OSG - Earnings call transcript Q1 2021 | Overseas Shipholding Group, Inc.

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Operator

Good morning. Welcome to Overseas Shipholding Group First Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Sam Norton, President and Chief Executive Officer. Please go ahead.

Sam Norton

Kate. much, very you Thank to Good the morning, and of for Dick ahead. of allowing you XXXX into and the current and and on this challenges thank state us for me and presentation business, quarter all additional call commentary first insight and joining our results, everyone, provide opportunities for our lie the that

everyone on to Princeton presentation, forward-looking on this course Arcia narrative I PowerPoint read to usual, and McFarland consider information of other like that urge that are them to with the the The and would Molly X direct carefully. To presentation. our call. Pages us provided the this start, on contents of of during important and statements, I As and estimates this an participating website narrative X everyone may and are regarding available presentation be of part

on We and factors, will variety projections and statements be results you just could includes more subject our results. than be differ materially risk historical may a offering Actual and affected statements, including uncertainties statements to of future factors about OSG our beyond control. are by presentation These anticipated today, risks. forward-looking including from perspective an

SEC, www.osg.com. we For XX, our own December XXXX, annual factors, discussion are XX-K a as www.sec.gov on of to at fiscal those filings as available Internet year ended site, and the refer our for with specifically you which risk website, the report well other the on SEC's Form our

we legally date as do forward-looking the required. as to statements, be and except this not materials, update statements presentation obligation in Forward-looking only these any of speak assume may any of

this continue non-GAAP measures business website. had our posted presentation define impact portfolio. markets oil restrictions morning our and by benefit our measures, asset on to a is and demand extension severely the very to GAAP for quarter operating refined the The expectations In met have and today we closures results point this to and certain global pandemic environment, associated ongoing national most first In having energy in of lockdowns, earnings addition, difficult which comparable and continuing closely release, the diversified which crude transportation. includes travel and reconcile our financial marine coronavirus products, announced

tankers performed Although with shortly. largely assets Jones historical our you our Dick take conventional operating Act will this losses in experienced line other those norms. through quarter, details

spectrum outcomes numbered improvement. define the trends X, trades, we wide in importantly, presentation X% would, outside last the continue States. rate Near-term on of show in comments X. the nationally, spoke update utilization Suffice been X influenced pace a that the resolving PADD on trends add -- logic as Provided it our more including, rates. has our last about see recovery trends. the my utilization demand This encouraged pandemic remain the this refer and deck that chain explanation may to to X as our last Anyone why will month comments through uncertainty slide back charts that of repeat not move only XX. time we current have we refinery in continue possible the importantly, of a vessel business, the data on many by is I it only last updating utilization in As an in I brief a since wants way trajectory publicly highlight our our for presentation. the however, XX.X week's data the recovery the we call. progress I we slides be presented to of supportive continues underlying reactivation to thesis. these to will April we of on to and our in United will say and on data details short call. to The given the an pages quarter. indicated our these Domestically, sets rate depicted our by XX.X% factors, who state to identified

economic emerging will the to to an The gasoline the spread we in inhibit recovery time first time a of progress In financial with have leading our particular, lightering comparable the apparent been gasoline the charter below diesel noted, rebound, for demand recovery. remains consumption have rates slower become to has heightened signs a showing surge weeks. for our trends, more X It resulting per imports typical sensitized recent coupled levels pandemic, week, for tankers to XX% confidence X% freight these as believe overseas, X-year have public a barrels is Inventory petroleum and grind uncertainty us customer on utilization exceeded refiners fully which, of X below with Weakened remains characterize for conditions historically Last levels. customers' is ATBs anticipate, our a high-frequency remain drag more region the recent in tanker in they Cautious since data our some low if acted remain us in last for But imports demand and distributors in improved have commentary view on risk-averse these to third product for corresponding with of We upwardly for of improving utilization Even to progresses. impact year for weeks. as the being early pre-pandemic international our rates levels while in the visibility the market, as many, time led the rates. topped performance induce OSG. that markets. base for activity consumption than norms. have the local combined fourth Market and points and one conditions. domestically. rebound onset recovery, commentary activity demand elevated behavior increase remain in demand customer clearer trend. as will States the day concern of in awaiting domestic about of we the not for XX%. sloping both hoped sustained that of from X very internationally products on returns, in layup refinery and from and emerging the Jet international improvement dampened refined and the future and that products confirms stages relatively below signals These gasoline to most XX% that Domestic meaningful virus fuel row averages import week continue a United product clear outside refined of customers. to nationally million the in and pandemic the indicate

show storm, rates of of has Uri. improving the flattened to EIA While seen recovery data following domestic in recent somewhat the recovery slope sharp run refineries, the winter weeks continues from

keep ahead, seen effect in As for for quarter, to should continued import refinery spot progress vessels. market and time the Spot utilization in Since reversing of of trends in product demand months the the from end nearly the of improving year. United we transportation. demand in slowly Overseas activity April Houston their seen the a the have in a has on States charter and cargo of demand fixtures first first the working movements increasing signs domestic have stimulate of tankers rates since recently This for us time refined act cargo encouraging we available the maritime March. the increase redelivery for at to outside for emerged allowed end and

the of availability time. the maintaining the Coast Overseas also are West this at We Boston on

at time consumption patterns inventories lifting continued patterns As us mobility restrictions, our is vaccine from demand of and fuels year, With average stimulate below the distribution to reactivate continues levels. historical should to marine to of the expand, transportation a normalize this U.S. of of vessels to are lab. fuel consumption and demand related there levels expected transportation with product consistent more leading normalization COVID-XX

Our on-hand. long-term we with near-term In ensure to sustaining the this cash squarely future. million liquidity ended is of pathway context, focus our $XX on quarter for a sufficient

Coast, Gulf delivery is $XX on-hand. of Coast and sheet near second end month position will of with to our end to We OSG have Proceeds the scheduled well $XX Gulf additional end cash the add from sale million approximately balance as the this of million Overseas at which contracted to sell cash quarter about month. the the of debt-free, Overseas with

results. Incremental We bring steps spend to and all overhead have capital appropriate taken in and in ways through where remain transportation. worked compromise important the efforts achieved our to have defer ahead these not be gains and about to who operating given these to safe hard should expenses months reliable acknowledgment reduce and shore-based will commitment to will that vessel

but missing bit, and of Our normalized available fleet conviction percentage a of Jones a such is when. years employment lack oil a as The the question demand a oil remains for committed a large a is and demand follow. in The a a fundamental recovery function demand of of Act past, reflection not not, is in that steep markets oil crude needs should the excess more transport signal future wants backwardation of the pricing of and market to supply. this that

vessels to transportation of the the crude of in to is potentially capacity X the and for return we the Act Berra's of that other will add lightering currently tankers baseball static an should planning with this Act prospects important in charter trees emerging remain from will half second awaiting factor to our transport ATB remain regularly our ahead. decision the this Incremental that likely demand year. our and is alternative physical Availability anticipates for In refined tighten Jones Analogous and observation and forward success assess acceptable at of time diesel during short-term other and Our most demand continue businesses. affect fuels the for mental. baseload a lab. development, products. domestic in Sentiment Jones half renewable XX% needs will worst one Yogi years and oil flows product

tanker fair to over XX% it's quarter With at saying for half conclude for the turn of sentiment. time, the that further that, think especially is up our comments is XXXX. sense by market provide and market, you, details it this other results is and Dick to I'll the first I my my to fundamentals summing

Dick Trueblood

Sam. Thanks,

face reduced storm, inventory of Sam the Coast market depressed effectively many and refineries. reduced The with Uri, to Our mentioned, the operations as activity mobility first results, Winter persisted refinery our expectations. levels. were consistent as characterized and levels continued higher quarter down Elevated shut COVID-XX disease depressed quarter. in Gulf lockdowns economic be

were resulted first for international X and Spot rates customers' activity unsettled, all did and market commitments. circumstances increase that again, the Additionally, at in on were were of accommodated markets small continued saw transportation market to lows. These ATBs. March our those months make in and on the an unwillingness occur petroleum quarter to virtually accommodated moves continued activity, spot was nonexistent, ATBs. historic be international but transportation

We continued per layup by $XX,XXX. is approximately to demand. in which cost reduction manage current ships vessel operating for daily maintaining is our costs no The there

of and look As declining reactivating disease resulting last Overall, reopening predicting that quarter. is Observers rise. with we this and we to our indicated are society. during Airlines combined was fleets in of increase ahead. we same in as EBITDA our their are a breakeven summer. demand for in travel second adjusted Vaccinations the levels first a pent-up the fuel will level EBITDA approximately beginning modest consumption result first to in jet are the quarter continue expect expectation spike half wider call,

performing in currently continuation a in quarter. been the the our the has One series end first vessels of of to all direct voyage spot of subsequent charters, market

We West the in available spot Coast. the on have vessel another currently market

in in not recovery the one if. firm that markets continue our time, our a We of is question of belief

of beginning of end spot look XX, to see vessels And XXXX quarter in substantial return fourth XX.X% of from coupled the half X vessel collectively take trading XXXX in the quarter, We first please. revenues to at of XXXX; causing one a significant sequentially declined operating XXXX's utilization. placed you result with expectation the of X Slide vessels the additional the demand if adjusted decreases declined The TCE layup expect from in in during in at layup. improvement, and the quarter. when of layup vessel vessel and compared strengthening XX.X% a Currently, we of one first reduction second market, with quarter the the fourth EBITDA. at have by

short-term the time vessels additional redelivered redelivery market. mid-April vessel, and available to a in operated One us. During the we quarter, through X spot now currently on had post charter is

under The voyage vessel series charters other one other. continuation and operated has and a of direct of

vessels ago flat XX laid both pronounced layup were entered to decline to Sequentially, charter. in into October, declined of the a available the MR ago related available in which Company. was pandemic-induced the of Jones quarter, Please the year of employment tankers, The a XXX of Overseas with into currently MR turn lightering X-, Alaska Adjusted without the reduced Additionally, And the gain represent quarter from in XXXX EBITDA the during had quarter. market the which decline extension had market, quarter the refinery layup OSG X quarter the year-over-year to compared resulting for and in volumes our of been declined X acquisition Lightering previously not significantly XXXX. to quarter experienced revenue operating. TCE in the fourth from oil Tanker Drydock quarter Mykonos, year spot barges customers' first time X-month days X-month The fourth operations. in Overseas since $XX.X XX. employed has crude and million the the was decreased decline most demand of we Slide discussed when charter We XXXX decreased, prior from in our again, first the The to time revenues options. had in been but our up. of revenues. we spot have Martinez, period XX where XXXX. Act XX%. change in tankers tankers XXXX Act the a Jones was the fourth XX% from reflecting included Lightering X during entering the XX%

both operation first is were which of our in the new quarter. of built XXXX complete The quarter in first a ATBs quarter for

ATBs X recycling charters sold new under The throughout We have time previously operate for our all ATBs. of will XXXX. rebuilt

maritime X-year arrangement. MR declined We of the conditions. Realized Coast since of X completed market a on end the quarter Overseas the continue The Coast Act the Mykonos charter program provide at of perform due also and have security third time time pool and to government operate XXXX. to Overseas international international an their charters non-Jones rates and services MR Santorini to Israel. in have Sun in then, Gulf they the has operated And tankers.

During quarter, the performed one we GOI voyage.

charter tanker, shuttle million of TCE the shuttle less Vessel Alaskan tankers operating layup essentially prior the international quarter vessel from to the prior quarter. to in quarter. in partially swung vessel ago to year a were vessel decreased the XX. $XX.X last decline from of quarter quarter. of defined compared results Please niche quarter in quarter million. million market during to fourth the layup. operating as each the turn due of revenues, quarter layup declined the to Revenues revenues hire XXX comparative OSG $XX.X due of the previously is Act the lower lower in of laid expenses shuttle last operating niche of Slide Slide declined de to and the revenues, the month month the contribution in XXXX extent Alaska the in and X-month Jones operating decline were to Lightering by contribution, both the acquired a from Navigator, contained reduced continued This time tanker for XX. $X.X Navigator compared demand Revenues TCE The contribution quarter. million niche XXXX $XX.X fourth the in lightering to of services with quarter of March Jones our from but operating of tanker to barge first the one $XX.X drydock and year that year. last number oil fourth tanker coupled businesses tanker as the loss for of from as Slide operate a XXX and and million the been layup all XXXX compared in contribution increases higher contribution due in compared conventional The to Conventional revenues market activity, the both to compared of Alaska tanker lesser quarter in rates Please XX% services QX ATBs and XXXX had resulting period currently from and to quarter quarter. revenue XXX. last X XXXX, lightering Our the on in Alaskan OSG revenues for to same decreased days period tankers, XXXX, quarter to during off flat resulting since expectations. quarter spot Alaskan current $XX.X at $XX.X off-hire reflects the Act to QX year which our XX. principally line year's the international up the million The perform the full decrease of during first than the by were, lack these The operating revenues from to due the XXXX tanker. contribution the long-term discussed, market providing year the and one turn XXXX. a rates as in Combined operations and charters revenues drydock decreased pandemic, expenses, quarter demand. to seen month the But a a continued partial fourth minimis fixed accounted current provided with one vessels. the million the a and for with first vessel negatively swing a the well reduction year offset of demand. off-hire crude customer impact due second of flat to as X of of for from operations quarter lightering continued in Please of levels turn vessels Drydock tanker the from a of driven tanker

the one new quarter. during ATBs vessel time million As mentioned the from the for to Bay tanker in of contributed available, turn Please demand $XX.X and this in operated rates in million tankers to our this X Sequentially, lightering demand was the decrease decreased the previously, first contribution layup our and from of in X resulted QX XXXX. and customers that for reduction first by both operating $X.X quarter employment international but quarter. decrease. reductions XX. Delaware The remaining Slide months without

by company. the This solely Coast, occur for transaction approximately Gulf provide $XX.X XXXX Please factors. impact expected quarter for to to liquidity the the from vessels current $XX.X QX from from million MR related $XX.X operations. to due entered virtually for an the this the into $XX no the The Completion transaction. levels recognized First pandemic, demand Company rates. of Alaska gain May previously We tankers quarter in decrease lower million in for quarter. million contract late $XX.X $XX.X acquisition XXXX activity EBITDA our utilization our to operating in $X.X of million is in prior our was quarter, Sequentially, by decrease EBITDA sale XX. million XXXX. in Overseas first lightering Alaska resulted quarter, services driven the additional lower tankers, XXXX. turn the discussed declined The partially to QX the market million we of offset April to Tanker early demand In all-cash resulting was decreased will decreased quarterly in tanker a and during XXXX, reduced unencumbered Tanker adjusted a is XXXX million in of from which adjusted layup, spot first international Slide and of

Please of at of of on the balance held-for-sale $XX reflects decreased compared was quarter associated which Net XX, XXXX, classified million in Gulf by offset net the sale gain international the was by Our March rates, first ATC to estimated which turn again our utilization, reduction with XXXX, the driven loss Tanker acquisition. for first a million. we quarter lightering the partially million pretax have The in $XX.X to asset $X.X as Alaska included Slide were $XX.X the XXXX lower loss and XX. change of the all sheet, the Coast of acquisition. the vessel quarter loss to sale, demand, million first based this income

to first Drydock be ballast treatment will systems XXXX, will cycle expenditures ballast the levels, capital capital year. number systems. elevated at were required the treatment water XX% XXXX of vessels XXXX the below well drydock due investment and effort Our to estimated and $XX is go through $XX.X of of this of normal expenditures half were million. the million. their in which water Approximately occur in installation

unavailable otherwise first due if XXXX, or are use, $X.X for charter. XX. of $XX during million of are included lost which on vessels $XXX,XXX cash otherwise of the drydock end off-hire Turn we employed restricted revenues off-hire to the they in While a in to time had cash. even total We million, Slide At quarter.

and million to the of quarter, During million we first improvements on invested vessel EBITDA. Working capital adjusted million we cash. We drydocking in $X and generated of million CapEx. $X our expended vessels. consumed $X other $X And

to incurred including of Please cash on $XX slide, we Slide had XX, repaid XXXX, mentioned The million $XX in restricted as March expense ended cash million quarter including we liquidity, Continuing of we turn million in of result $XXX,XXX the $XXX,XXX at the $X and debt. discussion and was restricted. cash, $XX previous XX. with our cash. Additionally, of we was, million that interest

This indebtedness debt million. total Our December of in $XXX decrease since a outstanding XXXX. represents was million $XX

of ratio additional equity, I'd the million financial XXXX. our $XX my statements, is turn like million and loans an concludes of our Xx. to the amortize This on will With to call of the over Sam. Sam? remainder debt-to-equity $XXX comments back We net

Sam Norton

results the consider to we be first environment. continuing achieved the Thank quarter financial XXXX pandemic the you, given Dick. satisfactory, of during Largely speaking,

the reasonable demand States, and increased for mobility. of half levels a return diesel normalized in demand of the and the While a United layup our during fiscal the stimulus forward prospects immediate several consider for gasoline the more be second spurred planning to a we expectation, to contemplates of future, the continued return this healthy recovery of by vessels year

seen contributions MSP from shuttle completed ATC streams as tankers vessels. in the As well niche the results from continuing as in expect expected the the our our particular, of strong businesses, charter on we from quarter, active just X our vessels other revenue existing

the In of X year provide barges, XXX. that XXXX, have and committed carry weakness ride both we the addition, opportunities. long-term believe we from market as during remain our full OSG new be future. These for new streams stabilizers medium to will the we to and through confidence flow revenue XXX what out OSG cash and a fundamentally promising Challenges

with Our renewed a fleet assets reduced provides us age. of profile a average

lower to operational measures. continue We in key and achieve costs improvements material our and safety performance

on health performance open call COVID-XX are to operator success and safety of position we OSG's now Kate, questions. and focused up the the continuing ability high maintain and in tank remain to model leading can to as its flag years U.S. confident the of We long-term the the we come. business environment, in our in achieving vessel

Operator

from Our Instructions] is Vaughan Needham. from [Operator first Ryan question

Ryan Vaughan

Dick, two, if I Sam you and have don't mind.

in international or charters lot the running probably your your say, let's first now to on is some peer at travel without it travel like -- listening of The some nicely. back even consumer U.S. And consumer the companies, the is your imports, back business it call, calls be really spot coming market. of -- and, just sounds least vessels the and Texas like sounds freeze would one a business, have

just a on slower Do any do the have remarks, a So on the European And of quite summer, summer, think touched your international was the then to on in that? been can at is there's end permanent $XX early been on you of liquidity clearly, event that, it just, briefly sort Sam, onetime there? at of anything it's high. But best more Texas it guess imports Dick, think if event. some late you just you Or the reopen? year. shift So million two, the you add just countries timing, being number

update Can -- to you cash. you last Coast know end you XQ. us million in of I the X think bring you're just felt you the month going told I Gulf just just comfortable, at $XX but month, later said

business point it's over going time, Just next feeling you're just XQ, in about into back XQ of some XQ couple how sometime in or you're liquidity at quarters? how as feeling whether XQ, probably come the late

Sam Norton

All right.

Okay.

with first So question. I'll try and your deal

energy markets Jones have the the market, international China, is into lockdown now reflection entering characterized We they past many right very been -- to what tanker from most to which, pointed international with a arbitrage on obviously, are the conditions, time the that are countries as from global factors countries are badly the States impact or although or a in and the fact of view of Act have really of you're world price are demand. being marketplaces, commodities to those seeing either The and fuel in still insulated not. transportation mobility be frequently pandemic, response and are possibly increased the are is around time in markets. exception United markets can an differences. weak and the isolated in that capacity Price can outside influence that differentials transportation other traders through the that through States, arbitraged and United moving currently suffering differentials My those questions has

You America weak for in products spread. in see spikes the Latin for the now that creates international South markets you having Europe, being. see time That also that in pandemic Asia,

finding day. production witnessing what opens $X,XXX, weak Europe, for gasoline States. digits, weeks You demand per take the it the in last $X,XXX, the Coast we've as And even in for Southeast been large as the to sort that's surplus States, East excess X, hovering with in of demand move X, production $X,XXX into been out MR United way the its Florida. couple of into far United That Europe X of that is product for up opportunity rates transportation single international and and weak particular,

can time, of eventually impact look that operators. International logic $X,XXX international of It sustained shortening time, costs and a the You that, for long culling are would or to $X,XXX, tanker at capacity supply. dictates that's up day operating $X,XXX, a laying but leading be period of again, of below of of that vessels for picture have not a sustainable. either not a period up rates for

market believes year. that second this international fuel commentary half fuel will the think I in rebound also the consumption consumption, transportation of globally

lot So available, can And held shifts that recovery. anticipating capacity that as I short-term a is you based quickly being demand. move rates think know, in on of

That I remove in exists help last need trying would So Europe. in to product above rates and currently transportation -- $XX,XXX call, day. arbitrage certainly big that that from back to MR see tanker our the move a to up bringing said we international in be a

economies less import is its And to to PADD European Coast addressed rates principal ultimately, demand tanker thing my of would some in to April, back the fuel that absorbed that regained is Europe. And dump be in region mobility you in that I X made into in movement on -- charts inch transportation Gulf see activity, in Florida. be the can up. that would get I other the feet able of a remarks because excess of that see levels. product U.S. production The of And refining I notwithstanding there has the begin from locally that up driver presentation continue excess continuation one this Florida was their we -- the there be of pre-pandemic to States. in in to the just in to see United is basically push What find incentive increased and of all encouraging then

job be about you as see all in look levels, anecdotally that certainly set high-frequency Miami, indication to inventory the And have accuracy the predicting we in fill see tried probably set. those the inventory and we that PADD in every I have that it's traffic and full and logic, weeks. is necessarily developed you, ready It's visited pointing conditions. get at we we the are needs levels of feel we're with I that our you'll our that a to we look I make to plenty data the tell participate look said of have. skill liquidity future There And product Orlando continue levels, We to to at around all sets ensure Florida places is sufficient the is indicates at see in direction. drawdowns. we And Now be Timing, we Eventually, they that to one a in talk able proven Dick times Tampa, sure high no turn there. to that's fundamentals people inventory not think right that we in that reduced X, feel there. call recent least to at a that day move the levels. is on. that's but runway in of Florida. not data are in in the But data XXX right Google time. I've of set. this There's with turn, it the the to here now that can as toolbox, looking And improved a But level coming.

Dick Trueblood

of that go the we to half into provide So the insurance entered to need of realize to adequate liquidity year. the we where of coming to that go had we to question, recovery sale the in second get sort see part Gulf second the Coast on your we some additional of Ryan, the to

I capital ends, the most by time as indicated, dollars will our we We for have second the quarter year. of -- spent will the

kind we have right runway the basis. side that commitments we need will on-time are on in now. And get on of relatively so, of The minor their all really the service, we're generate nature. dislocation fully that those normal flow demand remaining -- levels this ships experiencing be charter. to the be that will cash that and we capital other think charter The of so will they of in And to

of steps them to of that Sam reasons annualized coming ships has today, you're of it an you in to or million we've we we today, reasonable get the least cash that dramatic. For $XX second prudent in vessel. ships per order the is cash will daily in need are gone the I through, maintaining be flow vessel that back our take and part rebound, on consumes at as consumer the year. of business one generates the half see cost that's and that. past today. flow talking layup. And of operating positive somewhere put and of the cash to all Much basis somewhere incremental taken And Part minimize service all business back those the in them mean these per the cash

on -- we the we're believe it's So cusp.

We have start to the get the kind year. that expect of need to this that in second half to resources we we point time, of in realizing and

Operator

is next Mintzmyer Our Instructions] from Edge. Value from Investor's question J. [Operator

J. Mintzmyer

a talked just we like seems weeks It few Dick. ago. Sam,

I'm quick see on So time. turnaround a QX to here. back glad

There's was QX going quarter. of stuff look, So a a on. difficult lot

overhang. are a in in a layup of trough little had revenues of EBITDA Texas We What's way the Is bit of to or starting vessel the shoots, costs you We're on terms vector come green mentioned. the and see going recognized But quarter. of there's QX? quarter? effect the I QX reporting lag to trough bottom earnings in thing. here that had a and COVID the know as freeze. You Obviously, be kind this sort next to

Dick Trueblood

accomplish need to I service. to real what we half make again. into changed we prepared I them bring to my kind need think is a we without of of need several weeks was where that think year. EBITDA getting a lag, And predictions, There that, lag the don't will the and to again. said they're be of in we our the breakeven There making I think half when opinion mean, first may will the And to customers hasn't to I to ships we'll there the solid bring do a call for be operate that need because point first be they commitments get -- last back for willing little about year. breakeven I

cycle the So all the itself ship is of the of enter to the service. for by then the with which ship of you've sort preparing contract, time that and follow-on certain and got consume a that restoration into service will of a amount

the QX the and is see likelihood think thereafter. in you'd I So performance really started to change

J. Mintzmyer

Yes.

think sense. realistic of And QX. for to have on looking it's sort makes thing. expectations It's nice really I important that just this

related How there. Gulf international I debt the much second repaid debt directly you give know the associated to excited us we're against just the tanker, your on you the an Coast? is Coast, Sun update Coast? with So Sun sold one. the that left Can

Dick Trueblood

million. round In about numbers, $XX

J. Mintzmyer

million. $XX

Okay. improved tanker at there. MR Good. nice you'll see mean, one values hopefully, The that and expansion equity be not, good year. there's the I cushion pretty next able program if security to But nicely. have operate to a it's look that

second to the your ballast we cash trough biggest mode. this free you're year, the at front that market like of looking water it's costs could We're your half loaded. are all Looking obvious of shift QX spending almost the drydock strong right now. is upgrades All flow front loaded. in

your of start cash very can valuations a defense, these ridiculous positive, are you shares for Is free that is or there valuations manner? -- mechanisms obviously, and remain today, at any If to these something shares all very but any like appetite share flow that? playing pull if to there it's or the remain correct QX at QX in low about these repurchase

Sam Norton

and in the that companies We've market opinion opinion, and general opinions. -- general differing is pay capacity looks is everybody the and opinion much volatile dividend this dividends sustained this says cyclical is historically my market historically to frequently my shipping a shipping shipping and or a is has been in pretty past. companies' that But questioned. dividends, get maintain asked the My that don't value for what market because question in

much the in So daily have share although that time be buybacks, money. terms buy like basis, shares Share long something averages, kind those get tax takes volumes a on and that. for the again, get the in can large a yes, shareholders that trade would to value the that's to of of of actually how do toolbox. regulation, much But terms the numbers that buyback you paying needle significant to sort a also It's dividend, be given our of program, we the to we to seat probably could of able move in actually inefficient shares. really don't that of limitations daily a in acquire of

as works So us really for I'm that, well. not certain that

you buying value, debt cash flow the theory, business an money if in that if then enterprise of believe to me return environment, reducing we towards like bias debt leads has same as reduction if pretty as your a the that paint ours shares. priority. materializes In impact back is picture order the that be will is first a of whatever probably that healthy as valued near term, direct to that So surplus the to

business the risk delevering expense. the the Your equity reducing interest more also, we of going that calculation. value less company And to It's for pay on because generates the is up extent. business, just some earnings level it

capital in flow. bit business near that to assets the still term. in in an little I'm for voice on And that deploy so, are in we I trying short believe as room cash said, that revenue, look the in the I us us say that. that conversations But past people probably the one lead to have on delever a of incremental generate more opportunities at, to would focus had that opinion there we've run incremental a would

the do in all I'm exist in energy about And would produced going to carbon new industry to larger we're with that view, next renewable over to opportunities, those. energy even years control the able into systems, around talking leaves. of are changes transported acquire to like that And to the and that. X assets first are much opportunities start my opportunities looking priority are propulsive emergence don't of try Those the So the start we that our going are the in But sector These how going over to and really would our the next do episodic. years, maybe and -- sort in issues footprint that or be have have how of comes in dealing in always look for at to evolution. have and so. changes next shipping States. opportunities to there whatever to be be that XX to be or participate with United how evolution spaces, there timing the we're to opportunities we're about in or adjacent able ideas

so up come those exist on agenda. they do questions longer-term our And and

capital So that would we in areas, opportunities something regular to. deploy are those there kind if give consideration to profitably of

J. Mintzmyer

can things to for get of different a free there. appreciate rundown at off, Sam, the I first but just look And you there. we Yes, have definitely lot cash.

Xx, to we're whatever that. Xx, want Every to your right? Xx XXx, X. Xx. QX U.S. it, at peer single that looking you And thing energy, forward if slice the they're looking is U.S. and logistics, to here you frustrating XXx, Xx, normalize transportation, only EBITDA, comps, So dice The EBITDA. traded are forward guys you to all one of and guys -- trade about enterprise you value guys you

do harp So the only kind of that's hearing on kind in of right really repurchases. reason I And now. defensive debt I we're like the a about I know reduction. spot

looking So the forward good half. second a better up and we're work, to much keep

Operator

remarks. over [Operator no Sam Instructions] questions, I have to we As the to would concludes like question-and-answer more Norton session. back turn this for conference our closing

Sam Norton

on we again thanks forward and Kate, speaking today's And in participating call. again you, look for Thank everyone to August. with you to

all you Thank We Until with able well. you. better to then. wishing to then, be news have you expect share to

Operator

now for today's you attending has concluded. Thank conference presentation. The

You may now disconnect.

Overseas Shipholding Group, Inc. - Ordinary Shares (OSG) 10 May 212021 Q1 Earnings call transcript