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0000075208
0000075208
2024-03-11
2024-03-11
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xbrli:shares
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xbrli:shares
United
States
Securities
and Exchange Commission
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
March
11, 2024
Date
of Report (Date of earliest event reported)
Overseas
Shipholding Group, Inc.
(Exact
Name of Registrant as Specified in Charter)
Delaware |
|
001-06479 |
|
13-2637623 |
(State
of
Incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
Two
Harbor Place
302
Knights Run Avenue, Suite 1200
Tampa,
Florida 33602
(Address
of principal executive offices) (Zip Code)
Registrant’s
telephone number, including area code (813) 209-0600
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
|
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Class
A Common Stock (par value $0.01 per share) |
|
OSG |
|
NYSE |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
OVERSEAS
SHIPHOLDING GROUP, INC.
FORM
8-K
CURRENT
REPORT
Section
2 – Financial Information
Item
2.02 Results of Operations and Financial Condition.
The
following information, including the Exhibit to this Form 8-K, is being furnished pursuant to Item 2.02 of Form 8-K – Results of
Operations and Financial Condition. This information is not deemed to be “filed” for the purposes of Section 18 of the Securities
Exchange Act of 1934 and is not incorporated by reference into any Securities Act of 1933 registration statements.
On
March 11, 2024, Overseas Shipholding Group, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing
fourth quarter and full year 2023 earnings.
Section
9 - Financial Statements and Exhibits.
Item
9.01 Financial Statements and Exhibits.
(d)
Exhibits
Pursuant
to General Instruction B.2 of Form 8-K, the following exhibit is furnished with this Form 8-K.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
OVERSEAS
SHIPHOLDING GROUP, INC. |
|
(Registrant) |
|
|
|
Date:
March 11, 2024 |
By |
/s/
Richard Trueblood |
|
Name: |
Richard
Trueblood |
|
Title: |
Vice
President and Chief Financial Officer |
EXHIBIT
INDEX
Exhibit
99.1
OVERSEAS
SHIPHOLDING GROUP REPORTS
FOURTH
QUARTER AND FULL YEAR 2023 RESULTS
Tampa,
FL – March 11, 2024 – Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”),
a leading provider of liquid bulk transportation services in the energy industry for crude oil and petroleum products in the U.S. Flag
markets, today reported results for the fourth quarter and full year 2023.
| ● | 2023
net income was $62.5 million, or $0.77 per diluted share, compared to net income of $26.6
million, or $0.29 per diluted share, in 2022. Net income for the fourth quarter of 2023 was
$20.4 million, or $0.26 per diluted share, compared to net income of $10.1 million, or $0.11
per diluted share, for the fourth quarter of 2022. |
| ● | Full
year Adjusted EBITDA(A), a non-GAAP measure, for 2023 was $175.7 million, an increase
of $32.9 million, or 23.1%, from 2022. Fourth quarter 2023 Adjusted EBITDA was $47.3 million,
an increase of $3.6 million, or 8.4%, from the fourth quarter of 2022. |
| ● | Shipping
revenues for 2023 were $451.9 million, a decrease of $14.9 million, or 3.2%, compared
to 2022. Shipping revenues for the fourth quarter of 2023 were $116.0 million, a decrease
of $5.7 million, or 4.7%, compared to the fourth quarter of 2022. The decreases in shipping
revenues primarily resulted from fewer vessels in our
fleet, as we redelivered three conventional tankers leased from American Shipping Company
in December 2022. |
| ● | Time
charter equivalent (TCE) revenues(B), a non-GAAP measure, for 2023 were $423.5
million, a decrease of $2.8 million, or 0.7%, from $426.3 million in 2022. TCE revenues for
the fourth quarter of 2023 were $110.1 million, a decrease of $4.0 million, or 3.5%, compared
to the fourth quarter of 2022. |
| ● | Total
cash and investments(c) were $91.2 million as of December 31, 2023. |
| ● | In
October 2023, the Company prepaid, at a discount, $5.6 million to subsidiaries of American
Shipping Corporation representing all of its remaining outstanding deferred payment obligations,
recognizing a gain of $912 thousand. |
| ● | In
November 2023, the Company purchased
the Alaskan Frontier for $20.0 million. The Company plans to make significant investments
in the vessel for it to begin commercial trade by the fourth quarter of 2024. |
| ● | On
December 6, 2023, the Company’s Board of Directors declared a cash dividend of $0.06
per share on the Company’s Class A common stock, which was paid on January 4, 2024. |
| ● | During
the fourth quarter of 2023, the Company repurchased 1,425,000 shares for total consideration
of $6.8 million. As of December 31, 2023, the Company had 70,946,476 common shares outstanding
compared to 78,297,439 at the end of 2022, a 9.4% reduction, as a result of 2023 repurchases
of the Company’s common stock. |
Sam
Norton, OSG’s President and CEO, said, “Following the positive results reported, it would be appropriate to state that
we have ‘stuck the landing’ with our 4th quarter performance. The quarter’s contribution led to meeting
our adjusted EBITDA target of $175mm for the full year, a 23.1% gain over 2022, despite having three fewer vessels in operation in
2023. The benefits of charterparties fixed at escalating rates over the past several quarters are now being realized, producing
strong cashflow and providing the means to make continued progress in meeting our key capital allocation goals. Previously announced
capital investments in our Alaska class vessels, the purchase of 1.425 million shares during the 4th quarter, and the
approval of the first dividend payment in many years underscore this point.”
Mr.
Norton continued, “Strong fundamentals have continued to support charterer interest in our vessels. Significantly, at year end,
we agreed to employ the Alaskan Explorer to transport US Gulf Coast crude oil to one of our Delaware Bay refining customers, demonstrating
the existence of employment options for this class of vessel outside of its traditional Alaskan market. Taken together with three
other vessel fixtures concluded in early 2024, OSG has added 116 months of forward charter cover since our last earnings report, increasing
the value of our forward charter book to over $860 million in time charter equivalent earnings as of the beginning of March 2024.”
Mr.
Norton concluded by stating, “We couldn’t be more pleased with our 2023 results and believe we are well-positioned now, and
over the long term, to generate strong cash flows in what we expect to be a durably balanced market characterized by stable demand and
constrained supply.”
The
Company also recently exercised its first option to extend the bareboat charter of the Overseas Tampa with its vessel owner for
a 5-year option period , commencing June 2025 until June 2030. Additional options to extend remain.
A,
B, C Reconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release
starting on Page 8.
Full
Year 2023 Results
Shipping
revenues were $451.9 million for 2023, down 3.2% compared with 2022. TCE revenues for 2023 were $423.5 million, a decrease of $2.8 million,
or 0.7%, compared with 2022. The decreases primarily resulted from (a) fewer vessels in our fleet,
as we redelivered three conventional tankers leased from American Shipping Company in December 2022, (b) a 24-day increase in
drydock days, and (c) fewer U.S. Military Sealift Command voyages, which were longer international voyages, during 2023 compared to 2022.
The decreases were partially offset by a 297-day decrease in layup days. We had no vessels in layup during 2023. During the first quarter
of 2022, we had two vessels in layup for the full quarter and two additional vessels that came out of layup in January 2022 and late
February 2022. Our remaining two vessels in layup returned to service in May 2022. Additionally, the decreases were partially offset
by (a) an increase in average daily rates earned by our fleet, (b) an increase in Delaware Bay lightering volumes, and (c) an 11-day
decrease in repair days.
Operating
income for 2023 was $96.9 million, compared to operating income of $63.2 million for 2022. Net income for 2023 was $62.5 million,
or $0.77 per diluted share, compared with net income of $26.6 million, or $0.29 per diluted share, for 2022. The
increases in operating and net income primarily reflected decreases in voyage, vessel, and charter hire expenses of $46.4 million when
compared to 2022. The decrease in voyage expenses was primarily due to decreases in fuel and port expenses, as our vessels performed
fewer voyage charters during 2023 compared to 2022. The decreases in vessel and charter hire expenses were primarily due to the redelivery
of three conventional tankers referred to above.
Adjusted
EBITDA was $175.7 million for 2023, an increase of $32.9 million compared with 2022.
Fourth
Quarter 2023 Results
Shipping
revenues were $116.0 million for the fourth quarter of 2023, a decrease of $5.7 million, or 4.7%, compared to the fourth quarter
of 2022. TCE revenues were $110.1 million for the fourth quarter of 2023, a decrease of $4.0 million, or 3.5%, from the fourth quarter
of 2022. The decreases primarily resulted from fewer vessels in our fleet, due to the redelivery of three conventional tankers discussed
above and a 29-day increase in drydock days. The decrease was partially offset by an increase in average daily rates earned by our fleet
and an increase in Delaware Bay lightering volumes.
Operating
income for the fourth quarter of 2023 was $25.9 million compared to operating income of $20.4 million for the fourth quarter of 2022.
Net income for the fourth quarter of 2023 was $20.4 million, or $0.26 per diluted share, compared with net income of $10.1 million, or
$0.11 per diluted share, for the fourth quarter of 2022. The increases in operating and net income primarily reflected decreases in voyage,
vessel, and charter hire expenses of $9.9 million when compared to the fourth quarter of 2022. The decrease in voyage expenses was primarily
due to decreases in fuel and port expenses, as our vessels performed fewer voyage charters during the fourth quarter of 2023 compared
to the fourth quarter of 2022. The decreases in vessel and charter hire expenses were primarily due to the redelivery of three conventional
tankers referred to above.
Adjusted
EBITDA was $47.3 million for the 2023 fourth quarter, an increase of $3.6 million compared with the fourth quarter of 2022, driven primarily
by the increases in operating and net income.
Conference
Call
The
Company will host a conference call to discuss its fourth quarter and full year 2023 results at 9:30 a.m.
Eastern Time on Monday, March 11, 2024.
To
access the call, participants should dial (844) 850-0546 for U.S. callers and (412) 317-5203 for
international callers.
Participants
have an option of calling in to listen or watching a live audio webcast and slide presentation available at the Investors section of
the Company’s website located at www.osg.com/investors. A replay of the webcast will also be available on the website after
the completion of the call.
About
Overseas Shipholding Group, Inc.
Overseas
Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing liquid bulk transportation services in the U.S. Flag markets.
OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers, conventional and lightering ATBs, shuttle and conventional MR tankers,
and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.
OSG
is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of
the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available
at www.osg.com.
Forward-Looking
Statements
This
press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition,
the Company may make or approve certain forward-looking statements in future filings with the Securities and Exchange Commission (SEC),
in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical
fact should be considered forward-looking statements. These matters or statements may relate to our prospects, supply and demand for
vessels in the markets in which we operate and the impact on market rates and vessel earnings, the continued stability of our niche businesses,
the impact of our time charter contracts on our future financial performance, and external events including geopolitical conflicts such
as the Russia/Ukraine conflict and recent developments in the Middle East. Forward-looking statements are based on our current plans,
estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors
outlined in more detail in our filings with the SEC. We do not assume any obligation to update or revise any forward-looking statements
except as may be required by applicable law. Forward-looking statements and written and oral forward-looking statements attributable
to us or our representatives after the date of this press release are qualified in their entirety by the cautionary statements contained
in this paragraph and in other reports previously or hereafter filed by us with the SEC.
Investor
Relations & Media Contact:
Susan
Allan, Overseas Shipholding Group, Inc.
(813)
209-0620
sallan@osg.com
Consolidated
Statements of Operations
($
in thousands, except per share amounts)
| |
Three
Months Ended December 31, | | |
Years
Ended December 31, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
(unaudited) | | |
(unaudited) | | |
| | |
| |
Shipping
Revenues: | |
| | | |
| | | |
| | | |
| | |
Time
and bareboat charter revenues | |
$ | 94,922 | | |
$ | 94,394 | | |
$ | 359,543 | | |
$ | 327,329 | |
Voyage
charter revenues | |
| 21,098 | | |
| 27,363 | | |
| 92,328 | | |
| 139,471 | |
| |
| 116,020 | | |
| 121,757 | | |
| 451,871 | | |
| 466,800 | |
| |
| | | |
| | | |
| | | |
| | |
Operating
Expenses: | |
| | | |
| | | |
| | | |
| | |
Voyage
expenses | |
| 5,932 | | |
| 7,659 | | |
| 28,344 | | |
| 40,472 | |
Vessel
expenses | |
| 42,908 | | |
| 46,285 | | |
| 166,246 | | |
| 176,666 | |
Charter
hire expenses | |
| 16,983 | | |
| 21,760 | | |
| 64,971 | | |
| 88,849 | |
Depreciation
and amortization | |
| 17,664 | | |
| 19,579 | | |
| 67,164 | | |
| 70,637 | |
General
and administrative | |
| 6,612 | | |
| 6,056 | | |
| 28,223 | | |
| 26,985 | |
Total
operating expenses | |
| 90,099 | | |
| 101,339 | | |
| 354,948 | | |
| 403,609 | |
Operating
income from vessel operations | |
| 25,921 | | |
| 20,418 | | |
| 96,923 | | |
| 63,191 | |
Other
income, net | |
| 2,483 | | |
| 2,678 | | |
| 6,666 | | |
| 3,327 | |
Income
before interest expense and income taxes | |
| 28,404 | | |
| 23,096 | | |
| 103,589 | | |
| 66,518 | |
Interest
expense, net | |
| (7,196 | ) | |
| (8,191 | ) | |
| (31,216 | ) | |
| (33,060 | ) |
Income
before income taxes | |
| 21,208 | | |
| 14,905 | | |
| 72,373 | | |
| 33,458 | |
Income
tax expense | |
| (788 | ) | |
| (4,820 | ) | |
| (9,919 | ) | |
| (6,894 | ) |
Net
income | |
$ | 20,420 | | |
$ | 10,085 | | |
$ | 62,454 | | |
$ | 26,564 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted
Average Number of Common Shares Outstanding: | |
| | | |
| | | |
| | | |
| | |
Basic
- Class A | |
| 72,377,107 | | |
| 84,902,097 | | |
| 78,485,954 | | |
| 89,556,195 | |
Diluted
- Class A | |
| 75,294,158 | | |
| 87,380,404 | | |
| 81,231,761 | | |
| 91,400,041 | |
Per
Share Amounts: | |
| | | |
| | | |
| | | |
| | |
Basic
net income - Class A | |
$ | 0.28 | | |
$ | 0.12 | | |
$ | 0.80 | | |
$ | 0.30 | |
Diluted
net income - Class A | |
$ | 0.26 | | |
$ | 0.11 | | |
$ | 0.77 | | |
$ | 0.29 | |
Consolidated
Balance Sheets
($
in thousands)
| |
December
31, 2023 | | |
December
31, 2022 | |
ASSETS | |
| | | |
| | |
Current
Assets: | |
| | | |
| | |
Cash
and cash equivalents | |
$ | 76,257 | | |
$ | 78,732 | |
Investment
security to be held to maturity | |
| 14,900 | | |
| — | |
Voyage
receivables, including unbilled of $4,976 and $11,364, net of reserve for credit losses | |
| 17,362 | | |
| 19,698 | |
Income
tax recoverable | |
| 407 | | |
| 1,914 | |
Other
receivables | |
| 3,140 | | |
| 5,334 | |
Prepaid
expenses | |
| 662 | | |
| 385 | |
Inventories
and other current assets | |
| 1,860 | | |
| 2,283 | |
Total
Current Assets | |
| 114,588 | | |
| 108,346 | |
Vessels
and other property, less accumulated depreciation and amortization | |
| 699,032 | | |
| 726,179 | |
Deferred
drydock expenditures, net | |
| 44,827 | | |
| 38,976 | |
Total
Vessels, Deferred Drydock and Other Property | |
| 743,859 | | |
| 765,155 | |
Intangible
assets, less accumulated amortization | |
| 13,417 | | |
| 18,017 | |
Operating
lease right-of-use assets | |
| 172,703 | | |
| 206,797 | |
Investment
security to be held to maturity | |
| — | | |
| 14,803 | |
Other
assets | |
| 34,317 | | |
| 25,945 | |
Total
Assets | |
$ | 1,078,884 | | |
$ | 1,139,063 | |
LIABILITIES
AND EQUITY | |
| | | |
| | |
Current
Liabilities: | |
| | | |
| | |
Accounts
payable, accrued expenses and other current liabilities | |
$ | 60,911 | | |
$ | 54,906 | |
Current
installments of long-term debt | |
| 43,305 | | |
| 23,733 | |
Current
portion of operating lease liabilities | |
| 65,272 | | |
| 63,288 | |
Current
portion of finance lease liabilities | |
| — | | |
| 4,000 | |
Total
Current Liabilities | |
| 169,488 | | |
| 145,927 | |
Reserve
for uncertain tax positions | |
| 285 | | |
| 175 | |
Long-term
debt, net | |
| 357,406 | | |
| 399,630 | |
Deferred
income taxes, net | |
| 79,373 | | |
| 70,233 | |
Noncurrent
operating lease liabilities | |
| 107,911 | | |
| 149,960 | |
Noncurrent
finance lease liabilities | |
| — | | |
| 16,456 | |
Other
liabilities | |
| 10,368 | | |
| 16,997 | |
Total
Liabilities | |
| 724,831 | | |
| 799,378 | |
Equity: | |
| | | |
| | |
Common
stock - Class A ($0.01 par value; 166,666,666 shares authorized; 89,545,535 and 88,297,439 shares issued; 70,946,476 and 78,297,439
shares outstanding) | |
| 895 | | |
| 883 | |
Paid-in
additional capital | |
| 588,361 | | |
| 597,455 | |
Accumulated
deficit | |
| (174,825 | ) | |
| (233,023 | ) |
Treasury
stock, 18,599,059 and 10,000,000 shares, at cost | |
| (64,380 | ) | |
| (29,040 | ) |
| |
| 350,051 | | |
| 336,275 | |
Accumulated
other comprehensive income | |
| 4,002 | | |
| 3,410 | |
Total
Equity | |
| 354,053 | | |
| 339,685 | |
Total
Liabilities and Equity | |
$ | 1,078,884 | | |
$ | 1,139,063 | |
Consolidated
Statements of Cash Flows
($
in thousands)
| |
Years
Ended December 31, | |
| |
2023 | | |
2022 | | |
2021 | |
Cash
Flows from Operating Activities: | |
| | | |
| | | |
| | |
Net
income/(loss) | |
$ | 62,454 | | |
$ | 26,564 | | |
$ | (46,252 | ) |
Items
included in net income not affecting cash flows: | |
| | | |
| | | |
| | |
Depreciation
and amortization | |
| 67,164 | | |
| 70,637 | | |
| 61,823 | |
Bad
debt recovery | |
| — | | |
| — | | |
| (1,080 | ) |
Amortization
of debt discount and other deferred financing costs | |
| 1,142 | | |
| 1,129 | | |
| 2,099 | |
Compensation
relating to restricted stock, stock unit and stock option grants | |
| 3,471 | | |
| 3,574 | | |
| 2,232 | |
Deferred
income tax expense/(benefit) | |
| 8,974 | | |
| 6,347 | | |
| (18,236 | ) |
Interest
on finance lease liabilities | |
| 917 | | |
| 1,618 | | |
| 1,799 | |
Non-cash
operating lease expense | |
| 65,751 | | |
| 89,127 | | |
| 90,863 | |
Items
included in net income related to investing and financing activities: | |
| | | |
| | | |
| | |
Gain
on prepayment of deferred payment obligations | |
| (912 | ) | |
| — | | |
| — | |
Loss
on extinguishment and prepayments of debt, net | |
| — | | |
| — | | |
| 5,295 | |
Loss
on disposal of vessels and other property, including impairments, net | |
| — | | |
| — | | |
| 6,276 | |
Payments
for drydocking | |
| (23,138 | ) | |
| (17,231 | ) | |
| (19,037 | ) |
Changes
in operating assets and liabilities: | |
| | | |
| | | |
| | |
Operating
lease liabilities | |
| (73,074 | ) | |
| (99,808 | ) | |
| (92,634 | ) |
Decrease/(increase)
in receivables | |
| 2,336 | | |
| (5,112 | ) | |
| (384 | ) |
Increase/(decrease)
in income tax receivable | |
| 1,507 | | |
| (32 | ) | |
| (1,495 | ) |
(Decrease)/increase
in deferred revenue | |
| (6,026 | ) | |
| 3,435 | | |
| 9,666 | |
Net
change in other operating assets and liabilities | |
| (7,608 | ) | |
| (7,425 | ) | |
| (12,767 | ) |
Net
cash provided by/(used in) operating activities | |
| 102,958 | | |
| 72,823 | | |
| (11,832 | ) |
Cash
Flows from Investing Activities: | |
| | | |
| | | |
| | |
Expenditures
for vessels and vessel improvements | |
| (30,789 | ) | |
| (6,354 | ) | |
| (7,793 | ) |
Purchase
of investment security to be held to maturity | |
| — | | |
| (14,794 | ) | |
| — | |
Proceeds
from disposal of vessels and other property | |
| — | | |
| — | | |
| 32,128 | |
Net
cash (used in)/provided by investing activities | |
| (30,789 | ) | |
| (21,148 | ) | |
| 24,335 | |
Cash
Flows from Financing Activities: | |
| | | |
| | | |
| | |
Payments
on debt | |
| (23,730 | ) | |
| (22,222 | ) | |
| (33,316 | ) |
Tax
withholding on share-based awards | |
| (1,168 | ) | |
| (496 | ) | |
| (402 | ) |
Payments
on principal portion of finance lease liabilities | |
| (2,964 | ) | |
| (4,161 | ) | |
| (4,161 | ) |
Deferred
financing costs paid for debt amendments | |
| (58 | ) | |
| (277 | ) | |
| (2,465 | ) |
Purchases
of treasury stock | |
| (35,340 | ) | |
| (29,040 | ) | |
| — | |
Purchases
of treasury stock and Class A warrants | |
| (11,384 | ) | |
| — | | |
| — | |
Extinguishment
of debt and prepayments | |
| — | | |
| — | | |
| (277,520 | ) |
Issuance
of debt, net of issuance and deferred financing costs | |
| — | | |
| — | | |
| 321,531 | |
Extinguishment
of debt costs paid | |
| — | | |
| — | | |
| (2,736 | ) |
Net
cash (used in)/provided by financing activities | |
| (74,644 | ) | |
| (56,196 | ) | |
| 931 | |
Net
(decrease)/increase in cash and cash equivalents | |
| (2,475 | ) | |
| (4,521 | ) | |
| 13,434 | |
Cash
and cash equivalents at beginning of year | |
| 78,732 | | |
| 83,253 | | |
| 69,819 | |
Cash
and cash equivalents at end of year | |
$ | 76,257 | | |
$ | 78,732 | | |
$ | 83,253 | |
Spot
and Fixed TCE Rates Achieved and Revenue Days
The
following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months
and fiscal year ended December 31, 2023 and the comparable periods of 2022. Revenue days in the quarter ended December 31, 2023 totaled
1,768 compared with 2,023 in the prior year quarter. Revenue days in the fiscal year ended December 31, 2023 totaled 7,026 compared with
7,739 in the prior year. A summary fleet list by vessel class can be found later in this press release.
| |
2023 | | |
2022 | |
For
the three months ended December 31, | |
Spot
Earnings | | |
Fixed
Earnings | | |
Spot
Earnings | | |
Fixed
Earnings | |
Jones
Act MR Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | — | | |
$ | 69,898 | | |
$ | 15,851 | | |
$ | 62,916 | |
Revenue
days | |
| — | | |
| 887 | | |
| 52 | | |
| 1,055 | |
Non-Jones
Act MR Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | 37,581 | | |
$ | 53,374 | | |
$ | 48,062 | | |
$ | 36,401 | |
Revenue
days | |
| 184 | | |
| 92 | | |
| 184 | | |
| 89 | |
ATBs: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | 59,125 | | |
$ | 45,600 | | |
$ | 32,744 | | |
$ | 41,054 | |
Revenue
days | |
| 11 | | |
| 253 | | |
| 92 | | |
| 183 | |
Lightering: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | 96,986 | | |
$ | — | | |
$ | 80,352 | | |
$ | — | |
Revenue
days | |
| 88 | | |
| — | | |
| 92 | | |
| — | |
Alaska
(a): | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | — | | |
$ | 60,746 | | |
$ | — | | |
$ | 60,113 | |
Revenue
days | |
| — | | |
| 253 | | |
| — | | |
| 276 | |
| |
2023 | | |
2022 | |
For
the years ended December 31, | |
Spot
Earnings | | |
Fixed
Earnings | | |
Spot
Earnings | | |
Fixed
Earnings | |
Jones
Act MR Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | 64,906 | | |
$ | 66,780 | | |
$ | 50,676 | | |
$ | 60,908 | |
Revenue
days | |
| 40 | | |
| 3,545 | | |
| 644 | | |
| 3,621 | |
Non-Jones
Act MR Product Carriers: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | 36,827 | | |
$ | 57,768 | | |
$ | 45,562 | | |
$ | 31,290 | |
Revenue
days | |
| 861 | | |
| 166 | | |
| 730 | | |
| 361 | |
ATBs: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | 59,125 | | |
$ | 44,083 | | |
$ | 37,579 | | |
$ | 37,490 | |
Revenue
days | |
| 11 | | |
| 990 | | |
| 267 | | |
| 690 | |
Lightering: | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | 93,031 | | |
$ | — | | |
$ | 75,965 | | |
$ | — | |
Revenue
days | |
| 363 | | |
| — | | |
| 365 | | |
| — | |
Alaska
(a): | |
| | | |
| | | |
| | | |
| | |
Average
rate | |
$ | — | | |
$ | 60,449 | | |
$ | — | | |
$ | 59,880 | |
Revenue
days | |
| — | | |
| 1,050 | | |
| — | | |
| 1,061 | |
(a)
Excludes one Alaska class vessel currently in layup.
OSG
has realigned some of its vessels in the analytical tables to reflect their current employment. The tables affected in the press release
are the TCE Spot and Fixed Rate table and the Vessel Operating Contribution table. Prior year information has been revised to conform
with the current presentation.
Fleet
Information
As
of December 31, 2023, OSG’s operating fleet consisted of 21 vessels, 13 of which were owned, with the remaining vessels chartered-in.
Vessels chartered-in are on Bareboat Charters.
| |
Vessels
Owned | | |
Vessels
Chartered-In | | |
Total
at December 31, 2023 | |
Vessel
Type | |
Number | | |
Number | | |
Total
Vessels | | |
Total
dwt (3) | |
MR
Product Carriers (1) | |
| 5 | | |
| 8 | | |
| 13 | | |
| 619,854 | |
Crude
Oil Tankers (2) | |
| 4 | | |
| — | | |
| 4 | | |
| 772,194 | |
Refined
Product ATBs | |
| 2 | | |
| — | | |
| 2 | | |
| 54,182 | |
Lightering
ATBs | |
| 2 | | |
| — | | |
| 2 | | |
| 91,112 | |
Total
Operating Fleet | |
| 13 | | |
| 8 | | |
| 21 | | |
| 1,537,342 | |
(1)
Includes two owned shuttle tankers, eight chartered-in tankers, and three non-Jones Act MR tankers that participate in the Tanker
Security Program or are on time charter to the U.S. Military Sealift Command.
(2)
Includes two crude oil tankers doing business in Alaska, one crude oil tanker, Alaskan Frontier, purchased in November 2023
from BP Oil Shipping Company, USA and has been in cold layup in Malaysia since 2019, and one crude oil tanker in service on the East
Coast.
Reconciliation
to Non-GAAP Financial Information
The
Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures provide
investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP
measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures
of performance prepared with GAAP.
(A)
Time Charter Equivalent (TCE) Revenues
Consistent
with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses,
as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. TCE revenues, a non-GAAP measure,
provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because
it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance.
Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follows:
| |
Three
Months Ended December 31, | | |
Years
Ended December 31, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Time
charter equivalent revenues | |
$ | 110,088 | | |
$ | 114,098 | | |
$ | 423,527 | | |
$ | 426,328 | |
Add:
Voyage expenses | |
| 5,932 | | |
| 7,659 | | |
| 28,344 | | |
| 40,472 | |
Shipping
revenues | |
$ | 116,020 | | |
$ | 121,757 | | |
$ | 451,871 | | |
$ | 466,800 | |
Vessel
Operating Contribution
Vessel
operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses. The Company changed the
presentation of the table below in 2023 to reflect the current business operations of the Company’s vessels. Accordingly, prior
period amounts have been updated to conform to current period presentation.
| |
Three
Months Ended December 31, | | |
Years
Ended December 31, | |
($
in thousands) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Specialized
businesses | |
$ | 28,151 | | |
$ | 31,725 | | |
$ | 116,463 | | |
$ | 121,112 | |
Jones
Act MR tankers | |
| 13,668 | | |
| 7,793 | | |
| 46,536 | | |
| 17,957 | |
Jones
Act ATBs | |
| 8,378 | | |
| 6,535 | | |
| 29,311 | | |
| 21,744 | |
Vessel
operating contribution | |
| 50,197 | | |
| 46,053 | | |
| 192,310 | | |
| 160,813 | |
Depreciation
and amortization | |
| 17,664 | | |
| 19,579 | | |
| 67,164 | | |
| 70,637 | |
General
and administrative | |
| 6,612 | | |
| 6,056 | | |
| 28,223 | | |
| 26,985 | |
Operating
income from vessel operations | |
$ | 25,921 | | |
$ | 20,418 | | |
$ | 96,923 | | |
$ | 63,191 | |
(B)
EBITDA and Adjusted EBITDA
EBITDA
represents net income before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA
adjusted to exclude amortization classified in charter hire expenses, interest expense classified in charter hire expenses, loss/(gain)
on disposal of vessels and other property, including impairments, net, non-cash stock based compensation expense and the impact of other
items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should
not be a substitute for, net income or cash flows from operations as determined in accordance with GAAP. Some of the limitations of EBITDA
and Adjusted EBITDA are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures
or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital
needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest
or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance,
neither of them is necessarily comparable to other similarly titled measures used by other companies due to differences in methods of
calculation. The following table reconciles net income as reflected in the consolidated statements of operations, to EBITDA and Adjusted
EBITDA.
| |
Three
Months Ended December 31, | | |
Years
Ended December 31, | |
($
in thousands) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Net
income | |
$ | 20,420 | | |
$ | 10,085 | | |
$ | 62,454 | | |
$ | 26,564 | |
Income
tax expense | |
| 788 | | |
| 4,820 | | |
| 9,919 | | |
| 6,894 | |
Interest
expense, net | |
| 7,196 | | |
| 8,191 | | |
| 31,216 | | |
| 33,060 | |
Depreciation
and amortization | |
| 17,664 | | |
| 19,579 | | |
| 67,164 | | |
| 70,637 | |
EBITDA | |
| 46,068 | | |
| 42,675 | | |
| 170,753 | | |
| 137,155 | |
Amortization
classified in charter hire and vessel expenses | |
| 274 | | |
| 318 | | |
| 1,094 | | |
| 862 | |
Interest
expense classified in charter hire expenses | |
| — | | |
| 284 | | |
| 426 | | |
| 1,219 | |
Non-cash
stock based compensation expense | |
| 915 | | |
| 337 | | |
| 3,471 | | |
| 3,574 | |
Adjusted
EBITDA | |
$ | 47,257 | | |
$ | 43,614 | | |
$ | 175,744 | | |
$ | 142,810 | |
(C)
Total Cash and Investments
($
in thousands) | |
December
31, 2023 | | |
December
31, 2022 | |
Cash
and cash equivalents | |
$ | 76,233 | | |
$ | 78,680 | |
Restricted
cash | |
| 24 | | |
| 52 | |
Investment
security to be held to maturity | |
| 14,900 | | |
| 14,803 | |
Total
cash and investments | |
$ | 91,157 | | |
$ | 93,535 | |
v3.24.0.1
Cover
|
Mar. 11, 2024 |
Cover [Abstract] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Mar. 11, 2024
|
Entity File Number |
001-06479
|
Entity Registrant Name |
Overseas
Shipholding Group, Inc.
|
Entity Central Index Key |
0000075208
|
Entity Tax Identification Number |
13-2637623
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
Two
Harbor Place
|
Entity Address, Address Line Two |
302
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|
Entity Address, Address Line Three |
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|
Entity Address, City or Town |
Tampa
|
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City Area Code |
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|
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|
Pre-commencement Tender Offer |
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|
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Security Exchange Name |
NYSE
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Overseas Shipholding (NYSE:OSG)
過去 株価チャート
から 5 2024 まで 6 2024
Overseas Shipholding (NYSE:OSG)
過去 株価チャート
から 6 2023 まで 6 2024