NYSE-listed Overseas Shipholding Group (OSG) managed to narrow its net loss to USD 6.3 million in the third quarter of this year from USD 98.7 million reported in the corresponding period of 2016.
Shipping revenues were USD 93.3 million for the quarter, down 18.3% compared with the third quarter of 2016. The decrease in shipping revenues primarily resulted from weakening market conditions and reduced charter rates.
TCE revenues for the third quarter of 2017 were USD 84.9 million, a decrease of 22.6%, compared with the third quarter of 2016, primarily due to lower average daily rates earned as a result of a continuing excess supply of vessels in the market and the shift from time charter contracts to spot market charters, according to the company.
“The solid performance of our niche market activities was once again the key take away from our third quarter results,” Sam Norton, OSG’s President and CEO, stated.
“Earnings from spot market voyages disappointed, but a strong balance sheet, continued focus on cost control and a belief that upside potential now outweighs downside risk in accepting short-term market challenges leads us to be optimistic about the future,” Norton added.
For the nine months ended September 30, 2017, the company posted a net income of USD 2.3 million, against a net loss of USD 18.1 million posted in the same period of 2016.
OSG’s 24-vessel fleet consists of eight ATBs, two lightering ATBs, three shuttle tankers, nine MR tankers, and two non-Jones Act MR tankers that participate in the US MSP.