USA: OSG Q1 Revenues Up 4 Pct

May 2, 2012

Overseas Shipholding Group, a market leader in providing energy transportation services, reported results for the first quarter of fiscal 2012 ended March 31, 2012.

For the quarter ended March 31, 2012, the Company reported TCE revenues of $214.0 million, an increase of $7.4 million, or 4%, from $206.6 million in the 2011 quarter. TCE revenues increased quarter-over-quarter in line with a 559-day increase (6%) in revenue days, which reflected new deliveries of International and U.S. Flag product carriers and the return to service of a previously laid-up U.S. Flag ATB. Improvement in TCEs in the U.S. Flag unit and for VLCCs and Suezmaxes combined with an increase in U.S. Flag revenue days to more than offset lower TCEs earned in the smaller Crude sectors. In the International Products segment, fleet expansion coupled with slightly higher spot TCEs earned by MRs led to a $6.6 million increase in TCE revenues. The $13.3 million decline in International Crude TCE revenues to $75.5 million reflects a lower average segment TCE rate and the continued net reduction of chartered-in tonnage. High bunker prices continued to pressure TCE revenues across the spot fleet. Net loss for the quarter ended March 31, 2012 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. Adjusted for special items that reduced the Loss by $2.1 million, or $0.07 per diluted share, the first quarter Loss was $37.0 million, or $1.22 per diluted share, compared with a Loss of $34.7 million, or $1.15 per diluted share, in the first quarter of 2011.

Morten Arntzen, President and CEO stated, “Rates in our International Flag segments continue to be weak and volatile, but have improved from the last six months of 2011, which we believe was the bottom of the tanker cycle. The first quarter results for our International Products business were negatively impacted by an unseasonably warm winter, while the Crude market continues to struggle with excess supply. We began this quarter with healthier crude rates and a more balanced products market as the driving season in the U.S. approaches. At the same time, we are getting satisfying contributions from our U.S. Flag, LNG and FSO businesses.”

Mr. Arntzen concluded, “We remain intensely focused on executing a number of actions to strengthen the Company operationally and financially. These include further expense reduction initiatives on shore, a fleetwide effort to reduce fuel consumption at sea and a number of initiatives to increase liquidity. In this volatile environment, we will continue our patient approach to acquisitions, charter-in opportunities and newbuilding projects.”

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LNG World News Staff, May 2, 2012