EQUITY METHOD INVESTMENTS

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

EQUITY METHOD INVESTMENT

Investment in affiliated company is comprised of the Company’s 37.5% interest in Alaska Tanker Company, LLC, which manages vessels carrying Alaskan crude for BP West Coast Products, LLC (“BP”). In the first quarter of 1999, OSG, BP, and Keystone Shipping Company formed Alaska Tanker Company, LLC (“ATC”) to manage the vessels carrying Alaskan crude oil for BP. ATC provides marine transportation services in the environmentally sensitive Alaskan crude oil trade. Each member in ATC is entitled to receive its respective share of any incentive charter hire payable by BP to ATC.

Under Rule 3-09 of Regulation S-X, we are required to file separate audited financial statements of Alaska Tanker Company, LLC, for the ended December 31, 2017. We expect to file those financial statements by amendment to our Annual Report on Form 10-K/A on or before March 30, 2018.

A condensed summary of the assets and liabilities of the equity method investment follows: 

	Years Ended December 31,
	2017			2016
Current assets	$	37,497		$	37,680
Total assets	$	37,497		$	37,680
Current liabilities	$	28,910		$	29,335
Non-current liabilities	9,865			10,301
Equity/(deficiency)	(1,278		)	(1,956		)
Total liabilities and equity/(deficiency)	$	37,497		$	37,680

A condensed summary of the results of operations of the equity method investments follows:

	Years Ended December 31,
	2017			2016			2015
Shipping revenues	$	106,894		$	110,503		$	126,331
Ship operating expenses	(96,901		)	(100,752		)	(116,267		)
Income from vessel operations	9,993			9,751			10,064
Net income	$	9,993		$	9,751		$	10,064