Overseas Shipholding Group (OSG) has reported 89.30 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $5.43 million in the quarter, compared with $50.74 million for the same period last year.
Revenue during the quarter dropped 6.05 percent to $108.12 million from $115.08 million in the previous year period. Total expenses were 82.19 percent of quarterly revenues, down from 84.89 percent for the same period last year. This has led to an improvement of 270 basis points in operating margin to 17.81 percent.
Operating income for the quarter was $19.26 million, compared with $17.39 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $36.15 million compared with $40.73 million in the prior year period. At the same time, adjusted EBITDA margin contracted 196 basis points in the quarter to 33.44 percent from 35.39 percent in the last year period.
Sam Norton, OSG's president and chief executive officer stated, "We had a solid first quarter to start 2017 despite ongoing challenging market conditions. Although we experienced lower charter rates, our ability to attain high utilization rates throughout the first quarter helped drive revenue. Our diverse operating platform, which includes shuttle tankers in the U.S. Gulf Coast, the only licensed operator of lightering vessels in the Delaware Bay, and the only operator of tankers in the Maritime Security Program "MSP", provides stability against market volatility affecting other areas of our business. Additionally, we are starting to see results of efforts to be more efficient with general and administrative costs. This helped reduce expenses which drove higher operating income."
Operating cash flow drops significantlyOverseas Shipholding Group has generated cash of $13.01 million from operating activities during the quarter, down 88.69 percent or $ 102.05 million, when compared with the last year period. Cash flow from investing activities was $9.54 million for the quarter, up 99.17 percent or $4.75 million, when compared with the last year period.
The company has spent $15.56 million cash to carry out financing activities during the quarter as against cash outgo of $151.25 million in the last year period.
Cash and cash equivalents stood at $198.08 million as on Mar. 31, 2017, down 50.73 percent or $203.92 million from $402 million on Mar. 31, 2016.
Working capital drops significantly
Overseas Shipholding Group has witnessed a decline in the working capital over the last year. It stood at $106.34 million as at Mar. 31, 2017, down 69.02 percent or $236.97 million from $343.31 million on Mar. 31, 2016. Current ratio was at 1.70 as on Mar. 31, 2017, down from 3.15 on Mar. 31, 2016.
Days sales outstanding went down to 55 days for the quarter compared with 65 days for the same period last year.
Debt comes down significantlyOverseas Shipholding Group has recorded a decline in total debt over the last one year. It stood at $512.03 million as on Mar. 31, 2017, down 55.23 percent or $631.65 million from $1,143.69 million on Mar. 31, 2016. Total debt was 49.95 percent of total assets as on Mar. 31, 2017, compared with 37.25 percent on Mar. 31, 2016. Debt to equity ratio was at 1.97 as on Mar. 31, 2017, up from 0.74 as on Mar. 31, 2016. Interest coverage ratio improved to 2.06 for the quarter from 1.46 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
