yesterday it is looking at ways to expand in the tanker market.

By expanding, LOF aims to strengthen its position and become more competitive and take advantage of improving tanker markets.

Ultimately, the strategy is aimed at bolstering shareholder value, the London and NASDAQ listed company said.

To explore options, LOF has retained New York-based Gleacher NatWest Inc. and London-based NatWest Securities Ltd. for financial advice.

Three years ago, LOF was one of the few publicly-listed tanker companies and had relatively large market capitalisation. But several other tanker entities have emerged since 1993 and LOF, with about $88 million in market capitalisation, finds itself a smaller player, company chief financial officer Huw Spiers said.

This has resulted in the company's share price below its market value.

LOF shares are trading around $1.20 but market value is around $1.79. In 1993, offering shares we issued at $1.50.

"We see the way for shareholder value to be improved is to look for growth opportunities,'' he said.

Growth could mean issuing new LOF shares in a merger or new shares in exchange for assets.

Mr. Spiers said the company's primary interest will be expanding in the tanker market.

"Our ongoing business in the tanker market is doing well with modern, well maintained ships,'' he said. "Since the market's trough in the mid-80s, the market has tightened up. With that, rates for use of tankers are well-improved.'' Tankers built in the 1970s are now nearing the end of their use. This also points to a firming up of the market.

LOF operates three suezmax tankers and three panamax tankers in the crude oil and oil products trades concentrating on US and European requirements.