Overseas Shipholding Profit Drops

Revenue declines.
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Overseas Shipholding's

(OSG) - Get Report

second-quarter profit dropped 47.2% from a year earlier amid an increase in expenses.

The energy transportation services provider earned $60.2 million, or $1.52 a share, in the quarter, compared with $114.2 million, or $2.89 a share, a year ago. Second-quarter earnings include a loss of 7 cents a share on vessel sales, compared with a gain of 32 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of $1.52 a share.

Second-quarter time-charter equivalent revenue fell to $216.3 million from $228.6 million. Total shipping revenue fell 3.2% to $230.8 million. Analysts had forecast revenue of $207.6 million in the quarter.

"It was another quarter of strong performance in each of our sectors," the company said. "In what is generally a seasonally weak quarter, our crude oil tanker fleet, which is entirely double hull, continued to benefit from the tanker market's greater discrimination against single hull tankers and from the tight oil markets across the globe. During the same period, we continued to produce steady results from our Product and U.S. segments, while also building a bigger book of longer term time charters.''

The company's shares were trading at $66.88, up $1.60, or 2.5% Tuesday.

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