OSG reports smaller profit amid low rates
Tanker owner takes a hit due to tough market but manages to produce healthy cash flows.
August 9th, 2017 12:15 GMT
by Nick Roumpis
Published in Tankers
Weak tanker rates have taken their toll on Overseas Shipholding Group’s (OSG) bottom line for the second quarter.
The US-listed company reported net income of $3.2m for the three months to the end of June, compared to $29.9m in the corresponding period of 2016.
It noted that the final result for the prior year included income of $34m related to its spin-off International Seaways.
OSG, which now runs the group’s US flag business, saw its revenue decrease by nearly 19% at $96.2m.
Sam Norton, president and chief executive of OSG, said in a statement: “Increasing exposure to weakening spot markets during the just completed quarter weighed top-line performance.
“However, cost discipline helped to mitigate the effects of these developments, and, together with earnings from our shuttle tanker and lightering operations, served to produce healthy cash flows.”
Ebitda for the second quarter was $29.6m, compared to $46m in the same period of 2016.
OSG had $204.6m in cash at the end of the quarter and said it remains “favourably positioned to respond to opportunities”.
Richard Trueblood is serving as the company’s interim financial chief following the departure of Christopher Wolf.