"Pivotal year" for Maritrans
For the fourth quarter, net income was $0.7 million, after an extraordinary charge on revenues of $31.7 million. Before the extraordinary charge, net income was $3.2 million for the fourth quarter. This compares to net income of $2.3 million on revenues of $32.2 million for the quarter ended December 31, 2000. The one-time extraordinary charge of $2.5 million, net of taxes, in the fourth quarter related to early payoff of $33 million of the company's 9.25 percent long-term debt.
For the year ended December 31, 2001, Maritrans reported net income of $7.7 million, after the extraordinary charge on revenues of $123.4 million. This compares with net income of $5.0 million, or $.45 diluted earnings per share on revenues of $123.7 million in 2000.
"2001 was a pivotal year for Maritrans," said chairman and CEO Stephen A. Van Dyck, "Our income before the extraordinary charge has doubled from 2000 as a result of better rates and our continued cost control efforts. Our outlook for 2002 shows us earning in the $1.50 to $2.00 range, the third consecutive year of stronger earnings. These projections reflect our most recent estimates of performance and the effect of outstanding shares purchased in our recent tender offer. This is an exciting time for our company, and we believe that Maritrans is extremely well positioned to deliver greater results in 2002."
"We renewed a number of long-term contracts at higher rates in 2001," noted Van Dyck. "This reflected an improvement in the overall rate environment, although we expect the spot market to be soft for at least the first two quarters of 2002 due to mild winter conditions in the northeastern United States and lower demand for oil and refined products. Our goal is to have 75 to 85 percent of our capacity on long-term charters with the balance in the spot market."
Van Dyck noted that, as a result of its rebuild program, Maritrans now has one of the largest U.S. flag double-hulled fleet of any independent Jones Act petroleum carrier in the U.S. coastwise trade. While the U.S. Court of Federal Claims had ruled against the Maritrans claim that the OPA 90 forced retirements of our single-hulled vessels represented a ''taking`` under the Fifth Amendment, Van Dyck said that Maritrans believed it "appropriate to appeal that decision" and would be filing a notice of appeal.