OSG said that any separation would be achieved through a spin-off of OSG International (OIN) in the second half of 2016 to create two standalone publicly traded companies.
Each company will be better able to focus on its own business, creating the potential to enhance the long-term performance and shareholder value, OSG claimed.
“The filing of the Form 10 is an important step in the execution of our plan to create two industry-leading independent public companies,” said Capt Ian Blackley, OSG’s president and CEO.“Separating our international and domestic businesses will allow each company to more effectively pursue their distinct operating priorities and strategies and better enable management of both companies to capitalise on opportunities for long-term growth and profitability. Both businesses will continue to provide safe, reliable, high-quality transportation services to our customers in each sector.”
As of 30th June, 2016, OIN owned or operated 55 vessels with a combined capacity of around 6.5 mill dwt and 864,800 cu m (LNGCs). OIN’s operating fleet comprises one ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and 20 MRs. Through joint venture partnerships, OIN has ownership interests in four LNGCs and two floating storage and offloading service vessels.
In another move, OSG announced that director Samuel Norton was appointed a senior vice president of the company and president and CEO of the US Flag Strategic Business Unit, effective 17th July, 2016.
Norton replaced Henry Flinter, who is stepping down from his role and retiring from OSG.
“We are pleased to put in place today the leadership of our US Flag business, which will ensure a seamless transition when we separate our International Flag and US Flag businesses”
“Sam has been an invaluable member of OSG’s board of directors for the last two years giving him an in-depth knowledge of our company,” said Douglas Wheat, OSG’s chairman. “He has the right mix of leadership skills and shipping experience that make him an ideal choice to lead our US Flag business.”
Norton, who will remain on the board while serving in his new role, has been on the board since 2014.