NYSE-listed Overseas Shipholding Group (OSG) has delivered lower earnings in the second quarter of 2017 mainly due to weakening spot markets.
The company’s net income was at USD 3.2 million for the quarter ended June 30, 2017, compared to USD 29.8 million for the quarter ended June 30, 2016.
Shipping revenues were USD 96.2 million for the current quarter, a decrease of 18.7% from USD 118.4 million seen in the prior year quarter. The decrease was also driven by lower charter rates.
Time charter equivalent (TCE) revenues for the second quarter 2017 were USD 91.1 million, down 20.6% compared to the same period in 2016.
“Increasing exposure to weakening spot markets during the just completed quarter weighed on top-line performance,” Sam Norton, OSG’s President and CEO, stated.
“However, cost discipline helped to mitigate the effects of these developments, and, together with earnings from our shuttle tanker and lightering operations, served to produce healthy cash flows. Progress continues strengthening our balance sheet and, with over USD 275 million of available liquidity, OSG remains favorably positioned to respond to opportunities in our markets,” Norton added.
For the first half of 2017, OSG reported a net income of USD 8.6 million, down from USD 80.6 million reported in the first six months of 2016.
Shipping revenues for the period were at USD 204.3 million, a decrease of USD 29.1 million compared to USD 233.4 million seen in the first half of 2016. TCE revenues for the first half of 2017 were USD 193.4 million, dropping by USD 33.6 million from USD 226.9 million reported in the first half of 2016.