Overseas Shipholding Group, Inc. (OSG), a company holding and operating a fleet of oceangoing vessels through its subsidiaries, is facing a decline in the premarket trading session. OSG stock has declined by 2.21% and is trading at $2.65 at the time of this writing. On Tuesday, OSG stock closed the day at $2.71.
Q2 2021 financial results
On the 6th of August, OSG announced that quarterly results for the second quarter of 2021, ended on 30th June. According to the details, the total shipping revenue for the quarter stood at $88.359 million, while during the equivalent period of 2020, it was $114.39 million. The total operating expenses for the quarter stood at $94.141 million, while during the equivalent period of 2020, it was $100.89 million. The operating loss was $5.78 million, while during the equivalent period of 2020; the operating income was $13.64 million. The net loss was $10.69 million, while during the equivalent period of 2020; net income was $6.38 million. The basic and diluted net loss was $0.12 per share, while during the equivalent period of 2020, the basic and diluted net income was $0.07 per share. On the 30th of June, the company had total assets of $1.13 billion, while it had total liabilities of $778.21 million. The total equity was $353.91 million. Sam Norton, President, and CEO of Overseas Shipholding Group praised the performance of the company and said that the company is quite optimistic about success in future times.
OSG evaluating strategic alternates
On 2nd July, OSG said that the company’s Board of Directors (BoDs) had initiated the process to explore and evaluate numerous strategic alternatives to enhance shareholders’ value. That came after the receipt by the company of a non-binding indication of interest to acquire all the shares of common stock for a price of $3 per share. The company said that a committee comprising independent directors would lead this strategic process. The committee engaged Evercore and Ropes & Gray LLP to Advice Company in financial and legal matters respectively. The BoDs had not set a timetable for the strategic process. There was no assurance as to whether the exploration of alternative avenues could lead to the sale of the company.
Q1 2021 financial results
On the 7th of May, OSG announced the quarterly results for the first quarter of 2021, which ended on 31st March. According to the details, the company bore a net loss of $15.9 million during the quarter, as compared to net income of $25.1 million for the same period of 2020. The total shipping revenue generated during the quarter was $81.3 million, as compared to $100.9 million during the equivalent period of 2020. The company said that it had total cash of $45.2 million on the 31st of March. Commenting on results, Sam Norton said that the company’s performance during the near future is heading toward stability, as evident from results.
What’s ahead for OSG?
Coming toward future performance, OSG stock has shown over time its capability to become a market leader. During the last 12 months, OSG stock has increased by a mammoth 27.83%. The EPS of the company is expected to increase by a massive 241% during the current fiscal. So, believing in all indicators, OSG stock would enjoy some robust times in the near future.
