Overseas Shipholding Group says it is owed seven figures from the bankrupt company behind the exploded Philadelphia oil refinery.
In reporting its second quarter earnings, the Jones Act tanker owner disclosed that it had approximately $4.3m in outstanding receivables from Philadelphia Energy Solutions.
The refinery owner declared Chapter 11 bankruptcy 22 July after an explosion rocked the financially troubled plant, the biggest on the US east coast, 21 June.
"The ultimate recovery of these receivables is currently unknown," Overseas Shipholding Group said. "The company established, at June 30, 2019, a loss provision equal to $4.3m. OSG is working diligently to maximize the company's recovery."
For the second three months of 2019, OSG booked a $1.7m loss, a $0.02 loss per share, on the back of a year-over-year revenue decline from $95.4m to $88.5m.
The performance was a drop from the $3.1m profit the company reported for the same period last year.
The company attributed the red ink to an increase in drydock days, one less voyage with Israeli cargo and one less vessel in operation.
"Supported by strong fundamentals and high utilization, our conventional tanker and ATB fleets both made solid contributions to our second quarter performance," said chief executive Sam Norton.
"This performance, together with a continually improving supply-demand balance, underpin our optimism about the emerging earnings recovery for these assets.
"Notwithstanding [the Philadelphia Energy Solutions] adjustment, we believe that OSG’s niche businesses collectively remain well positioned to continue benefitting from the long-term stability that these unique assets have historically provided.”
