Executive Summary

Q1 2024 delivered steady growth: shipping revenues rose to $117.5M (+3.3% y/y, +1.3% q/q), diluted EPS was $0.19 (+35.7% y/y), and Adjusted EBITDA reached $43.9M (+7.3% y/y) .
Mix tailwinds: higher average daily rates, stronger Delaware Bay lightering volumes, and fewer repair days offset a 22-day increase in drydock days; operating income improved to $23.5M (+4.2% y/y) .
Management reiterated a constructive market backdrop tied to durable international freight rates that indirectly support Jones Act demand; the Board paid a second $0.06 quarterly dividend in April and OSG exercised a 5-year extension option for Overseas Tampa (2025–2030) .
No formal quantitative guidance; consensus from S&P Global was unavailable in our feed for OSG, so no beat/miss call can be made against Street numbers (S&P Global consensus mapping not available).

What Went Well and What Went Wrong

What Went Well

EPS and earnings power: diluted EPS increased 35.7% y/y to $0.19; Adjusted EBITDA rose to $43.9M (+$3.0M y/y), driven primarily by higher TCE revenues .
Pricing and volumes: management cited higher average daily rates and increased Delaware Bay lightering volumes as key drivers of the revenue/TCE uplift; repair days were lower by five days y/y .
Strategic tone and shareholder returns: CEO emphasized “steadily improving cashflow and profitability” and highlighted the second quarterly dividend; “the Board expressed its confidence by declaring a second quarterly dividend at the end of March” .

What Went Wrong

Operational headwinds from drydock/repositioning: Q1 included a 22-day increase in drydock days, which moderated revenue growth despite rate and volume tailwinds .
General and administrative expense step-up: G&A rose to $10.4M vs $7.8M in Q1’23, partly pressuring operating leverage (implied by the income statement) .
TCE performance mixed across assets: realized rates and revenue days varied by segment; e.g., international MR spot rates were lower vs the prior year in the non‑Jones Act fleet, and total revenue days fell to 1,731 (from 1,772) .

Financial Results

Core results vs prior periods (GAAP unless noted)

Metric	Q1 2023	Q4 2023	Q1 2024
Shipping Revenues ($M)	$113.8	$116.0	$117.5
Time Charter Equivalent (TCE) Revenues ($M, non‑GAAP)	$104.7	$110.1	$110.7
Operating Income ($M)	$22.5	$25.9	$23.5
Net Income ($M)	$12.1	$20.4	$14.6
Diluted EPS ($)	$0.14	$0.26	$0.19
Adjusted EBITDA ($M, non‑GAAP)	$40.9	$47.3	$43.9

Note: TCE revenues and Adjusted EBITDA are non‑GAAP measures; see company-provided reconciliations .

Segment economics – Vessel Operating Contribution (non‑GAAP)

($M)	Q1 2023	Q1 2024
Specialized businesses	$29.6	$31.3
Jones Act MR tankers	$9.4	$11.3
Jones Act ATBs	$7.4	$9.2
Total Vessel Operating Contribution	$46.4	$51.8

KPIs – TCE rates and revenue days

Category	Avg Rate Q1 2023	Rev Days Q1 2023	Avg Rate Q1 2024	Rev Days Q1 2024
Jones Act MR Product Carriers – Fixed	$64,417	847	$70,975	866
Non‑Jones Act MR Product Carriers – Spot	$41,384	246	$27,391	182
Non‑Jones Act MR Product Carriers – Fixed	$33,319	14	$53,451	91
ATBs – Fixed	$42,479	265	$47,992	273
Lightering – Spot	$104,512	90	$126,069	91
Alaska – Fixed	$60,115	270	$64,937	228
Total revenue days	1,772		1,731

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/EPS/EBITDA guidance	2024	Not provided	Not provided	N/A (no formal guidance)
Dividend per share (quarterly)	Ongoing	$0.06 declared Dec 6, 2023; paid Jan 4, 2024	$0.06 declared Mar 14, 2024; paid Apr 10, 2024	Maintained
Bareboat charter – Overseas Tampa	Jun 2025–Jun 2030	Option available	5‑year option exercised	Extended

Earnings Call Themes & Trends

Topic	Q-2 (Q3 2023)	Q-1 (Q4 2023)	Current (Q1 2024)	Trend
Market backdrop, rates, and demand	Strong refining margins and international tanker rates supported TSP vessels; lightering volumes boosted performance .	“Strong fundamentals” and >$860M forward charter book value as of early March 2024; multiple new fixtures added .	Durable international freight rates seen as supportive of Jones Act demand; constructive outlook reiterated .	Supportive and durable
Contract coverage / forward book	90% of 2024 available trading days for Jones Act fleet fixed; expected TCE >$30M/month through YE 2024 .	Expanded forward charter cover; employed Alaskan Explorer into new trade lane .	Continued constructive tone; specific % coverage not reiterated on release .	Stable/positive
Operational cadence (drydock/repositioning)	Increased drydock days y/y; fewer vessels vs 2022 .	Drydock days up; fleet realignment continues .	22 more drydock days moderated revenue; repositioning discussed on call .	Transitional but manageable
Regulatory/macro (CARB, geopolitics)	N/A in release context.	N/A in release context.	Discussed CARB Tier 4 implications and West Coast capacity dynamics in Q&A; geopolitical disruptions sustaining int’l freight rates .	Watchlist, potentially supportive
Sustainability / efficiency initiatives	N/A in release context.	N/A in release context.	Efficiency steps: robotic hull cleaning, graphene propeller coatings, silicone hull paints (prepared remarks) .	Incremental progress

Management Commentary

“OSG’s first quarter results continued the recent trend of steadily improving cashflow and profitability… the Board expressed its confidence by declaring a second quarterly dividend at the end of March.” — Sam Norton, President & CEO .
“Disruptions to historical trading patterns… have kept international freight markets at or near historical highs… with positive implications for our Jones Act vessels.” — Sam Norton .
Prepared remarks highlighted efficiency initiatives (robotic hull cleaning, graphene-based propeller coatings, silicone-based hull paints) as part of emissions-reduction targets .

Q&A Highlights

Renewable diesel trade: Management described growing Gulf Coast production and the potential for 6–10 vessels dedicated to the trade in the medium term, supportive for Jones Act utilization .
International MR realized rates: Weaker realized rates tied to repositioning and contract timing under the Government of Israel contract; limited MSC preference cargoes in the quarter .
CARB Tier 4 impacts: If West Coast ATBs must meet Tier 4 and reposition to the Gulf, OSG expects MR tankers could backfill West Coast demand, with near-term inefficiencies from lot-size mismatches .
Expense cadence: G&A reflected above-target performance compensation and professional fees for evaluating a non-binding acquisition offer; management characterized these as unique and not indicative of forward run-rate .
Transaction context: Management noted the Board’s ongoing evaluation of Saltchuk’s non-binding $6.25/share indication of interest and declined further comment during Q&A .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue was unavailable in our S&P Global feed (missing mapping), so we cannot assess a beat/miss against Street numbers (no alternative validated consensus identified) [SpgiEstimatesError returned by tool].
Results context vs company trajectory: Revenue and EPS improved y/y; TCE revenues improved sequentially and y/y; Adjusted EBITDA increased y/y but declined sequentially vs Q4’s seasonally strong base .

Key Takeaways for Investors

Constructive demand backdrop: Durable international freight rates and geopolitical disruptions continue to indirectly bolster Jones Act demand, supporting rate strength and utilization .
Balanced execution amid maintenance cycle: Q1 grew revenues despite 22 more drydock days; investors should expect periodic noise from drydocks and repositioning but resilient underlying earnings capacity .
Non‑GAAP momentum: TCE revenue and Vessel Operating Contribution indicate solid commercial performance across specialized businesses, MR tankers, and ATBs .
Shareholder returns and capital allocation: Second consecutive $0.06 quarterly dividend and extension of Overseas Tampa underpin confidence and earnings visibility into 2025–2030 .
Potential corporate catalyst: Ongoing Saltchuk process is a key stock narrative driver pending further disclosure; management provided no updates on the call .
Watch regulatory dynamics: CARB Tier 4 requirements could reshape West Coast product logistics; near-term inefficiencies possible, but OSG views capacity substitution as feasible .
Expectations management: With no formal guidance and unavailable S&P Global consensus, focus on sequential TCE progression, coverage of available trading days, and the forward charter book trajectory as proxies for near-term earnings power .

Sources

Q1 2024 8‑K/press release (full): shipping revenues, TCE revenues, income statement, balance sheet, cash flow, non‑GAAP reconciliations, segment KPIs, dividend, Overseas Tampa extension .
Q4 2023 8‑K/press release (prior quarter): results, forward charter book commentary .
Q3 2023 8‑K/press release (Q‑2): results and forward coverage commentary .
Q1 2024 earnings call transcript (third‑party hosts): Seeking Alpha and others for prepared remarks and Q&A color .

Non‑GAAP measures (TCE revenues, Vessel Operating Contribution, Adjusted EBITDA) are company-defined; see reconciliations in the filings and press releases .

OVERSEAS SHIPHOLDING GROUP INC (OSG)·Q1 2024 Earnings Summary