Overseas Shipholding Group Inc, the largest US-based oil-tanker owner, said second-quarter profit rose 10 per cent on higher rates for its oil carriers and dry-bulk vessels.
Net income rose to US$86.9 million, or US$2.81 a share, from US$78.99 million, or US$2.28, a year ago, New York-based Overseas Shipholding said in a statement on Tuesday.
Revenue climbed 43 per cent to US$428 million (from US$300 million).
The company was expected to earn US$2.83 per share, the average estimate of 10 analysts surveyed by Bloomberg.
Shipping rates gained 59 per cent from the year-earlier quarter on higher demand for oil, according to the Baltic Dirty Tanker Index, a measure of costs to ship crude oil.
'They have ships that are earning good money,' said Urs Dur, an analyst at Lazard Capital Markets Ltd in New York.
'The icing on their cake is their spot-crude tanker exposure, especially VLCCs and Aframaxes,' Mr Urs said. He has a 'buy' rating on the shares and doesn't own any.
VLCCs, or very-large crude carriers, are capable of carrying 2 million barrels of oil. Aframaxes can carry about 600,000 barrels of oil.
The earnings report was released after the close of regular trading on US stock markets on Tuesday.
Shares of Overseas Shipholding rose US$1.40, or 1.7 per cent, to US$82.67 in New York Stock Exchange composite trading. The shares have risen 11 per cent so far this year.
Net income rose to US$86.9 million, or US$2.81 a share, from US$78.99 million, or US$2.28, a year ago, New York-based Overseas Shipholding said in a statement on Tuesday.
Revenue climbed 43 per cent to US$428 million (from US$300 million).
The company was expected to earn US$2.83 per share, the average estimate of 10 analysts surveyed by Bloomberg.
Shipping rates gained 59 per cent from the year-earlier quarter on higher demand for oil, according to the Baltic Dirty Tanker Index, a measure of costs to ship crude oil.
'They have ships that are earning good money,' said Urs Dur, an analyst at Lazard Capital Markets Ltd in New York.
'The icing on their cake is their spot-crude tanker exposure, especially VLCCs and Aframaxes,' Mr Urs said. He has a 'buy' rating on the shares and doesn't own any.
VLCCs, or very-large crude carriers, are capable of carrying 2 million barrels of oil. Aframaxes can carry about 600,000 barrels of oil.
The earnings report was released after the close of regular trading on US stock markets on Tuesday.
Shares of Overseas Shipholding rose US$1.40, or 1.7 per cent, to US$82.67 in New York Stock Exchange composite trading. The shares have risen 11 per cent so far this year.