OSG's vessels were employed at healthy charter rates for close to 100% of available days during the first quarter, with only eight of a total of 1,916 available days seeing vessels idle without employment.
The Energy Information Agency reports refinery runs in the US in recent weeks at less than 70% of capacity and transportation fuel demand at levels ranging from 15% to 60% below normal levels.
Over the past four weeks, motor gasoline consumption has averaged 5.5 million barrels per day, a 40% decline from year ago levels.
Jet fuel consumption declined to levels 60% below year ago levels, as passenger flights in the US operated close to 96% below their normal capacity.
Even an anticipated swift recovery in gasoline consumption in the United States should leave year-end levels at an expected 1.5 million barrels per day below normal.
Our newly acquired subsidiary, Alaska Tanker Company, has seen the odd impact of sky-high international rates, where last week, a cargo of ANS crude was sold to China and shipped on the Alaskan Navigator, a highly unusual move, but one enabled by the fact that the TCE rate on the Navigator was $100,000 per day lower and that of an equivalent international Suezmax tanker.
Three of the biggest oil explorers in the United States, ExxonMobil, Chevron and Conocophillips, have announced plans to curb as much as 660,000 barrels a day of combined American output by the end of June.
Across the country, crude production by oil companies has already tumbled about 1 million barrels per day since mid-March and could fall more than 2 million barrels per day by the end of the year.
OSG's 21 vessel US Flag fleet consists of three crude oil tankers operating in the Alaskan crude oil trade, one conventional ATB, two lightering ATBs, three shuttle tankers, 10 MR tankers and two non-Jones Act MR tankers that participate in the US Maritime Security Program.
During the first quarter, we purchased three Alaskan tankers capable of carrying approximately 1.3 million barrels of oil each.
Additionally, we acquired a 62.5% interest of our partners in Alaskan Tanker Company.
As a result, we now own 100% of ATC.
We financed these transactions with a $54 million loan.
The loan bears interest at 4.43% fixed rate, maturing in March 2025 and has a 12-year amortization schedule.
In late March, we also completed the financing of the OSG 204, our barge currently under construction in Oregon.
We drew $28 million of this loan at closing.
This loan has a five year maturity and amortizes also over 12 years.
Our first quarter TCE revenues grew $14.3 million or 17%, when compared to the first quarter of 2019.
Sequentially, TCE revenues were up $3.3 million from the fourth quarter.
Adjusted EBITDA was $52.8 million for the quarter, a $29.2 million increase from the first quarter of 2019.
This termination of a preexisting relationship resulted in a $19.2 million net non-cash gain.
Excluding this gain, we experienced almost a 43% increase in adjusted EBITDA from the first quarter of 2019.
Excluding the $3.2 million of annual earnings, which is recorded in the fourth quarter when it's earned from ATC, our adjusted EBITDA sequentially increased by $3.2 million.
Although the mix of vessels changed, we operated 21 vessels for the full quarter of 2020 and 2019.
Looking at our TCE revenues on a more granular basis, our lightering business TCE revenues sequentially increased $2.3 million from the fourth quarter of 2019.
The OSG 350 operated under time charter in the first quarter of 2020, compared to primarily spot market activity during the fourth quarter.
Effective day rates for both the OSG 350 and 351 increased, due to higher utilization and increases in contracted rates.
The TCE revenues from our rebuilt ATBs increased $1.3 million, due to increases in the rate environment.
Our non-Jones Act tankers recorded a $2.7 million decrease in TCE revenues during the quarter, when compared to the fourth quarter of 2019, this is due to the reduction in the Government of Israel voyages that we had from Q4.
We operated under international time charters for 182 days, maintaining the effective utilization of our vessels by reducing the number of days of spot market exposure.
Our Jones Act tanker fleet TCE revenues decreased $1 million from the fourth quarter to $69.1 million in the first quarter of 2020.
Looking at year-over-year changes, lightering revenues were down $700,000 in comparison to the first quarter of 2019.
ATB revenues declined from $7.5 million to $4.8 million, compared to the first quarter due to the decreased number of operating vessels.
The non-Jones Act tanker revenues increased from $3.7 million to $7.3 million, driven by the addition of the Gulf Coast and Sun Coast.
Conventional tanker TCE revenues increased $10.7 million.
Additionally, our three Alaskan tankers added on March 12 contributed $3.4 million in TCE revenues for the 19 days they were in our fleet.
This continues to be true as we have been successful in generating business for the OSG 350 in the Gulf of Mexico.
Vessel operating contribution, which is defined as TCE revenues less vessel operating expenses and charter hire expenses increased $10.8 million or 39% from Q1 2019 to $38.8 million in the current quarter.
The largest contributor to the increase was the $10 million contribution, the vessel operating contribution from our conventional Jones Act tankers.
The overall increase in operating contribution also reflects the addition of 3 tankers and the late quarter acquisition of Alaskan tankers, all partially offset by the reduction of our rebuilt ATBs.
The Alaskan tankers provided $1.9 million of operating contribution after they entered our fleet.
Vessel operating contribution from our niche market activities decreased $900,000, resulting from an increase in dry dock-related off-hire days.
Sequentially, vessel operating contribution increased $3.4 million from Q4 2019.
Anyway, first quarter 2020 adjusted EBITDA $52.8 million, compared to fourth quarter adjusted EBITDA of $33.7 million.
The fourth quarter included our annual profit distribution of $3.2 million from ATC.
First quarter adjusted EBITDA increased $29.2 million from $23.6 million in Q1 2019.
Net income for the first quarter of 2020 was $25.1 million, compared to net income of $3.2 million in the first quarter of 2019.
Non-operationally, $15 million of the increased earnings came from recognition of the previously described gain.
We estimate, which includes the three recently acquired Alaskan tankers that our investment will be $43.8 million in dry dock expenses and $16.1 million for ballast water treatment systems in 2020.
We will experience approximately $20 million in lost revenue for the full-year, resulting from 377 off-hire days.
At the end of the first quarter, we had $5.1 million of progress payments remaining on the OSG 204 and $20.1 million of progress payments on the OSG 205.
As previously discussed, we financed the OSG 204 during the quarter and all remaining payments will be funded from this loan.
OSG's equity in the OSG 204 will be approximately $17.7 million upon delivery.
We anticipate obtaining similar financing for the OSG 205.
In 2020, if we were to achieve an average TCE rate of 62,000 across the 10 AMSC vessels, there would be no profit sharing.
The minimum average rate required to result in a profit-sharing obligation in 2020 is $69,000 per day.
This would create an aggregate payout of approximately $300,000.
Given the assumptions used, profit sharing payout would be $8 million.
The minimum average rate necessary to achieve any level of profit share in 2022 would be $61,000.
Again, using the assumptions here, the profit sharing earned in 2023 would be $14 million.
We began 2020 with total cash of $42 million, including $200,000 of restricted cash.
During the first quarter of 2020, we generated $53 million of adjusted EBITDA.
During the quarter, we issued $81 million net of issuance costs of new debt to finance the Alaskan transaction in the OSG 204.
We extended net of cash received $17 million for the acquisition.
The $19 million adjustment is to remove the effect of the non-cash gain we've discussed.
We expended $3 million on dry-docking and improvements to our vessels.
We invested $21 million in new vessel construction and other capex.
We also incurred $6 million in interest expense and made debt repayments of $8 million.
The result, we ended the quarter with $102 million of cash, including $20.1 million of restricted cash.
Continuing our discussion of cash and liquidity, as we mentioned on the previous slide, we have $102 million of cash at March 31, 2020, including $20.1 million of restricted cash.
Our total debt was $450 million.
This represents a net increase of $75 million in outstanding indebtedness since December 2019.
A $325 million term loan has an annual amortization requirement of $25 million or $6.25 million per quarter.
With $367 million of equity, our net debt-to-equity ratio is 1 times.
In order to support the sale process, we established a $20 million escrow that could be used to prepay a portion of that loan, if it were not sold within 90 days.
We've contracted employment covering 95% of available operating days during the current quarter and 86% of available operating days for the balance of the year.
For the second quarter, we expect to achieve time charter equivalent earnings of $100 million.
Taken together with our first quarter results, this should put us squarely on track to be within the range of $395 million to $400 million of time charter equivalent earnings on an annualized basis through the first half of this year.
Similarly, we expect consolidated adjusted EBITDA through the first half of the year, excluding the effects of this quarter's gain related to the ATC transaction accounting to reach $60 million, a level which again tracks closely with our full year expectations provided during our last call.
Including the ATC transaction accounting, overall EBITDA for the first half of this year should exceed $80 million.
Another domestic yard, Marinette Marine Corporation, was recently awarded a contract to design and produce the next-generation of up to 10 guided-missile frigates.

Summary:
Non-operationally, $15 million of the increased earnings came from recognition of the previously described gain.