OMI Corp. Might Be for Sale - WSJ

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 Outlook • Everything You Wanted To Know About Shipping And Were Afraid To Ask
Stocks/ETFs to watch: OMI Corp. (OMM). Competitors: General Maritime Corp. (GMR), Frontline Ltd. [USA] (FRO), Teekay Shipping Corp. (TK). ETFs: Oil Service HOLDRs ETF (OIH), PowerShares Dynamic Oil & Gas (PXJ), SPDR Oil & Gas Equipment & Services (XES)

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Comments

[CrossProfit_:]

"Shares of the company's competitors gained as well."
Excluding Top Tankers (TOPT) that closed down 0.08. TOPT has some accounting problems to resolve. Previous auditors quit etc.

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2007 Mar 17 11:42 PM