Overseas Shipholding Group, Inc. , a provider of energy transportation services, reported Tuesday a wider net loss in its second quarter, mainly hurt by impairment charges, as well as lower Time charter equivalent revenues.
Net loss attributable to the company for the quarter was $37.86 million or $1.26 per share, compared with a loss of $8.79 million or $0.33 per share in the same period a year ago.
The latest quarter results included special items that increased the quarterly loss by an aggregate of $27.8 million or $0.92 per share, which mainly included an impairment charge of $23.3 million or $0.77 per share on six vessels.
Excluding special items, loss for the quarter was $10.1 million or $0.34 per share, wider than last year's $7.8 million or $0.29 per share.
On average, 12 analysts polled by Thomson Reuters expected the company to report loss of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.
Shipping revenues for the quarter were $283.90 million, higher than last year's $282.66 million. Excluding voyage expenses, Time charter equivalent, or TCE revenues for the quarter dropped 7% to $231.7 million from $248.4 million in 2009.
Overseas Shipholding noted that TCE revenues were driven by higher spot rates for larger crude vessel classes, offset by lower spot rates for MRs and International Flag lightering vessels not employed.
In the quarter, TCE revenues for the crude oil segment dropped 2%, and products TCE revenues fell 29% from last year, while U.S. Flag TCE revenues rose 6%, principally due to four vessels that delivered since March 2009.
Commenting on the results, Morten Arntzen, President and Chief Executive Officer said, "While the second quarter rate environment was mixed, the markets we serve are showing signs of recovery. Our products business is seeing improving rates as the use of product carriers as floating storage has fallen 75% and refinery utilization in the United States has increased to 90% in some areas. For the same reasons, our spot ships in the U.S. Flag market are spending less time waiting for cargoes."
Arntzen added, "In general, despite current market weakness, our crude fleet continues to earn in excess of market expectations and FFA levels. I am confident that the improving market conditions we are seeing, combined with our continued cost vigilance, will lead to improving results from our balanced growth model."
OSG closed Monday's regular trading session at $39.70, up $0.47, on a volume of 724,300 shares.
Net loss attributable to the company for the quarter was $37.86 million or $1.26 per share, compared with a loss of $8.79 million or $0.33 per share in the same period a year ago.
The latest quarter results included special items that increased the quarterly loss by an aggregate of $27.8 million or $0.92 per share, which mainly included an impairment charge of $23.3 million or $0.77 per share on six vessels.
Excluding special items, loss for the quarter was $10.1 million or $0.34 per share, wider than last year's $7.8 million or $0.29 per share.
On average, 12 analysts polled by Thomson Reuters expected the company to report loss of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.
Shipping revenues for the quarter were $283.90 million, higher than last year's $282.66 million. Excluding voyage expenses, Time charter equivalent, or TCE revenues for the quarter dropped 7% to $231.7 million from $248.4 million in 2009.
Overseas Shipholding noted that TCE revenues were driven by higher spot rates for larger crude vessel classes, offset by lower spot rates for MRs and International Flag lightering vessels not employed.
In the quarter, TCE revenues for the crude oil segment dropped 2%, and products TCE revenues fell 29% from last year, while U.S. Flag TCE revenues rose 6%, principally due to four vessels that delivered since March 2009.
Commenting on the results, Morten Arntzen, President and Chief Executive Officer said, "While the second quarter rate environment was mixed, the markets we serve are showing signs of recovery. Our products business is seeing improving rates as the use of product carriers as floating storage has fallen 75% and refinery utilization in the United States has increased to 90% in some areas. For the same reasons, our spot ships in the U.S. Flag market are spending less time waiting for cargoes."
Arntzen added, "In general, despite current market weakness, our crude fleet continues to earn in excess of market expectations and FFA levels. I am confident that the improving market conditions we are seeing, combined with our continued cost vigilance, will lead to improving results from our balanced growth model."
OSG closed Monday's regular trading session at $39.70, up $0.47, on a volume of 724,300 shares.