International Seaways Reports Strong 2024 Results, Driven by Fleet Optimization and Balance Sheet Enhancements

International Seaways, Inc. (NYSE: INSW) has announced its fourth quarter and full year 2024 financial results, showcasing a strong performance driven by strategic initiatives in fleet optimization and balance sheet enhancements. The company's net income for the full year of 2024 was $556.4 million, or $11.25 per diluted share, representing an increase of $168.6 million compared to the full year of 2023. The adjusted net income for the full year of 2024 was $723.8 million, which is an increase from the $556.4 million reported in the full year of 2023.

The company's fleet optimization program played a significant role in its strong performance. International Seaways agreed to purchase six MRs built between 2014 and 2015 for $232 million, 15% funded through shares, and sold two, 2008-built MRs for net proceeds of $28 million after debt repayment. Additionally, the company increased contracted revenues to $354 million by entering into two new time charter agreements during the fourth quarter of 2024. These strategic moves have helped International Seaways improve its fleet's efficiency, reduce costs, and enhance its overall market position.

International Seaways' balance sheet enhancements have also contributed to its strong financial performance. The company prepaid nearly $300 million in debt during 2024, in addition to mandatory debt repayments of approximately $150 million and $27 million in debt prepayments related to vessel sales. This proactive debt repayment strategy has helped International Seaways reduce its cash break evens to below $14,500 per day, further enhancing its financial flexibility and profitability. As a result, the company's net loan-to-value ratio was 17% as of December 31, 2023, the lowest in its history.

International Seaways' strong performance in 2024 was also reflected in its returns to shareholders. The company paid a combined $1.25 per share in regular and supplemental dividends in December 2024, and returned over $320 million to shareholders during the year. Additionally, International Seaways declared a combined dividend of $1.32 per share for the first quarter of 2025, representing 60% of adjusted net income for the fourth quarter.

In conclusion, International Seaways' strong 2024 results were driven by its strategic initiatives in fleet optimization and balance sheet enhancements. The company's proactive approach to managing its debt levels, maintaining a substantial liquidity position, and optimizing its capital structure has positioned it to capitalize on opportunities in the tanker market and continue delivering compelling shareholder returns. As the company looks ahead, it remains well-positioned to capitalize on the positive market fundamentals that remain intact, driven by strong tanker demand and an aging global fleet.