Posted on May 10, 2023
Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”), a leading provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products in the U.S. Flag markets, today reported results for the first quarter of 2023.
- Shipping revenues for the first quarter of 2023 were $113.8 million, an increase of $9.8 million from the first quarter of 2022.
- Net income for the first quarter of 2023 was $12.1 million, or $0.14 per diluted share, compared with a net loss of $509 thousand, or $(0.01) per diluted share, in the first quarter of 2022.
- Time charter equivalent (TCE) revenues(A), a non-GAAP measure, for the first quarter of 2023 were $104.7 million, an increase of $10.8 million, or 11.5%, from $93.9 million in the first quarter of 2022.
- First quarter 2023 Adjusted EBITDA(B), a non-GAAP measure, was $40.9 million, an increase of $15.5 million, or 61.0%, from the first quarter of 2022.
- Total cash and investments(C) were $118.9 million as of March 31, 2023.
- In January 2023, the Overseas Sun Coast was converted to U.S. Flag status, joining the rest of our U.S. Flag fleet.
- In March 2023, our Board of Directors authorized a program to purchase up to $10.0 million of shares of our common stock. We purchased 498 thousand shares for $1.9 million through March 31.
“The year has started well at OSG,” Sam Norton, President and CEO said. “All asset categories achieved financial results at or above expectations. For the third consecutive quarter, we delivered adjusted EBITDA in excess of $40 million, despite having three fewer operating vessels during the first quarter of 2023 as compared to the final two quarters of 2022. Above average lightering volumes and the continued strength in international MR markets, as well as incrementally higher average TCE rates for our Jones Act MR tankers, all contributed to the past quarter’s favorable results. The stability of cash flow witnessed in the past several quarters has allowed cash balances, including investments in treasury securities, to increase to $118.9 million at quarter end.”
Mr. Norton continued, “In April, OSG signed operating agreements with MARAD for our three internationally trading US flag vessels to enter into the Tanker Security Program. These contracts are the result of many years of work with labor, industry, and government partners to stand up this important program. OSG is proud to have the first ships to be entered into this program and looks forward to further growth opportunities for its internationally trading US flag tankers, both in the context of the Tanker Security Program as well as in other supporting roles tied to our national security.”
First Quarter 2023 Results
Shipping revenues were $113.8 million for the first quarter of 2023, an increase of $9.8 million, or 9.4%, compared to the first quarter of 2022. TCE revenues were $104.7 million for the first quarter of 2023, an increase of $10.8 million, or 11.5%, from the first quarter of 2022. The increases primarily resulted from a 255-day decrease in layup days. There were no vessels in layup during the first quarter of 2023. During the first quarter of 2022, there were two vessels in layup for the full quarter and two additional vessels that came out of layup during that quarter. Additionally, the increase in revenues resulted from (a) an increase in average daily rates earned by our fleet, (b) a 27-day decrease in drydock days, (c) an increase in Delaware Bay lightering volumes and (d) one full Government of Israel voyage and one partial Government of Israel voyage that began during the first quarter of 2023 but was completed in the second quarter during the three months ended March 31, 2023 compared to one full voyage during the same period in 2022. The increase was partially offset by fewer vessels in our fleet as we returned three conventional tankers leased from American Shipping Company in December 2022.
Operating income for the first quarter of 2023 was $22.5 million compared to operating income of $7.7 million for the first quarter of 2022. Net income for the first quarter of 2023 was $12.1 million, or $0.14 per diluted share, compared with a net loss of $509 thousand, or $(0.01) per diluted share, for the first quarter of 2022.
Adjusted EBITDA was $40.9 million for the 2023 first quarter, an increase of $15.5 million compared with the first quarter of 2022, driven primarily by the increase in TCE revenues.
Conference Call
The Company will host a conference call to discuss its first quarter 2023 results at 9:30 a.m. Eastern Time (“ET”) on Monday, May 8, 2023.
To access the call, participants should dial (844) 200-6205 for domestic callers and (929) 526-1599 for international callers and enter Access Code 874877. Please dial in ten minutes prior to the start of the call.
A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at www.osg.com.
An audio replay of the conference call will be available for one week starting at 11:30 a.m. ET on Monday, May 8, 2023, by dialing (866) 813-9403 for domestic callers and (929) 458-6194 for international callers and entering Access Code 747475.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing liquid bulk and 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 U.S. Flag fleet consists of crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.
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.
