Net income for 1Q16 also included income from discontinued operations from International Seaways (INSW) of $59.4 mill.
OSG’s 1Q17 adjusted EBITDA was $36.2 mill, down 11.2% from $40.7 million in the same period in 2016. Income from continuing operations was $5.4 mill, compared to a net loss from continuing operations of $8.7 mill for 1Q16.
Shipping revenues were $108.1 mill for the current quarter, a decrease of 6.1% from $115.1 mill in 1Q16. TCE revenues for 1Q17 were $102.3 mill, down 8.8% compared to the same period in 2016.
Cash and cash equivalents were $198.1 mill as at 31st March, 2017. Total cash was $204.4 mill at the end of the current quarter.
As a result of a final decree and order of the bankruptcy court, OSG closed its bankruptcy case.
Sam Norton, OSG’s president and CEO stated, “We had a solid first quarter to start 2017 despite ongoing challenging market conditions. Although we experienced lower charter rates, our ability to attain high utilisation rates throughout the first quarter helped drive revenue.
“Our diverse operating platform, which includes shuttle tankers in the US Gulf Coast, the only licensed operator of lightering vessels in the Delaware Bay and the only operator of tankers in the Maritime Security Program (MSP), provides stability against market volatility affecting other areas of our business.
“Additionally, we are starting to see results of efforts to be more efficient with general and administrative costs. This helped reduce expenses which drove higher operating income,” he said.
Excluding the Delaware Bay lightering TCE revenues, TCE revenues declined by $12 mill, of which $10.9 mill was due to lower average daily rates. This decrease was partially offset by a $2 mill increase in Delaware Bay lightering revenues. The decrease in shipping revenues mentioned above was also driven by lower charter rates.
Operating income for 1Q17 was $19.3 mill, compared to $17.4 mill in 1Q16. The increase reflected reduced operating expense, including depreciation and amortisation expense and lower general and administrative expenses, which offset the decline in shipping revenues.
OSG completed the separation of its business into two independent publicly traded companies through the spin-off of its then wholly owned subsidiary INSW on 30th November, 2016. OSG retained the US flag business and INSW holds entities and other assets and liabilities that formed OSG’s former international flag business.