American Shipping Company posted third quarter profits of $2.4m on the back of oil spreads and increased time charter rates.
The result represents a decline from the $3.8m profit booked in the same period of last year but is up from the second quarter's $1.6m
The Oslo-listed tanker owner, whose Jones Act ships are on bareboat charter to Overseas Shipholding Group, pointed to encouraging signs as US-built tankers pull in rates between $50,000 to $55,000 per day.
The companied tied the healthier rates to a widening price spread between West Texas Intermediate and both Bonny light and Brent crude prices, which contributed to a strong northeast US crude trade.
“The spread has remained in a favorable range for the past 12 months and charterers have now started to secure tonnage with longer commitments,” chief executive Pal Magnussen said.
Operating revenue was stable from the same period in 2017, at $12.8m versus $12.9m.
The company also issued a $0.08 per share dividend.
