International Seaways Reports Fourth Quarter and Full Year 2020 Results
International Seaways reported a net loss of $5.5 million for 2020, or $0.20 per diluted share, impacted by impairments totaling $100.1 million and refinancing expenses of $14.5 million. The fourth quarter resulted in a loss of $116.9 million, a sharp decline from a net income of $15.9 million in Q4 2019. Time charter equivalent revenues dropped to $53 million, markedly down from $117.6 million year-over-year. However, the company secured 10-year contract extensions for its floating storage units, expected to generate over $322 million in revenues. Liquidity stood at $255.7 million.
- Secured 10-year extensions for service contracts, projected at over $322 million in revenues.
- Maintained a strong liquidity position of $255.7 million, including $40 million undrawn revolver.
- Achieved adjusted EBITDA of $220.1 million for 2020, up from $164.7 million in 2019.
- Reported a net loss of $116.9 million in Q4 2020, compared to $15.9 million net income in Q4 2019.
- Impairments and losses on vessel sales amounted to $100.1 million impacting overall financial health.
- Time charter equivalent revenues fell from $117.6 million in Q4 2019 to $53 million in Q4 2020.
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 in International Flag markets, today reported results for the fourth quarter and full year 2020.
Highlights
-
Net loss for the twelve months ended December 31, 2020 was
$5.5 million , or$0.20 per diluted share. Net loss for 2020 reflects the impact of impairments and loss on sale of vessels of$100.1 million and various expenses related to refinancing of$14.5 million , and a non-cash deferred tax provision of$16.4 million recorded as a reduction of equity in results of the FSO (Floating Storage Offloading) joint ventures, principally related to the extension of their service contracts. Net income excluding these items would have been$125.2 million , or$4.39 per diluted share. -
Net loss for the fourth quarter was
$116.9 million , or$4.18 per diluted share, compared to net income of$15.9 million , or$0.54 per diluted share, in the fourth quarter of 2019. Net loss for the current quarter reflects the impact of vessel impairment charges of$85.9 million and the aforementioned non-cash$16.4 million tax provision. Net loss excluding these items would have been$14.6 million , or$0.52 per diluted share. -
Signed 10-year extensions to our service contracts for our two FSO joint ventures, which are expected to generate in excess of
$322 million of contract revenues for the Company over the additional 10-year extension periods. -
Time charter equivalent (TCE) revenues(A) for the fourth quarter were
$53.0 million , compared to$117.6 million for the fourth quarter of 2019. -
Adjusted EBITDA(B) for the fourth quarter was a loss of
$5.0 million , compared to$72.2 million for the fourth quarter of 2019. Full year Adjusted EBITDA was$220.1 million compared to$164.7 million for fiscal 2019. The amounts for Adjusted EBITDA for the 2020 periods are without consideration of any adjustment for the$16.4 million non-cash deferred tax provision recorded by the FSO joint ventures. -
Cash(C) was
$215.7 million as of December 31, 2020; total liquidity was$255.7 million , including$40.0 million of undrawn revolver. -
Paid a regular quarterly cash dividend of
$0.06 per share in December 2020 and announced a quarterly cash dividend of$0.06 per share payable in March 2021. - Sold and delivered a 2002-built VLCC, Seaways Mulan, a 2003-built VLCC, Seaways Rosalyn, and a 2001-built Aframax, Seaways Fran.
- Subsequent to the end of the quarter, announced contract to build three dual fuel LNG VLCCs at DSME shipyard in South Korea with seven-year time charters to Shell commencing at delivery in 2023.
“2020 was a challenging and volatile year for the tanker market, but also one in which we achieved solid results, generating a record
Ms. Zabrocky continued, “Consistent with our focus on accretive capital allocation, we are excited to have agreed to build three LNG dual-fuel VLCCs for delivery in 2023, enabling us to achieve a number of critical strategic objectives. Adding these vessels to our fleet on seven-year time charters to a market leading counterparty in Shell both allows us access to very competitive financing as we renew our fleet at attractive levels and provides strong, stable cash flows with added upside due to profit sharing above the base rate. Additionally, we expect these tankers to be well suited to adhere to future environmental regulation throughout their life. These ships meet not just today’s IMO Energy Efficiency Design Index (“EEDI”) but also beat the 2025 Phase III EEDI targets by about eight percent. Their significant environmental benefits, including substantially reducing our carbon footprint, are in keeping with Seaways’ commitment to ESG-focused corporate citizenship, and we are proud to continue to be at the forefront of sustainability initiatives in the maritime sector.”
Jeff Pribor, the Company’s CFO, added, “2020 was an important year for Seaways, as we successfully completed our sustainability-linked refinancing, which reduced our average interest rate by 3.5 percentage points and our annual interest expense by
Fourth Quarter 2020 Results
Net loss for the fourth quarter was
Consolidated TCE revenues for the fourth quarter were
In the fourth quarter of 2020, the Company recorded an impairment charge of
Adjusted EBITDA for the fourth quarter was a loss of
Crude Tankers
TCE revenues for the Crude Tankers segment were
Product Carriers
TCE revenues for the Product Carriers segment were
Full Year 2020 Results
Net loss for the full year ended December 31, 2020 was
Equity in income of affiliated companies decreased by
Other expense was
Interest expense was
Consolidated TCE revenues for the full year ended December 31, 2020 were
Adjusted EBITDA for the full year ended December 31, 2020 was
Crude Tankers
TCE revenues for the Crude Tankers segment were
Shipping revenues for the Crude Tankers segment were
Product Carriers
TCE revenues for the Product Carriers segment were
Shipping revenues for the Product Carriers segment were
Constructing Three Dual Fuel VLCC Newbuildings
Subsequent to the end of the quarter, the Company contracted to build three dual fuel LNG VLCCs at DSME shipyard in South Korea. The three ships, upon delivery, will be time chartered to Shell for a period of seven years at a rate that consists of a floor rate plus profit sharing.
Share Repurchases
During the fourth quarter, the Board of Directors increased the share repurchase program authorization to
Payment of Regular Cash Dividend
The Company’s Board of Directors declared a regular quarterly cash dividend of
Vessel Sales
The Company sold a 2002-built VLCC, Seaways Mulan, a 2003-built VLCC, Seaways Rosalyn, and a 2001-built Aframax, Seaways Fran, all of which were delivered to buyers during the fourth quarter.
10-Year Contract Extensions for FSO Joint Venture
During the quarter, the FSO Joint Venture signed a 10-year extension on each of the existing service contracts with North Oil Company (“NOC”), relating to the two FSO service vessels. The extensions will commence in direct continuation of the existing contracts, which were originally scheduled to expire during the third quarter of 2022.
Conference Call
The Company will host a conference call to discuss its fourth quarter 2020 results at 9:00 a.m. Eastern Time (“ET”) on Friday, March 12, 2021. To access the call, participants should dial (855) 940-9471 for domestic callers and (412) 317-5211 for international callers. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at www.intlseas.com.
An audio replay of the conference call will be available starting at 12:00 p.m. ET on Friday, March 12, 2021 through 11:59 p.m. ET on Friday, March 19, 2021 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10152888.
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 36 vessels, including 11 VLCCs, two Suezmaxes, four Aframaxes/LR2s, 13 Panamaxes/LR1s and 4 MR tankers. Through joint ventures, it has ownership interests in two floating storage and offloading service vessels. 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 Securities and Exchange Commission (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 the Company’s plans to issue dividends, its prospects, including statements regarding vessel acquisitions, 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 2020 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.
Category: Earnings
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Consolidated Statements of Operations |
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($ in thousands, except per share amounts) |
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Three Months Ended |
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Fiscal Year Ended |
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December 31, |
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December 31, |
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||||||
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2020 |
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2019 |
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2020 |
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2019 |
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(Unaudited) |
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(Unaudited) |
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Shipping Revenues: |
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Pool revenues |
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$ |
22,495 |
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$ |
95,427 |
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$ |
272,980 |
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$ |
254,055 |
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Time and bareboat charter revenues |
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22,166 |
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7,926 |
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88,719 |
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|
27,625 |
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Voyage charter revenues |
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12,042 |
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20,669 |
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59,949 |
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|
84,504 |
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Total Shipping Revenues |
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56,703 |
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124,022 |
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421,648 |
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366,184 |
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Operating Expenses: |
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Voyage expenses |
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3,750 |
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6,427 |
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19,643 |
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|
26,265 |
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Vessel expenses |
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33,634 |
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31,571 |
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|
128,373 |
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|
123,205 |
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Charter hire expenses |
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5,901 |
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12,913 |
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30,114 |
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57,512 |
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Depreciation and amortization |
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18,182 |
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18,945 |
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74,343 |
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75,653 |
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General and administrative |
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7,497 |
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7,279 |
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29,047 |
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26,798 |
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Provision for credit losses, net |
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9 |
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(14) |
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(71) |
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1,245 |
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Third-party debt modification fees |
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- |
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- |
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232 |
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30 |
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Loss on disposal of vessels and other property, |
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including impairments |
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85,923 |
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|
280 |
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100,087 |
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|
308 |
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Total operating expenses |
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154,896 |
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77,401 |
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381,768 |
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311,016 |
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(Loss)/income from vessel operations |
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(98,193) |
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46,621 |
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39,880 |
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55,168 |
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Equity in (loss)/income of affiliated companies |
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(11,553) |
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(13,346) |
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|
4,119 |
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|
11,213 |
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Operating (loss)/income |
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(109,746) |
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|
33,275 |
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43,999 |
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|
66,381 |
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Other income/(expense) |
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|
680 |
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(3,102) |
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(12,817) |
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(943) |
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(Loss)/income before interest expense and income taxes |
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(109,066) |
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30,173 |
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|
31,182 |
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|
65,438 |
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Interest expense |
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(7,823) |
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(14,281) |
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(36,712) |
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|
(66,267) |
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(Loss)/income before income taxes |
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(116,889) |
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|
15,892 |
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(5,530) |
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|
(829) |
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Income tax provision |
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- |
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(1) |
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(1) |
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(1) |
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Net (Loss)/income |
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$ |
(116,889) |
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$ |
15,891 |
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$ |
(5,531) |
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$ |
(830) |
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Weighted Average Number of Common Shares Outstanding: |
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Basic and diluted |
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27,941,519 |
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29,250,103 |
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28,372,375 |
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29,225,483 |
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Per Share Amounts: |
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Basic and diluted net (loss)/income per share |
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$ |
(4.18) |
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$ |
0.54 |
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$ |
(0.20) |
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$ |
(0.03) |
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Consolidated Balance Sheets |
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($ in thousands) |
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December 31, |
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December 31, |
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2020 |
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2019 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
199,390 |
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$ |
89,671 |
Voyage receivables |
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43,362 |
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83,845 |
Other receivables |
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|
4,479 |
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|
3,938 |
Inventories |
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3,601 |
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|
3,896 |
Prepaid expenses and other current assets |
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|
6,002 |
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|
5,994 |
Total Current Assets |
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256,834 |
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187,344 |
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Restricted Cash |
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16,287 |
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60,572 |
Vessels and other property, less accumulated depreciation |
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1,108,214 |
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1,292,516 |
Deferred drydock expenditures, net |
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36,334 |
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23,125 |
Total Vessels, Deferred Drydock and Other Property |
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1,144,548 |
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1,315,641 |
Operating lease right-of-use assets |
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21,588 |
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33,718 |
Investments in and advances to affiliated companies |
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141,924 |
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153,292 |
Long-term derivative asset |
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2,129 |
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- |
Other assets |
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3,229 |
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|
2,934 |
Total Assets |
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$ |
1,586,539 |
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$ |
1,753,501 |
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Accounts payable, accrued expenses and other current liabilities |
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$ |
34,425 |
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$ |
27,554 |
Current portion of operating lease liabilities |
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8,867 |
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12,958 |
Current installments of long-term debt |
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61,483 |
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70,350 |
Current portion of derivative liability |
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4,121 |
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3,614 |
Total Current Liabilities |
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108,896 |
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114,476 |
Long-term operating lease liabilities |
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10,253 |
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17,953 |
Long-term debt |
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474,332 |
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590,745 |
Long-term portion of derivative liability |
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6,155 |
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|
6,545 |
Other liabilities |
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14,861 |
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|
1,489 |
Total Liabilities |
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614,497 |
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|
731,208 |
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Equity: |
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Total Equity |
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972,042 |
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|
1,022,293 |
Total Liabilities and Equity |
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$ |
1,586,539 |
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$ |
1,753,501 |
Consolidated Statements of Cash Flows |
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($ in thousands) |
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Fiscal Year Ended
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|||
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2020 |
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2019 |
Cash Flows from Operating Activities: |
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Net loss |
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$ |
(5,531) |
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$ |
(830) |
Items included in net loss not affecting cash flows: |
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Depreciation and amortization |
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74,343 |
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75,653 |
Loss on write-down of vessels and other assets |
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103,022 |
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- |
Amortization of debt discount and other deferred financing costs |
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2,898 |
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|
6,920 |
Deferred financing costs write-off |
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13,073 |
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|
3,558 |
Stock compensation |
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5,631 |
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|
4,278 |
Earnings of affiliated companies |
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(4,013) |
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(30,266) |
Release other comprehensive loss upon sale of investment in affiliated companies |
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- |
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21,615 |
Change in fair value of interest rate collar recorded through earnings |
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|
1,271 |
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|
(923) |
Other – net |
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|
1,747 |
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|
1,461 |
Items included in net loss related to investing and financing activities: |
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(Gain)/loss on disposal of vessels and other property, net |
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|
(2,935) |
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|
308 |
Gain on sale of investment in affiliated companies |
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- |
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|
(3,033) |
Loss on extinguishment of debt |
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|
1,197 |
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|
1,100 |
Cash distributions from affiliated companies |
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|
4,644 |
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|
13,855 |
Payments for drydocking |
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|
(25,642) |
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|
(19,546) |
Insurance claims proceeds related to vessel operations |
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|
5,238 |
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|
2,179 |
Changes in operating assets and liabilities |
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|
41,197 |
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|
11,157 |
Net cash provided by operating activities |
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|
216,140 |
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|
87,486 |
Cash Flows from Investing Activities: |
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|
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Expenditures for vessels and vessel improvements |
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|
(50,049) |
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|
(36,607) |
Proceeds from disposal of vessels and other property |
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|
73,121 |
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|
15,767 |
Expenditures for other property |
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|
(507) |
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|
(574) |
Proceeds from sale of investment in affiliated companies |
|
|
- |
|
|
122,755 |
Investments in and advances to affiliated companies, net |
|
|
2,347 |
|
|
2,338 |
Repayments of advances from joint venture investees |
|
|
7,456 |
|
|
4,195 |
Net cash provided by investing activities |
|
|
32,368 |
|
|
107,874 |
Cash Flows from Financing Activities: |
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|
|
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|
|
Issuance of debt, net of issuance and deferred financing costs |
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|
362,989 |
|
|
(100) |
Extinguishment of debt |
|
|
(422,699) |
|
|
(110,000) |
Premium and fees on extinguishment of debt |
|
|
(205) |
|
|
(2,092) |
Payments on debt |
|
|
(82,007) |
|
|
(49,911) |
Cash payments on derivatives containing other-than-insignificant financing element |
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|
(2,681) |
|
|
- |
Cash dividends paid |
|
|
(6,770) |
|
|
- |
Repurchases of common stock |
|
|
(29,997) |
|
|
- |
Cash paid to tax authority upon vesting of stock-based compensation |
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|
(1,541) |
|
|
(369) |
Other – net |
|
|
(163) |
|
|
(289) |
Net cash used in financing activities |
|
|
(183,074) |
|
|
(162,761) |
Net increase in cash, cash equivalents and restricted cash |
|
|
65,434 |
|
|
32,599 |
Cash, cash equivalents and restricted cash at beginning of year |
|
|
150,243 |
|
|
117,644 |
Cash, cash equivalents and restricted cash at end of year |
|
$ |
215,677 |
|
$ |
150,243 |
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months and fiscal year ended December 31, 2020 and the comparable periods of 2019. Revenue days in the quarter ended December 31, 2020 totaled 2,631 compared with 3,343 in the prior year quarter. Revenue days in the fiscal year ended December 31, 2020 totaled 12,107 compared with 13,850 in the prior year. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately
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Three Months Ended December 31, 2020 |
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Three Months Ended December 31, 2019 |
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Spot |
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Fixed |
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Total |
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Spot |
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Fixed |
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Total |
Crude Tankers |
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VLCC |
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Average TCE Rate |
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$ |
17,507 |
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$ |
63,596 |
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|
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$ |
54,102 |
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$ |
- |
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Number of Revenue Days |
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|
750 |
|
|
260 |
|
|
1,010 |
|
|
986 |
|
|
- |
|
|
986 |
Suezmax |
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|
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Average TCE Rate |
|
$ |
10,406 |
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$ |
- |
|
|
|
|
$ |
50,871 |
|
$ |
- |
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Number of Revenue Days |
|
|
184 |
|
|
- |
|
|
184 |
|
|
183 |
|
|
- |
|
|
183 |
Aframax |
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|
|
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|
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Average TCE Rate |
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$ |
8,120 |
|
$ |
- |
|
|
|
|
$ |
31,302 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
307 |
|
|
- |
|
|
307 |
|
|
303 |
|
|
- |
|
|
303 |
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
9,517 |
|
$ |
14,605 |
|
|
|
|
$ |
29,144 |
|
$ |
14,350 |
|
|
|
Number of Revenue Days |
|
|
92 |
|
|
297 |
|
|
389 |
|
|
92 |
|
|
549 |
|
|
641 |
Total Crude Tankers Revenue Days |
|
|
1,333 |
|
|
557 |
|
|
1,890 |
|
|
1,564 |
|
|
549 |
|
|
2,113 |
Product Carriers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
16,795 |
|
$ |
17,371 |
|
|
|
|
$ |
23,222 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
37 |
|
|
52 |
|
|
89 |
|
|
92 |
|
|
- |
|
|
92 |
LR1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
14,867 |
|
$ |
- |
|
|
|
|
$ |
28,652 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
305 |
|
|
- |
|
|
305 |
|
|
534 |
|
|
- |
|
|
534 |
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
10,045 |
|
$ |
- |
|
|
|
|
$ |
14,028 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
347 |
|
|
- |
|
|
347 |
|
|
604 |
|
|
- |
|
|
604 |
Total Product Carriers Revenue Days |
|
|
689 |
|
|
52 |
|
|
741 |
|
|
1,230 |
|
|
- |
|
|
1,230 |
Total Revenue Days |
|
|
2,022 |
|
|
609 |
|
|
2,631 |
|
|
2,794 |
|
|
549 |
|
|
3,343 |
|
|
|
Fiscal Year Ended December 31, 2020 |
|
|
Fiscal Year Ended December 31, 2019 |
||||||||||||
|
|
|
Spot |
|
|
Fixed |
|
|
Total |
|
|
Spot |
|
|
Fixed |
|
|
Total |
Crude Tankers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
46,948 |
|
$ |
68,658 |
|
|
|
|
$ |
31,726 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
3,072 |
|
|
883 |
|
|
3,955 |
|
|
4,254 |
|
|
- |
|
|
4,254 |
Suezmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
32,515 |
|
$ |
- |
|
|
|
|
$ |
29,762 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
725 |
|
|
- |
|
|
725 |
|
|
729 |
|
|
- |
|
|
729 |
Aframax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
20,526 |
|
$ |
- |
|
|
|
|
$ |
20,011 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
1,369 |
|
|
- |
|
|
1,369 |
|
|
1,386 |
|
|
- |
|
|
1,386 |
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
24,810 |
|
$ |
15,765 |
|
|
|
|
$ |
16,263 |
|
$ |
13,471 |
|
|
|
Number of Revenue Days |
|
|
392 |
|
|
1,645 |
|
|
2,037 |
|
|
330 |
|
|
2,031 |
|
|
2,361 |
Total Crude Tankers Revenue Days |
|
|
5,558 |
|
|
2,528 |
|
|
8,086 |
|
|
6,699 |
|
|
2,031 |
|
|
8,730 |
Product Carriers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
28,202 |
|
$ |
17,371 |
|
|
|
|
$ |
20,242 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
310 |
|
|
52 |
|
|
362 |
|
|
341 |
|
|
- |
|
|
341 |
LR1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
25,721 |
|
$ |
- |
|
|
|
|
$ |
21,490 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
1,872 |
|
|
- |
|
|
1,872 |
|
|
1,766 |
|
|
- |
|
|
1,766 |
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
16,373 |
|
$ |
- |
|
|
|
|
$ |
12,590 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
1,787 |
|
|
- |
|
|
1,787 |
|
|
3,013 |
|
|
- |
|
|
3,013 |
Total Product Carriers Revenue Days |
|
|
3,969 |
|
|
52 |
|
|
4,021 |
|
|
5,120 |
|
|
- |
|
|
5,120 |
Total Revenue Days |
|
|
9,527 |
|
|
2,580 |
|
|
12,107 |
|
|
11,819 |
|
|
2,031 |
|
|
13,850 |
Revenue days in the above tables exclude days related to full service lighterings and days for which recoveries were recorded under the Company’s loss of hire insurance policies.
Fleet Information
As of December 31, 2020, INSW’s owned and operated 36 vessels, 31 of which were owned, 3 of which were chartered in, and 2 FSOs were held through joint venture partnerships.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels Owned |
|
Vessels Chartered-in |
|
Total at December 31, 2020 |
||||||||
Vessel Type |
|
Number |
|
Weighted
|
|
Number |
|
Weighted
|
|
Total
|
|
Vessels
|
|
Total Dwt |
Operating Fleet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FSO |
|
2 |
|
1.0 |
|
- |
|
- |
|
2 |
|
1.0 |
|
864,046 |
VLCC |
|
11 |
|
11.0 |
|
- |
|
- |
|
11 |
|
11.0 |
|
3,310,732 |
Suezmax |
|
2 |
|
2.0 |
|
- |
|
- |
|
2 |
|
2.0 |
|
316,864 |
Aframax |
|
1 |
|
1.0 |
|
2 |
|
2.0 |
|
3 |
|
3.0 |
|
338,686 |
Panamax |
|
7 |
|
7.0 |
|
- |
|
- |
|
7 |
|
7.0 |
|
487,365 |
Crude Tankers |
|
23 |
|
22.0 |
|
2 |
|
2.0 |
|
25 |
|
24.0 |
|
5,317,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
1 |
|
1.00 |
|
- |
|
- |
|
1 |
|
1.0 |
|
112,691 |
LR1 |
|
5 |
|
5.00 |
|
1 |
|
1.0 |
|
6 |
|
6.0 |
|
443,077 |
MR |
|
4 |
|
4.00 |
|
0 |
|
0.0 |
|
4 |
|
4.0 |
|
201,225 |
Product Carriers |
|
10 |
|
10.00 |
|
1 |
|
1.0 |
|
11 |
|
11.0 |
|
756,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Fleet |
|
33 |
|
32.0 |
|
3 |
|
3.0 |
|
36 |
|
35.0 |
|
6,074,686 |
Reconciliation to Non-GAAP Financial Information
The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures may provide certain investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
(A) Time Charter Equivalent (TCE) Revenues
Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Fiscal Year Ended December 31, |
|
||||||||
($ in thousands) |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Time charter equivalent revenues |
|
$ |
52,953 |
|
$ |
117,595 |
|
$ |
402,005 |
|
$ |
339,919 |
|
Add: Voyage expenses |
|
|
3,750 |
|
|
6,427 |
|
|
19,643 |
|
|
26,265 |
|
Shipping revenues |
|
$ |
56,703 |
|
$ |
124,022 |
|
$ |
421,648 |
|
$ |
366,184 |
|
(B) EBITDA and Adjusted EBITDA
EBITDA represents net (loss)/income before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net income or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net (loss)/income as reflected in the condensed consolidated statements of operations, to EBITDA and Adjusted EBITDA:
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
||||||
($ in thousands) |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
Net/(loss)/income |
|
$ |
(116,889) |
|
$ |
15,891 |
|
$ |
(5,531) |
|
$ |
(830) |
Income tax provision |
|
|
- |
|
|
1 |
|
|
1 |
|
|
1 |
Interest expense |
|
|
7,823 |
|
|
14,281 |
|
|
36,712 |
|
|
66,267 |
Depreciation and amortization |
|
|
18,182 |
|
|
18,945 |
|
|
74,343 |
|
|
75,653 |
EBITDA |
|
|
(90,884) |
|
|
49,118 |
|
|
105,525 |
|
|
141,091 |
Third-party debt modification fees |
|
|
- |
|
|
- |
|
|
232 |
|
|
30 |
Loss on disposal of vessels and other property, |
|
|
|
|
|
|
|
|
|
|
|
|
including impairments |
|
|
85,923 |
|
|
280 |
|
|
100,087 |
|
|
308 |
Gain on sale of investments in affiliated companies |
|
|
- |
|
|
(3,033) |
|
|
- |
|
|
(3,033) |
Release other comprehensive loss upon sale of |
|
|
|
|
|
|
|
|
|
|
|
|
investment in affiliated companies |
|
|
- |
|
|
21,615 |
|
|
- |
|
|
21,615 |
Write-off of deferred financing costs |
|
|
- |
|
|
3,215 |
|
|
13,073 |
|
|
3,558 |
Loss on extinguishment of debt |
|
|
2 |
|
|
1,000 |
|
|
1,197 |
|
|
1,100 |
Adjusted EBITDA |
|
$ |
(4,959) |
|
$ |
72,195 |
|
$ |
220,114 |
|
$ |
164,669 |
(C) Total Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
($ in thousands) |
|
2020 |
|
|
2019 |
Cash and cash equivalents |
$ |
199,390 |
|
$ |
89,671 |
Restricted cash |
|
16,287 |
|
|
60,572 |
Total Cash |
$ |
215,677 |
|
$ |
150,243 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210312005048/en/
FAQ
What were International Seaways' financial results for 2020?
What impact did the fourth quarter have on International Seaways' financials?
What contracts did International Seaways secure recently?
What is the current liquidity status of International Seaways?
What are the TCE revenues for International Seaways in the fourth quarter of 2020?
