First Quarter 2005 Earnings Results


NEW YORK, May 5, 2005 (PRIMEZONE) -- Overseas Shipholding Group, Inc. (NYSE:OSG) reported net income for the quarter ended March 31, 2005 of $164,919,000, or $4.18 per share, more than double the net income of $76,188,000, or $1.99 per share, achieved in the first quarter of 2004. EBITDA for the first quarter rose by 43% to $223,363,000 compared with $156,413,000 in the first quarter of 2004 and TCE revenue in the quarter increased by 41% to $267,187,000 compared with $188,982,000 in the first quarter of 2004.

"Net income more than doubled to $165 million in the first quarter compared with the prior year period and was better than net income for every full year in the Company's history except 2004," said Morten Arntzen, President and Chief Executive Officer. "This outstanding performance reflects strong operating results in our crude transportation business, healthy contributions from the 40 ships of the former Stelmar fleet beginning on January 21, 2005 and elimination of tax on the shipping income from our foreign fleet."

"This quarter was all about the men and women of OSG executing our strategy of striving to be the leader in those segments in which we compete -- international crude, products, U.S. Flag and LNG. We said we would outperform the public tanker sector this quarter and as a result of the performance by our crude segment, the Stelmar acquisition and the tax law change, we delivered on our commitment. We intend to do the same for the full year."

"In line with our commitment to build a world class product carrier business, we closed on the Stelmar acquisition on January 20, 2005. This acquisition added 24 product carriers to our fleet and gave us the scale we need to compete globally in this trade. The integration of Stelmar into OSG is proceeding seamlessly and, through the hard work of our employees, is generating revenue enhancements, expense savings and better ways to operate our business. The acquisition also strengthened our already first class crude transportation business by adding 13 Panamax crude tankers and three Aframax tankers."

"In line with our commitment to grow our U.S. Flag business, last month we announced the signing of a letter of intent to bareboat ten newbuilding Jones Act Product Carriers which will be built at the Kvaerner Philadelphia Shipyard. This is the largest commercial newbuilding program announced at a U.S. yard in many decades."

Highlights

-- U.S. Flag Shipping Expansion: OSG Agrees to Bareboat Ten Jones Act Product Carriers.

On April 14, 2005, Kvaerner ASA and OSG announced an agreement in principle pursuant to which Kvaerner's subsidiary, Kvaerner Philadelphia Shipyard, Inc. (KPSI), will construct ten Veteran MT-46 class Jones Act Product Carriers. An affiliate of KPSI will bareboat charter these vessels to subsidiaries of OSG for initial terms of five years for five of the vessels and seven years for the other five vessels, all with extension options available to OSG. The bareboat charter of ten Product Carriers represents a significant commitment by OSG to its U.S. Flag business and will enable the Company to establish the largest and most modern Jones Act Product Tanker fleet. While the transaction remains subject to the execution of definitive agreements and governmental approvals, the boards of OSG and Kvaerner have approved the transaction and steel cutting on the first Product Carrier has already commenced. The vessels will be delivered at a time when demand for Jones Act Product Carriers is expected to be strong due to OPA 90 mandated deletions from the sector and a strong ongoing demand for products in the U.S. market.

-- OSG Acquires Stelmar Shipping Ltd.

On January 20, 2005, OSG completed the acquisition of Stelmar Shipping Ltd., making OSG the second largest publicly owned tanker company in the world and giving the Company leading positions in the product carrier and Panamax tanker segments. The combined 99 vessel fleet, with significant presence in both the crude oil and product carrier sectors, allows OSG to offer an expanded and enhanced service to all its customers and increases the Company's ability to enter into medium term charters, offsetting some of the volatility inherent in the crude transportation business. The acquisition was immediately accretive to earnings, adding $24.4 million to income from vessel operations and $37.1 million to EBITDA in the period from January 21 to March 31.

The 40-vessel Stelmar fleet consists of 24 Handysize Product Carriers, and 13 Panamax and three Aframax crude tankers. Two of the Aframax crude tankers and nine of the Handysize product carriers are chartered-in. Since the acquisition, OSG has integrated its 99 vessel fleet, concentrating the technical management of the clean product fleet in Athens, Greece and the crude oil fleet in Newcastle, England.

-- OSG Sets Goal of Becoming `Gold Standard' in Maritime Technical Management.

The Company has set a long-term goal to establish the maritime technical management 'Gold Standard' in the industry. OSG's pre-existing high standards of technical management have been enhanced by the careful selection of best practices from the merged OSG and Stelmar companies to immediately improve quality and cost effectiveness. Captain Ray Nelson has been appointed Global Head of Safety, Quality and Environment to further raise the Company's focus on these critical issues.

-- OSG Agrees to Sale of Older Tankers.

During the first quarter, in line with the Company's asset management strategy and its goal to own only double hull tankers, OSG sold six older double sided product carriers, chartering four back on 42 to 48 month time charters. In April, a double sided Aframax was sold and the Company entered into an agreement to sell its only single hull Suezmax.

Financial Profile

OSG has been able to trade on a level playing field with its foreign competitors since January 1, 2005 when the Jobs Creation Act of 2004 restored the indefinite deferral of taxation on the Company's foreign shipping income. This benefit, in conjunction with the strong market, the Company's significantly increased revenues from its enlarged fleet, and its sales of older vessels, have enabled the Company to reduce its leverage following the Stelmar acquisition, bringing liquidity adjusted debt to capital down to 45.3% from a pro forma 50.3% at year end.

In line with the Company's strategy to balance its exposure to the spot market, TCE revenue from time and bareboat charters increased to 26.5% of total TCE revenue in the first quarter of 2005 compared with 12.7% in the first quarter of 2004.

With shareholders' equity of $1.6 billion as of March 31, 2005 and more than $800 million of liquidity, including undrawn bank facilities, the Company believes its financial flexibility and strength distinguish OSG from most of its competitors.

OSG's Fleet Profile

At March 31, 2005, OSG was the second largest publicly listed tanker owner in the world as measured by number of vessels. OSG's fleet totals 99 vessels aggregating 13,328,853 dwt. Adjusted for OSG's participation interest in joint ventures and chartered-in vessels, the fleet totals 90.9 vessels aggregating 10,943,368 dwt.

As of March 31, 2005, the average ages of OSG's VLCC, Aframax, Panamax and Handysize fleets were 5.6 years, 7.0 years, 3.6 years and 9.8 years, respectively, compared with world fleet averages in these sectors of 8.1 years, 9.2 years, 12.1 years and 12.7 years, respectively.

For additional fleet information, refer to the Company's website: http://www.osg.com

Market Overview

Despite a drop-off in activity in January following a very strong fourth quarter, the tanker markets steadied themselves as the demand for oil showed little sign of abating. At first, as oil prices sagged, OPEC contemplated reducing its quota, which had a depressing affect on freight rates. When it became evident that demand remained strong, OPEC instead announced an increase in its quota and made it clear that more oil would be made available if necessary. Increased availability of crude oil relative to a year ago in the Caribbean and the Former Soviet Union ("FSU"), and expansions of existing U.S. refinery capacity were positive developments for Aframaxes, Panamaxes and Handysize Product Carriers. U.S. imports of crude and oil products continued to rise, spurred by rising gasoline demand, fuel oil substitution for natural gas, high diesel fuel consumption due to a healthy domestic trucking market and the seasonal pickup in heating oil demand. Although the fleet continued to grow during the quarter, overall tanker supply and demand remained closely balanced, contributing to the significant volatility in freight rates. Continued high earnings and a generally favorable outlook for the coming years reduced the scrapping of older single hull tonnage that had been predicted to occur by the April 5, 2005 IMO deadline. Some vessels were modified to extend their MARPOL lives and others must trade in areas where the regulations do not apply.

Foreign Flag VLCCs

During the first quarter of 2005, rates for modern VLCCs trading out of the Arabian Gulf averaged $61,500 per day, 62% lower than the average for the previous quarter, which had experienced the highest rates in more than 30 years, and 18% lower than the average for the first quarter of 2004. The volatility in VLCC rates experienced in 2004 continued into 2005 as VLCC rates peaked at $109,500 per day in late February before dropping to $28,700 per day in mid-March. Rates recovered to end March at levels exceeding $40,000 per day.

The downturn in rates that began in December 2004 was attributable to several factors. Growth in oil demand slowed from the very high levels of last year, particularly in China, where early 2004 demand growth ran at an unsustainable high rate. Still, global oil demand in the first quarter of 2005 was estimated at 84.6 million barrels per day ("b/d"), about the same level as the previous quarter, and 2.6% higher than the comparable quarter in 2004. Seasonally mild weather in the Northern Hemisphere for most of January through mid-February reduced heating oil requirements. However, the onset of colder weather conditions in late February and early March, as well as continuing problems in Japan's nuclear power sector, led to higher oil demand towards the end of the first quarter of 2005.

Vessel supply developments also exerted downward pressure on freight rates during the first quarter of 2005, as nine VLCCs (2.8 million dwt) were delivered while no vessels were scrapped. The world VLCC fleet grew to 462 vessels (134.6 million dwt) at March 31, 2005 from 456 vessels (132.7 million dwt) at the start of 2005. Seven newbuilding orders (2.1 million dwt) were placed during the first quarter of 2005 compared with eight vessels (2.4 million dwt) in the fourth quarter of 2004. As a result, the orderbook contracted to 86 vessels (26.1 million dwt) at March 31, 2005, equivalent to 19.4%, based on deadweight tons, of the existing VLCC fleet.

Foreign Flag Aframaxes

The downturn in Aframax spot freight rates that began in December 2004 continued into the first quarter of 2005. Rates for Aframaxes operating in the Caribbean trades averaged $37,000 per day, 47% less than the average for the previous quarter and 21% less than the average for the first quarter of 2004 as oil production decreased from the fourth quarter in key Aframax loading areas, including the FSU and the North Sea.

Non-OPEC production growth has been driven in recent years by the FSU. Although oil production in the FSU fell during the first quarter of 2005 to an estimated 11.4 million b/d, 0.5% less than the previous quarter, FSU exports have held steady. After a pronounced weather-induced decline in January, FSU seaborne exports averaged 5.9 million b/d in the first quarter of 2005, unchanged from the previous quarter. Although Aframax fixtures in the Black Sea increased by 12.7% relative to the preceding quarter, the first quarter of 2005 also saw a marked reduction in weather delays for tankers transiting the Bosporus Straits relative to the first quarter of 2004, when sustained transit delays for tankers reduced the availability of Aframax tonnage in the Mediterranean. The reduction in delays in 2005 increased the availability of suitable tonnage and had a dampening affect on rates.

The world Aframax fleet increased to 636 vessels (63.7 million dwt) at March 31, 2005 from 627 vessels (62.5 million dwt) at December 31, 2004, as Aframax deliveries exceeded deletions. This continued expansion of the Aframax fleet exerted downward pressure on rates during the first quarter of 2005. With newbuilding orders dropping during the first quarter of 2005 to 13 vessels (1.5 million dwt) from 22 vessels (2.4 million dwt) during the fourth quarter of 2004, the orderbook contracted to 172 vessels (18.8 million dwt) at March 31, 2005, equivalent to 29.5%, based on deadweight tons, of the existing Aframax fleet.

Foreign Flag Panamaxes

Rates for Panamaxes trading in crude and dirty products averaged $40,300 per day during the first quarter of 2005. Although 28% less than the average for the previous quarter and 6% less than the corresponding quarter in 2004, they remained close to historic highs. A 5.5% year-over-year increase in the size of the Panamax fleet constrained rates despite strong demand for crude and residual fuel oil. Rates peaked in January as seasonal strength carried over from the previous quarter.

First quarter U.S. crude and residual fuel oil imports increased sharply over the comparable year ago period, boosting demand for quality double hull Panamaxes in the Caribbean and the west coast of Central America. High domestic natural gas prices provided a strong incentive to substitute fuel oil for natural gas. Strong demand for fuel oil in Europe precluded transatlantic arbitrage trades, increasing U.S. energy users' dependence on fuel oil supplies from the Caribbean. In the meantime, more stringent IMO regulations and an increasing preference by the oil majors for double hull over single hull vessels widened the premium that double hull vessels command over single hull vessels.

The world Panamax fleet rose to 295 vessels (19.5 million dwt) at March 31, 2005 from 290 vessels (19.1 million dwt) at December 31, 2004. Newbuilding orders increased to 14 vessels (0.8 million dwt) during the first quarter of 2005, compared with 11 vessels (0.8 million dwt) the previous quarter. The orderbook contracted to 188 vessels (12.6 million dwt) at March 31, 2005, equivalent to 64.6%, based on deadweight tons, of the existing Panamax fleet.

Foreign Flag Handysize Product Carriers

Rates for Handysize Product Carriers operating in the Caribbean trades averaged $27,300 per day during the first quarter of 2005, 8% less than the average for the previous quarter and 7% less than the corresponding quarter in 2004, as continuing fleet expansion put pressure on rates. Despite healthy demand growth, U.S. imports of refined oil products averaged 3.0 million b/d during the first quarter of 2005, 1.3% less than the previous quarter, but 5.3% more than the equivalent quarter in 2004. Similar to the situation in other tanker segments, rates backed off from historically high levels, but the tight balance between supply and demand remained unchanged. Demand for gasoline continued to grow with increasing reliance on imports to comply with new government regulations requiring low-sulfur blends. Diesel oil consumption continued at high levels, commensurate with expanded trucking activity, and heating oil requirements in the U.S. rose as temperatures turned much colder from mid-February onward. Colder temperatures in Europe and refinery turnarounds impacted European distillate supplies and resulted in a backhaul movement of gasoil to Europe, reducing the availability of quality tonnage from the Caribbean. Fewer Handysize Product Carriers moved into the dirty products trades this winter than in the same period of 2004, when restrictions on Suezmax and Aframax movements through the Bosporus Straits pulled many smaller vessels into this trade.

The world Handysize Product Carrier fleet expanded to 530 vessels (21.8 million dwt) at March 31, 2005 from 524 vessels (21.5 million dwt) at December 31, 2004. Newbuilding orders placed during the first quarter of 2005 totaled 20 vessels (0.9 million dwt) compared with 32 vessels (1.4 million dwt) in the preceding quarter. The orderbook rose to 175 vessels (8.0 million dwt) on March 31, 2005, equivalent to 36.6%, based on deadweight tons, of the existing Handysize fleet.



 Appendix 1

 Summary Consolidated Statements of Operations

                                             Three Months Ended
 ($000's except per share amounts)                March 31,
                                        -------------------------
 Shipping Revenues                         2005            2004
                                        ----------     ----------
 Time and Bareboat Charter
   Revenues                           $    257,865   $    174,106
 Voyage Charter Revenues                    17,542         20,025
                                        ----------     ----------
                                           275,407        194,131
                                        ----------     ----------
  Voyage Expenses                           (8,220)        (5,149)
 Time Charter Equivalent
  Revenues                                 267,187        188,982
                                        ----------     ----------
 Running Expenses (including
  time charter hire and
  depreciation)                            105,960         57,320
 General & Administrative                   16,021         13,794
                                        ----------     ----------
 Total Ship Operating Expenses             121,981         71,114
                                        ----------     ----------
 Income from Vessel
   Operations (100% owned)                 145,206        117,868
 Equity in Income of Joint
  Ventures                                  17,673          3,980
                                        ----------     ----------
 Operating Income                          162,879        121,848
 Other Income (a) (b)                       24,125         10,355
                                        ----------     ----------
 Income before Interest
  and Taxes                                187,004        132,203
 Interest Expense                           22,831         17,515
                                        ----------     ----------
 Income before Taxes                       164,173        114,688
 Provision/(Credit) for
  Federal Income Taxes                       (746)         38,500
                                        ----------     ----------
 Net Income                             $  164,919     $   76,188
                                        ==========     ==========
 Basic Net Income Per Share             $     4.18     $     1.99
 Diluted Net Income Per Share           $     4.18     $     1.98
 Weighted Average Number of
   Shares (Basic)                       39,435,000     38,360,000
 Weighted Average Number of
  Shares  (Diluted)                     39,499,000     38,440,000

 (a) Includes gains on vessel sales of $12,902,000 for the three
     months ended March 31, 2005 and $2,863,000 for the three months
     ended March 31, 2004.

 (b) Includes gains on securities transactions of $6,675,000 for the
     three months ended March 31, 2005 and $5,795,000 for the three
     months ended March 31, 2004.

 TCE Revenue by Segment
                                            Three Months Ended
 ($000)                                          March 31,
                                        -------------------------
                                           2005           2004
                                        ----------     ----------
 Foreign Flag
   Crude                                $  205,191     $  154,147
   Product                                  35,962          6,789
   Other                                     6,284          8,761
 U.S. Flag                                  19,750         19,285
                                        ----------     ----------
                                        $  267,187     $  188,982
                                        ----------     ----------


 Appendix 2

 Summary Consolidated Balance Sheets

 ($000)

                                          March 31,       December 31,
                                            2005              2004
                                         ----------        ----------
 Cash and Cash Equivalents               $  146,118        $  479,181
 Other Current Assets                       153,771           166,436
 Capital Construction Fund                  275,138           268,414
 Vessels, including capital
  leases and vessel held for sale         2,636,904         1,456,365
 Investments in Joint Ventures              218,975           227,701
 Other Assets                                83,019            82,701
                                         ----------        ----------
 Total Assets                            $3,513,925        $2,680,798
                                         ==========        ==========

 Current Liabilities                     $  129,175        $  200,743
 Long-term Debt and Capital Leases        1,643,482           906,183
 Other Liabilities                          149,406           147,500
 Shareholders' Equity                     1,591,862         1,426,372
                                         ----------        ----------
 Total Liabilities and
  Shareholders' Equity                   $3,513,925        $2,680,798
                                         ==========        ==========

 Appendix 3

 Summary Consolidated Statements of Cash Flows

 ($000)                                       Three Months Ended
                                                   March 31,
                                             ----------------------
                                                2005        2004
                                             ---------    ---------
 Net cash provided by operating activities   $  93,926    $  79,791
                                             ---------    ---------
 Cash Flows from Investing Activities:

 Expenditures for vessels                         (542)      (9,397)
 Proceeds from disposal of vessels              77,159        5,886
 Acquisitions of interests in
  joint ventures                                    --       (2,292)
 Acquisition of Stelmar Shipping Ltd.,
  net of cash acquired of $107,911            (742,433)          --
 Investments in and advances
  to joint ventures                             (1,034)     (34,447)
 Distributions from joint ventures              15,050           --
 Other -- net                                    6,678        3,455
                                             ---------    ---------
  Net cash (used in) investing
   activities                                 (645,122)     (36,795)
                                             ---------    ---------
 Cash Flows from Financing Activities:

 Issuance of common stock,
  net of issuance costs                             --      115,503
 Issuance of debt, net of
  issuance costs                               752,250      146,704
 Payments on debt and obligations
  under capital leases                        (526,886)     (14,226)
 Cash dividends paid                            (6,902)      (6,869)
 Issuance of common stock upon
  exercise of stock options                        166        1,997
 Other -- net                                     (495)         (65)
                                             ---------    ---------
  Net cash provided by financing
   activities                                  218,133      243,044
                                             ---------    ---------
 Net (decrease)/increase in cash
  and cash equivalents                        (333,063)     286,040
 Cash and cash equivalents at
  beginning of period                          479,181       74,003
                                             ---------    ---------
 Cash and cash equivalents
  at end of period                           $ 146,118    $ 360,043
                                             =========    =========

  Appendix 4

  The following table shows time charter equivalent revenues per day
  and revenue days (defined as ship operating days less lay-up, repair
  and drydock days) for the Company's principal foreign flag classes
  for the first quarter 2005 compared with the same period of 2004:

                                      Three Months Ended
                                           March 31,
                                 ------------------------------
                                   2005                  2004
                                 --------               -------
 VLCC
  Average TCE Rate(a)            $82,749                $74,280
  Number of Revenue Days           1,472                  1,466

 Aframax
  Average TCE Rate(a)            $37,409                $36,464
  Number of Revenue Days           1,523                  1,142

 Panamax
  Average TCE Rate(a)            $24,670                $16,363
  Number of Revenue Days             995                    158

 Product Carriers
  Average TCE Rate(a)            $17,733                $20,889
  Number of Revenue Days           2,028                    325

 (a) Includes vessels operating on voyage charters and period
     charters and the effect of forward freight agreements.


 Appendix 5

 Equity in Income of Joint Venture Vessels

 The following is a summary of the Company's interest in its foreign
 flag joint ventures. Revenue days are adjusted for OSG's percentage
 ownership in order to state the days on a basis comparable to that of
 wholly-owned vessels:

                                        Three Months Ended
                                             March 31,
                                     -------------------------
 ($000)                                2005             2004
                                     --------         --------
 Equity in Income                    $ 16,369         $  2,664
 Number of Revenue Days                   249               98

     In July 2004, a joint venture in which OSG has a 49.9 % interest
 took delivery of four V Pluses.


 Appendix 6

 The following table presents per share amounts after tax for net
 income adjusted for the effects of vessel sales and securities
 transactions:

                                        Three Months Ended
                                             March 31,
                                     -------------------------
                                       2005             2004
                                     --------         --------
 Net Income                          $   4.18         $   1.99
 (Gain) on Vessel Sales                  (.33)            (.05)
 (Gain) on Securities Transactions       (.11)            (.11)
                                     --------         --------
                                     $   3.74         $   1.83
                                     ========         ========

 Note: Net income adjusted for the effect of vessel sales and
 securities transactions is presented to provide additional
 information with respect to the Company's ability to compare from
 period to period vessel operating revenues and expenses and general
 and administrative expenses without gains and losses from disposals
 of assets and investments. While net income adjusted for the effect
 of vessel sales and securities transactions is frequently used by
 management as a measure of the vessels operating performance in a
 particular period, it is not necessarily comparable to other
 similarly titled captions of other companies due to differences in
 methods of calculations. Net income adjusted for the effect of vessel
 sales and securities transactions should not be considered an
 alternative to net income or other measurements prepared in
 accordance with accounting principles generally accepted in the
 United States.


 Appendix 7

        The following table shows reconciliation of net income, as 
 reflected in the consolidated statements of operations, to EBITDA:

 ($000)                                     Three Months Ended
                                                 March 31,
                                          ------------------------
                                            2005            2004
                                          --------        --------
 Net income                               $164,919        $ 76,188
 (Credit)/provision for federal
  income taxes                                (746)         38,500
 Interest expense                           22,831          17,515
 Depreciation and amortization              36,359          24,210
                                          --------        --------
 EBITDA                                   $223,363        $156,413
                                          ========        ========


 Note: EBITDA represents operating earnings, which is before interest
 expense and income taxes, plus other income and depreciation and
 amortization expense. EBITDA should not be considered a substitute
 for net income, cash flow from operating activities and other
 operations or cash flow statement data prepared in accordance with
 accounting principles generally accepted in the United States or as a
 measure of profitability or liquidity. EBITDA is presented to provide
 additional information with respect to the Company's ability to
 satisfy debt service, capital expenditures and working capital
 requirements. While EBITDA is frequently used as a measure of
 operating results and the ability to meet debt service requirements,
 it is not necessarily comparable to other similarly titled captions
 of other companies due to differences in methods of calculation.

 Appendix 8

         The following table presents information with respect to
 OSG's capital expenditures for the first quarter of 2005, excluding
 the acquisition of Stelmar, compared with the same period of 2004:

 ($000)                                     Three Months Ended
                                                 March 31,
                                          ------------------------
                                            2005            2004
                                          --------        --------
 Expenditures for vessels                 $    542        $  9,397
 Acquisitions of interests in
  joint ventures                               --            2,292
 Investments in and advances to
  joint ventures                             1,034          34,447
 Payments for drydockings                    2,629           1,567
                                          --------        --------
                                          $  4,205        $ 47,703
                                          ========        ========

 Appendix 9

        The following table summarizes the Company's foreign and
 domestic flag fleets as of March 31, 2005:

 Tankers and Dry Bulk Vessels
 ----------------------------

                                            March 31, 2005
                                       -------------------------
                                       Vessels           Dwt
                                       -------       -----------
 Foreign Flag
  V Plus                                    4          1,766,694
  VLCC                                     21          6,371,081
  Suezmax                                   1            147,501
  Aframax                                  20          2,082,240
  Panamax                                  13            904,709
  Handysize Product Carrier                28          1,204,028
  Capesize Bulk Carrier                     2            319,843
                                       -------------------------
  Foreign Flag Tanker and
   Dry Bulk Vessels                        89         12,796,096

 U.S. Flag
  Crude Tanker                              3            275,904
  Handysize Product Carrier                 4            188,810
  Bulk Carrier                              2             51,902
  Pure Car Carrier                          1             16,141
                                       -------------------------
  U.S. Flag Tanker and
   Dry Bulk Vessels                        10            532,757
                                       -------------------------
 Foreign and U.S. Flag Tanker
  and Dry Bulk Vessels                     99         13,328,853
 Foreign Flag Newbuildings on Order
  VLCC                                      1            305,177
                                       -------------------------
 Total Tanker and Dry Bulk Vessels,
  including Newbuildings                  100         13,634,030
                                       =========================


 LNG Carriers                          Vessels           Cbm
 ------------                          -------         --------
 LNG Carriers on Order                     4            864,800
                                       =========================

         The following chart summarizes the fleet and its tonnage,
  weighted to reflect the Company's ownership and participation
  interests in vessels as of March 31, 2005:

                                       Vessels          Dwt
                                       -------       ----------
 Total Tankers and Dry Bulk Vessels      90.9        10,943,368
 Total Tankers and Dry Bulk Vessels,
  Including Newbuildings                 91.3        11,065,439
 LNG  Carriers on Order                   2.0           431,535 cbm


                     ----------------------------------

The Company plans to host a conference call at 11:00 AM ET on May 5, 2005 to discuss results for the quarter. All shareholders and other interested parties are invited to call into the conference call, which may be accessed by calling (800) 322-0079 within the United States, or (973) 409-9258 for international participants. A live webcast of the conference call will also be available on Overseas Shipholding Group's website at http://www.osg.com under webcasts and presentations in the investor relations section.

An audio replay of the conference call will be available from 1:00 PM ET on Thursday, May 5, through midnight ET on Thursday, May 12 by calling (877) 519-4471 within the United States and (973) 341-3080 for international callers. The password for the replay is 6009640. A webcast of the conference call will be available for 30 days following the call at http://www.osg.com or http://www.viavid.net. To access the webcast, participants will need Windows Media Player.



                     ----------------------------------

This release contains forward-looking statements regarding the Company's prospects, including the outlook for tanker markets, changing oil trading patterns, prospects for certain strategic alliances, anticipated levels of newbuilding and scrapping, integration of Stelmar Shipping Ltd. and the forecast of world economic activity and world oil demand. Factors, risks and uncertainties that could cause actual results to differ from expectations reflected in these forward-looking statements are described in the Company's Annual Report on Form 10-K for 2004.



            

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