Overseas Shipholding Group, Inc., a leading provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products in the U.S. Flag markets, 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.”