Overseas Shipholding Group, Inc. (OSG) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $98.74 million in the quarter, against a net profit of $173.35 million in the last year period.
Revenue during the quarter dropped 19.36 percent to $194.95 million from $241.75 million in the previous year period. Operating margin for the quarter stood at negative 60.31 percent as compared to a positive 35.24 percent for the previous year period.
Operating loss for the quarter was $117.58 million, compared with an operating income of $85.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $75.63 million compared with $123.92 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1246 basis points in the quarter to 38.79 percent from 51.26 percent in the last year period.
"I am very pleased with our third quarter results, where we generated $76 million of adjusted EBITDA despite challenging market conditions," said Captain Ian T. Blackley, OSG's president and chief executive officer. "Looking to the future, we expect to complete the spin of International Seaways on November 30th with regular way trading commencing December 1st. We believe that two distinct public companies, operating in the Domestic and International markets will provide greater value for our shareholders, as each businesses will be able to fully focus on opportunities and attractive investments in each sector," concluded Capt. Blackley.
Operating cash flow improves
Overseas Shipholding Group, Inc. has generated cash of $240.64 million from operating activities during the nine month period, up 13.76 percent or $29.10 million, when compared with the last year period.
Cash flow from investing activities was $30.27 million for the nine month period, down 78 percent or $107.31 million, when compared with the last year period.
The company has spent $460.51 million cash to carry out financing activities during the nine month period as against cash outgo of $110.33 million in the last year period.
Cash and cash equivalents stood at $313.23 million as on Sep. 30, 2016, down 50.12 percent or $314.78 million from $628.02 million on Sep. 30, 2015.
Working capital drops significantly
Overseas Shipholding Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $289.61 million as at Sep. 30, 2016, down 56.41 percent or $374.76 million from $664.37 million on Sep. 30, 2015. Current ratio was at 3.53 as on Sep. 30, 2016, down from 5.50 on Sep. 30, 2015.
Days sales outstanding went down to 51 days for the quarter compared with 55 days for the same period last year.
Debt comes down significantly
Overseas Shipholding Group, Inc. has recorded a decline in total debt over the last one year. It stood at $981.74 million as on Sep. 30, 2016, down 37.02 percent or $576.97 million from $1,558.71 million on Sep. 30, 2015. Total debt was 35.70 percent of total assets as on Sep. 30, 2016, compared with 44.86 percent on Sep. 30, 2015. Debt to equity ratio was at 0.69 as on Sep. 30, 2016, down from 1 as on Sep. 30, 2015.
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