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International Seaways (INSW) 7 Nov 24 2024 Q3 Earnings call transcript

AInvestSaturday, Nov 9, 2024 9:42 am ET
1min read

In the third quarter of 2024, International Seaways, Inc. reported a net income of $92 million or $1.84 per diluted share, marking a significant achievement for the company. Excluding gains on vessel sales and other one-off items, adjusted net income for the quarter was $78 million or $1.57 per share. This robust performance is a testament to the company's strategic approach and its commitment to delivering value for its shareholders.

Financial Highlights and Strategic Moves

The company's EBITDA for the quarter stood at over $143 million, with adjusted EBITDA at $130 million. International Seaways also reported a strong balance sheet, boasting nearly $700 million in total liquidity and a net loan to vessel value of under 14%. This financial strength positions the company well for future growth and strategic initiatives.

One of the key strategic moves for International Seaways in the third quarter was the sale of three 15-year-old MRs for a total of $72 million and the acquisition of six MRs under 10 years old for $232 million. These transactions not only optimize the company's fleet but also strengthen its balance sheet.

Tanker Market Outlook

Lois Zabrocky, the company's President and CEO, provided insights into the tanker market, highlighting the ongoing trends and challenges. Oil demand growth is projected to remain strong, with China's demand growth showing some signs of slowing down. However, the market is closely monitoring the impact of China's announced stimulus on oil demand, which could potentially influence tanker demand and the broader economic landscape.

Investor Questions and Answers

During the Q&A session, investors and analysts raised concerns about the tanker market, specifically the softness in product rates and the potential impact of geopolitical factors. Lois Zabrocky and her team addressed these concerns, emphasizing the resilience of the MR tanker market and the company's strategic approach to navigating the evolving market conditions.

Looking Ahead

International Seaways, Inc. is poised for continued success, with a focus on fleet renewal, enhancing its balance sheet, and returning value to shareholders. The company's strong financial position, strategic initiatives, and forward-looking guidance position it well for the future. As the company moves into the fourth quarter and beyond, it will continue to monitor market conditions and seize opportunities for growth and value creation.

In conclusion, International Seaways, Inc.'s third quarter performance highlights its strategic acumen and commitment to delivering value for its shareholders. The company's focus on fleet renewal, balance sheet enhancement, and shareholder returns positions it for continued success in the evolving tanker market landscape.

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