NEW YORK (AP) -- Tanker operator Overseas Shipholding Group Inc. said Thursday that its second-quarter loss widened by 48 percent as rates for hauling crude oil and petroleum products fell in the weak global economy.
The company drew down the last of its revolving credit facility in July, $343 million, and raised its cash reserves to more than $550 million.
CEO Morten Arntzen called it "a prudent step given the ongoing difficult market conditions," and said the company was talking to bankers about long-term financing "to manage through an extended downturn" in its international-flag tanker markets. He said the company was also pursuing other options to boost liquidity.
Overseas Shipholding had $2.24 billion in total debt at the end of the second quarter, up from $2.07 billion six months earlier.
The New York-based company lost $55.3 million, or $1.83 per share in the second quarter, compared with a loss of $37.3 million, or $1.24 per share, a year ago.
Excluding special items such as writing down investments, it would have lost $1.52 per share. Analysts, who usually exclude one-time items, expected a loss of $1.38 per share, according to FactSet.
Revenue increased 1 percent, to $210 million. Analysts expected $254.1 million.
Arntzen called it a disappointing quarter.
"Following on the slowdown of the world economy, all our international-flag markets turned down during the second half of the second quarter, with rates in our (medium-range) segment being under particular pressure," he said.
Medium-range tankers are smaller than long-range ones and often carry refined petroleum products.
Overseas Shipholding shares rose 3 cents to close at $5.75 after swinging from a 52-week low of $5 to $6.22 during the day. The 52-week peak of $21.90 was reached exactly a year ago.