Maritrans Reports 2Q Earnings

Maritrans Inc. announced its second quarter financial results and declared its quarterly dividend. Net income for the quarter ended June 30, 2006 was $3.6m, or $0.30 diluted earnings per share, on revenues of $43.9m. This compares with net income of $7.2m, or $0.84 diluted earnings per share, on revenues of $46.3m for the quarter ended June 30, 2005, which included $4m received in connection with the settlement of the company's lawsuit with Penn Maritime, which was equivalent to approximately $0.30 diluted earnings per share, net of tax. Diluted earnings per share for the quarter ended June 30, 2006 includes a $0.01 increase as a result of the company's decision in the second quarter to account for major maintenance through the deferral method instead of the accrual method which the company previously used. Operating income for the quarter ended June 30, 2006 was $4.8m compared to $8m for the quarter ended June 30, 2005. During the second quarter of 2006, the company delivered 21 million barrels of crude oil to lightering customers compared to 23.9 million barrels delivered during the first quarter of 2006, which was primarily a result of ongoing refinery maintenance at one Delaware River refinery and changes in the crude oil sourcing patterns of two lightering customers. On a Time Charter Equivalent (TCE) basis, revenue was $33.6m for the quarter ended June 30, 2006 compared to $34.7m for the quarter ended June 30, 2005, a decrease of $1.1m or 3.2 percent. During the second quarter of 2006, the company experienced lower overall utilization than in the second quarter of 2005. Utilization for the second quarter of 2006 was 77.5 percent compared to 81.8 percent in the second quarter of 2005.