First Quarter 2006 Earnings Results




 Highlights

 - Diluted EPS of $3.24 per share on net income of $128.4 million.
 - Sale of securities adds $3.2 million, or $0.08 per share, to
   earnings in the period.
 - A $4.8 million non cash charge to interest in connection with
   terminating prior long-term credit facilities decreased earnings
   by $0.08 per share.
 - Dividend of $0.25, an increase of 43%, declared by the Board.
 - Panamax International adds new partner, Flota Petrolera Ecuatoriana
   (FLOPEC).
 - Fleet expansion program brings OSG's owned, operated and newbuild
   fleet to 113 vessels.

NEW YORK, May 2, 2006 (PRIMEZONE) -- Overseas Shipholding Group, Inc. (NYSE:OSG), a market leader in providing energy transportation services, today reported results for the first fiscal quarter of 2006.

For the quarter ended March 31, 2006, net income was $128.4 million, down 22% from $164.9 million in the same period a year earlier. Diluted earnings per share were $3.24, in comparison with $4.18 per share in the first quarter of 2005. TCE revenues in the quarter increased by 5% to $280.1 million compared with $267.2 million in the first quarter of 2005.

"OSG generated strong results and cash flows in the quarter, clearly demonstrating the advantages of having a large, diverse and modern fleet," stated Morten Arntzen, President and CEO of OSG. "This enabled us to strengthen our balance sheet, increase our book of long-term fixed charter revenue and pursue capital-efficient growth." Arntzen continued, "Looking toward the future, our newbuild program of 24 vessels across all segments provides us with improved scale and efficiencies to compete on a worldwide basis and provide superior service to our customers. This scale is critical to our success."

Quarter-over-quarter, TCE revenues for the crude oil segment were $207.1 million, up 3%, principally due to an increase of revenue days in the VLCC and Panamax sectors partially offset by the 2005 sale and redelivery of two Aframax tankers and off hire days in the period. TCE revenues in the product carrier segment were $53.9 million, up 36%, due to an increase in revenue days and higher average rates earned in both the spot and time charter markets. U.S. segment revenues were down 34% quarter-over-quarter to $13.0 million, as a result of a decrease in revenue days reflecting the sale of three crude tankers in 2005 coupled with an increase in drydock days during the period. The decrease in revenue days was partially offset by an increase in rates.

Of the $280.1 million in TCE revenues, approximately 72% were derived from the spot market and 28% from time and bareboat charters. OSG's fleet diversification strategy and the increase in revenues derived from product carriers, the majority of which trade on medium to long-term charters, has enabled OSG to reduce the percentage of TCE revenues from the spot market from 79% in 2003 and 85% in 2004. Detailed spot and time charter rates by vessel class can be found in Spot and Time Charter TCE Rates Achieved later in this press release.

For the three months ended March 31, 2006, total ship operating expenses increased $41.5 million to $150.6 million. The increase in time and bareboat charter expenses of $17.4 million resulted from the sale and charter back of 13 vessels. Vessel expenses increased $5.1 million principally due to additional costs incurred on three reflagged vessels that participate in the U.S. Maritime Security Program, increased crew costs and the timing of certain purchases, such as spares and stores. General and administrative expenses increased $8.0 million principally due to additional headcount, the recognition of targeted cash incentive compensation on a quarterly basis, expenses incurred in connection with investigations by the U.S. Department of Justice and increases in legal, accounting and consulting services. In addition, lower earnings from asset sales accounted for an increase in quarter-over-quarter ship operating expenses of $13.0 million.

Highlights of Recent Activities and First Quarter Events

Fleet Expansion

-- On March 7, 2006, OSG signed an agreement with a subsidiary of Cido Tanker Holding Co., a privately held shipping company headquartered in Hong Kong, to time charter two International Flag product carriers for a period of seven years, with an additional three year extension option for each vessel. The vessels will be built by Hyundai Mipo Dockyard in South Korea and are scheduled to be delivered to OSG in May and June 2008.

-- On March 29, 2006, OSG announced that it will build four 114,000 dwt 44-meter beam Aframax tankers at the New Times Shipbuilding Co. Ltd. shipyard based in Jinjiang, China. The vessels, scheduled for delivery in 2008 and 2009, will increase OSG's Aframax fleet to 21 tankers serving customers in the Atlantic basin, and will operate in the Aframax International pool. The tankers will be built using the new Common Structural Rules recently established by the International Association of Classification Societies (IACS) for all tankers and bulk carriers ordered after April 1, 2006 which includes stricter hull strength requirements.

-- On April 7, 2006, OSG signed long-term time charter-out agreements for two more of its Jones Act product carriers being built at the Aker Philadelphia Shipyard. The agreement between OSG and Tesoro Maritime Company, an independent refiner and marketer of petroleum products, is in addition to four other previously announced long-term charters: two with Shell Trading U.S. Company, a subsidiary of Shell Oil, and two with British Petroleum PLC. To date, six of the Company's ten newbuild Jones Act Product Carriers have been secured by long-term charters at attractive rates.

-- On April 24, 2006, Flota Petrolera Ecuatoriana (FLOPEC), an Ecuadorian state-owned oil company, joined Panamax International. The addition of five Panamax tankers from FLOPEC's fleet increases the joint venture's fleet to 20 modern, double hull tankers, all of which trade in the Americas.

Fleet Metrics and Statistics

-- As of March 31, 2006, OSG had an operating fleet of 89 International Flag and U.S. Flag vessels. Fifty-six percent, or 50 vessels, were owned, compared with 69%, or 68 vessels, as of March 31, 2005.

-- OSG's newbuild program of chartered-in and owned vessels totals 24 and spans across all lines of business: four International Flag crude tankers; six International Flag product carriers; and 10 Jones Act product carriers, representing 1.2 million deadweight tons, and four LNG carriers, representing 864,800 cubic meters.

-- Revenue days in the quarter totaled 7,208, an increase of 1% over the same period a year earlier.



 ---------------------------------------------------------------------
                                          Three Months Ended March 31,
                                          ----------------------------
 Revenue Days                                 2006            2005
 ---------------------------------------------------------------------
    Crude                                    3,912           3,841
    Product                                  2,600           2,256
    U.S.                                       516             856
    Other                                      180             180
                                          ----------------------------
                                             7,208           7,133
 ---------------------------------------------------------------------

-- Future revenue associated with time charters, excluding the LNG segment, totals $845.8 million, representing 32,140 revenue days.

Other Corporate Activities

-- On April 12, 2006, OSG's Board of Directors announced a quarterly dividend of $0.25 per share, a 43% increase from $0.175 per share, which had been in place since June 2003. OSG has paid a quarterly dividend to shareholders since 1974.

-- On April 3, 2006, OSG announced that Jean-Paul Vettier, a retired senior executive of Total S.A., the fourth largest publicly-traded oil and gas company in the world, had been appointed to its Board of Directors, effective April 1, 2006.

Financial Profile

During the first fiscal quarter, shareholders' equity increased by $135.3 million to more than $2.0 billion and liquidity, including undrawn bank facilities, increased to more than $1.75 billion. Total long-term debt as of March 31, 2006 was $854.5 million compared with $965.7 million at December 31, 2005. Liquidity adjusted debt to capital was 19.5% as of March 31, 2006, an improvement from 24.5% as of December 31, 2005.

On February 15, 2006, the Company announced it had entered into a $1.5 billion seven-year unsecured revolving credit agreement with a group of banks. Borrowings under this facility bear interest at a rate based on LIBOR. The terms, conditions and financial covenants contained therein are generally more favorable than those contained in the Company's prior long-term facilities. In connection with entering into the agreement, the Company terminated all of its other unsecured revolving credit facilities (long-term credit agreements of $1.285 billion and a short-term agreement of $45 million).

Average TCE Rates Achieved

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 International fleet for the three month period ended March 31, 2006 compared with the same period of 2005.



                                                Three Months Ended
                                                     March 31,
                                                ------------------
                                                   2006      2005
 ---------------------------------------------   -------   -------
 Trade - Crude
 ---------------------------------------------   -------   -------
 VLCC
  Average TCE Rate (a,b)                         $78,611   $82,749
  Number of Revenue Days                           1,633     1,472
 Aframax
  Average TCE Rate (a)                           $38,107   $37,409
  Number of Revenue Days                           1,362     1,523
 Panamax
  Average TCE Rate (a)                           $29,244   $27,377
  Number of Revenue Days                             917       767

 ---------------------------------------------   -------   -------
 Trade - Refined Petroleum Products
 ---------------------------------------------   -------   -------
 Panamax
  Average TCE Rate (a)                           $24,663   $15,563
  Number of Revenue Days                             180       228
 Handysize
  Average TCE Rate (a,b)                         $20,423   $17,731
  Number of Revenue Days                           2,420     2,028
 ---------------------------------------------   -------   -------
 (a) Includes vessels operating on voyage
     charters and period charters.
 (b) Includes the effect of forward freight
     agreements.

Spot and Time Charter TCE Rates Achieved

The following table provides a breakdown of TCE rates achieved for the first quarters of 2006 and 2005 between spot and time charter rates. The information for VLCCs, Aframaxes and Panamaxes is based, in part, on information provided by the pools or commercial joint ventures in which they participate.



                              Three Months Ended  Three Months Ended
                                 March 31, 2006      March 31, 2005
                               -----------------   -----------------
                                Spot      Time      Spot      Time
                               Charter   Charter   Charter   Charter
 ---------------------------   -------   -------   -------   -------
 Trade - Crude
 ---------------------------   -------   -------   -------   -------
 VLCC
  Average TCE Rate             $78,611        --   $83,971   $29,492
  Number of Revenue Days         1,633        --     1,439        33
 Aframax
  Average TCE Rate             $41,658   $26,601   $42,184   $23,331
  Number of Revenue Days         1,039       323     1,142       381
 Panamax
  Average TCE Rate             $34,464   $25,205   $39,485   $18,108
  Number of Revenue Days           381       536       347       420
 ---------------------------   -------   -------   -------   -------
 Trade - Refined Petroleum
 Products
 ---------------------------   -------   -------   -------   -------
 Panamax
  Average TCE Rate                  --   $25,444   $15,019   $16,024
  Number of Revenue Days            --       180        49       179
 Handysize
  Average TCE Rate             $27,763   $19,271   $26,058   $17,283
  Number of Revenue Days           567     1,853       180     1,848
 ---------------------------   -------   -------   -------   -------

2006 TCE Rates

The Company has achieved the following average estimated TCE rates for the percentage of days booked for vessels operating through April 21, 2006. The information for the VLCCs, Aframaxes and Panamaxes is based, in part, on information provided by the pools or commercial joint ventures in which they participate. All numbers provided are estimates and may be adjusted for a number of reasons, including the timing of any acquisitions or disposals and the timing and length of drydocks and repairs.



                                       Second Quarter Revenue Days
                                    ---------------------------------
                           Average   Fixed    Open
  Vessel Class and           TCE     as of    as of            % Days
   Charter Type             Rates   4/21/06  4/21/06   Total   Booked
 ------------------------- -------  -------  -------  -------  ------
 Trade - Crude
 ------------------------- -------  -------  -------  -------  ------
 VLCC - Spot               $49,000    1,111      531    1,642      68%
 ------------------------- -------  -------  -------  -------  ------
 Aframax - Spot            $29,000      263      905    1,168      23%
 Aframax - Time            $28,500      279       --      279     100%
 ------------------------- -------  -------  -------  -------  ------
 Panamax - Spot            $30,500      129      324      453      28%
 Panamax - Time            $25,000      546       --      546     100%
 ------------------------- -------  -------  -------  -------  ------
 Trade - Refined Petroleum
 Products
 ------------------------- -------  -------  -------  -------  ------
 Panamax - Time            $19,000      182       --      182     100%
 ------------------------- -------  -------  -------  -------  ------
 Handysize - Spot          $27,500      246      376      622      40%
 Handysize - Time          $17,500    1,754       --    1,754     100%
 ------------------------- -------  -------  -------  -------  ------

 VLCC and V-Plus tankers trade in the Tankers International pool;
 Aframaxes trade in the Aframax International pool and Panamaxes trade
 in the Panamax International joint venture.

The following table shows average estimated time charter TCE rates and associated days booked and days open as of April 21, 2006, by quarter, for the third and fourth quarters of 2006.



                                   Fixed Rates
                                and Revenue Days       Open Days
                                  as of 4/21/06      as of 4/21/06
 --------------------------------------------------------------------
                                  Q306      Q406      Q306      Q406
 --------------------------------------------------------------------
 Trade - Crude
 --------------------------------------------------------------------
 VLCC
  Average TCE Rate                   --        --
  Number of Revenue Days             --        --     1,654     1,654
 Aframax
  Average TCE Rate              $28,500   $28,500
  Number of Revenue Days            280       291     1,135     1,178
 Panamax
  Average TCE Rate              $25,000   $24,500
  Number of Revenue Days            552       503       450       506
 --------------------------------------------------------------------
 Trade - Refined Petroleum
 Products
 --------------------------------------------------------------------
 Panamax
  Average TCE Rate              $19,000   $19,000
  Number of Revenue Days            184       184        --        --
 Handysize
  Average TCE Rate              $17,000   $17,500
  Number of Revenue Days          1,735     1,686       784       928
 --------------------------------------------------------------------

 SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

                                          Three Months Ended March 31,
                                          ----------------------------
 ($ in thousands except                        2006           2005
  per share amounts)                        ----------     ----------

 Shipping Revenues:

 Pool revenues                              $  193,105     $  187,954
 Time and bareboat charter revenues             70,848         69,911
 Voyage charter revenues                        27,073         17,542
                                            ----------     ----------
                                               291,026        275,407
 Voyage Expenses                               (10,917)        (8,220)
                                            ----------     ----------
 Time Charter Equivalent Revenues              280,109        267,187
                                            ----------     ----------
 Ship Operating Expenses:

 Vessel expenses                                48,915         43,800
 Time and bareboat charter hire expenses        43,171         25,801
 Depreciation and amortization                  34,354         36,359
 General and administrative                     24,011         16,021
 Loss/(gain) on disposal of vessels                121        (12,902)
                                            ----------     ----------
 Total Ship Operating Expenses                 150,572        109,079
                                            ----------     ----------
 Income from Vessel Operations                 129,537        158,108
 Equity in Income of Affiliated Companies        6,812         17,673
                                            ----------     ----------
 Operating Income                              136,349        175,781
 Other Income                                    9,392         11,223
                                            ----------     ----------
                                               145,741        187,004
 Interest Expense                               22,607         22,831
                                            ----------     ----------
 Income before Federal Income Taxes            123,134        164,173
 Credit for Federal Income Taxes                (5,230)          (746)
                                            ----------     ----------
 Net Income                                 $  128,364     $  164,919
                                            ==========     ==========

 Weighted Average Number of
  Common Shares Outstanding:
   Basic                                    39,516,077     39,435,079
   Diluted                                  39,569,551     39,499,100

 Per Share Amounts:
  Basic net income                          $     3.25     $     4.18
  Diluted net income                        $     3.24     $     4.18
  Cash dividends declared                   $    0.175     $    0.175

 2005 has been reclassified to conform with the 2006 presentation.

TCE Revenue by Segment

The following table reflects TCE revenues generated by the Company's three reportable segments for quarters ended March 31, 2006 and 2005, respectively, and excludes the Company's proportionate share of TCE revenues of joint ventures.



                                     Three Months Ended March 31,
                                 -----------------------------------
                                            % of               % of 
 ($ in thousands)                  2006     Total     2005     Total
 -------------------------------------------------------------------
 International
  Crude                          $207,091    74.0   $201,647    75.5
  Product                          53,862    19.2     39,506    14.8
  Other                             6,201     2.2      6,284     2.3
 U.S.                              12,955     4.6     19,750     7.4
                                 -----------------------------------
   Total TCE Revenues            $280,109   100.0   $267,187   100.0
                                 ===================================
 --------------------------------------------------------------------

Income from Vessel Operations by Segment

The following table reflects income from vessel operations accounted for by each reportable segment. Income from vessel operations is before general and administrative expenses, gain/(loss) on disposal of vessels and the Company's share of income from joint ventures.



                              Three Months Ended March 31,
                        -------------------------------------------
 ($ in thousands)         2006   % of Total      2005    % of Total
 ------------------------------------------------------------------
 International
  Crude                 $129,775    84.4       $140,490     87.1
  Product                 20,534    13.4         16,468     10.2
  Other (a)                1,811     1.2         (2,416)    (1.5)
 U.S.                      1,549     1.0          6,685      4.2
                        -------------------------------------------
   Total Income from
    Vessel Operations   $153,669   100.0       $161,227    100.0
                        ===========================================
 ------------------------------------------------------------------
 (a) 2005 reflects reserves related to Department of Justice
     investigations and the settlement of certain crew benefits.

Reconciliations of income from vessel operations of the segments to amounts included in the consolidated income statements follow:



                                          Three Months Ended March 31,
                                          ----------------------------
 ($ in thousands)                            2006               2005
 ---------------------------------------------------------------------
 Total income from vessel operations
  of all segments                         $ 153,669          $ 161,227
 General and administrative expenses        (24,011)           (16,021)
 (Loss)/gain on disposal of vessels            (121)            12,902
                                          ---------          ---------
 Consolidated income from vessel
  operations                              $ 129,537          $ 158,108
                                          =========          =========
 ---------------------------------------------------------------------

 CONSOLIDATED BALANCE SHEETS
                                                March 31,  December 31,
 ($ in thousands)                                 2006         2005
                                               ----------   ----------
                                               (Unaudited)
 ASSETS
 Current Assets:
 Cash and cash equivalents                     $  197,378   $  188,588
 Voyage receivables                               123,614      157,334
 Other receivables                                 35,568       22,202
 Inventories and prepaid expenses                  25,726       16,763
                                               ----------   ----------
    Total Current Assets                          382,286      384,887
 Capital Construction Fund                        301,460      296,126
 Vessels and other property                     2,264,328    2,288,481
 Vessels under Capital Leases                      35,922       36,267
 Deferred drydock expenditures, net                26,133       19,805
                                               ----------   ----------
    Total Vessels, Deferred Drydock
     and Other Property                         2,326,383    2,344,553
                                               ----------   ----------

 Investments in Affiliated Companies              276,446      269,657
 Other Assets                                      54,496       53,457
                                               ----------   ----------
    Total Assets                               $3,341,071   $3,348,680
                                               ==========   ==========

 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
 Accounts payable, sundry liabilities
  and accrued expenses                         $   89,601   $  105,173
 Short-term debt and current installments
  of long-term debt                                20,066       20,066
 Current obligations under capital leases           6,682        6,968
                                               ----------   ----------
    Total Current Liabilities                     116,349      132,207
 Long-term Debt                                   813,950      923,612
 Obligations under Capital Leases                  40,534       42,043
 Deferred Gain on Sale and Leaseback
  of Vessels                                      222,429      233,456
 Deferred Federal Income Taxes and
  Other Liabilities                               136,446      141,334
 Shareholders' Equity                           2,011,363    1,876,028
                                               ----------   ----------
    Total Liabilities and
     Shareholders' Equity                      $3,341,071   $3,348,680
                                               ==========   ==========

 CONSOLIDATED STATEMENTS OF CASH FLOWS
 ($ in thousands)                                 Three Months Ended
                                                       March 31,
                                               -----------------------
                                                 2006           2005
                                               ---------     ---------
 Cash Flows from Operating Activities:
 Net income                                    $ 128,364     $ 164,919
 Items included in net income not affecting
  cash flows:
   Depreciation and amortization                  34,354        36,359
   Amortization of deferred gain on sale
    and leasebacks                               (10,399)         (693)
   Deferred compensation relating to
    restricted stock and stock option grants         925           361
   Deferred federal income tax credit             (3,389)       (1,183)
   Undistributed earnings of affiliated
    companies                                      5,750        (5,291)
   Other - net                                     4,278        (2,061)
 Items included in net income related to
  investing and financing activities:
   Gain on sale of securities - net               (4,966)       (6,675)
   Loss/(gain) on disposal of vessels                121       (12,902)
 Changes in operating assets and liabilities      (3,339)      (75,680)
                                               ---------     ---------
    Net cash provided by operating activities    151,699        97,154
                                               ---------     ---------
 Cash Flows from Investing Activities:
 Expenditures for vessels                         (4,957)         (542)
 Payments for drydocking                          (8,619)       (2,629)
 Proceeds from disposal of vessels                    --        77,159
 Acquisition of Stelmar Shipping Ltd.                 --      (742,433)
 Expenditures for other property                  (2,052)         (599)
 Investments in and advances to
  affiliated companies                                --        (1,034)
 Distributions from affiliated companies              --        15,050
 Other - net                                        (612)        6,678
                                               ---------     ---------
    Net cash (used in) investing activities      (16,240)     (648,350)
                                               ---------     ---------
 Cash Flows from Financing Activities:
 Issuance of debt, net of issuance costs              --       752,250
 Payments on debt and obligations under
  capital leases                                (111,461)     (526,886)
 Cash dividends paid                              (6,920)       (6,902)
 Issuance of common stock upon exercise of
  stock options                                      121           166
 Other - net                                      (8,409)         (495)
                                               ---------     ---------
    Net cash provided by/(used in)
     financing activities                       (126,669)      218,133
                                               ---------     ---------
 Net increase/(decrease) in cash and
   cash equivalents                                8,790      (333,063)
 Cash and cash equivalents at beginning
  of year                                        188,588       479,181
                                               ---------     ---------
 Cash and cash equivalents at end of period    $ 197,378     $ 146,118
                                               =========     =========

 2005 has been reclassified to conform with the 2006 presentation.

Fleet

On March 31, 2006, OSG was the second largest publicly traded oil tanker company in the world as measured by number of vessels. OSG's fleet of 113 vessels, including newbuilds, aggregates 12.7 million deadweight tons and 865,000 cbm. Adjusted for OSG's participation interest in joint ventures and chartered-in vessels, the fleet totaled 106.25 vessels. For current fleet information, which is updated on a quarterly basis, refer to the Company's website at www.osg.com



                      Vessels     Vessels            Total at
                       Owned    Chartered-in     March 31, 2006
                     -----------------------------------------------
                                             Total  Vessels   Total
 Vessel Type          No. WBO    No.   WBO  Vessels   WBO      Dwt
 ------------------- ---- ----  ----  ----- ------- ------  ----------
 VLCC (including
  V-Plus)             12   12    10    6.25    22    18.25   6,994,410
 Aframax               9    9     8    7.00    17    16.00   1,758,994
 Panamax               9    9     2    2.00    11    11.00     831,396
 Summary Inter-
  national Flag
  Crude Tankers       30   30    20   15.25    50    45.25   9,584,800

 Panamax               2    2    --      --     2     2.00      73,313
 Handysize            12   12    13   13.00    25    25.00   1,074,834
 Summary Inter-
  national Flag
  Product Carriers    14   14    13   13.00    27    27.00   1,148,147

 International Flag
  Dry Bulk Carriers   --   --     2    2.00     2     2.00     319,843
 Total International
  Flag Operating
  Fleet               44   44    35   30.25    79    74.25  11,052,790
 U.S. Flag Operating
  Fleet (a)            6    6     4    4.00    10    10.00     386,047
 Total Operating
  Fleet               50   50    39   34.25    89    84.25  11,438,837

Newbuild Fleet
International Flag
 Aframax Crude
  Tankers              4    4    --      --     4     4.00     456,000
 Handysize Product
  Carriers            --   --     6    6.00     6     6.00     298,000
 U.S. Flag Product
  Carriers            --   --    10   10.00    10    10.00     460,000
 Subtotal of Crude
  Tankers, Product
  Carriers and Dry
  Bulk Carriers       54   54    55   50.25   109   104.25  12,652,837
 Newbuild LNG
  Carriers             4    2    --      --     4     2.00   864,800 cbm
 Total Operating                                                   
  and Newbuild Fleet  58   56    55   50.25   113   106.25          --

 WBO = Weighted by Ownership
 ----------------------------------------------------------------------
 (a) Includes three owned product carriers that trade
     internationally and are included in the Product revenue segment.

Average Age of International Flag Operating Fleet

OSG has one of the youngest International Flag fleets in the industry. The Company believes its modern, well maintained fleet is a significant competitive advantage in the global market. The table below reflects the average age of the Company's owned International Flag fleet in comparison with the world fleet.



 -------------------------------------------------------------------
                               Average Age of OSG's   Average Age of
                                 Owned  Fleet at        World Fleet
     Vessel Class                     3/31/06          at 3/31/06 (a)
 -------------------------------------------------------------------
 VLCC                                6.0 years             8.4 years
 Aframax                             8.3 years             8.9 years
 Panamax (b)                         3.0 years            10.6 years
 Handysize                           5.2 years            12.6 years
 -------------------------------------------------------------------
 (a) Source:  Clarkson database as of April 1, 2006.
 (b) Includes Panamax tankers that trade crude oil and
     refined petroleum products.

Drydock Schedule

In addition to regular inspections by OSG personnel, all vessels are subject to periodic drydock, special survey and other scheduled maintenance. The table below sets forth anticipated days off-hire for these events by class for the Company's owned and bareboat chartered-in vessels.



                   Q106        Q206            Q306          Q406
                  ------  -------------- -------------- ---------------
                           Pro-           Pro-           Pro-
                  Actual jected          jected         jected
                   Days   Days     No.    Days     No.   Days     No.
                   Off-   Off-     of     Off-     of    Off-     of
                   Hire   Hire   Vessels  Hire   Vessels Hire   Vessels
                 -------  -----  ------- ------  ------- -----  -------
 Trade - Crude
 ------------------ ----  ----   ------- ------  ------- -----  -------
 VLCC                19    14       2       14      1      14      1
 Aframax             74     0       0       54      3       0      0
 Panamax             73     0       0        0      0       3      1
 ------------------ ----  ----   ------- ------  ------- -----  -------
 Trade - Refined
 Petroleum Products
 ------------------ ----  ----   ------- ------  ------- -----  -------
 Panamax              0     0       0        0      0       0      0
 Handysize          100   172       5       73      2     130      4
 ------------------ ----  ----   ------- ------  ------- -----  -------
 U.S.               114     0       0        5      1       0      0
 ------------------ ----  ----   ------- ------  ------- -----  -------
   Total            380   186       7      146      7     147      6
 ------------------ ----  ----   ------- ------  ------- -----  -------

Market Overview

Worldwide oil demand during the first quarter of 2006 increased by approximately 700 thousand barrels per day ("b/d"), or 0.9%, compared with the first quarter of 2005. While there was no oil demand growth in OECD countries, non-OECD demand rose by 2.3%. The largest increase in demand of 5.2% occurred in the Middle East and, therefore, had no impact on tanker demand. Oil demand growth stagnated in Southeast Asia as reductions in or eliminations of fuel subsidies had a depressing impact on demand.

Tanker supply increased by 1.3%, or 4.1 million dwt, during the first quarter of 2006 from year-end 2005 levels. While there was growth in all vessel categories, the highest percentage growth was in the Panamax sector, where tonnage increased by 2.4%. Product Carriers, on the other hand, reflected the lowest percentage growth at 1.1%. The additional tonnage exerted downward pressure on TCE rates. Also, since the beginning of 2006, approximately 18 million dwt have been ordered. The high volume of ordering was, in part, a reflection of the April 1, 2006 effective date for the Common Structural Rules ("CSR") that resulted in more stringent shipbuilding requirements and an increase in newbuilding prices for tankers ordered after the effective date.

Vessels ordered today will, for the most part, not be delivered until the end of 2008 for Product Carriers and the end of 2009 for crude tankers. Shipyards are operating at or near full capacity and thus have no incentive to reduce newbuilding prices. Prices for newbuilds remained strong during the first quarter, increasing by 3% to 5% from year-end 2005 levels, depending upon vessel category. In some instances, owners who were willing to pay a premium for immediate delivery paid higher prices for modern second hand vessels than for newbuildings.

Key factors that affected first quarter 2006 rates included a record high U.S. refining maintenance program that significantly reduced refinery utilization rates. This reduced demand for crude oil imports, but resulted in higher U.S. product imports. Warmer than normal temperatures in the U.S. Northeast, however, reduced overall product demand for heating oil in the U.S. At the same time, colder than normal temperatures in Japan increased requirements for crude oil and fuel oil. In addition, supply interruptions in the North Sea, Brazil and the Former Soviet Union ("FSU") reduced available non-OPEC crude oil supplies during the same period that OPEC crude oil supplies were affected by significant disruptions to Nigeria's oil infrastructure, continued problems in Iraq and heightened tensions with Iran. All these factors contributed to changes in supply patterns, which supported tanker rates during the quarter.

Earnings Conference Call Information

The Company plans to host a conference call at 11:00 a.m. ET on May 2, 2006 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 +1 800-231-5571 within the United States, or +1 973-582-2952 for international participants. A live webcast of the conference call and accompanying slide presentation will be available on Overseas Shipholding Group's website at http://www.osg.com in the Investor Relations Events and Webcasts section or via http://www.viavid.net. The webcast will be available for 90 days and requires Windows Media Player.

An audio replay of the conference call will be available from 2:00 p.m. ET on Tuesday, May 2, through midnight ET on Tuesday May 9, 2006 by calling +1 877-519-4471 within the United States and +1 973-341-3080 for international callers. The password for the replay is 7268723.

About OSG

Overseas Shipholding Group, Inc. (NYSE: OSG) is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 113 vessels, aggregating 12.7 million dwt and 865,000 cbm. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the Company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. More information is available at www.osg.com.

Forward-Looking Statements

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 and investments, estimated TCE rates achieved for the second, third and fourth quarters of 2006, anticipated levels of newbuilding and scrapping, projected drydock schedule, the ability to restore refining capacity and crude oil production in the Gulf of Mexico from damage caused by hurricanes, the projected growth of the world tanker fleet 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.



 APPENDIX 1 - EBITDA RECONCILIATION

 The following table shows reconciliations of net income, as reflected
 in the consolidated statements of operations, to EBITDA:
 ---------------------------------------------------------------------
                                           Three Months ended March 31,
                                           ---------------------------
 ($ in thousands)                            2006                2005
 --------------------------------------------------           --------
  Net income                               $128,364           $164,919
  Credit for federal income taxes            (5,230)              (746)
  Interest expense                           22,607             22,831
  Depreciation and amortization              34,354             36,359
                                           --------           --------
  EBITDA                                   $180,095           $223,363
                                           ===========================
 ---------------------------------------------------------------------
 EBITDA represents operating earnings, which is before interest
 expense and income taxes, plus other income and depreciation and
 amortization expense. EBITDA is presented to provide investors with
 meaningful additional information that management uses to monitor
 ongoing operating results and evaluate trends over comparative
 periods. EBITDA should not be considered a substitute for net income
 or cash flow from operating activities prepared in accordance with
 accounting principles generally accepted in the United States or as a
 measure of profitability or liquidity. While EBITDA is frequently
 used as a measure of operating results and performance, it is not
 necessarily comparable to other similarly titled captions of other
 companies due to differences in methods of calculation. The table
 reconciles net income, as reflected in the condensed consolidated
 statements of operations, to EBITDA.

 APPENDIX 2 - CAPITAL EXPENDITURES

 The following table presents information with respect to OSG's
 capital expenditures for the first quarter ended March 31, 2006.
 ---------------------------------------------------------------------
                                           Three Months Ended March 31,
                                           ---------------------------
 ($ in thousands)                            2006               2005
 ---------------------------------------------------------------------

 Expenditures for vessels                   $ 4,957            $   542

 Acquisitions of interests in
  affiliated companies                           --                 --

 Investments in and advances to
  affiliated companies                           --              1,034
 Payments for drydockings                     8,619              2,629
                                            -------            -------
                                            $13,576            $ 4,205
                                            =======            =======


            

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