Overseas Shipholding Group Announces Charter Option Decisions for Vessels Leased to American Shipping Company



TAMPA, Florida – (COMMERCIAL THREAD) – Overseas Shipholding Group, Inc. (NYSE: OSG) (“OSG”), a provider of energy transportation services for crude oil and petroleum products in U.S. flag markets, today announced that ‘he had exercised options to extend his bareboat charter agreements with American Shipping Company ASA (Oslo Stock Exchange: AMSC / OTCQX: ASCJF) for two vessels, and that it will not exercise extension options for three more ships. Both bareboat charter extensions have additional one-year terms, starting in December 2022 and ending in December 2023. With these extensions, seven vessels will continue to be leased by AMSC – six with aligned due dates to end in December 2023 and one with a maturity of 2025. OSG will operate the three vessels whose charters have not been extended for the next 12 months until the end of their bareboat term in December 2022.

Sam Norton, President and CEO of OSG, said: “We believe the market continues to support attractive business opportunities for the vessel leases that we retain to complement the generation of strong and stable cash flow from our niche businesses. With our newly strengthened balance sheet, we are well positioned to continue on the path of long-term value creation and attractive cash flow generation as the recovery in demand continues to materialize. ”

Mr. Norton also commented that “Our decision not to exercise some of our options reflects continued diversification from a relatively high concentration in conventional Jones Oil and ATBs to our niche businesses which have enjoyed higher and more stable returns. The Jones Act market for large conventional oil tankers has changed over the past five years as the drivers of marginal demand at the national level have become more volatile in the flows of crude and refined products. While we are currently witnessing a rebound in demand, the charter periods available in the markets we serve have shortened and the path to increased stability remains uncertain. ”

“The future of energy marine transportation and the type, design and markets of ships that will engage in this activity in the future are evolving in ways that are not yet clear, ”continued Mr. Norton. “The gradual transformation of the United States from a carbon-based fuel economy is expected to present exciting new business niches for OSG to competitively apply its differentiated set of skills. In addition to seeking to reduce the volatility of our current earnings profile, the decision to re-deliver three vessels to AMSC will allow us to redirect resources towards participating in a wider range of opportunities in existing and emerging markets for the future. energy and liquid bulk products of all types. . ”

“The resulting reduction in future fixed payment obligations is a significant step towards reducing financial and operational leverage in our business to a level commensurate with the current uncertainty in the commodity markets in which we operate ”, said said Dick Trueblood, vice president and chief financial officer. “We believe we have maintained an appropriate level of exposure to what we see as an improving market environment. At the same time, the shift in focus implicit in our decision not to exercise some of the expansion options will allow us to direct more of our resources and capital to those parts of our business that have historically generated losses. more stable cash flow. ”

The Company will host a conference call at 10:00 am Eastern Time (“ET”) on Tuesday, December 14, 2021. To access the call, participants should dial (844) 850-0546 for domestic callers and (412) 317-5203 for international calls. Please dial the number ten minutes before the start of the call. A live webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.osg.com. An audio replay of the conference call will be available from 12:00 p.m. ET on December 14, 2021 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers and entering the code. access 4601394.

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the US flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s fleet of 22 active US-flagged vessels consists of three tankers operating in Alaska, two conventional ATBs, two lightening ATBs, three shuttle tankers, ten MR tankers and two non-Jones MR tankers Act who participate in the US Maritime Safety Program. . OSG also currently owns and operates a Marshall Islands-flagged MR tanker that trades internationally.

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 shipping companies and is headquartered in Tampa, Florida. 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. All statements other than statements of historical fact should be considered as forward-looking statements. Words such as “may”, “will”, “should”, “should”, “could”, “will appear”, “believe”, “intend”, “expects”, “considers” , “Targeted”, “plans”, “anticipates”, “objective” and similar expressions are intended to identify forward-looking statements but should not be considered as the only means by which such statements may be made. These forward-looking statements represent the Company’s reasonable expectations with respect to future events or circumstances based on various factors and are subject to various risks, uncertainties and assumptions regarding operations, financial results, financial condition, activities, the prospects, the growth strategy of the Company. and liquidity. Accordingly, there are or will be significant factors, many of which are beyond the control of the Company, which could cause the Company’s actual results or results, or the timing of certain events, to differ materially from the expectations expressed. or implied in these statements. , including due to the uncertainty associated with the possibility of identifying, evaluating and completing any transaction or strategic alternative, the impact of the announcement of the special transaction committee’s review of strategic alternatives, as well as any transaction or strategic alternative that could be pursued, concerning the activities of the Company, including its financial and operational results and its employees. Forward-looking statements should not be relied on unduly and, when reviewing forward-looking statements, consideration should be given to factors, including, but not limited to, the factors discussed in the Company’s annual report. on Form 10-K, filed with the SEC on April 1, 2021, and the factors discussed in the Company’s quarterly reports on Form 10-Q filed with the SEC on May 7, 2021, August 6, 2021, and November 9 2021. Investors should carefully consider these risk factors and additional risk factors described in other reports below filed by the Company with the SEC under the heading “Risk Factors”. The Company assumes no obligation to update or revise forward-looking statements, except as required by law. The forward-looking statements contained in this press release and the written and oral forward-looking statements attributable to the Company or its representatives after the date of this press release are qualified in their entirety by the cautionary statement contained in this paragraph and in other reports below filed by the Company with the SEC.


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