Overseas Shipping Q2 profit up 31%
Overseas Shipholding Group (OSG), the largest US-based oil-tanker owner, said second quarter profit rose 31 per cent on higher spot rates for its so-called Very Large Crude Carriers (VLCCs) and smaller Aframax and dry-bulk vessels.
Net income rose to US$78.9 million, or US$2.28 a share, from US$60.2 million, or US$1.52, a year ago, New York-based OSG said in a statement. Revenue climbed 30 per cent to US$299.9 million. The company was expected to earn US$1.43 per share, the average estimate of five analysts surveyed by Bloomberg. VLCCs can carry two million barrels of oil.
OSG said its 21 VLCCs were chartered in the spot market at an average rate of US$53,474 per day, 15 per cent higher than the year-ago period. The company's break-even point for VLCCs is US$28,700.
For its 15 Aframax tankers, which can transport about 600,000 barrels of oil, OSG said it was paid an average of US$32,187 a day in the spot market, where rates vary by voyage, 21 per cent higher than a year earlier.
Overall, OSG totalled 8,704 revenue days for the quarter, a 16 per cent increase over the year-ago period. The increase was aided by the purchase of four Handysize vessels that carry dry-bulk commodities, as well as the acquisition of a fleet of oil-transfer boats and the former Maritrans Inc fleet.
Shares of OSG on Wednesday rose US$2.46, or 2.9 per cent, to US$86.14 in New York Stock Exchange composite trading.
Net income rose to US$78.9 million, or US$2.28 a share, from US$60.2 million, or US$1.52, a year ago, New York-based OSG said in a statement. Revenue climbed 30 per cent to US$299.9 million. The company was expected to earn US$1.43 per share, the average estimate of five analysts surveyed by Bloomberg. VLCCs can carry two million barrels of oil.
OSG said its 21 VLCCs were chartered in the spot market at an average rate of US$53,474 per day, 15 per cent higher than the year-ago period. The company's break-even point for VLCCs is US$28,700.
For its 15 Aframax tankers, which can transport about 600,000 barrels of oil, OSG said it was paid an average of US$32,187 a day in the spot market, where rates vary by voyage, 21 per cent higher than a year earlier.
Overall, OSG totalled 8,704 revenue days for the quarter, a 16 per cent increase over the year-ago period. The increase was aided by the purchase of four Handysize vessels that carry dry-bulk commodities, as well as the acquisition of a fleet of oil-transfer boats and the former Maritrans Inc fleet.
Shares of OSG on Wednesday rose US$2.46, or 2.9 per cent, to US$86.14 in New York Stock Exchange composite trading.