International Seaways Reports Fourth Quarter and Full Year 2023 Results
- Record annual earnings with net income of $556.4 million for 2023, representing a significant increase from 2022.
- Adjusted net income for the fourth quarter of 2023 was $107.6 million, excluding special items.
- Total liquidity of approximately $601 million as of December 31, 2023, with a net loan-to-value ratio of 17%, the lowest in company history.
- Returned over $320 million to shareholders in 2023 through dividends and share repurchases.
- Agreed to purchase six MR vessels for $232 million, increasing contracted revenues to $354 million.
- Declared a combined dividend of $1.32 per share for the fourth quarter, representing 60% of adjusted net income.
- Entered into agreements to acquire six MR vessels and declared options to build additional vessels for future growth.
- Took delivery of three dual-fuel VLCC newbuildings and exercised purchase options on two Aframax vessels.
- Hosted a conference call to discuss results and future outlook for investors and analysts.
- Decrease in net income for the fourth quarter of 2023 driven by lower spot earnings due to lower OPEC+ production.
- Shipping revenues and TCE revenues decreased in the fourth quarter compared to the same period in 2022.
- Lower spot earnings in the Crude Tankers and Product Carriers segments impacted financial performance.
- Net income for 2023 includes one-time items, affecting the reported figures.
- Company's financial performance in the tanker market subject to global energy trade dynamics and market conditions.
Insights
The reported net income of International Seaways, Inc. for the full year of 2023, amounting to $556.4 million, signifies a robust increase compared to the previous year. This performance may be attributed to a combination of factors including operational efficiency, market dynamics and strategic financial management. The company's choice to prepay nearly $300 million in debt, significantly reducing their net loan-to-value ratio to a historic low of 17%, indicates a strong balance sheet and enhances creditworthiness. Such preemptive debt management not only decreases financial risk but also improves the company's leverage ratios, potentially leading to more favorable borrowing terms in the future.
Furthermore, the doubling of the revolving credit capacity and the release of vessels from the collateral package are strategic moves that not only reduce interest costs but also offer greater financial flexibility. The company's ability to return over $320 million to shareholders through dividends and share repurchases reflects a shareholder-friendly capital allocation policy. This approach, coupled with a substantial liquidity reserve, positions the company to navigate market fluctuations effectively and pursue growth opportunities. The financial strategy of International Seaways appears to be centered around maintaining liquidity, reducing debt and rewarding shareholders, which could be appealing to potential investors seeking companies with prudent financial management and stable returns.
The shipping industry is highly cyclical and sensitive to global economic trends and geopolitical events. International Seaways' report indicates a decrease in spot earnings due to lower OPEC+ production, which is a critical factor influencing tanker rates. However, the company's reported confidence in the sustainability of the current tanker market dynamics is based on the combination of growing oil demand, the prioritization of energy security and the lowest orderbook in over three decades. An aging global fleet could also lead to increased scrapping rates and reduced supply, potentially bolstering freight rates.
Moreover, the company's fleet optimization program, which includes the acquisition of newer vessels and the sale of older ones, suggests a strategic approach to fleet management. By modernizing their fleet and securing new time charter agreements, International Seaways is positioning itself to capitalize on potential market upswings and secure stable revenue streams. These developments, along with the contracted future revenues of approximately $354 million, provide visibility into the company's earnings potential and could positively influence investor sentiment. The shipping industry's complexities require investors to consider not only the current earnings but also the strategic initiatives undertaken by companies like International Seaways to future-proof their operations against market volatility.
International Seaways' focus on energy transportation services for crude oil and petroleum products places it at the heart of the global energy sector. The company's performance is directly influenced by the dynamics of the energy market, including oil demand, production cuts and shifts in trade patterns. The reported strong tanker demand driven by the evolving global energy trade reflects broader trends in energy security and diversification of supply sources.
The company's emphasis on renewing its fleet with LNG-ready vessels is an indication of the industry's gradual transition towards cleaner energy sources and the adoption of new environmental regulations. These investments in dual-fuel technology are likely to enhance the company's competitive edge as the sector moves towards decarbonization. The long-term time charters with an oil major for the new dual-fuel VLCCs at a base rate plus a profit share component could provide a predictable and potentially lucrative revenue stream, reflecting the company's strategic alignment with the industry's future direction. The energy sector's shift towards more sustainable operations presents both challenges and opportunities for shipping companies and International Seaways' proactive measures to adapt to these changes could be a significant factor in its future performance.
HIGHLIGHTS & RECENT DEVELOPMENTS
Record Annual Earnings:
-
Net income for the full year of 2023 was
$556.4 million $11.25 $168.6 million $387.9 million $7.77 $132.1 million $2.68 $218.4 million $4.40 -
Adjusted net income(A), defined as net income excluding special items, for the fourth quarter of 2023 was
$107.6 million -
Adjusted EBITDA(B) for the fourth quarter was
$158.8 million $723.8 million
Balance Sheet Enhancements:
-
Total liquidity was approximately
$601 million $187 million $414 million -
Prepaid nearly
$300 million $150 million $27 million -
Net loan-to-value of
17% as of December 31, 2023, is the lowest in Company history. - Doubled revolver capacity over the last 12 months with two refinancings that also released vessels from the collateral package, reduced interest costs and extended the maturity profile. During 2023, 30 vessels were unencumbered.
Returns to Shareholders:
-
Paid a combined
$1.25 -
Returned over
$320 million $308 million $6.29 $14 million $38 -
Declared a combined dividend of
$1.32 $1.20 $0.12 60% of adjusted net income for the fourth quarter.
Fleet Optimization Program:
-
Agreed to purchase six MRs, built between 2014 and 2015, for
$232 million 15% funded through shares with the remainder from available liquidity. -
Sold two, 2008-built MRs for net proceeds of
$28 million -
Increased contracted revenues to
$354 million
“2023 marked another record year for Seaways and our portfolio of tanker assets,” said Lois K. Zabrocky, International Seaways President and CEO. “During the year, drawing on our substantial cash flows, we continued to pull all the levers of our balanced capital allocation strategy. This included ordering LR1s to renew our fleet for our niche joint venture in the Panamax International pool, enhancing the balance sheet with substantial debt prepayments that lowered our cash break evens, doubling our revolving credit capacity and returning approximately
Ms. Zabrocky added, “Seaways has significant momentum that we expect to carry forward throughout the year, as positive market fundamentals remain intact. Strong tanker demand continues to be driven by growing oil demand and higher utilization from the evolving global energy trade where energy security is prioritized. Combined with the lowest orderbook in more than 30 years and an aging global fleet, we remain confident that current tanker market dynamics will prove to be sustainable in the near term and drive strong earnings for the foreseeable future.”
Jeff Pribor, the Company’s CFO stated, “We took important steps to enhance and diversify our capital structure in 2023 and believe Seaways’ balance sheet is the strongest it has ever been. This strength is evidenced by over
FOURTH QUARTER 2023 RESULTS
Net income for the fourth quarter of 2023 was
Shipping revenues for the fourth quarter were
Adjusted EBITDA for the fourth quarter was
Crude Tankers
Shipping revenues for the Crude Tankers segment were
Product Carriers
Shipping revenues for the Product Carriers segment were
FULL YEAR 2023 RESULTS
Net income for the year ended December 31, 2023, was
Shipping revenues for the year ended December 31, 2023, were
Adjusted EBITDA for the year ended December 31, 2023 was
Crude Tankers
TCE revenues for the Crude Tankers segment were
Product Carriers
TCE revenues for the Product Carriers segment were
BALANCE SHEET ENHANCEMENTS
During 2023, the Company extinguished approximately
The Company also paid approximately
RETURNING CASH TO SHAREHOLDERS
In December 2023, the Company paid a combined dividend of
On February 28, 2024, the Company’s Board of Directors declared a combined dividend of
For the year ended December 31, 2023, the Company repurchased and retired a total of 366,483 shares of its common stock in open market purchases, at an average price of
The Company currently has
FLEET OPTIMIZATION PROGRAM
On February 23, 2024, the Company entered into agreements to acquire two 2014-built and four 2015-built MR vessels for total consideration of
In the fourth quarter, the Company entered into two new time charter agreements for over two years on two 2009-built MRs. During 2023, the Company has entered into eight, time charter agreements: one 2017-built Aframax, three 2008-built MRs, two 2009-built MRs, one 2011-built MR and one 2012-built Suezmax. The charters have durations of two to three years and have increased contracted future revenues to approximately
During 2023, the Company sold three 2008-built MRs, which generated approximately
The Company entered into contracts and declared options to build a total of four scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels in
During 2023, the Company took delivery of three dual-fuel VLCC newbuildings. The vessels were ordered for an aggregate contract price of
In December 2022, the Company exercised its purchase options on two 2009-built Aframax vessels under sale leaseback arrangement, which were accounted for as operating leases prior to declaration of the options. The aggregate purchase price, net of prepaid charter hire of both vessels was approximately
CONFERENCE CALL
The Company will host a conference call to discuss its fourth quarter and full year 2023 results at 9:00 a.m. Eastern Time (“ET”) on Thursday, February 29, 2024. To access the call, participants should dial (833) 470-1428 for domestic callers and (929) 526-1599 for international callers and entering 708633. 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 https://www.intlseas.com.
An audio replay of the conference call will be available until March 7, 2024, by dialing (866) 813-9403 for domestic callers and +44 204 525 0658 for international callers, and entering Access Code 428746.
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 77 vessels, including 13 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 11 LR1s, of which four are newbuildings, and 35 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
Forward-Looking Statements
This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the
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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2023 |
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2022 |
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2023 |
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2022 |
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|
(Unaudited) |
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(Unaudited) |
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Shipping Revenues: |
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Pool revenues |
|
$ |
204,174 |
|
$ |
311,193 |
|
$ |
905,808 |
|
$ |
774,922 |
Time and bareboat charter revenues |
|
|
29,695 |
|
|
10,239 |
|
|
96,544 |
|
|
33,034 |
Voyage charter revenues |
|
|
16,865 |
|
|
16,725 |
|
|
69,423 |
|
|
56,709 |
Total Shipping Revenues |
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|
250,734 |
|
|
338,157 |
|
|
1,071,775 |
|
|
864,665 |
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Operating Expenses: |
|
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Voyage expenses |
|
|
2,822 |
|
|
2,507 |
|
|
16,256 |
|
|
10,955 |
Vessel expenses |
|
|
71,023 |
|
|
62,229 |
|
|
259,539 |
|
|
240,674 |
Charter hire expenses |
|
|
8,805 |
|
|
9,333 |
|
|
39,404 |
|
|
32,132 |
Depreciation and amortization |
|
|
33,682 |
|
|
28,404 |
|
|
129,038 |
|
|
110,388 |
General and administrative |
|
|
12,391 |
|
|
13,499 |
|
|
47,473 |
|
|
46,351 |
Third-party debt modification fees |
|
|
- |
|
|
- |
|
|
568 |
|
|
1,158 |
Gain on disposal of vessels and other assets, net of impairments |
|
|
(25,286) |
|
|
(10,308) |
|
|
(35,934) |
|
|
(19,647) |
Total operating expenses |
|
|
103,437 |
|
|
105,664 |
|
|
456,344 |
|
|
422,011 |
Income from vessel operations |
|
|
147,297 |
|
|
232,493 |
|
|
615,431 |
|
|
442,654 |
Equity in income of affiliated companies |
|
|
- |
|
|
280 |
|
|
- |
|
|
714 |
Operating income |
|
|
147,297 |
|
|
232,773 |
|
|
615,431 |
|
|
443,368 |
Other income |
|
|
2,344 |
|
|
2,772 |
|
|
10,652 |
|
|
2,332 |
Income before interest expense and income taxes |
|
|
149,641 |
|
|
235,545 |
|
|
626,083 |
|
|
445,700 |
Interest expense |
|
|
(14,081) |
|
|
(17,091) |
|
|
(65,759) |
|
|
(57,721) |
Income before income taxes |
|
|
135,560 |
|
|
218,454 |
|
|
560,324 |
|
|
387,979 |
Income tax provision |
|
|
(3,446) |
|
|
(25) |
|
|
(3,878) |
|
|
(88) |
Net income |
|
$ |
132,114 |
|
$ |
218,429 |
|
$ |
556,446 |
|
$ |
387,891 |
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Weighted Average Number of Common Shares Outstanding: |
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Basic |
|
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48,888,084 |
|
|
49,049,539 |
|
|
48,978,452 |
|
|
49,381,459 |
Diluted |
|
|
49,343,856 |
|
|
49,619,307 |
|
|
49,428,967 |
|
|
49,844,904 |
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Per Share Amounts: |
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Basic net income per share |
|
$ |
2.70 |
|
$ |
4.45 |
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$ |
11.35 |
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$ |
7.85 |
Diluted net income per share |
|
$ |
2.68 |
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$ |
4.40 |
|
$ |
11.25 |
|
$ |
7.77 |
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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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2023 |
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2022 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
126,760 |
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$ |
243,744 |
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Short-term investments |
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|
60,000 |
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|
80,000 |
|
Voyage receivables |
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|
247,165 |
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|
289,775 |
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Other receivables |
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|
14,303 |
|
|
12,583 |
|
Inventories |
|
|
1,329 |
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|
531 |
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Prepaid expenses and other current assets |
|
|
10,342 |
|
|
8,995 |
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Current portion of derivative asset |
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|
5,081 |
|
|
6,987 |
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Total Current Assets |
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|
464,980 |
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|
642,615 |
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Vessels and other property, less accumulated depreciation |
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|
1,914,426 |
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|
1,680,010 |
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Vessels construction in progress |
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|
11,670 |
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|
123,940 |
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Deferred drydock expenditures, net |
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|
70,880 |
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|
65,611 |
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Operating lease right-of-use assets |
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|
20,391 |
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|
8,471 |
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Finance lease right-of-use assets |
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- |
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|
44,391 |
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Pool working capital deposits |
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|
31,748 |
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|
35,593 |
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Long-term derivative asset |
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|
1,153 |
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|
4,662 |
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Other assets |
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|
6,571 |
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|
10,041 |
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Total Assets |
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$ |
2,521,819 |
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$ |
2,615,334 |
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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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$ |
57,904 |
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$ |
51,069 |
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Current portion of operating lease liabilities |
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|
10,223 |
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|
1,596 |
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Current portion of finance lease liabilities |
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|
- |
|
|
41,870 |
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Current installments of long-term debt |
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|
127,447 |
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|
162,854 |
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Total Current Liabilities |
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|
195,574 |
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|
257,389 |
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Long-term operating lease liabilities |
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|
11,631 |
|
|
7,740 |
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Long-term debt |
|
|
595,229 |
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|
860,578 |
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Other liabilities |
|
|
2,628 |
|
|
1,875 |
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Total Liabilities |
|
|
805,062 |
|
|
1,127,582 |
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|
|
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Equity: |
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Total Equity |
|
|
1,716,757 |
|
|
1,487,752 |
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Total Liabilities and Equity |
|
$ |
2,521,819 |
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$ |
2,615,334 |
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|
Consolidated Statements of Cash Flows |
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($ in thousands) |
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Fiscal Year Ended December 31, |
||||
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|
|
2023 |
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2022 |
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Cash Flows from Operating Activities: |
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|
|
|
|
|
Net income |
|
$ |
556,446 |
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$ |
387,891 |
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Items included in net income not affecting cash flows: |
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|
|
|
|
|
|
Depreciation and amortization |
|
|
129,038 |
|
|
110,388 |
|
Loss on write-down of vessels and other assets |
|
|
— |
|
|
1,697 |
|
Amortization of debt discount and other deferred financing costs |
|
|
5,623 |
|
|
5,224 |
|
Amortization of time charter hire contracts acquired |
|
|
— |
|
|
842 |
|
Deferred financing costs write-off |
|
|
2,686 |
|
|
1,266 |
|
Stock compensation |
|
|
8,518 |
|
|
6,746 |
|
Earnings of affiliated companies |
|
|
20 |
|
|
(10,297) |
|
Other – net |
|
|
(2,562) |
|
|
(2,242) |
|
Items included in net income related to investing and financing activities: |
|
|
|
|
|
|
|
Gain on disposal of vessels and other assets, net |
|
|
(35,934) |
|
|
(21,344) |
|
Loss on extinguishment of debt |
|
|
1,323 |
|
|
— |
|
Loss on sale of investment in affiliated companies |
|
|
— |
|
|
9,513 |
|
Cash distributions from affiliated companies |
|
|
— |
|
|
3,111 |
|
Payments for drydocking |
|
|
(34,539) |
|
|
(43,327) |
|
Insurance claims proceeds related to vessel operations |
|
|
3,156 |
|
|
5,301 |
|
Changes in operating assets and liabilities |
|
|
54,627 |
|
|
(166,968) |
|
Net cash provided by operating activities |
|
|
688,402 |
|
|
287,801 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
Expenditures for vessels, vessel improvements and vessels under construction |
|
|
(205,159) |
|
|
(115,976) |
|
Proceeds from disposal of vessels and other assets |
|
|
66,002 |
|
|
99,157 |
|
Expenditures for other property |
|
|
(1,471) |
|
|
(710) |
|
Pool working capital deposits |
|
|
(3,639) |
|
|
1,362 |
|
Proceeds from sale of investments in affiliated companies |
|
|
— |
|
|
138,966 |
|
Investments in short-term time deposits |
|
|
(235,000) |
|
|
(105,000) |
|
Proceeds from maturities of short-term time deposits |
|
|
255,000 |
|
|
25,000 |
|
Net cash (used in)/provided by investing activities |
|
|
(124,267) |
|
|
42,799 |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
Borrowings on long term debt, net of lenders' fees |
|
|
— |
|
|
641,050 |
|
Borrowings on revolving credit facilities |
|
|
50,000 |
|
|
— |
|
Repayments on revolving credit facilities |
|
|
(50,000) |
|
|
— |
|
Repayments of debt |
|
|
(382,050) |
|
|
(798,740) |
|
Premium and fees on extinguishment of debt |
|
|
(1,323) |
|
|
— |
|
Proceeds from sale and leaseback financing, net of issuance and deferred financing costs |
|
|
169,717 |
|
|
108,005 |
|
Payments on sale and leaseback financing and finance lease |
|
|
(135,965) |
|
|
(39,240) |
|
Payments of deferred financing costs |
|
|
(3,577) |
|
|
(909) |
|
Cash dividends paid |
|
|
(308,154) |
|
|
(69,841) |
|
Repurchase of common stock |
|
|
(13,948) |
|
|
(20,017) |
|
Cash paid to tax authority upon vesting or exercise of stock-based compensation |
|
|
(5,819) |
|
|
(6,097) |
|
Net cash used in financing activities |
|
|
(681,119) |
|
|
(185,789) |
|
Net (decrease)/increase in cash, cash equivalents and restricted cash |
|
|
(116,984) |
|
|
144,811 |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
|
243,744 |
|
|
98,933 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
126,760 |
|
$ |
243,744 |
|
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months and year ended December 31, 2023 and the comparable period of 2022. Revenue days in the quarter ended December 31, 2023 totaled 6,471 compared with 6,620 in the prior year quarter. Revenue days in the year ended December 31, 2023 totaled 26,292 compared with 26,495 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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|
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Three Months Ended December 31,
|
|
|
Three Months Ended December 31,
|
|||||||||||||
|
|
|
Spot |
|
|
Fixed |
|
|
Total |
|
|
Spot |
|
|
Fixed |
|
|
Total |
|
Crude Tankers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
42,991 |
|
$ |
38,826 |
|
|
|
|
$ |
64,596 |
|
$ |
43,883 |
|
|
|
|
Number of Revenue Days |
|
|
837 |
|
|
276 |
|
|
1,113 |
|
|
799 |
|
|
92 |
|
|
891 |
|
Suezmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
47,318 |
|
$ |
30,989 |
|
|
|
|
$ |
59,064 |
|
$ |
32,095 |
|
|
|
|
Number of Revenue Days |
|
|
1,006 |
|
|
184 |
|
|
1,190 |
|
|
1,029 |
|
|
92 |
|
|
1,121 |
|
Aframax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
43,952 |
|
$ |
38,499 |
|
|
|
|
$ |
62,030 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
256 |
|
|
92 |
|
|
348 |
|
|
284 |
|
|
- |
|
|
284 |
|
Total Crude Tankers Revenue Days |
|
|
2,099 |
|
|
552 |
|
|
2,651 |
|
|
2,112 |
|
|
184 |
|
|
2,296 |
|
Product Carriers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aframax (LR2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
43,666 |
|
$ |
- |
|
|
|
|
$ |
- |
|
$ |
18,994 |
|
|
|
|
Number of Revenue Days |
|
|
92 |
|
|
- |
|
|
92 |
|
|
- |
|
|
92 |
|
|
92 |
|
Panamax (LR1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Average TCE Rate |
|
$ |
46,199 |
|
$ |
- |
|
|
|
|
$ |
63,950 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
561 |
|
|
- |
|
|
561 |
|
|
818 |
|
|
- |
|
|
818 |
|
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
31,493 |
|
$ |
21,599 |
|
|
|
|
$ |
39,678 |
|
$ |
20,816 |
|
|
|
|
Number of Revenue Days |
|
|
2,738 |
|
|
429 |
|
|
3,167 |
|
|
3,350 |
|
|
64 |
|
|
3,414 |
|
Total Product Carriers Revenue Days |
|
|
3,391 |
|
|
429 |
|
|
3,820 |
|
|
4,168 |
|
|
156 |
|
|
4,324 |
|
Total Revenue Days |
|
|
5,490 |
|
|
981 |
|
|
6,471 |
|
|
6,280 |
|
|
340 |
|
|
6,620 |
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|
|
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|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Fiscal Year Ended December 31, 2023 |
|
|
Fiscal Year Ended December 31, 2022 |
|||||||||||||
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|
|
Spot |
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|
Fixed |
|
|
Total |
|
|
Spot |
|
|
Fixed |
|
|
Total |
|
Crude Tankers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
45,483 |
|
$ |
40,098 |
|
|
|
|
$ |
29,361 |
|
$ |
44,043 |
|
|
|
|
Number of Revenue Days |
|
|
3,269 |
|
|
979 |
|
|
4,248 |
|
|
3,220 |
|
|
310 |
|
|
3,530 |
|
Suezmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
51,293 |
|
$ |
31,065 |
|
|
|
|
$ |
32,579 |
|
$ |
28,287 |
|
|
|
|
Number of Revenue Days |
|
|
4,002 |
|
|
680 |
|
|
4,682 |
|
|
3,901 |
|
|
365 |
|
|
4,266 |
|
Aframax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
46,841 |
|
$ |
38,566 |
|
|
|
|
$ |
36,488 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
1,182 |
|
|
164 |
|
|
1,346 |
|
|
1,283 |
|
|
- |
|
|
1,283 |
|
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
- |
|
$ |
- |
|
|
|
|
$ |
19,851 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
- |
|
|
- |
|
|
- |
|
|
70 |
|
|
- |
|
|
70 |
|
Total Crude Tankers Revenue Days |
|
|
8,453 |
|
|
1,823 |
|
|
10,276 |
|
|
8,474 |
|
|
675 |
|
|
9,149 |
|
Product Carriers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
35,842 |
|
$ |
18,588 |
|
|
|
|
$ |
- |
|
$ |
17,613 |
|
|
|
|
Number of Revenue Days |
|
|
225 |
|
|
140 |
|
|
365 |
|
|
- |
|
|
362 |
|
|
362 |
|
LR1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
60,428 |
|
$ |
- |
|
|
|
|
$ |
38,706 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
2,826 |
|
|
- |
|
|
2,826 |
|
|
3,113 |
|
|
- |
|
|
3,113 |
|
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
29,479 |
|
$ |
21,040 |
|
|
|
|
$ |
30,345 |
|
$ |
20,927 |
|
|
|
|
Number of Revenue Days |
|
|
11,615 |
|
|
1,210 |
|
|
12,825 |
|
|
13,262 |
|
|
140 |
|
|
13,402 |
|
Handy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
- |
|
$ |
- |
|
|
|
|
$ |
13,861 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
- |
|
|
- |
|
|
- |
|
|
469 |
|
|
- |
|
|
469 |
|
Total Product Carriers Revenue Days |
|
|
14,666 |
|
|
1,350 |
|
|
16,016 |
|
|
16,844 |
|
|
502 |
|
|
17,346 |
|
Total Revenue Days |
|
|
23,119 |
|
|
3,173 |
|
|
26,292 |
|
|
25,318 |
|
|
1,177 |
|
|
26,495 |
|
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. In addition, during 2023 and 2022, certain of the Company’s vessels were employed on transitional voyages in the spot market prior to delivering to pools. These transitional voyages are excluded from the tables above.
During the 2023 and 2022 periods, each of the Company’s LR1s participated in the Panamax International Pool and transported crude oil cargoes exclusively.
Fleet Information
As of December 31, 2023, INSW’s fleet totaled 77 vessels, of which 63 were owned and 14 were chartered in.
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|
|
|
|
|
|
|
|
|
|
|
Total at December 31, 2023 |
|||
Vessel Fleet and Type |
|
Vessels Owned |
|
|
Vessels Chartered-in |
|
|
Total Vessels |
|
|
Total Dwt |
Operating Fleet |
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
4 |
|
|
9 |
|
|
13 |
|
|
3,910,572 |
Suezmax |
|
13 |
|
|
- |
|
|
13 |
|
|
2,061,754 |
Aframax |
|
4 |
|
|
- |
|
|
4 |
|
|
452,375 |
Crude Tankers |
|
21 |
|
|
9 |
|
|
30 |
|
|
6,424,701 |
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
1 |
|
|
- |
|
|
1 |
|
|
112,691 |
LR1 |
|
6 |
|
|
1 |
|
|
7 |
|
|
522,698 |
MR |
|
31 |
|
|
4 |
|
|
35 |
|
|
1,750,854 |
Product Carriers |
|
38 |
|
|
5 |
|
|
43 |
|
|
2,386,243 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Fleet |
|
59 |
|
|
14 |
|
|
73 |
|
|
8,810,944 |
|
|
|
|
|
|
|
|
|
|
|
|
Newbuild Fleet |
|
|
|
|
|
|
|
|
|
|
|
LR1 |
|
4 |
|
|
- |
|
|
4 |
|
|
294,400 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Newbuild Fleet |
|
4 |
|
|
- |
|
|
4 |
|
|
294,400 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating and Newbuild Fleet |
|
63 |
|
|
14 |
|
|
77 |
|
|
9,105,344 |
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) Adjusted Net Income
Adjusted Net Income consists of Net Income adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. This measure does not represent or substitute net income or any other financial item that is determined in accordance with GAAP. While Adjusted Net Income is frequently used as a measure of operating results and performance, it may not be necessarily comparable with other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income, as reflected in the consolidated statement of operations, to Adjusted Net Income:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
||||||
($ in thousands) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net income |
|
$ |
132,114 |
|
$ |
218,429 |
|
$ |
556,446 |
|
$ |
387,891 |
Third-party debt modification fees |
|
|
- |
|
|
- |
|
|
568 |
|
|
1,158 |
Loss on sale of investments in affiliated companies |
|
|
- |
|
|
- |
|
|
- |
|
|
9,513 |
Gain on disposal of vessels and other assets, net of impairments |
|
|
(25,286) |
|
|
(10,308) |
|
|
(35,934) |
|
|
(19,647) |
Gain on sale of interest in DASM |
|
|
- |
|
|
- |
|
|
- |
|
|
(135) |
Write-off of deferred financing costs |
|
|
734 |
|
|
656 |
|
|
2,686 |
|
|
1,266 |
Loss on extinguishment of debt |
|
|
- |
|
|
- |
|
|
1,323 |
|
|
- |
Adjusted Net Income |
|
$ |
107,562 |
|
$ |
208,777 |
|
$ |
525,089 |
|
$ |
380,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (diluted) |
|
|
49,343,856 |
|
|
49,619,307 |
|
|
49,428,967 |
|
|
49,844,904 |
Adjusted Net Income per diluted share |
|
|
|
|
|
|
|
|
|
|
|
|
(B) EBITDA and Adjusted EBITDA
EBITDA represents net 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 income as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
||||||
($ in thousands) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net income |
|
$ |
132,114 |
|
$ |
218,429 |
|
$ |
556,446 |
|
$ |
387,891 |
Income tax provision |
|
|
3,446 |
|
|
25 |
|
|
3,878 |
|
|
88 |
Interest expense |
|
|
14,081 |
|
|
17,091 |
|
|
65,759 |
|
|
57,721 |
Depreciation and amortization |
|
|
33,682 |
|
|
28,404 |
|
|
129,038 |
|
|
110,388 |
EBITDA |
|
|
183,323 |
|
|
263,949 |
|
|
755,121 |
|
|
556,088 |
Amortization of time charter contracts acquired |
|
|
- |
|
|
- |
|
|
- |
|
|
842 |
Third-party debt modification fees |
|
|
- |
|
|
- |
|
|
568 |
|
|
1,158 |
Loss on sale of investments in affiliated companies |
|
|
- |
|
|
- |
|
|
- |
|
|
9,513 |
Gain on disposal of vessels and other assets, net of impairments |
|
|
(25,286) |
|
|
(10,308) |
|
|
(35,934) |
|
|
(19,647) |
Gain on sale of interest in DASM |
|
|
- |
|
|
- |
|
|
- |
|
|
(135) |
Write-off of deferred financing costs |
|
|
734 |
|
|
656 |
|
|
2,686 |
|
|
1,266 |
Loss on extinguishment of debt |
|
|
- |
|
|
- |
|
|
1,323 |
|
|
- |
Adjusted EBITDA |
|
$ |
158,771 |
|
$ |
254,297 |
|
$ |
723,764 |
|
$ |
549,085 |
(C) Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
($ in thousands) |
|
2023 |
|
|
2022 |
Cash and cash equivalents |
$ |
126,760 |
|
$ |
243,744 |
Short-term investments |
|
60,000 |
|
|
80,000 |
Total Cash |
$ |
186,760 |
|
$ |
323,744 |
(D) 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) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Time charter equivalent revenues |
|
$ |
247,912 |
|
$ |
335,650 |
|
$ |
1,055,519 |
|
$ |
853,710 |
Add: Voyage expenses |
|
|
2,822 |
|
|
2,507 |
|
|
16,256 |
|
|
10,955 |
Shipping revenues |
|
$ |
250,734 |
|
$ |
338,157 |
|
$ |
1,071,775 |
|
$ |
864,665 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228516089/en/
Investor Relations & Media Contact:
Tom Trovato, International Seaways, Inc.
(212) 578-1602
ttrovato@intlseas.com
Source: International Seaways, Inc.
FAQ
What was International Seaways' (INSW) net income for the full year of 2023?
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What was the combined dividend declared by INSW for the fourth quarter?
What agreements did INSW enter into for fleet optimization in 2023?
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