Friday, March 4, 2011
US-listed tanker owner Overseas Shipholding Group (OSG) suffered huge losses in the second half of 2010.
The net deficit for the year was $134.2 mill, against a profit of $70.2 mill reported in 2009.
OSG's TCE dropped 10% to $853.3 mill during the year, due to increased exposure to the spot market added to lower average spot rates.
VLCCs and MRs suffered the most. OSG's average VLCC spot rates were only $17,000 per day in the fourth quarter, down from $23,900 in the same period of 2009. Fleet revenue days decreased 2%, or 861 days.
CEO Morten Arntzen said that 2010 was clearly a disappointing year financially but he said that debt reduction, keeping vessel operating costs in check and long term charters for two FSOs operated in joint venture with Euronav, were reasons to be more optimistic for 2011.
He also said the US-flag business had gained new contracts and combined with a lower cost base, this should return it to profit.
By the end of 3Q10, OSG had cash equivalents of $351 mill and a remaining capex of $375 mill, which is fully funded. Total liquidity, including undrawn bank facilities was $1.5 bill.