Executive Insights
Maritime Reporter interviewed leading executives from different disciplines of the maritime industry to speak to trends and challenges in the coming year.
Shipowner Morten Arntzen, President & CEO, Overseas Shipholding Group (OSG)
Morten Arntzen has been involved in the global shipping industry since 1979 and was appointed President and CEO of Overseas Shipholding Group in January 2004. Before joining OSG, he was CEO of American Marine Advisors, Inc. (AMA). Prior to AMA, he ran the Global Transportation Group for Chase Manhattan Bank (Chase), which held a $5 billion shipping portfolio. Chase pioneered the introduction of shipping companies to the high yield market and under Arntzen, was the largest arranger of shipping loans in the world. Arntzen holds a Bachelor of Arts degree from Ohio Wesleyan University and a master of international affairs degree from Columbia University. He has been an OSG Board member since 2004. MR Briefly describe your company. Arntzen OSG is a transparent, quality company that trades with its own ships. We want to be a leader in the four markets that we serve: Crude, Product, U.S. Flag and LNG; and are building quality, scale and size in what we do. In the U.S. flag market we will be the big gorilla. Gas is still a new business, but we are growing quickly. Transparency is particularly important today. I
Year in, year out, we have to be in the top quartile of industry standards, and we do this through a commitment to outfitting our ships with the most modern equipment, and in investing in crew training and retention. -- Morten Arntzen
think, regardless of where you are in the world, environmental oversight and regulations are growing stronger. Our clients must be able to say that they are working with reputable, financially stable companies. Transparency is also valuable when you are trying to recruit sailors and shore side personnel. MR What is your assessment of the business climate today? Arntzen Across our four business sectors, the business prospects are generally very healthy, but more volatile today. Fundamentally, the world needs more modern double hull ships, and refined products are traveling further than ever, from producing to consuming areas. It is a pretty interesting time for our industry. The greening of the world is good for good companies. MR What do you count as the biggest challenge(s) to your company's profitable operation? Arntzen Controlling and keeping expenses -- at sea and in construction -- in control is a constant challenge. Also, making sure that we are living up to our leading -- Gold Standard -- technical performance is important. Year in, year out, we have to be in the top quartile of industry standards, and we do this through a commitment to outfitting our ships with the most modern equipment, and in investing in crew training and retention. We are not aiming to be the cheapest, but we will be competitive. MR What do you count as the biggest Technical Challenge facing your company? Arntzen Recruiting and retaining crew for the ships.
OSG Fast Facts # of vessels, operating fleet # of newbuilds DWT, operating fleet DWT, newbuilds DWT, newbuilds, LNG OSG Financial Results Income Statement Data Shipping Revenue Time Charter Equivalent Revenues EBITDA Income from Vessel Operations Net Income Diluted Earnings Per Share Diluted Weighted Average Shares Outstanding Balance Sheet Data Cash Total Assets Long-term Debt Shareholders' Equity Key Ratios and Metrics Total Liquidity Liquidity Adjusted Debt to Total Capitalization Total Vessels Revenue Days
107 44 11,870,873 2,909,034 865,000 cu. m. (All info as of Oct. 29, 2007) 2006 1,047,403 992,817 595,065 378,544 392,660 9.92 2005 1,000,303 961,662 705,519 474,939 464,829 11.77 2004 810,335 789,581 655,248 463,780 401,236 10.24
39,586,035 39,506,332 39,176,253 2006 2005 2004 06,758 188,588 479,181 4,230,669 3,348,680 2,680,798 1,306,947 965,655 906,183 2,207,311 1,876,028 1,426,372 2006 2005 2004 2,100,000 1,442,000 700,000 14.8% 137 29,757 24.5% 107 30,477 50.3% 66 17,577
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January 2008
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