TAMPA, Fla.--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (NYSE: OSG), a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the third quarter of 2020.
Highlights
| ? | Net loss for the third quarter 2020 was $0.7 million, or $(0.01) per diluted share, compared with a net loss of $3.8 million, or $(0.04) per diluted share, for the third quarter 2019. |
| ? | Shipping revenues for the third quarter 2020 were $105.7 million, up 30.7% compared with the third quarter 2019. |
| ? | Time charter equivalent (TCE) revenues(A), a non-GAAP measure, for the third quarter 2020 were $92.2 million, up 20.6% compared with the third quarter 2019. |
| ? | Third quarter 2020 Adjusted EBITDA(B), a non-GAAP measure, was $21.8 million, up 35.7% from $16.1 million in the third quarter 2019. |
| ? | Third quarter 2020 193 day increase in off hire days due to drydock activities, resulting in a $9.9 million loss in revenues. |
| ? | Total cash(C) was $54.1 million as of September 30, 2020. |
| ? | On July 30, 2020, the Company repaid, using cash on hand, its $24 million term loan secured by the Overseas Gulf Coast. |
Sam Norton, President and CEO, stated, “OSG delivered solid financial results in the quarter just completed. We continued to benefit from a high percentage of fixed revenue streams and we have continued to manage pandemic related logistical, health, safety and other costs in line with expectations. As a result, cashflow from operations continued to be strong, particularly when considering the nearly 200 days of revenue lost during the quarter to drydock operations. We have taken steps to preserve value and to strengthen our liquidity in anticipation of heightened volatility in the months ahead. With a strengthened balance sheet and the good prospects for a sustained recovery in 2021, we remain confident in our long-term strategy and the fundamentals of our business.
Mr. Norton added, “The sense of responsibility shared by OSG’s mariners and shore-based support team in meeting the essential need to supply transportation fuels to the markets that we serve is commendable. We are managing our operations very much aware that the systems within which we operate are under stress, with risks and vulnerabilities that have previously not affected our performance. The contribution made by all of our employees, and in particular our seafarers, in realizing the strong financial results reported this morning should thus be applauded by all who benefit from their service.”
A, B, C Reconciliations of these non-GAAP financial measures are included in the financial tables within this press release below
Third Quarter 2020 Results
Shipping revenues were $105.7 million for the quarter, up 30.7% compared with the third quarter of 2019. TCE revenues for the third quarter of 2020 were $92.2 million, an increase of $15.8 million, or 20.6%, compared with the third quarter of 2019. The increase primarily resulted from the addition to our fleet of two Marshall Islands flagged MR tankers, Overseas Gulf Coast and Overseas Sun Coast, three crude oil tankers, Alaskan Explorer, Alaskan Legend and Alaskan Navigator, and one ATB, OSG 204 and OSG Endurance, and two Government of Israel voyages during the third quarter of 2020 compared to one during the third quarter of 2019. The increase was offset by (a) three fewer ATBs in our fleet, including one ATB sold in August 2020, (b) a 193-day increase in scheduled drydocking, resulting in a $9.9 million loss in revenues and (c) a decrease in Delaware Bay lightering volumes during the third quarter of 2020 compared to the third quarter of 2019. One vessel was redelivered from time charter during the third quarter of 2020 and placed in lay-up, a decision taken in light of the lack of spot market activity during the quarter.
Operating income for the third quarter of 2020 was $5.2 million compared to operating income of $1.2 million in the third quarter of 2019.
Net loss for the third quarter 2020 was $0.7 million, or $(0.01) per diluted share, compared with a net loss of $3.8 million, or $(0.04) per diluted share, for the third quarter 2019.
Adjusted EBITDA was $21.8 million for the quarter, an increase of $5.7 million compared with the third quarter of 2019.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 21 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, one conventional ATB, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program. OSG also currently owns and operates two Marshall Islands flagged MR tankers which trade internationally. In addition to the currently operating fleet, OSG has on order one Jones Act compliant barge which is scheduled for delivery in late 2020.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.
