OSG Reports Fourth Quarter and Fiscal 2010 Results (USA)

Overseas Shipholding Group, Inc., a market leader in providing energy transportation services, today reported results for the fourth quarter and fiscal year ended December 31, 2010.

For the fiscal year ended December 31, 2010, the Company reported TCE revenues of $853.3 million, a 10% decrease from $952.6 million in 2009. The year-over-year decline in TCE revenues was due to increased spot exposure combined with lower average spot rates earned by most of the Company’s vessel classes, predominantly for the Company’s VLCCs and MRs. Revenue days decreased slightly year-over-year by 861 days, or 2%. Net loss attributable to the Company (Loss2) for fiscal year 2010 was $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. Details on special items are provided later in this press release.

For the quarter ended December 31, 2010, the Company reported TCE revenues of $183.2 million, a 10% decline from $204.1 million in the fourth quarter of 2009. The decline in TCE revenues was due to increased spot exposure combined with lower average spot rates earned by most of the Company’s vessel classes. Revenue days increased quarter-over-quarter by 632 days, or 7%, primarily as a result of a net growth in the International Product Carrier fleet centered in the MR class. The Loss for the quarter ended December 31, 2010 was $55.3 million, or $1.83 per diluted share, compared with 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 long-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.”

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.”

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Source: Overseas Shipholding Group, February 28, 2011;