Overseas Shipholding’s Quarterly Income Halved
New York-listed Overseas Shipholding Group (OSG), a provider of oceangoing energy transportation services, saw its net income for the second quarter drop to USD 29.9 million from the USD 58.4 million reported in the second quarter of 2015.
For the first half of the year, the company’s net income decreased to USD 80 million from USD 101.3 million reported in the first six months of 2015.
Time charter equivalent (TCE) revenues for the second quarter reached USD 215.7 million, a decrease of USD 19.5 million compared with the same period in 2015, primarily due to lower daily rates earned by the International Flag fleet.
TCE revenues for the first half of 2016 were USD 452.6 million, a decrease of USD 4.2 million compared with the first half of 2015.
“I am pleased to report strong second quarter and first half results,” said Ian T. Blackley, OSG’s president and CEO.
“In our international business, spot rates have softened this summer, as global inventories have climbed, but we believe the fundamentals remain positive. In our domestic business, we face the challenges of a decline in U.S crude production, high inventory levels and the delivery of newbuild tonnage, but the sustained lower oil price environment is also driving record U.S. gasoline consumption.”
Blackley added that OSG continues to make “good progress” towards separating its international and domestic businesses.
“By creating two independent public companies, with an increased ability to focus on their own business, we believe each will be better positioned to enhance shareholder value,” Blackley said.