U.S.-flag tank vessel operator Overseas Shipholding Group, Inc. (NYSE: OSG) reported second quarter results that included net income of $6.4 million, compared with a net loss of $1.7 million for the second quarter of 2019. Shipping revenues were $114.5 million, up 29.5% compared with last year’s second quarter 2019. Time charter equivalent (TCE) revenues were $100.4 million, up 22.3% compared with the second quarter of 2019.
“Under the continuing disruptive influence of the COVID-19 pandemic, it is important to remember that our business is not one that can be done remotely in all respects,” said , President and CEO Sam Norton. “The contribution made by all of our employees, and in particular our seafarers, in realizing the strong financial results reported this morning should be applauded by all who benefit from their service. As was the case during the first quarter of this year, the deep book of time charters that we entered into at the end of last year has provided considerable insulation from exposure to the drop in transportation demand affecting both crude oil and refined product. The results produced in this context both met our expectations and provided renewed confidence in the value of OSG’s operating platform.”
Looking ahead, Norton said that it is anticipated that “the combined effects of observable COVID-19 related demand suppression, the usual seasonally slow summer period, and the impact of a high concentration of drydock activities will result in lower time charter earnings for the third quarter. As we move through the balance of the year, the slope of demand recovery in transportation fuel consumption in the U.S. will likely shape our overall future performance. Available data indicate that this recovery is, with the exception of jet fuel demand, well underway. Absent a reversal of this encouraging trend, there is cause for optimism that in terms of both rate and utilization, a restoration of a balanced and healthy market condition is foreseeable in our key markets.”