OMI Corp. Might Be for Sale - WSJ

Mar.16.07 | About: OMI Corp. (OMM)

The Wall Street Journal reported today that oil tanker operator OMI Corp. is evaluating strategic options that might include the sale of the company. The company has a market cap of approximately $1.4 billion and operates a 40-tanker fleet that transports oil and petroleum products. The fleet is notable for being relatively young; OMI's oldest tanker was built in 1999. The Connecticut-based company reported net income of $306 million on revenue of $719 million in 2006, a quadrupling of 2001 levels. Possible bidders might include larger rivals Teekay Shipping and Frontline Ltd. or private equity firms. OMI shares gained 3.6% to close at $22.93 yesterday. Shares of the company's competitors gained as well.

Sources: Wall Street Journal, Reuters
Commentary: Energy Stock Trader: Wednesday OutlookEverything You Wanted To Know About Shipping And Were Afraid To Ask
Stocks/ETFs to watch: OMI Corp. (OMM). Competitors: General Maritime Corp. (NYSE:GMR), Frontline Ltd. [USA] (NYSE:FRO), Teekay Shipping Corp. (NYSE:TK). ETFs: Oil Service HOLDRs ETF (NYSEARCA:OIH), PowerShares Dynamic Oil & Gas (NYSEARCA:PXJ), SPDR Oil & Gas Equipment & Services (NYSEARCA:XES)

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.