AUGUST 1, 2012 — Tanker giant OSG reported a second quarter loss of $46.0 million, or $1.52 per diluted share. Once again, U.S.-flag operations were one bright spot in the picture.
Morten Arntzen, President and CEO commented: "Following on the slowdown of the world economy, all our international flag markets turned down during the second half of the second quarter, with rates in our MR segment being under particular pressure, resulting in a disappointing quarter. Rates remain challenging today. On a bright note, our U.S. Flag unit continued to perform ahead of plan and the prospects for this business improved following the announcement of the sale of Conoco's Trainer refinery to Delta Air Lines and Sunoco's transfer of its Philadelphia refinery to a joint venture with Carlyle."
Mr. Arntzen continued, "In July we drew down the full remaining availability under our revolving credit facility and now have cash reserves of over $550 million. We believe this was a prudent step given the ongoing difficult market conditions. We are in discussions with our main banks to put in place long-term financing that provides sufficient liquidity to manage through an extended downturn in our international flag tanker markets. At the same time, we are pursuing other liquidity raising options available to the company."