OSG reports net income of $12.3 million for Q2, 2023
Overseas Shipholding Group, Inc. (the “Company” or “OSG”), a leading provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products in the U.S. Flag markets, today reported results for the second quarter of 2023.
OSG's shipping revenues were $106.6 million for the second quarter of 2023, a decrease of $11.4 million, or 9.6%, compared to the second quarter of 2022. TCE revenues were $100.1 million for the second quarter of 2023, a decrease of $3.1 million, or 3.0%, from the second quarter of 2022. The decreases primarily resulted from (a) fewer vessels in our fleet as we redelivered three conventional tankers leased from American Shipping Company in December 2022; (b) a 14-day increase in drydock days; (c) one less Government of Israel voyage during the second quarter of 2023 compared to the second quarter of 2022; and (d) no MSC voyages during the second quarter of 2023 compared to one full MSC voyage and one partial MSC voyage that began during the second quarter of 2022 and overlapped into the third quarter, both of which were longer international voyages. The decreases were partially offset by an 82-day decrease in layup days. We had no vessels in layup during the second quarter of 2023. During the second quarter of 2022, we had two vessels in layup until May 2022 when they returned to service. Additionally, the decreases in revenues were partially offset by (a) an increase in average daily rates earned by our fleet, (b) an increase in Delaware Bay lightering volumes, and (c) a 10-day decrease in repair days.
Operating income for the second quarter of 2023 was $20.3 million compared to operating income of $12.6 million for the second quarter of 2022. Net income for the second quarter of 2023 was $12.3 million, or $0.15 per diluted share, compared with a net income of $3.7 million, or $0.04 per diluted share, for the second quarter of 2022. The increases in operating and net income were primarily a result of decreases in voyage, vessel and charter hire expenses of $17.9 million when compared to the second quarter of 2022. The decrease in voyage expenses was primarily due to decreases in fuel and port expenses, as our vessels performed fewer voyage charters during the second quarter of 2023 compared to the second quarter of 2022. The decreases in vessel and charter hire expenses were primarily due to the redelivery of three conventional tankers leased from American Shipping Company in December 2022.
Adjusted EBITDA was $39.5 million for the 2023 second quarter, an increase of $8.0 million compared with the second quarter of 2022, driven primarily by the increases in operating and net income.
Tampa, FL. headquartered Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing liquid bulk and energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator in the Jones Act industry and in the U.S. Tanker Security Program. OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers.