OSG sees 4th quarter earnings fall
Tanker company Overseas Shipholding Group reported fourth quarter net profit of $21 million, down from $113.2 million in the same 2007 period.
Fourth quarter revenue was $276.8 million versus $259.8 million the prior year.
For all of 2007, the company had profit of $211.3 million, down from $392.7 million in 2006. Revenue improved to $1.13 billion in 2007 compared to $1.05 billion in 2006.
Higher fuel costs and a significant weakening in spot rates for the Company’s VLCCs, Aframaxes and handysize product carriers affected fourth quarter earnings. OSG said movement of crude oil were adversely impacted during the quarter because current market prices for oil fell below prices in the futures market, making it more economical for refiners to draw down on crude oil inventories.
The company repurchased 8.3 million shares during 2007, or 20.9 percent of total shares outstanding. It also completed a public offering of limited partnerships in OSG America L.P., its U.S.-flag subsidiary. OSG retains a 75.5 percent interest in the company, but said the separate listing will “enhance the visibility of its U.S.-flag fleet.”
“OSG’s expansion and diversification has created a global shipping company that is well-positioned to thrive in any market,” said Morten Arntzen, president and chief executive officer of OSG.
Other highlights of 2007 include OSG’s acquisition of Heidmar Lightering, expansion of its fleet into Suezmax crude oil tankers and LR1 product tankers. It entered the U.S. ultra-deepwater shuttle tanker trade and a joint venture in which it has a 49.9 percent ownership interest took delivery of four gas carriers that began 25-year time charters
