Overseas Shipholding Group, Inc. engages in the provision of energy transportation services for crude oil and petroleum products in the U.S. Flag markets. It operates Articulated Tug Barges (ATB), lightering ATBs, shuttle tankers, Medium Range (MR) tankers, and non-Jones Act MR tankers that participate in the maritime security program. The company was founded in 1948 and is headquartered in Tampa, FL.
The highly cyclical nature of supply and demand in the industry may lead to volatile changes in charter rates and vessel values, which could adversely affect the Company’s earnings, liquidity and available cash.
An increase in the supply of Jones Act vessels without a commensurate increase in demand for such vessels could cause charter rates to decline, which could adversely affect OSG’s revenues, profitability and cash flows, as well as the value of its vessels.
OSG conducts certain of its operations internationally, which subjects the Company to changing economic, political and governmental conditions abroad that may adversely affect its business.
Changes in fuel prices may adversely affect profits.
Shipping is a business with inherent risks, and OSG’s insurance may not be adequate to cover its losses.
Constraints on capital availability have adversely affected the tanker industry and OSG’s business.
Public health threats could have an adverse effect on the Company’s operations and financial results.
Acts of piracy on ocean-going vessels could adversely affect the Company’s business.
Terrorist attacks and international hostilities and instability can affect the tanker industry, which could adversely affect OSG’s business.
As a result of the spin-off of INSW on November 30, 2016, OSG’s historical financial information may not be a reliable indicator of OSG’s future financial results and the spin-off may adversely affect OSG’s business.
OSG has incurred significant indebtedness which could affect its ability to finance its operations, pursue desirable business opportunities and successfully run its business in the future, all of which could affect OSG’s ability to fulfill its obligations under that indebtedness.
The Company may not be able to generate sufficient cash to service all of its indebtedness, and could in the future breach covenants in its credit facilities and term loans.
Changes in demand in specialized markets in which the Company currently operates or changes in governmental support may lead the Company to redeploy certain vessels to other markets or put its ability to participate in specialized markets at risk.
In the highly competitive Jones Act market, OSG may not be able to compete effectively for charters.
OSG may not be able to renew Time Charters when they expire or enter into new Time Charters.
OSG may not realize the benefits it expects from future acquisitions or other strategic transactions it may make.
The Company derives a substantial portion of its revenue from a limited number of customers, and the loss of, or reduction in business by, any of these customers could materially adversely affect its business, financial condition and results of operations.
Certain potential customers will not use vessels older than a specified age, even if the vessels have been subsequently rebuilt.
The Company’s significant operating leases could be replaced on less favorable terms or may not be replaced.
The Company is subject to credit risks with respect to its counterparties on contracts, and any failure by those counterparties to meet their obligations could cause the Company to suffer losses on such contracts, decreasing revenues and earnings.
Operating costs and capital expenses will increase as the Company’s vessels age and may also increase due to unanticipated events relating to secondhand vessels and the consolidation of suppliers.
The Company may face unexpected drydock costs for its vessels.
Technological innovation could reduce the Company’s charter income and the value of the Company’s vessels.
Interruption, failure or breach of OSG’s information technology and communications systems could impair its ability to operate and adversely affect its business.
Delays or disruptions in implementing new technological and management systems could impair the Company’s ability to operate and adversely affect its business.
We could face significant liability if one or more multiemployer plans in which we participate is reported to have underfunded liabilities and we withdraw from participation in one or more multiemployer pension plans in which we participate.
The Company may have difficulty attracting and retaining skilled employees and is dependent on unionized employees.
Effective internal controls are necessary for the Company to provide reliable financial reports and effectively prevent fraud.
We may be adversely affected by changes in U.S. tax laws.
The Company’s business would be adversely affected if it failed to comply with the Jones Act’s limitations on U.S. coastwise trade, or if these limitations were waived, modified or repealed, or if changes in international trade agreements were to occur.
The U.S. government could requisition the Company’s vessels during a period of war or emergency, which may negatively impact the Company’s business, financial condition, results of operations and available cash.
Compliance with complex laws, regulations, and, in particular, environmental laws or regulations may adversely affect OSG’s business.
The employment of the Company’s vessels could be adversely affected by an inability to clear the oil majors’ risk assessment process.
The Company may be subject to litigation and government inquiries or investigations that, if not resolved in the Company’s favor and not sufficiently covered by insurance, could have a material adverse effect on it.
Maritime claimants could arrest OSG’s vessels, which could interrupt cash flows.
Transfers or issuances of the Company’s equity may impair or reduce the Company’s ability to utilize its net operating loss carryforwards and certain other tax attributes in the future.
The ability to sell warrants may be limited and the exercise of outstanding warrants may result in substantial dilution to the Company’s stockholders.
The Company’s common stock is subject to restrictions on foreign ownership, which could have a negative impact on the transferability of the Company’s common stock, its liquidity and market value, and on a change of control of the Company.
OSG is a holding company and depends on the ability of its subsidiaries to distribute funds to it in order to satisfy its financial obligations or pay dividends.
Some provisions of Delaware law and the Company’s governing documents could influence its ability to effect a change of control.
Securities analysts may not initiate coverage or continue to cover the Company’s securities, and this may have a negative impact on their market price.