Overseas Shipholding Group, Inc (OSG) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $275.48 million in the quarter, against a net profit of $9.27 million in the last year period. Revenue during the quarter dropped 3.35 percent to $114.78 million from $118.75 million in the previous year period. Total expenses were 90 percent of quarterly revenues, up from 82.39 percent for the same period last year. That has resulted in a contraction of 762 basis points in operating margin to 10 percent.
Operating income for the quarter was $11.48 million, compared with $20.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $49.88 million compared with $47.18 million in the prior year period. At the same time, adjusted EBITDA margin improved 373 basis points in the quarter to 43.46 percent from 39.73 percent in the last year period.
“We are pleased with our performance for the fourth quarter and full year 2016 despite challenging market conditions throughout most of the year,” said Sam Norton, OSG’s president and Chief executive officer. “We also successfully executed on our strategic goal of streamlining our operating structure and enhancing our focus by completing the spin-off of International Seaways.”
Operating cash flow improves
Overseas Shipholding Group, Inc has generated cash of $328.86 million from operating activities during the year, up 19.01 percent or $52.53 million, when compared with the last year. The company has spent $5.93 million cash to meet investing activities during the year as against cash inflow of $42.37 million in the last year.
The company has spent $325.82 million cash to carry out financing activities during the year as against cash outgo of $335.71 million in the last year period.
Cash and cash equivalents stood at $191.09 million as on Dec. 31, 2016, down 1.49 percent or $2.89 million from $193.98 million on Dec. 31, 2015.
Working capital drops significantly
Overseas Shipholding Group, Inc has witnessed a decline in the working capital over the last year. It stood at $180.79 million as at Dec. 31, 2016, down 61.51 percent or $288.86 million from $469.65 million on Dec. 31, 2015. Current ratio was at 4.14 as on Dec. 31, 2016, up from 4.04 on Dec. 31, 2015.
Debt comes down
Overseas Shipholding Group, Inc has recorded a decline in total debt over the last one year. It stood at $525.08 million as on Dec. 31, 2016, down 24.02 percent or $165.96 million from $691.04 million on Dec. 31, 2015. Total debt was 50.95 percent of total assets as on Dec. 31, 2016, compared with 21.10 percent on Dec. 31, 2015. Debt to equity ratio was at 2.06 as on Dec. 31, 2016, up from 0.44 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.18 for the quarter from 1.33 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: editor@irisindia.net
