quarter.

The company's unaudited net income for the three months ended June 30 was $405,000 compared to $1.6 million.

Though the bottom line quarter results were off last year's, they marked a return to profitability after a 1995 fourth quarter loss of $435,000.

"With the transitional influences of our increasing fleet behind us, we are pleased to report a return to profitability in the first quarter of the fiscal year,'' LOF CEO Miles Kulukundis said.

The recent results were "mainly driven by continued improvement in the trading of our suezmax vessels which are now fully deployed in the Atlantic trades,'' he said.

On future prospects, Mr. Kulukundis said the company expects the positive trends which have improved tanker market trading to continue.

"But the current tonnage surplus in the panamax market and increased offhire for drydocking will diminish the benefits in the coming quarter.'' For the quarter, net operating income from the company's suezmax fleet increased by $1.1 million to $1.9 million though daily time charter equivalent in this sector fell to $25,500 from $27,000.

The recent quarter's net operating income included three vessels while the prior period represented the London Pride and one month of the London Glory .

LOF's net operating income from panamax fleet decreased by $508,000 to $619,000 with average daily time charter equivalent falling to $14,000 from $17,000.

Operating revenues rose to $10.4 million from $7.5 million while operating expenses rose to $8 million from $5.6 million.