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Overseas Shipholding CEO ready for opportunities in down market
By Lisa Kerner
Charlotte, N.C., Sept. 9 - Overseas Shipholding Group, Inc. president and chief executive officer Morten Arntzen expressed confidence that his company would come out of the recession a winner in the tanker market during his presentation at the Jefferies & Co. Shipping & Offshore Services Conference on Wednesday.
Arntzen said Overseas Shipholding, a New York-based tanker company, is "patiently waiting" to take advantage of distressed opportunities expected in the near future, possibly next quarter. No specific possible opportunities were mentioned.
Overseas Shipholding had $1.8 billion in liquidity, including $571 million in cash, at the end of the second quarter and one of the strongest balance sheets in its sector, according to Arntzen.
"We don't have to run to our banks for covenant waivers and things like that," said Arntzen, noting that Overseas Shipholding could borrow $2.7 billion for an acquisition if necessary.
Instead of chasing covenant waivers, Arntzen said Overseas Shipholding is raising capital, renegotiating new building prices and cutting costs to improve its business.
As one example, the company was able to cut $25 million from its general and administrative spending and plans to cut more.
Arntzen said Overseas Shipholding's company's conservative strategy put the company in a position to capitalize on opportunities "when the world went to hell in a handbasket."
Overseas Shipholding is a New York-based tanker company.
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