Shipping revenues for 1Q19 were $87.7 mill, down 13.2% compared with the same period in 2018. TCE for 1Q19 were $82.8 mill, down 6.8% compared with 1Q18, while 1Q19 TCE revenues exceeded 4Q18 by 3.6%.
First quarter 2019 adjusted EBITDA was $23.6 mill, down 15.5% from $28 mil recorded in 1Q18. Adjusted EBITDA increased by 2.2% from the 4Q18.
As of 31st March, OSG’s total cash was $75.8 mill.
Sam Norton, OSG President and CEO, said, “Our first quarter financial performance is evidence of the developing recovery of OSG’s earnings power, as improved charter terms for our conventional tanker fleet counterbalanced the retirement of ageing tonnage as part of our ongoing fleet renewal efforts.
“Timecharter contracts fixed during the second half of 2018, coupled with active interest in the few spot days available, led utilisation rates for the combined conventional tanker and ATB fleet to exceed 95% of available operating days during the quarter.
“In line with tightening supply availability, we are seeing the benefits of both an improved rate environment and better utilisation rates. In particular, conventional tanker TCE earnings have improved 5% from the 4Q18 and more than 25% from their third quarter levels. Meanwhile, our niche businesses continued to perform in-line with our expectations, providing a solid foundation of industrial business that underlies our growth and margin expansion initiatives.
“We are confident in the strong, tangible fundamentals underlying the Jones Act and US Flag energy transportation markets in which we operate. We anticipate that the full effects of our high operating leverage will be more fully expressed in the latter part of 2019 and into 2020, alongside the additional earnings contribution we expect from our newly built ATBs and MR tankers delivering over the next 18 months. All in all, we remain extremely upbeat about the future and the promise of improving earnings in our core businesses,” he concluded.