Maritrans Inc. Reports Second Quarter Results

Maritrans Inc. reported net income of $900,000 on revenues of $39.8 million for the quarter ended June 30. For the same period last year, net income was $1.3 million, on revenues of $38.1 million. Maritrans also announced its quarterly dividend of $.10 per share, payable on Sept. 8, to shareholders of record on Aug. 25. Net income for the six months ended June 30 is $3.0 million on revenues of $78.2 million, compared to net income of $2 million on revenues of $74 million for the same period a year ago. Results in the first half of 1999 included approximately $.19 per share in income, net of tax, related to non-strategic asset sales, while there were no comparable transactions in the first half of 1998. "In light of the current challenges in our industry, I am pleased to report these positive results," said Stephen A. Van Dyck, Maritrans chairman and chief executive officer. "We have improved our utilization and addressed the shortage of qualified crews, which we experienced in the first quarter. Also, there were sudden disruptions in U.S. refinery output this quarter that created temporary opportunities to move refined oil from the Gulf of Mexico to the West Coast." Van Dyck added that the board and management are working on ways that the company can achieve maximum long-term shareholder value. "We have undertaken a strategic review to focus our efforts on out core long-term assets," he said. "We signed a contract for the double-hulled rebuilding, using our proprietary process, of our 245,000 barrel barge, the Ocean 244. We will begin prefabrication work immediately, however, and will make interim payments to our shipyard contractor in the third and fourth quarters of 1999." Maritrans also announced that it has reacquired 281,900 shares through June 30, under the stock buyback plan begun in February.