U.S.-flag storage tank vessel driver Overseas Shipholding Group,Inc (NYSE: OSG) reported 2nd quarter results that consisted of earnings of $6.4 million, compared to a bottom line of $1.7 million for the 2nd quarter of 2019. Shipping earnings were $114.5 million, up 29.5% compared to in 2014’s 2nd quarter 2019. Time charter matching (TCE) earnings were $100.4 million, up 22.3% compared to the 2nd quarter of 2019.
“Under the continuing disruptive influence of the COVID-19 pandemic, it is important to remember that our business is not one that can be done remotely in all respects,” claimed, President as well as Chief Executive OfficerSam Norton “The contribution made by all of our employees, and in particular our seafarers, in realizing the strong financial results reported this morning should be applauded by all who benefit from their service. As was the case during the first quarter of this year, the deep book of time charters that we entered into at the end of last year has provided considerable insulation from exposure to the drop in transportation demand affecting both crude oil and refined product. The results produced in this context both met our expectations and provided renewed confidence in the value of OSG’s operating platform.”
Looking in advance, Norton claimed that it is prepared for that “the combined effects of observable COVID-19 related demand suppression, the usual seasonally slow summer period, and the impact of a high concentration of drydock activities will result in lower time charter earnings for the third quarter. As we move through the balance of the year, the slope of demand recovery in transportation fuel consumption in the U.S. will likely shape our overall future performance. Available data indicate that this recovery is, with the exception of jet fuel demand, well underway. Absent a reversal of this encouraging trend, there is cause for optimism that in terms of both rate and utilization, a restoration of a balanced and healthy market condition is foreseeable in our key markets.”
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