(OSG) 2022 Q3 法說會逐字稿

good afternoon. Welcome to the Overseas Shipholding Group Third Quarter 2022 Earnings Release Conference Call. My name is Adam, and I'll be your operator for today. (Operator Instructions)

下午好。歡迎來到海外船舶控股集團 2022 年第三季度收益發布電話會議。我叫亞當，今天我將是你的接線員。 （操作員說明）

I will now hand over to Sam Norton to begin. So Sam, please go ahead when you are ready.

我現在將交給 Sam Norton 開始。所以 Sam，請在您準備好後繼續。

Thank you, Adam. It's a beautiful morning here in Tampa, Florida, providing an appropriate backdrop for Dick Trueblood and I to share with you our presentation of OSG 2022 third quarter results. Thank you for listening in and for allowing us to share with you details as to the current state of our business and to other additional commentary and insight into the opportunities and challenges that lie ahead.

謝謝你，亞當。這是佛羅里達州坦帕市一個美麗的早晨，為 Dick Trueblood 和我與大家分享我們對 OSG 2022 第三季度業績的介紹提供了合適的背景。感謝您收聽並允許我們與您分享有關我們業務現狀的詳細信息，以及其他評論和對未來機遇和挑戰的見解。

I would like to welcome in particular, regular participants on this call who have exhibited commendable patients in maintaining their interest in OSG during what has been a challenging emergence from the market disruptions occasioned by COVID-19. To start, I would like to direct everyone's attention to the narrative on Pages 2 and 3 of the PowerPoint presentation available on our website regarding forward-looking statements, estimates and other information that may be provided during the course of this call. The contents of that narrative are an important part of this presentation, and I urge everyone to read and consider them carefully.

我要特別歡迎本次電話會議的常客，他們在 COVID-19 引起的市場混亂中充滿挑戰的情況下，表現出值得稱讚的患者保持對 OSG 的興趣。首先，我想提請大家注意我們網站上提供的 PowerPoint 演示文稿第 2 頁和第 3 頁的敘述，其中涉及前瞻性陳述、估計和本次電話會議期間可能提供的其他信息。那個敘述的內容是本次演講的重要組成部分，希望大家仔細閱讀和思考。

We will be offering you more than just the historical perspective on OSG today, and our presentation includes forward-looking statements, including statements about anticipated future results. These statements are subject to uncertainties and risks. Actual results may differ materially from those contemplated by our forward-looking statements and could be affected by a variety of risk factors, including factors beyond our control.

我們今天將為您提供的不僅僅是 OSG 的歷史觀點，我們的演示文稿包括前瞻性陳述，包括關於預期未來結果的陳述。這些陳述受不確定性和風險的影響。實際結果可能與我們的前瞻性陳述中預期的結果存在重大差異，並可能受到各種風險因素的影響，包括我們無法控制的因素。

For a discussion of these factors, we refer you to our Form 10-Q for the third quarter of 2022 filed yesterday and available at the SEC's Internet site, www.sec.gov as well as on our own website, www.osg.com. Forward-looking statements in this presentation speak only as of the date of these materials, and we do not assume any obligation to update any forward-looking statements, except as may be legally required.

有關這些因素的討論，請參閱昨天提交的 2022 年第三季度 10-Q 表格，該表格可在美國證券交易委員會的網站 www.sec.gov 以及我們自己的網站 www.osg.com 上獲取.本演示文稿中的前瞻性陳述僅在這些材料發布之日起生效，除法律要求外，我們不承擔任何更新任何前瞻性陳述的義務。

In addition, our presentation today includes certain non-GAAP financial measures, which we define and reconcile to the most closely comparable GAAP measure in our earnings release, which is also posted on our website. Financial results achieved during the past quarter provide a welcome affirmation of our long-held belief in the viability of OSG's business strategy, exceeding our expectations and demonstrating strength through the balance of the year and into 2023.

此外，我們今天的介紹包括某些非 GAAP 財務指標，我們在我們的收益發布中定義並與最接近可比的 GAAP 指標相協調，該指標也發佈在我們的網站上。上個季度取得的財務業績令人欣慰地證實了我們長期以來對 OSG 業務戰略可行性的信念，超出了我們的預期，並在今年剩餘時間和 2023 年展示了實力。

Our niche businesses, in particular, delivered stellar results for the quarter, adding meaningfully to the continuing rebound seen in the time charter equivalent returns of our conventional tankers and ATBs.

特別是我們的利基業務在本季度取得了出色的業績，對我們傳統油輪和 ATB 的定期租船等價回報的持續反彈起到了重要作用。

Adjusted EBITDA of $42.3 million generated $14 million of free cash flow for the period, clearly, the best performance on that measure in many years. Our expectations for future financial performance appear to provide continuing evidence of the benefits of having both our niche and conventional trading businesses healthy and profitable at the same time. OSG vessels are essentially fully committed well into the middle of next year, with only our internationally trading MRs with exposure to the spot market. Even that limited spot market exposure were more likely than not prove to be beneficial in the months ahead, given the currently strong MR rates obtainable and nationally.

調整後的 EBITDA 為 4230 萬美元，在此期間產生了 1400 萬美元的自由現金流，顯然，這是多年來該指標的最佳表現。我們對未來財務業績的預期似乎持續證明了我們的利基和傳統貿易業務同時保持健康和盈利的好處。到明年年中，OSG 船舶基本完全投入使用，只有我們的國際貿易 MR 能夠接觸現貨市場。鑑於目前在全國范圍內可獲得的強勁 MR 利率，即使是有限的現貨市場敞口也更有可能在未來幾個月被證明是有益的。

Considering only our Jones Act assets, 92% of available vessel operating days are covered for all of 2023. Cash flows derived from the shift to profitable charters among our conventional tankers and the steady and strong earnings provided by our niche market activities are contributing and should continue for the foreseeable future to continue to contribute, not only profits as reflected on our GAAP reported income statements but also to improving the quality of OSG's balance sheet.

僅考慮我們的《瓊斯法案》資產，2023 年全年 92% 的可用船舶運營天數都已涵蓋。我們的傳統油輪轉向盈利包租所產生的現金流以及我們的利基市場活動提供的穩定而強勁的收益正在做出貢獻，並且應該在可預見的未來繼續做出貢獻，不僅體現在我們的 GAAP 報告損益表中的利潤，而且還有助於提高 OSG 資產負債表的質量。

I will defer to Dick to take you through the details behind these headline results. I will focus my comments on the broader current market environment and the impact that what many observers are calling an emerging energy crisis is having and will likely have in the future on OSG's business. To state the obvious, OSG's business is largely a domestic business closely integrated with the distribution needs of domestic producers of crude oil and refined products.

我會請 Dick 帶您了解這些標題結果背後的細節。我將重點關注更廣泛的當前市場環境，以及許多觀察家所稱的新興能源危機正在對 OSG 業務產生的影響以及未來可能產生的影響。顯而易見，OSG 的業務主要是國內業務，與國內原油和成品油生產商的分銷需求緊密結合。

Some would then surmise that OSG should be largely immune to the major disruptions to energy supply chains and transportation price volatility witnessed in the international tanker markets of late. The United States is a large producer of natural gas, crude oil and refined petroleum products. Shouldn't such energy independence prove insulation or provide insulation from the chaos and foreign markets. Understanding 2 things help answer this question. The first, energy is largely an undifferentiated commodity that is priced globally at the marginal cost of the delivered price. The second, the marginal cost of energy's delivered price is all about location, location, location and the availability of transportation links to connect surplus supply with markets that are in need.

然後有人會推測，OSG 應該在很大程度上不受最近國際油輪市場上能源供應鏈的重大中斷和運輸價格波動的影響。美國是天然氣、原油和精煉石油產品的生產大國。這種能源獨立性難道不應該證明與混亂和外國市場絕緣或提供絕緣嗎？了解兩件事有助於回答這個問題。首先，能源在很大程度上是一種無差別的商品，在全球範圍內以交付價格的邊際成本定價。其次，能源交付價格的邊際成本完全取決於位置、位置、位置以及將過剩供應與有需要的市場連接起來的交通連接的可用性。

Ships and ports are the enabling vehicles for intercontinental trade. If the cost of shipping allows a trader to buy product domestically and sell it overseas at a delivered cost that generates a profit then the product will move to the market that offers the higher price. The intercontinental trade of energy products is ruthlessly efficient in seeking out and closing these price arbitrage opportunities. Prior to 2016, the U.S. was for all intents and purposes an energy island, insulated from the international energy market. Export of U.S.-produced crude oil was legally banned. Refined product exports were made only in small amounts. LNG export facilities were not in service. Over the past 6 years, market and regulatory changes have radically altered this landscape, allowing U.S. energy products to participate in international markets more actively. This increase in the access to international markets has been a net positive for domestic energy producers and the shippers who enable the flow of goods.

船舶和港口是洲際貿易的促成工具。如果運輸成本允許貿易商在國內購買產品並以產生利潤的交付成本將其銷售到海外，那麼產品將轉移到提供更高價格的市場。能源產品的洲際貿易在尋找和關閉這些價格套利機會方面非常有效。在 2016 年之前，美國在所有意圖和目的上都是一個能源孤島，與國際能源市場隔絕。法律禁止出口美國生產的原油。精煉產品的出口量很小。液化天然氣出口設施未投入使用。在過去的 6 年裡，市場和監管的變化從根本上改變了這一格局，使美國能源產品能夠更積極地參與國際市場。國際市場准入的增加對國內能源生產商和促進貨物流動的托運人來說是一個淨積極因素。

The side effect of this, however, has been to make energy independence a chimera. Under current laws, irrespective of where natural gas, crude oil and refined products are produced U.S. consumers are more and more subject to competing demands from foreign markets, a development which helps explain current low product inventory levels and why local prices are rising despite the fact that the U.S. is the largest producer of these products.

然而，這樣做的副作用是使能源獨立成為幻想。根據現行法律，無論天然氣、原油和精煉產品的產地如何，美國消費者越來越多地受到來自國外市場的競爭需求的影響，這一發展有助於解釋目前的產品庫存水平較低，以及儘管事實如此，但當地價格仍在上漲美國是這些產品的最大生產國。

The opening up of international markets to U.S. energy producers has thus reduced the level of insulation that OSG ships have from international events. The ability for a trader to choose most profitable trade, a domestic sale versus an international sale means that Jones Act vessels are indirectly competing with foreign flag vessels for the transport of domestically produced energy products. The existing and pending economic sanctions against Russia limit many OECD countries from purchasing Russian oil and gas, creating supply shortages and considerable uncertainty in international energy markets.

因此，向美國能源生產商開放國際市場降低了 OSG 船舶對國際事件的隔離程度。貿易商選擇最有利可圖的貿易、國內銷售與國際銷售的能力意味著瓊斯法案的船隻在運輸國內生產的能源產品方面間接地與懸掛外國國旗的船隻競爭。對俄羅斯的現有和未決經濟制裁限制了許多經合組織國家購買俄羅斯的石油和天然氣，造成供應短缺和國際能源市場的相當大的不確定性。

The wide profit margin accompany this uncertainty have had the effect of drawing record levels of domestically produced oil and gas products overseas. Last week, the EIA disclosed nearly 11.5 million barrels of crude oil and refined products per day were exported during the week ended October 21. These are truly astounding export figures, an increase of over 30% when compared with the average volumes exported last year and a 240% increase from the average export volumes seen in 2015. The elevated interplay between domestic and international energy transport costs and the visible contrast between record exports on the one hand and record low domestic product inventories on the other has 2 important implications for OS.

伴隨著這種不確定性而來的巨大利潤率已經使國內生產的石油和天然氣產品的海外銷售創下歷史新高。上週，EIA 披露，在截至 10 月 21 日的一周內，每天出口近 1150 萬桶原油和成品油。這些出口數據確實令人震驚，與去年的平均出口量相比增長了 30% 以上，與 2015 年的平均出口量相比增長了 240%。國內和國際能源運輸成本之間相互作用的增加以及一方面創紀錄的出口與另一方面創紀錄的低國內產品庫存之間的明顯對比對 OS 有兩個重要影響。

First, it creates rising pressure for intervention to waive existing domestic maritime regulations, opening a wide chasm of moral hazard for those wishing to exploit political expediency. If traders were our key economic actors in the domestic energy transportation ecosystem are rewarded with Jones Act waivers whenever conditions appear favorable to ask for one, they will no longer see the need to guard against risks by planning and entering into time charters, and we'll act accordingly, increasing overall systemic risk with little or no consequence to themselves.

首先，它造成了越來越大的干預壓力，要求放棄現有的國內海事法規，為那些希望利用政治權宜之計的人打開一個巨大的道德風險鴻溝。如果貿易商是我們在國內能源運輸生態系統中的主要經濟參與者，只要條件看起來有利，就會獲得瓊斯法案豁免，他們將不再認為需要通過計劃和簽訂定期租船合同來防範風險，而且我們'他們會相應地採取行動，增加整體系統性風險，而對自己的影響很小或沒有影響。

Waivers perniciously undermine conditions meant to ensure long-term visibility and stability in the availability and delivery of vital energy products, allowing profit-motivated actors to occasionally operate outside these rules with little downside risk and with the promise of windfall profits will undoubtedly cause great harm to the communities these rules are intended to benefit and protect. Grants of waivers in any, but the most extreme conditions should thus be assiduously avoided.

豁免有害地破壞了旨在確保重要能源產品的可用性和交付的長期可見性和穩定性的條件，允許以利潤為動機的行為者偶爾在這些規則之外運作，幾乎沒有下行風險，並承諾暴利無疑會造成巨大傷害對於社區來說，這些規則旨在造福和保護社區。因此，應極力避免在任何但最極端的條件下給予豁免。

Second, if only indirectly, the increased influence of foreign tanker rates on domestic trade has the effect of increasing volatility in demand for our conventional tankers. While heightened volatility is not always a negative development, the related lack of visibility of forward earnings suggests higher risks. This development, to a large degree, explains our rationale for electing not to extend 3 MR tankers leased from American Shipping Company.

其次，如果只是間接的話，外國油輪運價對國內貿易的影響增加會增加對我們常規油輪的需求波動。雖然波動加劇並不總是不利的發展，但相關的遠期收益可見性不足表明風險更高。這一發展在很大程度上解釋了我們選擇不延長從美國航運公司租用的 3 艘 MR 油輪的理由。

As previously announced, the delivery -- the redelivery in December of 3 conventional tankers will reduce OSG's exposure to the (inaudible) 00:25:35 and often unpredictable and undifferentiated domestic MR tanker market. Redelivery of these ships will reduce real financial leverage in our business, releasing OSG from annual fixed payment obligations of approximately $27 million during 2023 and beyond. The effective deleveraging achieved through the decision not to extend the options of these 3 vessels when taken together with the positive free cash flow performance expected in the quarters ahead, provides OSG with enhanced flexibility to address existing and anticipated business opportunities with lower volatility and improved profitability.

正如之前宣布的那樣，交付 - 12 月重新交付 3 艘常規油輪將減少 OSG 在（聽不清）00:25:35 且通常不可預測且無差異的國內 MR 油輪市場的風險敞口。這些船舶的重新交付將降低我們業務中的實際財務槓桿，使 OSG 在 2023 年及以後免除每年約 2700 萬美元的固定付款義務。通過決定不延長這 3 艘船舶的選擇權而實現的有效去槓桿化，加上未來幾個季度預期的積極自由現金流表現，為 OSG 提供了更大的靈活性，以更低的波動性和更高的盈利能力來應對現有和預期的商業機會.

As noted on prior calls, we consider there to be interesting opportunities for expanding our business in several of the niche markets in which we have already achieved a level of success. Specifically, we remain very focused on the continued emergence of renewable diesel as an increasingly important driver of domestic marine transport demand. Our experience with customers in this emerging sector is that security of access to transportation capacity offered by long-term contracts is a more important element in the commercial discussions and has been the case recently with customers involved in crude and refined oil product trades.

正如之前的電話所述，我們認為在我們已經取得一定成功的幾個利基市場中擴展我們的業務存在有趣的機會。具體而言，我們仍然非常關注可再生柴油的持續出現，作為國內海運需求日益重要的驅動力。我們與這個新興行業的客戶打交道的經驗是，通過長期合同獲得運輸能力的安全性是商業討論中一個更重要的因素，最近涉及原油和成品油產品貿易的客戶也是如此。

This bias offers opportunity for OSG to reduce exposure to volatility in our conventional tanker trades. Over the past year, we have negotiated time charters with 4 different charters engaged in renewable diesel trade with the result that by the middle of next year, 50% of our conventional tanker fleet will be employed in trades related to renewable diesel, with several of these contracts extending beyond the end of 2023.

這種偏見為 OSG 提供了減少傳統油輪交易波動風險的機會。在過去的一年裡，我們與 4 家從事可再生柴油貿易的不同租船公司就定期租船合同進行了談判，結果到明年年中，我們 50% 的傳統油輪船隊將從事與可再生柴油相關的貿易，其中有幾家這些合同將延續到 2023 年底之後。

New business with further growth opportunities in the Jones Act has not often been seen in recent years, and we are excited about the role that OSG plays in this emerging business. In addition, prospects for an enlarged U.S. flag fleet operating outside of the United States and outside of the Jones Act trades are solidified. Congressionally approved and funded tanker security program is expected to be stood up during the first half of next year. OSG has taken a leadership role in working with its industry, labor and government partners to make this vision a reality. Consideration is being given to expand the approved 10 ship program to a 20 ship program.

近年來，瓊斯法案中具有進一步增長機會的新業務並不常見，我們對 OSG 在這一新興業務中所扮演的角色感到興奮。此外，擴大美國國旗船隊在美國境外和瓊斯法案交易之外運營的前景得到鞏固。國會批准並資助的油輪安全計劃預計將在明年上半年啟動。 OSG 在與行業、勞工和政府合作夥伴的合作中發揮了領導作用，以實現這一願景。正在考慮將批准的 10 艘船計劃擴大到 20 艘船計劃。

Further, the U.S. Department of Defense is seeking bids to provide 5 additional U.S. Flag tankers to assist with reorganizing fuel storage operation at Hawaii's Red Hill facility. Our Overseas Mykonos, Overseas Santorini and Overseas Sun Coast are well positioned to benefit from these programs. Depending on the pace and extent of the growth of these programs, opportunities to add additional vessels to our current fleet could well arise.

此外，美國國防部正在競標提供 5 艘額外的美國國旗油輪，以協助重組夏威夷紅山設施的燃料儲存業務。我們的 Overseas Mykonos、Overseas Santorini 和 Overseas Sun Coast 完全有能力從這些計劃中受益。根據這些項目的發展速度和程度，很可能會出現為我們現有船隊增加更多船隻的機會。

Looking elsewhere in our current portfolio of assets, renewed focus on the importance of sustaining and increasing domestic crude oil production bodes well for the continued future of the vessels acquired through our purchase of Alaskan Tanker Company in 2020. There is good reason to believe that the demand for these vessels will remain strong for the foreseeable future. Opportunities to increase time charter earnings from ATC vessels in 2023 and beyond, an important area of focus for us at this juncture. We are developing and working to finalize business inquiries that are already in hand for these vessels.

看看我們目前資產組合的其他地方，重新關注維持和增加國內原油產量的重要性預示著我們在 2020 年通過收購阿拉斯加油輪公司獲得的船舶的持續未來。有充分的理由相信在可預見的未來，對這些船隻的需求將保持強勁。在 2023 年及以後增加 ATC 船舶的定期租船收入的機會，這是我們目前關注的一個重要領域。我們正在開發並努力完成已經在手的這些船隻的業務查詢。

Lastly, we recognize in importance of understanding and participating in newly developing markets that would transition the U.S. economy away from fossil fuels. These evolving markets point to interesting and exciting potential for OSG to leverage its strong operating franchise to participate in these new trades. OSG continues to commit resources toward an expressed goal of identifying the best opportunities that will arise from this transition, and we are optimistic that these efforts will yield positive results over the medium term.

最後，我們認識到理解和參與新興市場的重要性，這些市場將使美國經濟擺脫化石燃料。這些不斷發展的市場表明 OSG 具有有趣和令人興奮的潛力，可以利用其強大的經營特許權參與這些新交易。 OSG 繼續投入資源，以實現明確的目標，即確定此次過渡將帶來的最佳機會，我們樂觀地認為，這些努力將在中期產生積極成果。

I will now turn the call over to Dick to provide you with further details of our third quarter results for 2022. Dick? All right.

我現在將電話轉給迪克，向您提供我們 2022 年第三季度業績的更多細節。迪克？好的。

Thanks, Sam. Let's turn to Slide 7. We commenced a $5 million share buyback in late June. During the third quarter, we purchased 3.6 million shares for total consideration of $10.7 million. At September 30, we had cumulatively purchased 3,800 million shares for $11 million at an average purchase price per share of $2.92. In early October, we completed the share repurchase program for a total acquisition cost of $14.7 million, with a resulting average share purchase price of $2.95.

謝謝，山姆。讓我們轉到幻燈片 7。我們在 6 月下旬開始了 500 萬美元的股票回購。第三季度，我們以 1070 萬美元的總代價購買了 360 萬股股票。截至 9 月 30 日，我們已累計以每股 2.92 美元的平均購買價格以 1100 萬美元的價格購買了 38 億股股票。 10 月初，我們完成了總收購成本為 1,470 萬美元的股票回購計劃，平均股票購買價格為 2.95 美元。

TCE revenues rose to $115.1 million in the third quarter of 2022 from $75.4 million in the year ago quarter, an increase of 53%. Quarterly adjusted EBITDA was $42.3 million, an increase of $30.1 million from last year's third quarter. TCE revenue growth from the second quarter of 2022 was $12.7 million or 11.5%. Adjusted EBITDA grew 34% or $10.8 million from the prior quarter. Market demand remained strong with rates at levels significantly greater than experienced in 2021.

2022 年第三季度，TCE 收入從去年同期的 7540 萬美元增至 1.151 億美元，增幅為 53%。季度調整後的 EBITDA 為 4230 萬美元，比去年第三季度增加 3010 萬美元。 TCE 收入從 2022 年第二季度開始增長 1270 萬美元或 11.5%。調整後的 EBITDA 比上一季度增長 34% 或 1080 萬美元。市場需求依然強勁，利率水平明顯高於 2021 年的水平。

We are close to fully committed through December 2022 and as we look forward to 2023, we are almost fully booked for the first half of 2023 and 92% committed for the balance of the year.

我們接近完全承諾到 2022 年 12 月，並且在我們展望 2023 年時，我們幾乎已經預訂完 2023 年上半年的訂單，92% 的承諾用於今年的剩餘時間。

Please turn to Slide 8. There were no vessels in layup during the third quarter as compared to 2 in layup 4 portions of the second quarter. Our Jones Act conventional tankers employed days rose to 852 during the quarter or 93% of total days. We had 51 drydock days during the quarter. Comparatively, we had 379 employee days in Q3 2021 when we began to return ships to service. The overseas camp left layup in early May and underwent a required drydock period in ballast water treatment system installation before she commenced operations. The OSG 350 Vision returned to service in late May. During the third quarter, Tampa was fully employed and the OSG 350 had 1,200 employed days before commencing a time charter.

請轉到幻燈片 8。與第二季度上籃 4 部分中的 2 艘相比，第三季度沒有船隻上籃。本季度，我們的《瓊斯法案》常規油輪就業天數上升至 852 天，佔總天數的 93%。本季度我們有 51 個乾船塢日。相比之下，我們在 2021 年第三季度開始讓船舶恢復運營時有 379 個員工工作日。海外營地於 5 月初離開擱淺，並在她開始運營之前經歷了壓載水處理系統安裝所需的干船塢期。 OSG 350 Vision 於 5 月下旬恢復服務。在第三季度，坦帕已充分就業，OSG 350 在開始定期租船之前有 1,200 個就業日。

Please turn to Slide 9. Lightering revenues increased $4.3 million this quarter due to a combination of greater volumes lightered by the OSG 351 and a time charter for the OSG 350 which commenced in August. Our APDs increased our revenue contribution by $700,000. The OSG 204 entered into a short-term time charter upon completion of our previous long-term time charter. The TCE rate increased from the earlier time charter, increasing her revenue contribution.

請轉到幻燈片 9。由於 OSG 351 和 8 月開始的 OSG 350 定期租船的結合，本季度的駁運收入增加了 430 萬美元。我們的 APD 使我們的收入貢獻增加了 700,000 美元。 OSG 204 在我們之前的長期期租合同完成後簽訂了短期期租合同。 TCE 費率比早期的期租有所增加，增加了她的收入貢獻。

After completion of our short-term time charters, she will enter into a long-term charter. Mykonos and Santorini continue to participate in the Maritime Security Program and also provide services to the government of Israel. We performed several charters for the Military Sealift Command, which provided a high level of utilization as well as rates greater than those generally available in the international market. Our international flag tanker contributed increased revenues as international market rates rose significantly from prior periods. As a result, our non-Jones Act tanker revenues increased $1.8 million in the prior quarters.

在完成我們的短期定期租船合同後，她將簽訂長期租船合同。米科諾斯島和聖托里尼島繼續參與海上安全計劃，並為以色列政府提供服務。我們為軍事海運司令部執行了幾項包機，提供了高水平的利用率以及高於國際市場普遍可用的價格。由於國際市場費率較前期大幅上漲，我們的國際旗油輪貢獻了更多收入。因此，我們的非瓊斯法案油輪收入在前幾個季度增加了 180 萬美元。

The Jones Act Handysize tanker revenues were consistent with the prior quarter. While contract rates are moderating on a portfolio basis by lower rated contracts previously entered into. Further, there were more days in drydock, which reduced revenues due to the increase of off-hire days. Revenues from our Jones Act shuttle tankers increased as the Overseas Tampa was in service for the full quarter. We experienced a slight decrease in Alaskan Tanker revenues resulting from the Alaskan Explorers scheduled drydock period.

瓊斯法案靈便型油輪收入與上一季度持平。雖然合同費率因先前簽訂的較低評級合同而在投資組合的基礎上有所緩和。此外，幹船塢有更多的天數，由於停租天數的增加而減少了收入。隨著 Overseas Tampa 在整個季度的服役，我們的 Jones Act 穿梭油輪的收入有所增加。由於阿拉斯加探險者計劃的干船塢期，我們的阿拉斯加油輪收入略有下降。

Please turn to Slide 10. The niche businesses registered an $11.9 million increase in revenues, driven by the increases in the number of MSC voyages, higher international rates for the Overseas Sun Coast, increased lightering volumes for the OSG 351 and the return to service of both the Overseas Tampa and the OSG 350 for a full quarter.

請轉到幻燈片 10。利基業務的收入增長了 1,190 萬美元，這得益於 MSC 航次的增加、海外陽光海岸國際費率的提高、OSG 351 的駁運量增加以及恢復服務Overseas Tampa 和 OSG 350 整整一個季度。

Please turn to Slide 11. Vessel operating contribution increased $10.3 million from Q2 2022 to $47 million in the current quarter. The niche businesses contributed virtually all of the increased vessel operating contribution for reasons previously stated. Jones Act Handysize Tankers contributions dropped slightly, principally due to off-hire days related to the scheduled drydock period. Vessel operating contribution for those vessels were $7 million, a slight decrease from the prior quarter. The ATB contribution increased slightly due to higher short-term business and Alaskan Tanker contribution dropped due to off-hire days for the Alaskan Navigator of drydock. The combined vessel operating contribution of our niche market activities, ATBs and the Alaskan crude oil tankers provided a vessel operating contribution in the quarter -- current quarter of $40 million compared to $29 million in the second quarter, continuing their consistent performance.

請轉到幻燈片 11。船舶運營貢獻從 2022 年第二季度增加了 1030 萬美元，增加到本季度的 4700 萬美元。由於前面所述的原因，利基業務幾乎貢獻了所有增加的船舶運營貢獻。 Jones Act 靈便型油輪的貢獻略有下降，這主要是由於與預定乾船塢期間相關的停租天數。這些船舶的船舶運營貢獻為 700 萬美元，比上一季度略有下降。由於短期業務增加，ATB 的貢獻略有增加，而阿拉斯加油輪的貢獻由於乾船塢的阿拉斯加領航員的停租日而下降。我們的利基市場活動、ATB 和阿拉斯加原油油輪的綜合船舶運營貢獻在本季度提供了船舶運營貢獻——本季度為 4000 萬美元，而第二季度為 2900 萬美元，繼續保持一致的表現。

Please turn to Slide 12. Adjusted EBITDA increased $10.8 million from Q2 at $35.1 million from the third quarter of 2021. 2022 year-to-date adjusted EBITDA is $99.2 million. This reflects the improved market conditions, increased rates as well as the increase in vessels and service.

請轉到幻燈片 12。從 2021 年第三季度開始，調整後的 EBITDA 比第二季度增加了 1080 萬美元，達到 3510 萬美元。2022 年初至今調整後的 EBITDA 為 9920 萬美元。這反映了市場狀況的改善、費率的提高以及船舶和服務的增加。

Please turn to Slide 13. Third quarter net income increased $9.5 million to $13.2 million. Year-to-date net income was $16.5 million compared to $42.6 million loss for the first 3 quarters of 2021. Improved operating results stemmed from improved market conditions, which resulted in the return to service of all ships that were in layup in 2021. Further, the rate environment contract duration have both improved.

請翻到幻燈片 13。第三季度淨收入增加 950 萬美元，達到 1320 萬美元。年初至今的淨收入為 1650 萬美元，而 2021 年前三個季度虧損 4260 萬美元。經營業績的改善源於市場狀況的改善，這導致 2021 年所有擱置的船舶恢復服務。進一步，利率環境合同期限均有所改善。

Please turn to Slide 14. As our results improve, we want to provide information concerning the profit-sharing arrangement that exists for the vessels we bareboat charter from American Shipping Company. The chart provides information for the years 2022 through 2024. The 2022 information reflects all 10 vessels we currently charter from American Shipping while subsequent years reflect the 7 vessels that we will continue to bareboat after redelivering 3 vessels in December this year.

請轉到幻燈片 14。隨著我們結果的改善，我們想提供有關我們從 American Shipping Company 光船租賃的船隻存在的利潤分享安排的信息。該圖表提供了 2022 年至 2024 年的信息。2022 年的信息反映了我們目前從 American Shipping 租用的所有 10 艘船，而隨後幾年反映了我們將在今年 12 月重新交付 3 艘船後繼續光船的 7 艘船。

The calculation, which is governed by the terms of the contract between AMSC and OSG provides for specific deductions to be taken in determining whether there is any profit is defined to share between us. These deductions include, among other items, an OSG management fee, an OSG profit layer and deductions for drydock costs, all of which are prior to the determination of the existence of any profit share. Shareable profit, if any, is then split evenly between the parties.

受 AMSC 和 OSG 之間的合同條款約束的計算規定了在確定是否有任何利潤被定義為在我們之間分享時要採取的具體扣除。除其他項目外，這些扣除包括 OSG 管理費、OSG 利潤層和乾船塢成本扣除，所有這些都先於確定是否存在任何利潤分成。可分享的利潤（如果有的話）將在各方之間平均分配。

The slide provides an estimate of anticipated profit share under the AMSC bareboat charters for 2022 through 2024. The underlying information used to develop 2023 and 2024 estimates is based on our assessment of the market in each year as informed by current market conditions. There will not be any profit sharing payments in 2022 due to the carryforward of losses sustained on the AMSC vessels in 2021. In 2023, if we achieve an average TCE rate of $63,400 per day across the 7 AMSC vessels, there would be no profit sharing. In 2024, if we achieved an average rate of $64,300 a day, there will likewise not be any profit share.

該幻燈片提供了 2022 年至 2024 年 AMSC 光船租賃下的預期利潤份額估計。用於製定 2023 年和 2024 年估計的基礎信息基於我們根據當前市場狀況對每年的市場評估。由於結轉了 2021 年 AMSC 船隻遭受的損失，2022 年將不會有任何利潤分享。到 2023 年，如果我們在 7 艘 AMSC 船隻上實現每天 63,400 美元的平均 TCE 率，則不會有利潤分享.到 2024 年，如果我們達到平均每天 64,300 美元的速度，同樣不會有任何利潤分成。

Finally, it is worth noting that if certain costs are recovered, the minimum average rate that will result in profit share declines. The calculations are complex and have a variety of factors involved. This chart is meant to be indicative of possible outcomes based on the assumptions made.

最後，值得注意的是，如果某些成本被收回，將導致利潤分成的最低平均比率下降。計算很複雜，涉及多種因素。該圖表旨在指示基於所做假設的可能結果。

Please turn to Slide 15. At June 30, 2022, we had total cash of $84 million. During the third quarter, we generated $42 million of adjusted EBITDA. Working capital used $5 million of cash. Our receivables increased due to the increased utilization of our vessels, coupled with increased rates and especially the increase in MSC voyages. Additionally, we reduced the outstanding accounts payable balances during the quarter.

請轉到幻燈片 15。截至 2022 年 6 月 30 日，我們的現金總額為 8400 萬美元。第三季度，我們產生了 4200 萬美元的調整後 EBITDA。營運資金使用了 500 萬美元現金。我們的應收賬款增加是由於我們的船隻利用率增加，加上費率增加，尤其是 MSC 航次的增加。此外，我們在本季度減少了未清應付賬款餘額。

We expended $9 million on drydocking and improvements to our vessels. As previously mentioned, we purchased 3.6 million shares of our stock for $10.7 million during the quarter. We made debt service payments of $13 million in the quarter. Also in the quarter, we purchased the U.S. Treasury note assuring in August 2024 for approximately $15 million. The result was we ended the quarter with $74 million of cash.

我們花費了 900 萬美元用於乾船塢和改進我們的船隻。如前所述，我們在本季度以 1,070 萬美元的價格購買了 360 萬股股票。我們在本季度償還了 1300 萬美元的債務。同樣在本季度，我們以大約 1500 萬美元的價格購買了 2024 年 8 月擔保的美國國債。結果是我們在本季度結束時獲得了 7400 萬美元的現金。

Please turn to Slide 16. Our total debt at September 30 was $434 million. This represents a decrease of $5 million in outstanding indebtedness since June 2022. Scheduled loan amortization for the remainder of the year is approximately $6 million. With $346 million of equity, our net debt-to-equity ratio is 1x. This concludes my comments on the financial statements, and I'd like to turn the call back to Sam. Sam?

請轉到幻燈片 16。截至 9 月 30 日，我們的總債務為 4.34 億美元。這意味著自 2022 年 6 月以來未償債務減少了 500 萬美元。今年剩餘時間的計劃貸款攤銷約為 600 萬美元。憑藉 3.46 億美元的股本，我們的淨債務股本比為 1 倍。我對財務報表的評論到此結束，我想把電話轉回給山姆。薩姆？

Thank you, Dick. Our third quarter results evidenced healthy operating conditions in our core markets. OSG's fleet is responding to the changing patterns of domestic and international transportation fuel shipments and is well positioned to participate in emerging areas of opportunity. Our healthy book of forward time charter coverage gives us firm visibility towards the results expected for the remainder of 2022 and into 2023. We anticipate continuing strength in all important financial metrics and a gradual build in available cash balances over the next several quarters as profitable time charters at higher utilization rates are realized.

謝謝你，迪克。我們第三季度的業績證明了我們核心市場的健康經營狀況。 OSG 的船隊正在應對不斷變化的國內和國際運輸燃料運輸模式，並準備好參與新興領域的機遇。我們健康的遠期定期租船覆蓋範圍讓我們對 2022 年剩餘時間和 2023 年的預期結果有明確的了解。我們預計所有重要財務指標將持續強勁，並且在未來幾個季度逐步建立可用現金餘額作為盈利時間實現了更高利用率的包機。

For the final quarter, expect to see that costs associated with the redelivery of the 3 American shipping company tankers and the reduction of vessel available days associated with fewer trading tankers in December will result in a small decrease sequentially from third quarter levels for TCE and adjusted EBITDA, respectively. Even with this, we are now confident in guiding higher for our full year 2022 financial performance. Charter equivalent earnings for the full year should come in at about $420 million and adjusted EBITDA should exceed $133 million. Taking into consideration cash used for share repurchases, we anticipate year-end cash balances of between $90 million and $100 million.

對於最後一個季度，預計與重新交付 3 艘美國航運公司油輪相關的成本以及與 12 月份交易油輪減少相關的船舶可用天數減少將導致 TCE 和調整後的第三季度水平環比小幅下降EBITDA，分別。即便如此，我們現在有信心為 2022 年全年的財務業績指引更高的目標。全年的特許經營收入應約為 4.2 億美元，調整後的 EBITDA 應超過 1.33 億美元。考慮到用於股票回購的現金，我們預計年底現金餘額將在 9000 萬至 1 億美元之間。

Looking further ahead to 2023, absent changes in the trajectory of current market trends, we believe OSG's healthy fundamentals after the prospect of continued solid financial performance throughout 2023. Our current forecast has time charter equivalent earnings for 2023 approaching $400 million. Factoring in some allowance for anticipated cost increases, we are confident that attaining this top line result should generate adjusted EBITDA of between $100 million and $135 million during 2023. After deducting debt service and capital expenses, we anticipate that free cash flow for the next year should be between $50 million and $55 million.

展望 2023 年，在當前市場趨勢軌跡沒有變化的情況下，我們相信 OSG 在整個 2023 年財務業績持續穩健的前景之後的基本面健康。我們目前的預測是 2023 年的期租等效收益接近 4 億美元。考慮到預期成本增加的一些津貼，我們有信心在 2023 年實現這一頂線結果將產生 1 億至 1.35 億美元的調整後 EBITDA。扣除償債和資本支出後，我們預計明年的自由現金流應該在 5000 萬到 5500 萬美元之間。

Stability in our financial profile translates to positive free cash flow in the quarters ahead and improvements in our balance sheet. As stated on prior calls, use of surplus cash flow should it arise, will be a regular topic of conversation with our Board. investment in growth opportunities, reduction of outstanding debt and continued consideration to extending acquisition of shares under a renewed share repurchase program will all be part of this conversation.

我們財務狀況的穩定性轉化為未來幾個季度的正自由現金流和資產負債表的改善。如之前的電話會議所述，如果出現盈餘現金流量的使用，將成為我們董事會經常討論的話題。對增長機會的投資、減少未償債務以及繼續考慮根據更新的股票回購計劃擴大對股票的收購，都將成為此次對話的一部分。

Our mission is now squarely focused on execution, operational excellence and the pursuit of niche business growth opportunities through utilizing OSG's unique franchise to position ourselves for a better future.

我們的使命現在完全集中在執行、卓越運營和通過利用 OSG 獨特的特許經營權來為自己定位更美好的未來來追求利基業務增長機會。

Adam, we can now open up the call to questions.

亞當，我們現在可以開始提問了。

(Operator Instructions) Our first question today comes from Clement Mullins from Value Investors.

（操作員說明）我們今天的第一個問題來自價值投資者的 Clement Mullins。

After raising guidance, like the guidance you had previously provided, could you provide some commentary on what were the drivers for the improved performance relative to the previous numbers you had provided?

在提出指導後，就像您之前提供的指導一樣，您能否就相對於之前提供的數字提高績效的驅動因素提供一些評論？

Broadly speaking, it was really the niche market activities that we are engaged with that provided the better-than-expected results. And in particular, the international MR trading market has been trading at near historical highs. We do have the overseas Sun Coast participating in a pool in that market. I believe that we experienced net earnings or time charter equivalent earnings on that vessel that was probably $10,000 to $15,000 per day higher than our even-budgeted expectation.

從廣義上講，我們所從事的利基市場活動確實提供了好於預期的結果。特別是，國際 MR 交易市場一直處於歷史高位附近。我們確實有海外 Sun Coast 參與該市場的一個池。我相信我們在那艘船上的淨收入或定期租船等效收入可能比我們的平均預算預期高出 10,000 至 15,000 美元/天。

And then the other 2 vessels are trade internationally, the Overseas Mykonos and Overseas Santorini, as Dick mentioned, benefited from a number of Military Sealift Command time charters and voyage charters during the quarter, driving older performance by those 2 vessels in order of magnitude of close to $2 million for the quarter. So those are very positive surprises for us.

然後另外 2 艘船在國際上進行貿易，正如 Dick 提到的，Overseas Mykonos 和 Overseas Santorini 在本季度受益於軍事海運司令部的一些定期租船和航次租船，推動了這兩艘船的舊性能按數量級排列本季度接近 200 萬美元。所以這些對我們來說是非常積極的驚喜。

The balance of activity in conventional tankers and conventional ATBs were as per expectations, but significantly improved from previous quarters. And we also saw a slightly better results from our lightering businesses, given slightly higher volumes than our budgeted levels, largely driven by PAD1 refineries running at or above 100% of the capacity during the quarter to try and continue to provide more diesel product to the Northeast. I think those are the key drivers of the better-than-expected results that we achieved during the quarter.

常規油輪和常規 ATB 的活動平衡符合預期，但比前幾個季度有了顯著改善。我們還看到我們的打火機業務的業績略好一些，因為產量略高於我們的預算水平，這主要是由於 PAD1 煉油廠在本季度以 100% 或以上的產能運行，試圖繼續向市場提供更多的柴油產品。東北。我認為這些是我們在本季度取得好於預期的結果的關鍵驅動因素。

That's very helpful. Thank you. You provided some commentary regarding capital allocation. But after completing the share repurchase program, creating significant value, how do you think about additional share repurchases?

這很有幫助。謝謝你。你提供了一些關於資本配置的評論。但在完成股票回購計劃、創造巨大價值後，您如何看待額外的股票回購？

Look, as I mentioned, I think that we see largely 3 buckets of opportunity for surplus cash flow generated from our businesses. First and foremost in our lines, at least, is to consider and pursue growth opportunities to reinvest capital in ships and shipping opportunities that will generate strong longer-term cash flows.

看，正如我提到的，我認為我們在很大程度上看到了我們業務產生的盈餘現金流的 3 桶機會。至少在我們的業務中，首要的是考慮並尋求增長機會，將資本再投資於船舶和航運機會，這將產生強勁的長期現金流。

The second bucket is a regular consideration of deleveraging our business. That can be achieved in numerous ways in addition to deleveraging through redelivery of some of the American Shipping Company ships that we referred to earlier. We're also looking for ways to reduce liabilities on our balance sheet. These are liabilities that are generally associated with interest-bearing debt, but we also have other liabilities that are carried on the balance sheet that we have opportunities to reduce.

第二個桶是定期考慮去槓桿化我們的業務。除了通過重新交付我們之前提到的一些美國航運公司的船隻來去槓桿化之外，還可以通過多種方式實現這一目標。我們也在尋找減少資產負債表負債的方法。這些負債通常與有息債務相關，但我們還有資產負債表上的其他負債，我們有機會減少這些負債。

So we look at those opportunities regularly as ways for strengthening the balance sheet of the company. And then the third opportunity, as you asked or refer to is to consider share repurchases when appropriate. The Board took steps in June to authorize a $5 million share repurchase program, which we fully completed during the third quarter or actually into October.

因此，我們定期將這些機會視為加強公司資產負債表的方式。第三個機會，正如你所要求或提到的，是在適當的時候考慮股票回購。董事會在 6 月採取措施，批准了一項 500 萬美元的股票回購計劃，我們在第三季度或實際上在 10 月完全完成了該計劃。

And as I said in my remarks, I think that it is highly probable that a conversation about extending or reinstating a share repurchase program going forward is going to feature in our conversations and something that is likely to be a feature of our capital allocation you've seen in the coming quarters.

正如我在發言中所說的那樣，我認為關於延長或恢復股票回購計劃的對話很可能會在我們的對話中出現，而這很可能成為我們資本配置的一個特徵，你們我們在接下來的幾個季度看到了。

(Operator Instructions) As we have no further questions, I hand back to Sam for any concluding remarks.

（操作員說明）由於我們沒有其他問題，我將結束語交還給 Sam。

That's great, Adam. And thank you, everyone, for participating on today's call, and we look forward to speaking with you again soon. Wishing everybody a good day.

太好了，亞當。感謝大家參加今天的電話會議，我們期待很快再次與您交談。祝大家有個美好的一天。

This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

今天的電話會議到此結束。非常感謝您的出席。您現在可以斷開線路。