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For a discussion of factors that could cause results to differ, please see the company's earnings press release that was issued yesterday and the company's filings with the Securities and Exchange Commission, including without limitation the company's annual report on Form 10-K for the year ended December 31, 2009 and its subsequent reports on Form 10-Q and Form 8-K.All share and per share amounts discussed in this conference call, unless otherwise noted have been adjusted to reflect the exchange of 1.34 shares of our common stock for each share of common stock held by shareholders of General Maritime subsidiary, our predecessor company, in connection with the Arlington acquisition. Now, I would like to introduce Mr. John Tavlarios, President of General Maritime Corporation. John Tavlarios Good morning. Welcome to General Maritime’s second quarter 2010 earnings conference call. With me today are Peter Georgiopoulos, Chairman; Jeff Pribor, Chief Financial Officer; John Georgiopoulos, Executive Vice President; and Peter Bell, Head of Commercial Operations. As outlined on slide 3, of the presentation, I will begin today’s call by discussing the highlights of the quarter and year-to-date followed by Jeff’s review of our financial results for the three months ended June 30, 2010. Following this, I will provide some remarks on our company outlook and an overview of the industry. We will then be happy to take your questions. I will begin on slide 4. During the second quarter and year-to-date period, General Maritime completed several important value creating transactions, which positioned the company, strengthened its industry leadership and take advantage of the positive fundamentals of the tanker industry. By acting decisively for shareholders, General Maritime has once again taken important steps to meet critical objectives related to growing and diversifying its modern fleet, significantly increasing the company’s earning power and further strengthening its balance sheet and financial flexibility. Following a review of our financial performance of the quarter, I will discuss these important strategic accomplishments in more detail.
For the second quarter, we recorded a net loss of $14.3 million or $0.25 basic and diluted loss per share. Decrease in net income was primarily resulted of 18.1% decrease in TCE as well as an $11.2 million increase in net interest expense. Jeff will discuss our financial results of the second quarter in more detail later in the call.Our Board of Directors have adopted a new dividend policy under which the company intends to declare quarterly dividends with a target amount per share of $0.08 per quarter based on the current number of shares outstanding. The new dividend policy is based on an unchanged aggregate amount of dividends to be paid by the company on an annualized basis of approximately $30 million divided by the new share count after our follow-on equality offering. For the second quarter, we declared an $0.08 per share dividend. Including the second quarter 2010 dividend, General Maritime has declared cumulative quarterly and special dividends of $21.95 per share. This equates to more than a billion dollars in dividend distributed to shareholders since 2005. During this past quarter, we agreed to buy seven modern double-haul vessels including 5 VLCCs and 2 Suzemax for a total purchase price of $620 million. This acquisition marks a significant point in our history as we take advantage of asset prices, which are significantly off their peaks and opportunistically grow our fleet. I’d like to highlight a number of important strategic and financial benefits we expect from these acquisitions, which we believe will create long-term value to the company and shareholders. First, we expect to grow our fleet by 50% on a tonnage basis and expand our presence in the favorable VLCC market. Second, we expect to further improve the age profile of our modern fleet from 9.9 to 8.4 years determined as of the time we entered into acquisition agreements. And third, we expect to broaden and diversify our service offering with a fleet consisting of 7 VLCCs as well as 12 Aframax, 13 Suzemax, 6 product tankers. We believe the company is in a strong position to take advantage of the favorable long-term fundamentals of each tanker section, which General Maritime operates and expand our commercial opportunities with current and potential charters. Read the rest of this transcript for free on seekingalpha.com