OSG reports revenue increase

Nov 29 2019

Overseas Shipholding Group (OSG) has reported shipping revenues for the third quarter 2019 of $80.9 mill, up 0.5% on the same period of 2018.

TCE revenues, a non-GAAP measure, for 3Q19 were $76.5 mill, up 6.2% compared with 3Q18.

Third quarter 2019 adjusted EBITDA was $16.1 mill, up 47.7% from $10.9 mill in the previous year.

Operating income for 3Q19 was $1.2 mill, compared to an operating loss of $4.1 mill in 3Q18.

Net loss for 3Q19 was $3.8 mill, compared with net income of $11.9 mill for the third quarter 2018, at which time OSG recognised $21.7 mill of previously deferred tax benefits upon completion of an internal revenue service examination.

As of 30th September, total cash was $49.7 mill.

On the same day, the company took delivery of two MRs built by Hyundai Mipo Dockyard. The tankers, named ‘Overseas Gulf Coast’ and ‘Overseas Sun Coast’, are operating in the international market under the Marshall Islands flag, on one-year timecharters.

OSG entered into loans in an aggregate principal amount of $50 mill to finance the vessels.

Sam Norton, OSG President and CEO, said, “Attaining key commercial targets across the second half of 2019 has stood as a defining element of whether or not the business strategy we have been pursuing for the past several years would find success.

“In this respect, we are pleased to have been able to secure time charter contracts for a total of 10 of our vessels since the end of the second quarter, increasing our forward revenue cover for 2020 to over 75% of available vessel days.

“Several of these contracts are for firm periods of more than one year, adding increased duration to our charter book in addition to higher charter rates. In both these areas, we consider the progress evidenced as particularly promising for our future financial performance.

“Overall, third quarter results were gratifying, showing a marked improvement in operating performance over last year's third quarter in the context of material changes to both vessels in operation and the mix of contract revenues,” he said. 


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