Jones Act fleet one bright spot in OSG picture

Written by Nick Blenkey

OSG logoTanker giant Overseas Shipholding Group, Inc. (NYSE: OSG) reports results for the first quarter of fiscal 2012 ended March 31, 2012.that saw TCE (time charter equivalent) revenues of $214.0 million, an increase of $7.4 million, or 4 percent, from $206.6 million in the 2011 quarter.

Net loss for the quarter was $34.8 million, or $1.15 per diluted share, compared with a loss of $34.6 million, or $1.15 per diluted share, in the same period in 2011.

Jones Act operations look to be one bright spot in the OSG picture.

There are no tankers or ATBs in  the OSG Jones Act fleet in layup, and OSG’s U.S. Flag fleet remains fully employed. “This,” says OSG,”is reflective of firmer trading conditions in the Jones Act market, which is experiencing generally higher rates and utilization with increasing inquiry for period business.  In the year 2012 to date, OSG’s Jones Act product carriers have been renewed at rates in excess of expiring rates, with each successive renewal rate higher than the last.”


May 1, 2012

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