Overseas Shipholding Group Reports Fourth Quarter and Full Year 2023 Results
Overseas Shipholding Group, Inc. (OSG) reported strong financial performance in 2023, with net income of $62.5 million, an increase of 135% from 2022. Adjusted EBITDA for 2023 was $175.7 million, up by 23.1% from 2022. Despite a decrease in shipping revenues, the company saw positive results due to charterparties fixed at escalating rates. OSG repurchased shares, declared dividends, and made strategic investments in vessels. The company remains optimistic about its future prospects in a balanced market.
Overseas Shipholding Group's (OSG) financial results for the fourth quarter and full year 2023 reveal a substantial improvement in net income and Adjusted EBITDA, despite a decrease in shipping revenues. The company's strategic actions, such as vessel redelivery and share repurchases, have contributed to a leaner operational model. The reduction in fleet size, while initially seeming counterintuitive, appears to have been offset by higher average daily rates and operational efficiencies, as evidenced by the significant uptick in profitability metrics.
The repurchase of shares has led to a 9.4% reduction in common shares outstanding, which is likely to be favorably received by the market as it denotes an increase in earnings per share and a strong signal of management's confidence in the company's prospects. The initiation of a dividend payment, after a long hiatus, serves as an additional indicator of financial stability and a commitment to shareholder returns. The company's forward charter book value exceeding $860 million suggests a robust pipeline, providing visibility into future earnings and cash flows.
Investors should note the increase in Adjusted EBITDA, a key metric for evaluating a company's operating performance. This increase, alongside net income growth, points to an enhanced ability to generate cash from operations. However, the decrease in shipping revenues could be a concern if it indicates a trend of decreasing demand or market share, which requires monitoring in subsequent quarters.
OSG's performance within the liquid bulk transportation sector, particularly in the U.S. Flag markets, demonstrates resilience in the face of industry challenges such as fluctuating fuel costs and evolving regulatory environments. The company's focus on the energy industry for crude oil and petroleum products transportation is a strategic advantage, considering the stable demand for energy commodities and constrained supply.
OSG's strategic purchase of the Alaskan Frontier and its subsequent plans for investments highlight the company's long-term outlook and its commitment to capitalizing on specific trade opportunities. The reference to stable demand and constrained supply by the CEO suggests an anticipation of a balanced market, which could imply a favorable environment for OSG's business model. However, the company's ability to adapt to market changes and manage its fleet efficiently will be crucial in maintaining this balance.
It is also noteworthy that OSG has managed to secure employment options for its vessels outside their traditional markets, which may indicate a diversification of revenue streams and a proactive approach to market dynamics. This strategic positioning could mitigate risks associated with market volatility and reliance on specific trade routes.
The energy transportation sector is highly sensitive to global economic trends, regulatory changes and geopolitical events. OSG's positive financial results, in the context of the energy industry, reflect a competent navigation of these factors. The company's ability to lock in escalating charter rates over recent quarters has positioned it to capitalize on the current market dynamics, where stable demand for energy transportation persists despite broader economic uncertainties.
The investment in the Alaskan Frontier and the extension of the bareboat charter for the Overseas Tampa indicate a strategic approach to fleet management and an investment in future capacity. These moves suggest a calculated bet on the continued demand for U.S. Gulf Coast crude oil transportation and the company's ability to service refining customers effectively.
OSG's strategy and its implications on the energy transportation market should be of interest to stakeholders. The company's focus on maintaining a balanced market through stable demand and constrained supply aligns with the broader industry's move towards efficiency and sustainability. The anticipated commercial trade of the Alaskan Frontier by the fourth quarter of 2024 could be a significant contributor to future revenue, provided energy market conditions remain favorable.
03/11/2024 - 07:35 AM
TAMPA, Fla. --(BUSINESS WIRE)--
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 $175m m 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.
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240311658633/en/
Investor Relations & Media Contact:
Susan Allan, Overseas Shipholding Group, Inc.
(813) 209-0620
sallan@osg.com
Source: Overseas Shipholding Group, Inc.
What was Overseas Shipholding Group, Inc.'s (OSG) net income for 2023?
The net income for OSG in 2023 was $62.5 million, a significant increase from the previous year.
What was the Adjusted EBITDA for OSG in 2023?
OSG's Adjusted EBITDA for 2023 was $175.7 million, showing a 23.1% increase from the previous year.
How did OSG's shipping revenues in 2023 compare to 2022?
OSG's shipping revenues in 2023 were $451.9 million, a decrease of 3.2% compared to 2022.
What strategic investments did OSG make in 2023?
OSG purchased the Alaskan Frontier for $20.0 million and repurchased 1,425,000 shares during the fourth quarter.
What dividend did OSG declare in December 2023?
OSG declared a cash dividend of $0.06 per share on the Company's Class A common stock in December 2023.