Overseas Shipholding 4Q Profit Sinks

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

28 Feb 2008

Overseas Shipholding Group Inc., which owns and operates crude oil tankers, said Tuesday its fourth-quarter earnings sank 81 percent, dragged down by higher fuel costs and weakened vessel rates. The company earned $21 million, or 67 cents per share, compared with $113.2 million, or $2.86 per share, in the year-ago quarter.Revenue rose to $276.8 million, from $259.8 million a year earlier.Analysts were expecting a profit of 57 cents per share on revenue of $261.8 million, according to a poll by Thomson Financial.The company said an increase in time charter revenue was more than offset by higher fuel costs and "a significant weakening in spot rates" across several vessel grades.For the full-year, the company posted a profit of $211.3 million, or $6.16 per share, compared with $392.7 million, or $9.92 per share, in 2006. Revenue rose 8 percent to $1.13 billion.Shares fell 29 cents to $70.25 in aftermarket trading after closing up $2.73, or 4 percent, at $70.54 during the regular session.