OSG reports drop in earnings, acquisition of lightering business

OSG reports drop in earnings, acquisition of lightering business Overseas Shipholding Group on Tuesday reported earnings of $392.6 million in 2006, down from $464.8 million in 2005.
   Shipping revenue improved to $1.05 billion in 2006 from $1.00 billion in 2005.
   The company released its results the day after it announced plans for its latest acquisition.
   The company said Monday it plans to purchase the lightering business of Heidmar Inc., a subsidiary of Morgan Stanley Capital Group Inc. The deal is subject to certain conditions.
   The lightering operation, which operates a fleet of four foreign-flag Aframax tankers and two U.S.-flag workboats, provides crude oil lightering services to refiners, oil companies and trading companies, primarily in the U.S. Gulf.
   OSG said its time charter equivalent (TCE) revenues were $992.8 million in 2006, up 3.2 percent from 2005. TCE revenues are voyage revenues less voyage expenses, and the company said it serves as an industry standard for measuring and managing fleet revenue.