Overseas Shipholding 1Q Profit Up On Vessel Sale

NEW YORK (AP) — Overseas Shipholding Group Inc. said on Monday its first-quarter profit rose 8.3 percent as it benefited from vessel sales.

The company posted net income of $121.8 million, or $4.53 per share, for the period that ended March 31, up from $112.4 million, or $3.60 per share, during the year-earlier period.

Revenue fell 21 percent to $324.8 million from $410.7 million a year earlier.

The company said its profit benefited from a gain from vessel sales of $129.9 million, or $4.83 per share, and a positive change on its outstanding freight derivative positions of $1.1 million, or 4 cents per share. Earnings were reduced by $35.9 million, or $1.34 per share, for shipyard termination costs as it ended its contract with Bender Shipbuilding & Repair Co. for six barges and two tug boats. Overseas said it would complete two of the barges and both tug boats at a different shipyard.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items, were expecting a profit of $1.03 per share on revenue of $317.2 million.

Time charter revenues fell 36 percent to $160 million for the crude oil segment, from $248.9 million a year earlier, because of "significantly lower" average spot rates on some ships, offset by an increase of 249 revenue days.

The company's cash balance rose 71 percent to $588.1 million from $343.6 million at the same time last year.

The company's shares rose $2.55, or 7.7 percent, to $35.57 in midday trading.