Red ink at OSG

Tanker giant Overseas Shipholding Group, Inc. (NYSE: OSG) reports a net loss for FY 2010 of $134.2 million, or $4.55 per diluted share, compared with earnings of $70.2 million, or $2.61 per diluted share, in the prior year. Adjusted for special items, the loss was $98.4 million, or $3.34 per diluted share, compared with a loss in 2009 of $23.1 million, or $0.86 per diluted share.

For the quarter ended December 31, 2010, the loss was $55.3 million, or $1.83 per diluted share, compared with a loss of $23.2 million, or $0.86 per diluted share, in the same period in 2009. Adjusted for special items, the fourth quarter loss was $59.0 million, or $1.96 per diluted share, compared with a loss in the fourth quarter of 2009 of $15.9 million, or $0.59 per diluted share.

Morten Arntzen, President and CEO, said, “2010 was clearly a disappointing year financially as a result of very depressed rates in all tanker segments in the last two quarters of the year. Nevertheless, we made substantial progress on a number of fronts that will benefit the company in 2011 and beyond. We made further strides forward in our G&A reduction campaign; we kept ship operating costs in check; we put the two state-of-the-art FSOs we have in joint venture with Euronav to work in Qatar on log-term charters; we equipped our U.S. flag business unit with the assets, contracts and cost base to return to profitability; and we continued to enhance our already strong commercial platforms.”

Mr. Arntzen added, “We will continue to focus on internal actions that can enhance our competitive position and improve our margins in 2011. With critical mass in our three main businesses, Crude, International Products and U.S. Flag, in 2011 we will concentrate on flawless execution of our balanced growth strategy.”

February 28, 2011