 104,003
Advance time charter revenues and
other liabilities 9,917 14,372
Minority interest in subsidiary 2,998 2,737
Stockholders' equity 212,685 220,026
Total $ 642,908 $ 671,516
See notes to condensed consolidated financial statements.
/TABLE
<PAGE>
<TABLE>
OMI CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994
(UNAUDITED)
(IN THOUSANDS)
<CAPTION>
Cumulative
Common Stock Capital Retained Translation
Shares Amount Surplus Earnings Adjustment
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1994 30,615 $15,307 $128,900 $ 64,496 $ 4,912
Net loss (7,636)
Exercise of stock options 52 26 237
Issuance of restricted
stock awards 15 7 87
Amortization of unearned
compensation
Net change in valuation
account
Purchase of treasury stock
Sale of treasury stock 732
Balance at September 30, 1994 30,682 $15,340 $129,956 $ 56,860 $ 4,912
<CAPTION>
Unearned Unearned Unrealized
Compensation Compensation Gain on Total
From Restricted Investment Treasury Stockholders'
ESOP Stock -net Stock Equity
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1994 $ (2,159) $(1,057) $ 9,709 $ (82) $220,026
Net loss (7,636)
Exercise of stock options 263
Issuance of restricted
stock awards (94)
Amortization of unearned
compensation 1,164 142 1,306
Net change in valuation
account (754) (754)
Purchase of treasury stock (2,431) (2,431)
Sale of treasury stock 1,179 1,911
Balance at September 30, 1994 $ ( 995) $(1,009) $ 8,955 $(1,334) $212,685
See notes to condensed consolidated financial statements.
/TABLE
<PAGE>
<TABLE>
OMI CORP. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<CAPTION>
FOR THE PERIOD ENDED SEPTEMBER 30, 1994 1993
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (7,636) $ (812)
Adjustments to reconcile net loss to net
cash (used) provided by operating activities:
(Decrease) increase in deferred taxes (4,880) 3,014
Depreciation and amortization 28,794 26,541
Amortization of unearned compensation 1,306 68
Gain on disposal of assets - net (10,173) (5,347)
Equity in operations of joint ventures (2,756) (6,228)
Other-net (192)
Changes in assets and liabilities:
(Increase) decrease in receivables and other
current assets (1,961) 7,679
Increase (decrease) in accounts payable and
accrued expenses 6,955 (1,375)
Advances to joint ventures - net (6,683) (13,459)
Decrease in other assets and deferred charges 275 4,797
(Decrease) increase in advance time charter
revenues and other liabilities (4,343) 1,648
Other assets and liabilities - net (158) 493
Net cash (used) provided by operating activities (1,452) 17,019
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES:
Proceeds from disposition of assets 23,690 4,000
Proceeds from sale of marketable securities 3,749 12
Proceeds from sale of investments 6,915
Additions to vessels and other property (14,360) (14,477)
Withdrawals from Capital construction and other
restricted funds 631
Proceeds and interest received on Capital construction
and other restricted funds (678) (531)
Dividends received from joint ventures 2,450 11,565
Investments in joint ventures (1,597) (450)
Net cash provided by investing activities 13,254 7,665
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Cash proceeds from notes payable to bank - net 12,000
Cash proceeds from issuance of long-term debt 12,050 7,000
Net proceeds from issuance of common stock 263 157
Purchase of treasury stock (1)
Payments on long-term debt (29,863) (41,646)
Dividends paid (2,140)
Net cash used by financing activities (17,550) (24,630)
Net (decrease) increase in cash and cash equivalents ( 5,748) 54
Cash and cash equivalents at beginning of period 45,321 16,850
Cash and cash equivalents at end of period $ 39,573 $ 16,904
See notes to condensed consolidated financial statements.
</TABLE>
OMI CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all information and footnotes necessary for a fair presentation of fin-
ancial position, results of operations and changes in cash flows in conformity
with generally accepted accounting principles. However, in the opinion of the
management of OMI Corp. and subsidiaries ("OMI" or "the Company"), all
adjustments (comprising only normal recurring accruals) necessary for a fair
presentation of operating results have been included in the statements.
Certain reclassifications have been made to the 1993 financial statements to
conform to the 1994 presentations.
Note 2 - Income Taxes
The benefit for income taxes for the nine months ended September 30, 1994 varied
from statutory rates as follows:
(in thousands)
Tax benefit calculated at statutory
rates $(4,471)
Equity in operations of joint ventures of
$2,260,000 not tax effected as management
considers it to be permanently invested (791)
Other 124
Total $(5,138)
The Company has not provided deferred income taxes on its equity in the
undistributed earnings of foreign corporate joint ventures accounted for under
the equity method other than Amazon Transport, Inc. ("Amazon"). These earnings
are considered by management to be permanently invested in the business.
Note 3 - Supplemental Cash Flow Information
Cash payments include interest of approximately $19,105,000 and $16,093,000 for
the nine months ended September 30, 1994 and 1993, respectively, and income
taxes of $6,358,000 for the nine months ended September 30, 1993. There were no
income taxes paid during the nine months ended September 30, 1994.
<PAGE>
Non-cash transactions which have been excluded from the consolidated statement
of cash flows for the nine months ended September 30, 1994 and 1993 include
accrued capital expenditures of $(328,000) and $2,228,000, respectively.
Note 4 - Joint Venture Information
Amazon and Wilomi, Inc. ("Wilomi") are both 49 percent owned by OMI and are
accounted for using the equity method.
Summarized income statement information, in accordance with Regulation S-X Rule
10-01(b)(1), for the three months and nine months ended September 30, 1994 and
1993 for Amazon and Wilomi are as follows:
<TABLE>
<CAPTION>
For the Three Months Ended September 30,
Amazon Wilomi
1994 1993 1994 1993
(in thousands)
<S> <C> <C> <C> <C>
Revenues $ 2,102 $ 3,358 $ 5,464 $ 5,850
Expenses 655 1,540 3,010 3,559
Operating income 1,447 1,818 2,454 2,291
Net income $ 1,467 $ 1,859 $ 1,357 $ 1,424
<CAPTION>
For the Nine Months Ended September 30,
Amazon Wilomi
1994 1993 1994 1993
(in thousands)
<S> <C> <C> <C> <C>
Revenues $ 5,210 $ 9,222 $ 15,400 $ 17,876
Expenses 4,251 3,779 10,129 10,861
Operating income 959 5,443 5,271 7,015
Net income $ 1,041 $ 5,618 $ 2,167 $ 4,394
</TABLE>
Note 5 - Net Loss per Common Share
Net loss per common share is determined by dividing net loss by the weighted
average number of common shares outstanding during the period. Shares issuable
upon the exercise of stock options have not been included in the computation
because they do not have a material effect on net loss per common share.
Note 6 - Credit Lines
At September 30, 1994, OMI had available and unused a total of $65,000,000 in
four short-term lines of credit with banks at variable rates based on LIBOR.
Subsequent to October 1, 1994, the Company drew down $3,000,000 of a line of
credit.
Note 7 - Commitments
OMI has committed with a joint venture partner to construct a vessel to be built
in the Peoples Republic of China for a total cost of approximately $54,400,000.
The vessel is scheduled to be delivered in the second quarter of 1996. OMI
guarantees 49 percent, through a joint venture subsidiary, of the shipbuilding
contract as a backup guarantee to the joint venture partner.
<PAGE>
Astilleros Espanoles, S.A. of Madrid, Spain has notified the Company that it
will not proceed with the construction of the two chemical/product tankers (and
two option vessels) which were the subject of a previously announced letter of
intent.
Note 8 - Guaranteed Debt
OMI acts as a co-guarantor for a portion of the debt incurred by joint ventures
with affiliates of two of its joint venture partners. The guaranteed portion of
such debt was approximately $110,697,000 at September 30, 1994, with OMI's share
of such guarantees being approximately $54,547,000. OMI also is a guarantor for
one of its joint venture's revolving line of credit of up to $4,000,000 at
September 30, 1994, with a guarantee to OMI from its joint venture partner of 50
percent of the amount guaranteed by OMI.
The Company and its joint venture partners have committed to fund any working
capital deficiencies which may be incurred by their joint venture investments.
At September 30, 1994, no such deficiencies have been funded.
Note 9 - Drydock Accrual Adjustment
In September 1994, OMI adjusted the accrual for drydock expense for its vessels
by $3,336,000 ($2,168,000 after tax, or, $.07 per share). The adjustment
reflects a reduction of estimated costs associated with OMI's ongoing evaluation
of its drydock program.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations for the Nine Months Ended September 30, 1994 Versus
September 30, 1993
OMI Corp. ("OMI" or the "Company"), is a diversified shipping company active in
both the U.S. flag and international markets. OMI operates in markets for crude
oil, refined petroleum, chemicals, dry bulk and LPG.
Results of operations of OMI include operating activities of the Company's
domestic and foreign flag wholly-owned, leased and chartered-in vessels for the
nine and three months ended September 30, 1994 and 1993.
Net Voyage Revenues
The Company's vessels are operating under a variety of charters. The nature of
these arrangements is such that, without a material variation in net voyage
revenues (voyage revenues less vessel and voyage expenses), the revenues and
expenses attributable to a vessel employed under one type of charter or contract
can differ substantially from those attributable to the same vessel if employed
under a different type of charter or contract. Accordingly, depending on the
mix of charters or contracts in place during a particular accounting period, the
Company's voyage revenues and vessel and voyage expenses can fluctuate sub-
stantially from one period to another, even if the number of vessels deployed,
the number of voyages completed, the amount of cargo carried and the net voyage
revenues derived from the vessels were to remain constant. As a result,
fluctuations in voyage revenues and vessel and voyage expenses are not
necessarily indicative of trends in profitability. The discussion that follows
will address variations in net voyage revenues.
Net voyage revenues decreased $6,361,000 or 14 percent during the nine months
ended September 30, 1994 in comparison to the corresponding 1993 period. The
net decrease resulted primarily from a decline in freight rates for federal
cargo assistance programs for three domestic vessels which were operating
under these programs in both years, reduced revenues for three vessels that were
offhire due to drydockings an aggregate of 89 days, a vessel sold in July 1994,
and two vessels disposed of in October 1993. The decrease in voyage revenues
was off-set, in part, by revenues generated by two vessels acquired in the
fourth quarter of 1993, and increased revenue for a vessel operating on a time
charter as well as 28 additional operating days in 1994. The Company's
largest U.S. flag vessel, the OMI Columbia, continued to have intermittent
employment for most of 1994. However, in October, the vessel began a voyage
carrying grain to Bangladesh.
<PAGE>
Voyage revenues decreased $7,234,000 or four percent during the nine months
ended September 30, 1994 in comparison to the 1993 period. The net decrease
resulted primarily from a reduction in revenues for three domestic vessels sold
July 21, 1994, (aggregating 213 less operating days in 1994), lower rates in
1994 for six domestic vessels, three of which were operating under federal
cargo assistance programs with the remaining operating in the edible oil
trade, four vessels which were drydocked in 1994 for an aggregate of 105
days, two vessels which were disposed of in the fourth quarter of 1993, and a
decrease in voyage revenue for three vessels, which were operating in the spot
market in 1993, currently on time charters. The decreases in voyage revenue
were offset, in part, by increases resulting from revenues generated by the
addition of four vessels, two purchased and two chartered in during the
fourth quarter of 1993, revenues from a vessel purchased in mid-1993 which
operated primarily under a federal cargo assistance program, and increased
revenues for a vessel, which was on a time charter in 1993, currently
operating in the spot market.
Net vessel and voyage expenses decreased $873,000 or one percent. The net de-
crease was primarily attributable to lower operating expenses for the three
vessels sold in July 1994, two vessels disposed of in 1993, lower voyage
expenses for three vessels, which operated in the spot market in 1993, currently
operating on time charters, adjustments aggregating $3,336,000 over the fleet to
drydock accruals, and decreased voyage expenses, specifically cargo
discharging costs, for two vessels which were carrying grain cargos in 1993
compared to 1994 voyages in different trades. Decreases in vessel and voyage
expenses were partially offset by expenses for a vessel purchased in the
second quarter of 1993, the four vessels added during the fourth quarter of
1993, and a vessel acquired in April 1994.
Results of Operations for the Three Months Ended September 30, 1994
Versus September 30, 1993
Net voyage revenues decreased $3,604,000 or 26 percent, for the three months
ended September 30, 1994 compared to the same period in 1993. Voyage revenues
decreased a net of $4,130,000, and vessel and voyage expenses decreased a net of
$526,000. The decreases in operating results were due primarily to lower rates
earned by three vessels operating under federal programs, the three vessels sold
in July 1994, and decreased revenue from a vessel laid up for 45 days during the
1994 third quarter. A portion of the decrease in results was offset by a vessel
purchased in December 1993 that is operating in the spot market.
In addition, in the third quarter, OMI adjusted the accrual for drydock expense
for its vessels by $3,336,000. The adjustment reflects a reduction in estimated
costs associated with the Company's ongoing evaluation of its drydock program.
<PAGE>
Other Income
Other income consists primarily of management fees received from affiliates
and/or other parties and dividends. For the nine months ended September 30,
1994, other income increased $767,000 or 23 percent in comparison to the same
period in 1993. The increase in 1994 resulted primarily from increased fees to
manage the Ready Reserve Fleet under a new contract which began July 1, 1993,
and dividend received from a foreign investment in which the Company holds a
minority position.
Other income decreased $334,000 or 20 percent in the third quarter of 1994
compared to the third quarter of 1993.
Other Operating Expenses
The Company's operating expenses, other than vessel and voyage expenses, consist
of depreciation and amortization, operating lease expense and general and
administrative expenses. These expenses increased $3,406,000 in the nine months
ended September 30, 1994. Depreciation expense increased eight percent due to
the shortening of the useful lives of six domestic vessels and the purchase of
four vessels, offset by the termination of depreciation for the three vessels
sold in July 1994. General and administrative expenses increased 11 percent
primarily from increased professional fees, salaries, travel, marketing and
occupancy costs.
Other operating expenses increased $219,000 or two percent for the three months
ended September 30, 1994 compared to the three months ended September 30, 1993,
primarily due to an increase in depreciation expense and general and
administrative expenses.
Other Income (Expense)
Other income (expense) consists of gain on disposal of assets-net, interest
expense-net, minority interest and other-net. The increase in net other expense
of $1,819,000 or 21 percent for the nine months ended September 30, 1994 over
the same period in 1993 is primarily due to the increase in interest expense
pertaining to the issuance of $170,000,000, 10.25 percent Senior Notes ("Notes")
in November 1993. The Company repurchased $5,800,000 of these Notes in the
third quarter of 1994 which will result in a decrease in interest expense in the
future. In addition, the Company pre-paid $9,496,000 in debt on the OMI
Columbia which will further reduce interest expense.
Net other expense decreased $2,041,000 or 93 percent primarily due to the gain
on sale of three vessels in the third quarter of 1994 offset by increased
interest expense on the Notes in comparison to the 1993 quarter.
<PAGE>
Benefit for Income Taxes
The benefit for income taxes of $5,138,000 and $751,000 for the nine and three
months, respectively, ended September 30, 1994 varied from statutory rates by
excluding the tax effect on the equity in operations of joint ventures, other
than Amazon Transport, Inc., as management considers such earnings to be
permanently invested.
Equity in Operations of Joint Ventures
Equity in operations of joint ventures for nine months ended September 30, 1994,
was $2,756,000 or $3,472,000 less than the $6,228,000 equity recorded for the
nine months ended September 30, 1993. The decline in 1994 is primarily due to
a vessel in a 49 percent owned joint venture which operated under a time charter
until July 1993 at which time it began operating in the spot market at lower
rates. Additionally, two other 49 percent owned joint ventures experienced
declines in earnings pertaining to three vessels which operated in the spot
market in both years and for start-up costs of a product tanker revenue pool
formed in December 1993. These declines were offset, in part, by the gain on
the sale of a vessel owned by a 49.9 percent joint venture.
Equity in operations of joint ventures was $1,997,000 in the third quarter of
1994 compared to $2,095,000 in the third quarter of 1993. The decline in equity
for the quarter is primarily due to the decline in revenue from two vessels
owned by two 49 percent joint ventures, and OMI's portion of the pool losses in
1994. Losses have been offset by a reduction in drydock expense recorded by
various joint ventures and a reduction in depreciation due to the extension of
the useful lives of five vessels in two joint ventures.
Balance Sheet
The decrease in Marketable securities of $3,453,000 or 57 percent, from December
31, 1993 to September 30, 1994 was due to the sale of 747,225 shares of Chiles
Offshore Corporation (now Noble Drilling Corporation) stock during February
1994.
The increase of $2,595,000 or 15 percent in long-term investment is primarily
due to the recording of the unrealized gain on securities available for sale as
of September 30, 1994.
Liquidity and Capital Resources
The Company's working capital of $16,286,000 at September 30, 1994 was
$16,671,000 or 51 percent less than working capital of $32,957,000 at December
31, 1993. Cash and cash equivalents of $39,573,000 decreased $5,748,000 or 13
percent from the balance of $45,321,000 at December 31, 1993. During the nine
months ended September 30, 1994, the source of the Company's liquidity was
issuance of debt and sale of vessels. The Company used such proceeds for the
prepayment of certain debt.
For the nine months ended September 30, 1994, net cash used by operating
activities was $1,452,000 which was a decrease of $18,471,000 or 109 percent
from net cash provided by operations of $17,019,000 for the comparable period in
1993.
Net cash provided by investing activities was $13,254,000 in the first nine
months of 1994 versus net cash provided by investing activities of $7,665,000 in
the first nine months of 1993. On July 21, 1994, OMI received proceeds of
$23,682,000 from the sale of three domestic vessels for a gain of approximately
$7,177,000.
The Company also received $2,450,000 in dividends from Amazon Transport, Inc.
("Amazon") in 1994 and $11,565,000 in 1993. All joint venture earnings are
considered to be permanently invested, with the exception of Amazon, and are not
available for distribution. There is no certainty that Amazon will have
sufficient earnings to pay dividends in the future. Therefore, the Company
cannot rely on dividends or loans from Amazon to improve liquidity.
With the issuance of the $170,000,000 Notes on November 3, 1993, the Company
improved its liquidity and financial position and, together with its four unused
short-term lines of credit aggregating $62,000,000, is in the position to meet
all current and future obligations, and to acquire replacement and additional
vessels as the opportunity and need arises. OMI has purchased $5,800,000 of its
Senior Notes at a discount, which allowed it to reduce its future interest
charges.
During the nine months ended September 30, 1994, OMI received cash from other
significant activities:
* proceeds of $12,050,000 from the issuance of long-term debt, and
* proceeds of $3,749,000 received from the sale of Chiles stock.
Other significant disbursements during the nine months ended September 30, 1994
were:
* $29,863,000 payments on long-term debt, including approximately
$15,000,000 of prepayments;
* additions to vessels and other property of $14,360,000, and
* investment in joint ventures of $1,597,000, primarily for contribu-
tions towards a new vessel acquired by a joint venture in January
1994.
<PAGE>
Commitments
OMI has committed, with a joint venture partner, to construct a vessel to be
built in the Peoples Republic of China for a cost of approximately $54,400,000.
The vessel is scheduled to be delivered in the second quarter of 1996. OMI
guarantees 49 percent, through a joint venture subsidiary, of the shipbuilding
contract as a backup guarantee to the joint venture partner.
Astilleros Espanoles, S.A. of Madrid, Spain has notified the Company that it
will not proceed with the construction of the two chemical/product tankers (and
two option vessels) which were the subject of a previously announced letter of
intent.
OMI acts as a co-guarantor for a portion of the debt incurred by joint ventures
with affiliates of two of its joint venture partners. Such debt was
approximately $110,697,000 at September 30, 1994, with OMI's share of such
guarantees being approximately $54,547,000. OMI also is a guarantor for one of
its joint venture's revolving line of credit of up to $4,000,000 at September
30, 1994, with a guarantee to OMI from its joint venture partner of 50 percent
of the amount guaranteed by OMI.
The Company and its joint venture partners have committed to fund any working
capital deficiencies which may be incurred by their joint venture investments.
At September 30, 1994, no such deficiencies have occurred which have required
funding.
<PAGE>
PART II: OTHER INFORMATION
Item 1 - Legal Proceedings
None.
Item 2 - Changes in Securities
None.
Item 3 - Defaults upon Senior Securities
None.
Item 4 - Submission of Matters to a Vote of Security Holders
None.
Item 5 - Other Information
None.
Item 6 - Exhibits and Reports on Form 8-K
a. Exhibits
10.46 Parallel Maritime Inc., a 49 percent owned joint venture of
OMI, ratifies and confirms the making of the Backup
Guarantee in favor of Anders Wilhelmsen & Co. relating to a
Shipbuilding Contract dated 3-11-94 between Parallel to
Dalian New Shipyard/China Shipbuilding, Trading
Co., Ltd.
10.47 Release of First Preferred Ship Mortgages on the OMI Charger
and OMI Champion in exchange for guarantees made by OMI
Courier Transport, Inc. and OMI Patriot Transport, Inc.
to Den norske under the Credit Agreement
dated 2-19-93. Guarantees to be secured by First Preferred
Ship Mortgages on the COURIER and PATRIOT.
27.01 Financial data schedule for September 30, 1994.
99.01 Press Release on August 10, 1994 announcing that OMI entered
into a letter of intent with Astilleros Espanoles, S.A.
of Madrid, Spain, for the construction of two chemical
product tankers.
99.02 Press Release on October 24, 1994 announcing that OMI
obtained Certificates of Financial Responsibility (COFRS)
from the U.S. Coast Guard.
99.03 Press Release on October 28, 1994 announcing third quarter
earnings.
99.04 Press Release on November 7, 1994 announcing that OMI will
not proceed with the construction of the two vessels
announced in Exhibit 99.01.
b. Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OMI CORP.
(REGISTRANT)
Date: November 9, 1994 By:/s/Jack Goldstein
Jack Goldstein
President and Chief Executive
Officer
Date: November 9, 1994 By:/s/Vincent de Sostoa
Vincent de Sostoa
Senior Vice President/Finance
and Chief Financial Officer
BACK UP GUARANTEE
FOR VALUE RECEIVED, OMI CORP. a Delaware corporation having an office at 90
Park Avenue, New York, New York 10016 ("OMI"), hereby irrevocably guarantees to
reimburse ANDERS WILHELMSEN & CO. AS, Norwegian joint stock company having its
office at Beddingen 8, Aker Brygge, 0250 Oslo, ("AWAS"), forty-nine percent
(49%) of all amounts paid by AWAS to Dalian New Shipyard/China Shipbuilding
Trading Company Limited, People's Republic of China (the "SELLER") pursuant to a
performance Guarantee issued by AWAS to the SELLER guaranteeing the due and
punctual payment and performance of all liabilities and obligations of the BUYER
under that certain Shipbuilding contract dated 11th March, 1994 between the
SELLER and Parallel Maritime Inc., 80 Broad Street, Liberia (the "BUYER"),
relative to the construction, sale and purchase of a 150,000 DWT crude oil
carrier having the Shipyard's Hull No. T 1500-1; provided, however, that OMI
shall have no obligation hereunder unless and until AWAS shall have made payment
to the Shipyard pursuant to said Performance Guarantee and has furnished OMI
evidence to the reasonable satisfaction of OMI of the payment so made. Payment
to AWAS shall be made by OMI within five business days after receipt by OMI of
the evidence that such payment has been so made; provided, however, that OMI
shall not be required to make the payment hereunder until such time as the
payment would be permissible under the Indenture dated as of November 1, 1993
between OMI and Chemical Bank, but any payment not made within the five days
referred to above shall accrue interest at 10% per annum until payment is made.
This Guarantee shall be construed in accordance with and governed by the
laws of the Kingdom of Norway. OMI hereby submits to the jurisdiction of the
Norwegian courts for all matters connected to this Guarantee.
IN WITNESS WHEREOF, OMI has caused this Guarantee to be executed and
delivered by its duly authorized representative this 11th day of March, 1994.
OMI CORP.
By: Frederic S. London
AMENDMENT NO. 1 TO
CREDIT AGREEMENT
OMI CORP.
Borrower
and
DEN NORSKE BANK AS
Lender
October 7, 1993
<PAGE>
INDEX
CLAUSE NUMBER SUBJECT MATTERPAGE NUMBER
1 DEFINITIONS
2 REPRESENTATIONS AND WARRANTIES
3 CONDITIONS
4 AMENDMENTS
5 FEES AND EXPENSES
6 MISCELLANEOUS
<PAGE>
SCHEDULE SCHEDULES
1 OMI CHAMPION GUARANTY
2 OMI CHAMPION MORTGAGE
3 WESTHAMPTON INDENTURE SUPPLEMENT
4 OPINION OF COUNSEL
<PAGE>
AMENDMENT NO. 1 TO CREDIT AGREEMENT
THIS AMENDMENT NO. 1 is made the 7th day of October, 1993,
by and between OMI CORP., a corporation incorporated under the laws of
the State of Delaware with offices at 90 Park Avenue, New York, New York
(the "Borrower"), and DEN NORSKE BANK AS, a bank incorporated under the
laws of the Kingdom of Norway, acting through its New York branch, with
offices at 600 Fifth Avenue, New York, New York (the "Lender"), to the
Credit Agreement, dated February 19, 1993 by and between the Borrower
and the Lender, as heretofore supplemented by a letter agreement, dated
March 2, 1993 (said agreement, as so supplemented, being hereinafter
called the "Credit Agreement").
W I T N E S S E T H
WHEREAS, (i) pursuant to the terms of the Credit Agreement,
the Lender has agreed that, if requested by the Borrower, it will
release is interest in the OMI WABASH Mortgage, the OMI WABASH Earnings
Assignment and the OMI WABASH Insurances Assignment (as such three terms
are defined in the Credit Agreement) on the condition that,
simultaneously with such release, OMI Champion Transport, Inc., a
corporation incorporated under the laws of the State of Delaware and the
owner of the United States flag vessel OMI CHAMPION, Official No.
523341, executes and delivers to the Lender a guaranty of the
obligations of the Borrower to the Lender under the Credit Agreement and
under the Notes (as such term is defined in the Credit Agreement) and,
as security therefor, simultaneously with such release, also executes
and delivers to the Lender a first preferred mortgage covering the OMI
CHAMPION, as well as an assignment of such vessel's earnings and
insurances, and (ii) the Borrower has so requested.
NOW, THEREFORE, in consideration of the premises and the
mutual covenants herein contained and of other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:
1 DEFINITIONS
1.1 The following words and expressions, as used herein and in
the Credit Agreement, as amended hereby, shall have the meanings
attributed to them below; except as otherwise provided herein, all other
words and expressions, as used herein and in the Credit Agreement, as
amended hereby, shall have the meanings attributed to them in Clause 1.1
of the Credit Agreement.
"Additional Guaranty" guaranty in respect of the
obligations of the Borrower under
the Credit Agreement, as amended by
this Amendment No. 1, and under the
Notes to be executed by the
Additional Guarantor in favor of the
Lender pursuant to Clause 3.1(c)(i)
substantially in the form set out in
Schedule 1 or in such other form as
the Lender may agree;
"Additional Guarantor" OMI Champion Transport, Inc., a
corporation incorporated under the
laws of the State of Delaware;
"Earnings Assignments" the OMI CHARGER Earnings Assignment
and the OMI CHAMPION Earnings
Assignment;
"Insurances Assignments" the OMI CHARGER Insurances
Assignment and the OMI CHAMPION
Insurances Assignment;
"Mortgages" the OMI CHARGER Mortgage and the OMI
CHAMPION Mortgage;
"OMI CHAMPION" the 1969 built United States flag
vessel OMI CHAMPION, Official No.
523341, of 16,422 net registered
tons;
"OMI CHAMPION Earnings the assignment in respect of
Assignment" the earnings of the OMI CHAMPION to
be executed by the Additional
Guarantor in favor of the Lender
pursuant to Clause 3.1(c)(iv)
substan-tially in the form set out
in Schedule 8 to the Credit
Agreement or in such other form as
the Lender may agree;
"OMI CHAMPION Insurances the assignment in respect of
Assignment" the insurances on the OMI CHAMPION
to be executed by the Additional
Guarantor in favor of the
Westhampton Trustee pursuant to
Clause 3.1(c)(iii) substantially in
the form set out in Schedule 7 to
the Credit Agreement or in such
other form as the Lender may agree;
"OMI CHAMPION Mortgage" the first preferred United States
mortgage on the OMI CHAMPION to be
executed by the Additional Guarantor
in favor of the Westhampton Trustee
pursuant to Clause 3.1(c)(ii)
substantially in the form set out in
Schedule 2 or in such other form as
the Lender may agree;
"Vessels" the OMI CHARGER and the OMI
CHAMPION; and
"Westhampton Indenture Supplement No. 1, dated
Supplement" the date hereof, between the Lender
and the Westhampton Trustee, to the
Westhampton Indenture substantially
in the form set out in Schedule 3 or
in such other form as the Lender may
agree.
2 REPRESENTATIONS AND WARRANTIES
2.1 The Borrower hereby represents and warrants to the Lender
(which representations and warranties shall survive the execution and
delivery of this Amendment No. 1) that:
(a) except as otherwise disclosed to the Lender in writing
on or prior to the date hereof and after giving effect
to the amendments herein, the representations and
warranties stated in Clause 2 of the Credit Agreement
(updated mutatis mutandis to the date hereof) are true
and correct as if made on the date hereof;
(b) all necessary corporate action has been taken to
authorize, and all necessary consents and authorities
have been obtained and remain in full force and effect
to permit, the Borrower to enter into and perform its
obligations under this Amendment No. 1;
(c) this Amendment No. 1 constitutes the legal, valid and
binding obligation of the Borrower enforceable against
the Borrower in accordance with its terms, except to
the extent that such enforcement may be limited by
equitable principles, principles of public policy or
applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting generally the
enforcement of creditors' rights; and
(d) the execution and delivery of, and the performance of
the provisions of, this Amendment No. 1 by the
Borrower do not, and will not during the Credit
Facility Period, contravene any applicable law or
regulation existing at the date hereof or any
contractual restriction binding on the Borrower or the
certificate of incorporation or by-laws thereof.
3 CONDITIONS
3.1 The obligation of the Lender to release its interest in the
OMI WABASH Mortgage, the OMI WABASH Earnings Assignment and the OMI
WABASH Insurances Assignment shall be subject to the following
conditions precedent:
(a) The Lender shall have received the following documents
in form and substance satisfactory to the Lender and
its legal advisers:
(i) copies, certified as true and complete by an
officer of the Borrower, of the resolutions of
the board of directors of the Borrower
evidencing approval of this Amendment No. 1 and
authorizing an appropriate officer or officers
or attorney-in-fact or attorneys-in-fact to
execute the same on its behalf;
(ii) copies, certified as true and complete by an
officer of the Additional Guarantor, of the resolutions of the board of
directors and shareholder thereof evidencing approval of the Additional
Guaranty and those of the Security Documents to which it is to be a
party and authorizing an appropriate officer or officers or attorney-in-
fact or attorneys-in-fact to execute the same on its behalf;
(iii) copies, certified as true and complete by an
officer of the Guarantor, of the resolutions of the board of directors
of the Guarantor evidencing its consent to the actions to be taken
pursuant to the terms of this Amendment No. 1 and authorizing an
appropriate officer or officers or attorney-in-fact or attorneys-in-fact
to execute the same on its behalf;
(iv) copies, certified as true and complete by an officer
of the Borrower or other party acceptable to the Lender and its legal
advisers, of all documents evidencing any other necessary action
(including actions by such parties thereto other than the Borrower as
may be required by the Lender), approvals or consents with respect to
this Amendment No. 1, the Additional Guaranty and those of the Security
Documents to be executed and delivered by the Additional Guarantor;
(v) certificates of the Secretary of the Borrower
and of the Guarantor, respectively, certifying as to no amendments to
its certificate of incorporation and by-laws since February 24, 1993;
(vi) copies, certified as true and complete by an
officer of the Additional Guarantor, of the certificate of incorporation
and by-laws thereof;
(vii) certificate of the Secretary of the Borrower
certifying that it legally and beneficially owns, directly or
indirectly, all of the issued and outstanding capital stock of the
Additional Guarantor and that such capital stock is owned free and clear
of any liens, claims, pledges or other encumbrances whatsoever;
(viii) certificate of the Secretary of the Additional
Guarantor certifying as to the record ownership of all of its issued and
outstanding capital stock; and
(ix) certificate of the Secretary of State of the
State of Delaware as to the good standing of the Additional Guarantor.
(b) The Lender shall have received evidence satisfactory
to it and its legal advisers that:
(i) the OMI CHAMPION is registered in the name of
the Additional Guarantor free of all liens and
encumbrances except for the OMI CHAMPION
Mortgage on her in favor of the Westhampton
Trustee;
(ii) the OMI CHAMPION is classed in the highest
classification and rating for vessels of the same age and type with the
American Bureau of Shipping without any outstanding recommendations;
(iii) the OMI CHAMPION is operationally seaworthy and
in every way fit for its intended service; and
(iv) the OMI CHAMPION is insured in accordance with
the provisions of the OMI CHAMPION Mortgage on her in favor of the
Westhampton Trustee and the requirements thereof in respect of such
insurances have been complied with.
(c) The Additional Guarantor shall have duly executed and
delivered:
(i) the Additional Guaranty,
(ii) the OMI CHAMPION Mortgage,
(iii) the OMI CHAMPION Insurances Assignment,
(iv) the OMI CHAMPION Earnings Assignment,
(v) its Assignment Notices, and
(vi) Uniform Commercial Code Financing Statements for
filing in New York;
(d) The Guarantor shall have duly executed and delivered
its consent to the actions to be taken pursuant to the
terms of this Amendment No. 1;
(e) The Westhampton Trustee shall have duly authorized,
executed and delivered the Westhampton Indenture
Supplement;
(f) The Lender shall have received a certificate of the
chief financial officer of the Additional Guarantor
confirming the representations and warranties with
respect to solvency set forth in the Additional
Guaranty and containing conclusions as to the solvency
of the Additional Guarantor;
(g) The Lender shall have received evidence satisfactory
to it and to its legal advisers that, save for the
liens created by the security documents to which the
Additional Guarantor is a party, there are no liens,
changes or encumbrances of any kind whatsoever on the
OMI CHAMPION except as permitted hereby and by any of
the Security Documents to which the Additional
Guarantor is a party; and
(h) The Lender shall have received an opinion from Fredric
S. London, Esq., counsel for the Borrower, the
Guarantor and the Additional Guarantor, substantially
in the form set out in Schedule 4 or in such other
form as the Lender may agree.
4 AMENDMENTS
4.1 Subject, in each instance, to compliance with all of the
conditions precedent set forth in Clause 3.1, the Credit Agreement is
hereby amended as follows:
(a) All references in Clauses 8-10, inclusive, 13, 14 and
17 of the Credit Agreement, as amended by this
Amendment No. 1, to the term "Guaranty" shall be
deemed to be references to the Guaranty and the
Additional Guaranty in the alternative.
(b) All references in Clauses 8 and 9 of the Credit
Agreement, as amended by this Amendment No. 1, to the
term "Guarantor" shall be deemed to be references to
the Guarantor and the Additional Guarantor in the
alternative.
5 FEES AND EXPENSES
5.1 The Borrower agrees to pay the Lender upon demand (whether
or not all of the conditions precedent set forth in Clause 3 are
complied with) all reasonable costs, charges and expenses (including
legal fees and expenses) incurred by the Lender in connection with the
negotiation, preparation and execution of this Amendment No. 1, as well
as in connection with any supplements, amendments, waivers or consents
relating thereto.
6 MISCELLANEOUS
6.1 Except to the extent amended by this Amendment No. 1, all
terms and provisions of the Credit Agreement shall remain unchanged.
I N W I T N E S S whereof the parties hereto have caused
this Amendment No. 1 to be duly executed by their duly authorized
representative on the day and year first above written.
OMI CORP.
By:/s/ Vincent J. de Sostoa
Name: Vincent J. de Sostoa
Title: Senior Vice President
and Treasurer
By Special Authority For
DEN NORSKE BANK AS, New York Branch
By:/s/ Theodore S. Jadick, Jr.
Name: Theodore S. Jadick, Jr.
Title: Senior Vice President
By:/s/ Barbara Gronquist
Name: Barbara Gronquist
Title: Vice President
Consented and Agreed:
OMI CHAMPION TRANSPORT, INC.
By:/s/ Vincent J. de Sostoa
Name: Vincent J. de Sostoa
Title: Senior Vice President
and Treasurer
RIO GRANDE TRANSPORT, INC.
By:/s/ Vincent J. de Sostoa
Name: Vincent J. de Sostoa
Title: Senior Vice President
and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
OMI Corp.
and subsidiaries Form 10-Q dated September 30, 1994, Condensed
Consolidated
Balance Sheets, Condensed Consolidated Statements of Operations,
and
Consolidated Statement of Changes in Stockholders' Equity, and is
qualified in
its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> QTR-3
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<EXCHANGE-RATE> 1
<CASH> 39,573
<SECURITIES> 2,568
<RECEIVABLES> 9,495
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 73,770
<PP&E> 709,279
<DEPRECIATION> 285,997
<TOTAL-ASSETS> 642,908
<CURRENT-LIABILITIES> 57,484
<BONDS> 261,107
<COMMON> 15,340
0
0
<OTHER-SE> 197,345
<TOTAL-LIABILITY-AND-EQUITY> 642,908
<SALES> 0
<TOTAL-REVENUES> 198,516
<CGS> 0
<TOTAL-COSTS> 161,792
<OTHER-EXPENSES> 41,608
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,017
<INCOME-PRETAX> (12,774)
<INCOME-TAX> (5,138)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,636)
<EPS-PRIMARY> (0.25)
<EPS-DILUTED> (0.25)
</TABLE>
Contact: Fredric S. London
(212) 297-2160
New York, August 10 -- OMI Corp. (OMM:NYSE) today announced that it has
entered into a letter of intent with Astilleros Espanoles, S.A. of Madrid, Spain
for the construction for OMI of two chemical/product tankers of approximately
45,000 deadweight ton (dwt) to be delivered in mid 1996. OMI has options to
acquire up to an additional two sister vessels.
OMI, a major bulk shipping company, operates in both the domestic and
international shipping markets. Its fleet currently totals 46 vessels,
including six chartered-in tankers and a vessel on order, and aggregates in
excess of 3.9 million dwt. The Company also has significant investments in
other maritime related activities, including lightering of large crude carriers
in the Gulf of Mexico and workboat services.
# # #
8/10/94
CONTACT: Paul G. Henning
(212) 297-2125
OMI RECEIVES COFRS
New York, October 24 -- OMI (OMM:NYSE) announced today that it has obtained
Certificates of Financial Responsibility (COFRS) from the U.S. Coast Guard for
all of its wholly-owned and operated tankers and all but one of the joint
venture tankers it operates. Pursuant to the Oil Pollution Act of 1990 ("OPA"),
COFRS must be obtained for all tankers in U.S. waters by December 28, 1994. OMI
is confident that it will obtain COFRS for the remaining tankers prior to the
requirement that they be on board.
OMI, a major bulk shipping company, operates in both the domestic and
international shipping markets. Its fleet currently totals 46 vessels,
including six chartered-in tankers and a vessel on order, and aggregates in
excess of 3.9 million deadweight ton. The Company also has significant
investments in other maritime related activities, including lightering of large
crude carriers in the Gulf of Mexico and workboat services.
# # #
10/24/94
Contact: Paul G. Henning
(212) 297-2125
OMI REPORTS THIRD QUARTER RESULTS
New York, October 28 -- OMI Corp. (OMM:NYSE) today announced that for the
three months ended September 30, 1994, the Company had a net loss of $498,000,
or $.02 per share, compared to a loss of $1,897,000, or $.06 per share, in the
corresponding 1993 period. The 1994 third quarter results include the gain of
$7,177,000, on the sale of three 1969 built U.S. flag product carriers, and an
adjustment of $4,317,000, as a result of its ongoing evaluation of the drydock
program and reduction of associated costs. Revenue for the quarter was
$64,635,000, compared to $69,099,000 reported a year ago.
For the nine month period, the Company's net loss was $7,636,000, or $.25
per share, compared to a loss of $812,000, or $.03 per share for the
corresponding 1993 period. Revenue was $198,516,000, compared to $204,983,000
in 1993.
Results for the quarter and the year reflect a sluggish international
tanker market and a most difficult environment for U.S. flag tankers and dry
bulk carriers. However, foreign tanker rates have stabilized in recent weeks
and the international dry bulk shipping markets have improved substantially.
Subsequent to the end of the quarter, OMI has obtained Certificates of
Financial Responsibility (COFRS) from the U.S. Coast Guard for all of its
wholly-owned and operated tankers and all but one of the joint venture tankers
it operates. OMI is confident that COFRS will be obtained for the remaining
vessels.
OMI, a major bulk shipping company, operates in both the domestic and inter-
national shipping markets. Its operating fleet currently totals 45 vessels (in-
cluding six chartered-in tankers), aggregating approximately 3.8 million dwt.
One Suezmax tanker, aggregating 149,000 dwt is on order with delivery scheduled
in 1996. The Company also has significant investments in other marine related
activities, including lightering of large crude carriers in the Gulf of Mexico
and workboat services.
<TABLE>
OMI CORP. (OMM:NYSE)
(In thousands, except per share data)
<CAPTION>
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenues $64,635 $69,099 $198,516 $204,983
Income (loss) before
income taxes (1,249) 965 (12,774) 1,517
Provision (benefit) for
income taxes (751) 2,862 (5,138) 2,329
Net (loss) (498) (1,897) (7,636) (812)
Net (loss) per share $ (.02) $ (.06) $ (.25) $ (.03)
Average shares outstanding 30,406 30,601 30,378 30,583
</TABLE>
# # #
10/28/94
Contact:Paul G. Henning
(212) 297-2125
New York, November 7 -- OMI Corp. (NYSE:OMM) announced today that
Astilleros Espanoles, S.A. of Madrid, Spain has notified the Company that it
will not proceed with the construction of the two chemical/product tankers (and
two option vessels) which were the subject of a previously announced letter of
intent. OMI is investigating its legal rights as well as other construction
opportunities.
OMI, a major bulk shipping company, operates in both the domestic and
international shipping markets. Its operating fleet currently totals 45 vessels
(including six chartered-in tankers), aggregating approximately 3.8 million
deadweight ton (dwt). One Suezmax tanker, aggregating 149,000 dwt is on order
with delivery scheduled in 1996. The Company also has significant investments
in other marine related activities, including lightering of large crude carriers
in the Gulf of Mexico and workboat services.
# # #
11/7/94
