Overseas Shipholding declares 6c dividend, additional $25M to stock repurchase

Overseas Shipholding Group announced that its Board of Directors has declared a cash dividend of 6c per share on its Class A Common Stock. The dividend – the first dividend declared by OSG since the spinoff of its international division in 2016 – will be paid on January 4 to stockholders of record at the close of business on December 21. In addition, OSG announced that its Board authorized the repurchase of an additional $25M of common stock under its existing stock repurchase program. The incremental stock repurchase authorization will add to the $75.7M of stock repurchases and warrant retirements made since June of 2022. Commenting on these actions, Sam Norton, OSG’s President and CEO said, “The Board of Directors, as the representative of OSG’s shareholders, considers decisions on capital allocation to be among the most important, involving a balance between investing in the future, managing the level of our fixed payment obligations, and benefitting our shareholders. In this context, the Board continuously evaluates opportunities for the use of our available cash. We are pleased that we have been able to produce cashflows in excess of scheduled debt service and planned capital expenditures, providing us with the ability to return cash to our stockholders by a dividend and through the repurchase of shares, while remaining able to take advantage of future business and debt reduction opportunities.” Mr. Norton added, “Decisions as to future dividends will be made by our Board of Directors based upon financial and other considerations and possible alternative uses for our excess cash. However, the Board expects the consideration of the payment of regular quarterly dividends to be on its agenda in the future.”