New York-listed Overseas Shipholding Group, a provider of oceangoing energy transportation services, posted a full-year net income for 2015 of USD 284 million, rising from USD 152.3 million for the full year 2014.
Fourth quarter and full year 2015 time charter equivalent (TCE) revenues grew as well, reaching USD 234.4 million and USD 924.8 million, up by 18% and 21%, respectively, compared with the same periods in 2014.
On a quarterly basis, the net income was down when compared to the quarter results from 2014-USD 9.3 million compared with USD 26.5 million for the fourth quarter 2014. The decrease included USD 27.6 million in premiums and fees paid on notes repurchased.
“We are pleased to report strong results for the 4th quarter and full year 2015,” said Captain Ian T. Blackley, OSG’s president and CEO.
“The positive supply and demand fundamentals in the international tanker market, with ton-mile demand expansion in both crude and product sectors, along with the successful execution of our operating strategy drove impressive results in our international business. In our domestic business, while Jones Act sentiment may have softened from a year ago, I am pleased to report stronger results for 2015 compared to 2014. The lower oil price has stimulated increased gasoline consumption in the United States and we have also seen increasing Domestic lightering volumes. In both our businesses, we expect that many of the positive tanker fundamentals we saw in 2015 should remain in place this year.
According to him, the strong cash generation from the company’s 79 vessel fleet and the successful execution of several key transactions have strengthened its financial position and provide the company with maximum flexibility.
“We see a disconnect today between freight rates, asset prices and equity values in our industry –this may offer opportunities that we believe we are well-positioned to capitalize on. I remain confident in our ability to increase value and, when appropriate, return value to our shareholders,” concluded Blackley.