Overseas Shipholding profit up 10%

Overseas Shipholding Group reported second quarter profit of $86.9 million, 10 percent more than the same 2007 period.Time charter equivalent revenue was $386.1 million, 40 percent more than the same 2007 period. 

Morten Arntzen, president and chief executive officer of the New York-based tanker company, said, The crude oil tanker market saw unprecedented levels of strength in the first half of 2008, primarily due to OPEC production increases. This resulted in a significant pick-up in long haul movements at the same time as single-hull discrimination increased, creating a strong freight rate environment.

On the product tanker side, rates were lifted by a surge in diesel movements worldwide, he said.

Market conditions continue to create a very strong outlook for our crude tankers and the prospects for our other two main businesses are equally compelling. Our investments in the U.S.-flag segment and its 14-vessel newbuild program will nearly double the unit's revenues in three years. In the next 12 months our International Flag Product Carrier business will transform as 13 bareboat chartered-in, non-double hull ships are replaced with modern double hull ships having much greater earnings capacity and the LR1 fleet expands (LR1 tankers are coated Panamax product tankers).