Overseas Shipholding's Earnings Rise 26%

Crude-tanker revenue soars.
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Overseas Shipholding Group

(OSG) - Get Report

said its third-quarter earnings rose 26% from a year ago, on the back of strong rates.

The New York-based company earned $90.83 million, or $2.29 a share, for the quarter, compared with $72.06 million, or $1.82 a share, a year ago. Analysts polled by Thomson First Call had expected $2.66 a share for the quarter.

Third-quarter revenue rose 31% to $255 million as against analysts' expectation of $262.67 million.

Segmentwise, crude-tanker revenue rose 42% to $176 million, and product carrier revenue was up 25% to $55 million. U.S. segment revenue was down 7% at $19 million.

"Third quarter TCE revenues were largely the result of a strong spot rate environment in both the crude and product transportation sectors and additions to our product carrier fleet. The increase in operating income before gains and special charges reflects the benefits from OSG's diverse fleet and chartering strategy,'' the company said.

The company said that it provided $37 million for anticipated fines and contributions to environmental protection programs associated with a possible settlement of a Department of Justice investigation.

Shares were trading down $2.19, or 3.51%, at $60.26 Thursday.

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