The international, seaborne transportation industry is critical to international trade. Oceangoing vessels represent the most efficient method of transporting large volumes of basic commodities, finished products, crude oil and refined petroleum products. Dry bulk vessels carry major and minor bulk commodities and finished products in large quantities. In 2003, approximately 4.0 billion tonnes of dry bulk cargo was transported by sea, comprising more than half of all international seaborne trade. The world's tanker fleet transported approximately 2.2 billion tonnes of crude oil and refined petroleum products in 2003.

The seaborne movement of oil products between regions addresses demand and supply imbalances caused by the lack of resources or refining capacity in consuming countries. Rates in the shipping industry are determined by the balance of this demand for transportation and the supply of vessels. Supply is impacted by a number of factors, including the sale of vessels for demolition, number of newbuildings, regulation and congestion at ports. Demand and supply imbalances typically precede rate movements. In 2004, demand increased faster than supply.

Seaborne trade is measured with reference to the cargo's value or physical quantity (measured in tonnes, barrels and cubic metrics for gases, refrigerated cargoes and the standard container size). These measurements do not capture the distance the cargo is carried and therefore the tanker industry uses the concept of tonne-miles. Tonne-miles are the product of the quantity of cargo (expressed in tonnes) and the distance between the loading port and the destination port. Unlike crude oil tankers, which are generally mono-directional, trading patterns for product carriers are usually very versatile and tankers can be employed during multiple legs of their voyages. Vessel owners seek to optimize utilization and seek to position their ships in areas where employment can be maximized and waiting time minimized.

The Company’s business consists of operational and in-house fleet management activities, including the commercial and technical management of substantially all of the vessels in its existing fleet; the selective purchase and sale of new and secondhand vessels; and active participation in the design and supervision of the construction of newbuilding vessels.

The Company handles the commercial and technical management for all but three of the vessels in its existing fleet in-house, including in the areas of chartering; vessel sales and acquisitions, vessel maintenance and repair, capital expenditures, bunkering, drydocking, vessel taxes, including tonnage taxes, insurance maintenance, crewing, ISM monitoring and maintenance, and other vessel operating activities.

The Company actively manages the employment of its fleet. The Company’s chartering department is located in Piraeus, Athens, Greece where a dedicated and experienced team of chartering and commercial operations personnel arrange the employment for all but three of the vessels in its fleet.

Most of the Company’s bulk carriers trade worldwide, transporting dry cargoes consisting primarily of grain, coal, fertilizer, steel and iron ore. The Company’s dry bulk carrier fleet primarily trades in the Atlantic Basin, to and from Northern Europe and the Mediterranean, Far East Indian Ocean, China and to and from ports in South America. The Company operates its tankers primarily on routes to and from the UK and Northern Europe, West Africa and South America and in the Baltic Sea, Mediterranean Sea, Black Sea Indian Ocean and Red Sea/Arabian Gulf regions, transporting primarily clean refined petroleum products, such as gasoil, unleaded gasoline, edible oils and liquid urea. In addition, some of the Company’s double-hull tankers and, to a lesser extent, its double-sided tankers trade in dirty cargoes such as crude and fuel oil.

Voyage expenses increased to $11.6 million for the three month period ended March 31, 2005, compared to $3.6 million for the same period in 2004.

Vessel operating expenses increased to $10.8 million for the three month period ended March 31, 2005, compared to $7.5 million for the same period in 2004.

Depreciation and amortization increased to $8.1 million for the three month period ended March 31, 2005, compared to $4.0 million for the same period in 2004.

Operating income increased to $52.8 million, or $42.0 million excluding gains on the sale of vessels in the period, for the three month period ended March 31, 2005, compared to $24.6 million for the same period in 2004.