OSG Reports 2Q Results

July 25, 2007

For the quarter ended June 30, 2007, Time Charter Equivalent (TCE) revenues were $274.2m, an increase of 27% from $216.3 million for the same period of 2006. The increase reflects the acquisitions of Maritrans in November 2006 and the Heidmar Lightering business in April 2007 and an increase in average daily TCE rates for VLCCs and Handysize Product Carriers. EBITDA(1) for the quarter increased 36% to $148.5 million from $109.1 million in the comparable period of 2006. Net income for the period increased 31% to $79.0 million, and diluted EPS increased 50% to $2.28 per share compared with $60.2 million, or $1.52 per diluted share, for the same period a year ago. Net income in the current quarter benefited from the sale of the remaining 8.7 million shares of Double Hull Tankers, Inc., in which OSG held a minority interest, which resulted in a gain of approximately $26.3 million, or $0.49 per diluted share, versus a gain on sale of securities of $3.9 million, or $0.06 per diluted share, in the same period a year ago. In addition, net income in the second quarter of 2007 reflected a gain on vessel sales of $5.6 million, or $0.16 per diluted share, compared with a loss a $3.5 million, or $0.07 per diluted share, in the comparable period of 2006. Period-over-period diluted EPS also benefited from the company's repurchase of 17.4% of total shares outstanding since September 2006.

OSG Reports 2Q Results

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