International Seaways Compounds Returns to Shareholders in the Third Quarter With Repurchase of Shares

Rhea-AI Summary

International Seaways (NYSE: INSW), a leading global tanker company, has announced the repurchase of 501,646 shares of its common stock at an average price of $49.81 per share, totaling approximately $25 million. This move aligns with the company's commitment to returning value to shareholders. The repurchased shares will be retired, and INSW still has about $25 million available under its current $50 million share repurchase program, set to expire at the end of 2025.

CEO Lois K. Zabrocky highlighted that these repurchases, funded by proceeds from a previously announced vessel sale, amount to over 80% of shares issued in the prior quarter for fleet renewal. Additionally, INSW has declared a combined dividend of $1.50 per share, payable on September 25, 2024, to shareholders of record as of September 11, 2024.

Positive

• Repurchased 501,646 shares at an average price of $49.81, totaling $25 million
• Share repurchases amount to over 80% of shares issued in the prior quarter for fleet renewal
• Declared a combined dividend of $1.50 per share
• $25 million still available under the current share repurchase program

Negative

• None.

Insights

Financial Analyst

International Seaways' recent share repurchase of $25 million demonstrates a strong commitment to shareholder value. This move, coupled with the previously announced $1.50 per share dividend, signals confidence in the company's financial health and future prospects. The repurchase, at an average price of $49.81 per share, is a strategic use of capital, potentially indicating management's belief that the stock is undervalued.

Notably, the company has repurchased more than 80% of shares issued in the previous quarter for fleet renewal, effectively neutralizing dilution while maintaining fleet modernization efforts. This balanced approach to capital allocation - investing in growth while returning value to shareholders - is commendable. With $25 million still available under the current repurchase program until 2025, INSW maintains flexibility for future market opportunities.

Market Research Analyst

The tanker market outlook appears positive, as evidenced by International Seaways' aggressive share repurchase program. This move suggests management's optimism about future earnings potential in the energy transportation sector. The company's ability to fund substantial buybacks while maintaining a generous dividend policy indicates robust cash flow generation, likely driven by strong demand for crude oil and petroleum product transportation.

Investors should note that INSW's strategy aligns with broader industry trends, where companies are focusing on returning value to shareholders amidst favorable market conditions. The company's proactive approach to fleet renewal and shareholder returns positions it well against competitors. However, it's important to monitor geopolitical factors and global energy demand shifts that could impact tanker rates and, consequently, INSW's financial performance.

NEW YORK--(BUSINESS WIRE)-- International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, announced today that the Company has repurchased 501,646 shares of its common stock in open-market purchases over the last week, at an average price of $49.81 per share, for a total cost of approximately $25 million. The repurchased shares will be retired. The Company has approximately $25 million available under the current $50 million share repurchase program that expires at the end of 2025.

“Seaways continues to deliver on its commitment to returning value to shareholders by utilizing our share repurchase program," said Lois K. Zabrocky, International Seaways President and CEO. "Over the past few days, we redeployed proceeds from a previously announced vessel sale that resulted in share repurchases amounting to more than 80% of those issued in the prior quarter for fleet renewal.”

The Company also had previously announced that a combined dividend of $1.50 per share was declared to be paid on September 25, 2024, to shareholders of record at the close of business on September 11, 2024.

ABOUT INTERNATIONAL SEAWAYS, INC.

International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 82 vessels, including 13 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 13 LR1s (including six newbuildings), and 38 MR tankers. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at https://www.intlseas.com.

Forward-Looking Statements

This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the U.S. Securities and Exchange Commission (the “SEC”), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to plans to issue dividends, the Company’s prospects, including statements regarding vessel acquisitions and disposals, expected synergies, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for 2023 for the Company and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910580069/en/

Investor Relations & Media:

Tom Trovato, International Seaways, Inc.

(212) 578-1602

ttrovato@intlseas.com

Source: International Seaways, Inc.

FAQ

How many shares did International Seaways (INSW) repurchase in the third quarter?

International Seaways (INSW) repurchased 501,646 shares of its common stock in open-market purchases over the last week of the third quarter.

What was the average price per share for INSW's recent stock repurchase?

The average price per share for International Seaways' recent stock repurchase was $49.81.

How much is International Seaways' (INSW) declared dividend for September 2024?

International Seaways (INSW) has declared a combined dividend of $1.50 per share to be paid on September 25, 2024.

When does International Seaways' (INSW) current share repurchase program expire?

International Seaways' (INSW) current $50 million share repurchase program expires at the end of 2025.