Insiders are Buying Overseas Shipholding Group Inc. NYSE:OSG
Overseas Shipholding Group Inc. NYSE:OSG has seen a flurry of insider buying with 5 insiders making significant purchases since June 3.
CEO Morten Arntzen bought about $105,000 worth of shares on June 15 after previously buying about $84,000 on June 8.
Overseas Shipholding Group, Inc. (OSG) is a bulk shipping company engaged in the ocean transportation of crude oil and petroleum products. During the year ended December 31, 2009, the Company owned or operated a fleet of 106 vessels (aggregating 10.9 million deadweight tons and 864,800 cubic meters), of which 84 vessels operated in the international market and 22 operated in the United States Flag market. OSG’s newbuilding program of owned and chartered-in vessels totaled 23 international and United States Flag vessels, bringing the Company’s total operating and newbuild fleet to 129 vessels. OSG’s vessel operations are organized into business units and focused on market segments each serve: crude oil, refined petroleum products, United States Flag vessels and gas. The International Flag Crude Tanker unit manages International Flag ultra large crude carrier (ULCC), very large crude carrier (VLCC), Suezmax, Aframax and Panamax tankers; the International Flag Product Carrier unit manages Panamax and Handysize Product Carriers; the United States Flag unit manages United States Flag vessels, and the Gas unit had four liquefied natural gas (LNG) carriers under management, as of December 31, 2009.
In December 2009, Overseas Shipholding Group, Inc. announced that its wholly owned subsidiary OSG Bulk Ships, Inc. acquired the remaining interest in OSG America L.P. As of July 29, 2009, OSG and its affiliates held approximately 77.1% of the outstanding equity of OSG America L.P. OSG’s customers include independent and state-owned oil companies, oil traders, and United Sates and international government entities.
International Fleet Operations
Tankers International was formed by OSG and other tanker companies in order to pool the commercial operation of their modern VLCC fleets. As of December 31, 2009, Tankers International had eight participants and managed a fleet of 40 VLCC’s and ULCC’s that trade throughout the world, including all 19 of the Company’s ULCC and VLCC owned and chartered-in vessels. As of December 31, 2009, Suezmax International managed a fleet of six Suezmaxes, including all three of the Company’s owned and chartered-in vessels. As of December 31, 2009, there were eight participants in Aframax International and the pool commercially managed 48 vessels, including 20 of the Company’s owned and chartered-in vessels. Aframax International’s vessels generally trade in the Atlantic Basin, North Sea and the Mediterranean. Panamax International provides the commercial management of the Panamax fleets of its three participants. As of December 31, 2009, Panamax International managed a fleet of 27 modern Panamaxes, which includes six of the Company’s crude Panamaxes and two of its Panamax Product Carriers, as well as three crude Panamaxes that are time chartered to one of the pool partners.
International Product Carriers constitutes one of the Company’s business segments and is made up of a diverse International Flag and United States Flag fleet that transport refined petroleum products worldwide. The fleet, consisting of 33 medium-range product carriers and five long-range Panamax coated tankers (LR1), gives OSG the ability to provide a range of services to global customers. Refined petroleum product cargoes are transported from refineries to consuming markets and are characterized by both long- and short-haul routes. Gas constitutes one of the Company’s business units, which transports two energy sources: liquefied natural gas and compressed natural gas.
U.S. Flag Fleet Operations
OSG is a commercial owner and operator of Jones Act vessels in the United States. As of December 31, 2009, OSG’s owned, operated and newbuild fleet aggregated 129 vessels. Of this total, 101 vessels are International Flag and 28 vessels are U.S. Flag. The acquisition of Maritrans Inc., gave OSG a presence in all United States trading routes, such as intra United States Gulf, United States Gulf to the East Coast, United States Gulf to the West Coast, the Alaskan North Slope trades and the Delaware Bay. OSG has a presence in the Alaskan North Slope trade through its 37.5% equity interest in Alaska Tanker Company, LLC (ATC).
The Company competes with Frontline Ltd., BW Group Ltd., Mitsui OSK Lines, Ltd., Nippon Yusen Kabushiki Kaisha, VELA International Marine Ltd., Kristen Navigation Inc., Dynacom Tankers Management, Ltd., Thenamaris Ships Management, Inc., Delta Tankers Ltd., OAO Sovcomflot, Teekay Corporation, General Maritime Corporation, Sigma Tankers Inc., Star Tankers Inc., A/S Dampskibsselskabet Torm, Scorpio Pool Management S.A.M., Glencore International AG, Handytankers K/S, Vitol Group, Trafigura, Seacor Holdings Inc., Crowley Maritime Corporation and U.S. Shipping Partners L.P.
Valuation Ratios
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| P/E Ratio (TTM) | – | 99.93 | 14.08 | 16.67 |
| P/E High – Last 5 Yrs. | 16.83 | 73.96 | 26.43 | 99.64 |
| P/E Low – Last 5 Yrs. | 3.95 | 6.37 | 15.49 | 12.52 |
| Beta | 1.29 | 1.04 | 0.84 | 1.25 |
| Price to Sales (TTM) | 0.80 | 6.23 | 13.14 | 2.14 |
| Price to Book (MRQ) | 0.47 | 3.00 | 1.72 | 3.09 |
| Price to Tangible Book (MRQ) | 0.49 | 2.98 | 1.84 | 5.29 |
| Price to Cash Flow (TTM) | 71.39 | 11.65 | 16.77 | 9.88 |
| Price to Free Cash Flow (TTM) | – | 3.45 | 9.95 | 60.10 |
| % Owned Institutions | – | – | – | – |
Dividends
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| Dividend Yield | 6.44 | 2.50 | 2.03 | 1.94 |
| Dividend Yield – 5 Year Avg. | 2.80 | 3.08 | 1.25 | 2.44 |
| Dividend 5 Year Growth Rate | 20.11 | 0.43 | 3.80 | -3.31 |
| Payout Ratio(TTM) | – | 39.35 | 11.39 | 32.89 |
Growth Rates
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| Sales (MRQ) vs Qtr. 1 Yr. Ago | -2.26 | 31.73 | 33.04 | 8.32 |
| Sales (TTM) vs TTM 1 Yr. Ago | 0.09 | 11.66 | 32.47 | 9.95 |
| Sales – 5 Yr. Growth Rate | 0.89 | 18.62 | 13.93 | 7.69 |
| EPS (MRQ) vs Qtr. 1 Yr. Ago | -239.51 | 67.34 | 139.73 | 44.35 |
| EPS (TTM) vs TTM 1 Yr. Ago | -134.80 | – | – | – |
| EPS – 5 Yr. Growth Rate | – | 10.37 | 8.55 | 5.16 |
| Capital Spending – 5 Yr. Growth Rate | 89.34 | 7.18 | 11.24 | 3.70 |
Shayne Heffernan
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
For More Information Contact
Chutinush Taksinapinunt (ANISTA)
Business Development Director
Heffernan Capital Management
Join the HCM Sophisticated Investor List
Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND
Tel: +66 2 126 8045
Fax: +66 2 126 8080
Mobile: +66 8 5997 0635
Email : info@heffcap.com
New York
347 5th Avenue, Suite 1402-508 NY, NY 10016
Tel: +1 646-403-9881
Fax: +1 646-403-8014
Singapore
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699