Overseas Shipholding Group (OSG) has returned to a second-quarter profit after finally taking all its tankers out of lay-up for the first time since the beginning of the Covid-19 pandemic.
The New York-listed owner of Jones Act tankers said net income for the second quarter of 2022 was $3.7m, compared with a net loss of $509,000 in the first three months of this year and $10.7m in the second quarter of 2021.
Time charter equivalent (TCE) revenues rose 44% year on year to $103.2m due to a 555-day decrease in lay-up days, OSG said.
President and chief executive Sam Norton said the company ended the quarter with all its vessels in operation for the first time since the onset of Covid-19.
“The long shadow of Covid-induced demand destruction seems to have finally receded, and the continued emergence of renewable diesel transport is providing favorable demand growth,” he said.
Norton added that OSG’s patience in seeking medium-term charters at remunerative rates for its tankers and ATBs had yielded positive results.
In recent weeks, we have concluded employment contracts for our vessels securing nearly $250m in forward time charter equivalent earnings over contract periods ranging from six to 36 months,” he said.
OSG currently has fixed employment for 92% of available vessel days across the balance of 2022, and close to 80% of vessel available days for 2023, Norton added.
OSG’s final two ships to come out of lay-up, returned to employment in May 2022. It had seven ships out of action in the second quarter of 2021.
Operating income for the second quarter of 2022 was $12.6m compared with an operating loss of $5.8m for the same period of 2021.
Norton said OSG was continuing to build on progressive quarter-to-quarter improvements in financial measures over the past year.
In June, OSG authorised a programme to purchase up to five million shares of its common stock, funding the share repurchases with excess cash.
