Net income for the full year was $13.5 mill, compared with $56 mill for 2017.
Shipping revenues for 4Q18 and full year 2018 were $89.2 mill and $366.2 mill, down 4% and 6%, respectively, compared with the same periods in 2017.
TCE revenues for 4Q18 and the full year were $79.9 mill and $326.7 mill, down 4% and 10%, respectively, compared with the same periods in the previous year.
Fourth quarter and full year 2018 adjusted EBITDA was $23.1 mill and $87 mill, down 7% and 27%, respectively, from $24.8 mill and $118.4 mill in the same periods in 2017.
Total cash was $80.6 mill as of 31st December, 2018.
In January, 2019, OSG entered into a 10-year bareboat charterparty agreement for a US flagged product tanker.
Sam Norton, OSG President and CEO, said, “During 2018, we took steps to reduce debt, gain cost efficiencies, and retain capacity available to capture value from an improving rate environment, positioning the company well to benefit from the inherent operating leverage of its business model.
“The fourth quarter saw continued progress in the developing recovery story for OSG’s core Jones Act businesses. Further timecharter contracts for our conventional tankers were obtained at rates above those previously entered into, combining to give the company fixed timecharter cover for 75% of available vessel days for 2019 at the beginning of the year.
“We are as convinced as ever that improving fundamentals will support a continuing recovery, and we expect to benefit from that recovery as our fleet of conventional tankers is re-chartered beginning in late 2019.
“Success in refinancing our term debt and in extending the nine leases on vessels chartered-in from American Shipping Company removed considerable uncertainty and stabilised the principal elements of our balance sheet for the foreseeable future, and provided us with the ability to pursue long-term employment opportunities with customers who are increasingly aware of a supply constrained market.
“Commitments to invest in new barges, new tankers, and the long-term lease of an existing Jones Act Tanker provide tangible evidence of our confidence in our core markets and in our commitment to sustaining a leading position in the markets that we serve,” he said.
Shipping revenues and TCE revenues falls were primarily due to lower average daily rates earned, which accounted for a $6.8 mill decrease in TCE revenues and a 102-day decrease in revenue days for the fleet, excluding the modern lightering ATBs.
This decrease was offset by an increase in TCE revenues of $4 mill for the modern lightering ATBs in 4Q18, compared with 4Q17. Fewer vessels were also traded in the quarter, compared to 4Q17.
The net loss reported reflected the income tax benefit recorded in 4Q17, as a result of the remeasurement of the net deferred tax liability based on the newly enacted federal corporate statutory rate of 21%.
Several factors contributed to the decreases reported for the full 12 months: (a) a 74-day increase in scheduled drydocking (b) a 92-day increase in unplanned repair days, including one vessel that was hit by a third-party ship, and (c) two fewer vessels in operation for most of 2018, compared to 2017, OSG said.