OSG’s 4th-quarter net income dips 46%
New York-based owner and operator of a global fleet of tankers and dry bulk carriers Overseas Shipholding Group Inc., today reported a 46 percent drop in fourth quarter net income to $113.7 million, from $211.1 million in the same quarter 2004.
The fourth quarter results include a $77.4 million reduction in deferred tax liabilities recorded on enactment of the American Jobs Creation Act of 2004.
OSG’s quarterly operating income declined 37.4 percent to $123.7 million, compared to $211.1 million for the year-earlier period.
The company’s combined shipping revenues from time, bareboat and voyage charters were down 1.6 percent to $271.1 million from $275.7 million in the fourth quarter last year.
For the full year, OSG reported a record net income of $464.8 million, up 15.8 percent from $401.2 million in 2004. Combined revenues from time, bareboat and voyage charters were $961.7 million up 21.7 percent from $789.6 million.
“Our fleet expansion strategy resulted in 50 percent growth to 107 owned, operated and newbuild vessels,” said Morten Arntzen, president and chief executive officer of OSG. “OSG’s fleet diversification strategy reduced our risk exposure to any one segment of our operation as evidenced by our dependence on the crude oil segment with revenues declining to 71 percent of total 2005 revenue.”