Energy transportation services provider, Overseas Shipholding Group (OSG), reported revenues of US$208.6 million for the third quarter of 2010, a marginal increase on the $207.3 million in the third quarter of 2009.
Quarter-over-quarter TCE revenues were impacted by the mix of spot and time charter voyages.
Sixty-three percent of the company's TCE revenues were derived from spot earnings in the third quarter of 2010 compared with 43 percent in the year ago period. Net loss attributable to the company for the quarter ended September 30, 2010 was US$31.8 million, or US$1.06 per diluted share, compared with a loss of US$19.6 million, or US$0.73 per diluted share, in the same period a year ago.
"Our financial results reflect the continuing challenges facing the global tanker industry in 2010," said Morten Arntzen, President and CEO of OSG.
"Although world oil demand is recovering from the trough of 2009, high levels of vessel deliveries, sluggish ton-mile growth and modest north America oil demand have negatively impacted our results.
"In this difficult spot market, we are focused on strengthening our businesses and taking all measures within our control that enhance our long-term prospects. We continue to improve and execute our newbuilding and conversion program and took delivery of 'Overseas Anacortes' which began a three-year charter to Tesoro at an attractive level."
The company completed another round of restructuring its products newbuilding contracts resulting in a win for OSG. The FSO Africa commenced a three-year service contract, which will significantly improve the results on this vessel in the fourth quarter and beyond.
The company says the pace of the global economic recovery remains uncertain, and therefore continued financial discipline is critical.
"I am confident that our market-leading commercial and technical platforms in crude, products and U.S. flag, combined with our strong balance sheet and liquidity position, will enable OSG to emerge at the head of the pack when our markets recover," said Mr Arntzen.
TCE revenues for the crude oil segment were US$95.3 million, a five percent decrease from US$99.8 million in the same period a year ago. The decline was predominantly due to a shift in the mix of spot and fixed charters in the comparable periods.
{WISroYQ symbol='OSG'}
