Overseas Shipholding Group, the largest U.S.-based oil-tanker owner, fell to the lowest level in almost 29 months after the company cut its dividend. Other tanker companies including Frontline Ltd. also declined, Bloomberg reports. New York-based Overseas Shipholding tumbled $1.72, or 7.4 percent, to $21.60 in New York Stock Exchange composite trading, the lowest price since March 13, 2009.
The adjusted second-quarter loss widened to $36.1 million, or $1.20 a share, from a loss of $10.1 million, or 34 cents, a year earlier, as crude tanker rates dropped, the tanker owner said today in a statement. The company cut its annual dividend to 87.5 cents a share from $1.75.
“Everyone is getting crushed and OSG happened to cut their dividend,” said Urs Dur, an analyst at Lazard Capital Markets Ltd. “Shipping rates stink and nobody is betting on any sort of recovery.”
The quarterly net loss narrowed to $37.3 million, or $1.24 a share, from $37.9 million, or $1.26, a year earlier after a gain of $3.93 million from affiliated companies.
The average of nine analyst estimates compiled by Bloomberg was a loss of $1.29 a share.
The Baltic Dirty Index, a gauge of rates for tankers moving crude oil, tumbled 31 percent this year to 716 today, according to the London-based Baltic Exchange.
Overseas Shipholding was paid an average spot rate of $20,400 a day in the quarter for its very-large crude carriers, or VLCCs, down from $44,399 a year earlier.
The ships, which can carry about 2 million barrels of oil, operate mainly between the Persian Gulf and ports in Asia and the U.S.
Hamilton, Bermuda-based Frontline Ltd., the world’s largest operator of supertankers, dropped 9.7 percent to $9.82.
The adjusted second-quarter loss widened to $36.1 million, or $1.20 a share, from a loss of $10.1 million, or 34 cents, a year earlier, as crude tanker rates dropped, the tanker owner said today in a statement. The company cut its annual dividend to 87.5 cents a share from $1.75.
“Everyone is getting crushed and OSG happened to cut their dividend,” said Urs Dur, an analyst at Lazard Capital Markets Ltd. “Shipping rates stink and nobody is betting on any sort of recovery.”
The quarterly net loss narrowed to $37.3 million, or $1.24 a share, from $37.9 million, or $1.26, a year earlier after a gain of $3.93 million from affiliated companies.
The average of nine analyst estimates compiled by Bloomberg was a loss of $1.29 a share.
The Baltic Dirty Index, a gauge of rates for tankers moving crude oil, tumbled 31 percent this year to 716 today, according to the London-based Baltic Exchange.
Overseas Shipholding was paid an average spot rate of $20,400 a day in the quarter for its very-large crude carriers, or VLCCs, down from $44,399 a year earlier.
The ships, which can carry about 2 million barrels of oil, operate mainly between the Persian Gulf and ports in Asia and the U.S.
Hamilton, Bermuda-based Frontline Ltd., the world’s largest operator of supertankers, dropped 9.7 percent to $9.82.