OSG reports "solid" first quarter

MAY 10, 2017 — Overseas Shipholding Group, Inc. (NYSE:OSG), which these days describes itself as "a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets," today reported results for the first quarter 2017.

"We had a solid first quarter to start 2017 despite ongoing challenging market conditions," said President and CEO Sam Norton. "Although we experienced lower charter rates, our ability to attain high utilization rates throughout the first quarter helped drive revenue. Our diverse operating platform, which includes shuttle tankers in the U.S. Gulf Coast, the only licensed operator of lightering vessels in the Delaware Bay, and the only operator of tankers in the Maritime Security Program ("MSP"), provides stability against market volatility affecting other areas of our business. Additionally, we are starting to see results of efforts to be more efficient with general and administrative costs. This helped reduce expenses which drove higher operating income."

Highlights

  • Income from continuing operations for the first quarter was $5.4 million, or $0.06 per diluted share, compared to a net loss from continuing operations of $8.7 million, or ($0.09) per diluted share, for the first quarter 2016.
  • Shipping revenues were $108.1 million for the current quarter, a decrease of 6.1% from $115.1 million in the prior year quarter.
  • Time charter equivalent (TCE) revenues for the first quarter 2017 were $102.3 million, down 8.8% compared to the same period in 2016.
  • Net income was $5.4 million for the quarter ended March 31, 2017, compared to $50.7 million for the quarter ended March 31, 2016. Net income for the prior year period included income from discontinued operations from International Seaways (INSW) of $59.4 million.
  • First quarter 2017 adjusted EBITDA(B) was $36.2 million, down 11.2% from $40.7 million in the same period in 2016.
  • Cash and cash equivalents were $198.1 million at March 31, 2017. Total cash(C) was $204.4 million at the end of the current quarter.
  • Repurchased and retired $14.5 million in principal of the 8.125% notes due in 2018.
  • Pursuant to a final decree and order of the bankruptcy court, OSG closed its bankruptcy case.

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