International Seaways, Inc. (NYSE: INSW) (the “Company”,
“Seaways”, or “INSW”), one of the largest tanker companies
worldwide providing energy transportation services for crude oil
and petroleum products, today reported results for the third
quarter 2023.
HIGHLIGHTS & RECENT DEVELOPMENTS
- Net income for the third quarter was $98 million, or $1.99 per
diluted share, compared to net income of $113 million, or $2.28 per
diluted share, in the third quarter of 2022. Cumulative net income
over the last twelve months was $643 million.
- Adjusted EBITDA(A) for the third quarter was $151 million.
- Total liquidity was approximately $581 million as of September
30, 2023, including cash and short-term investments(B) of $214
million and $367 million of undrawn revolver capacity.
- As of November 1, 2023, the Company had $417 million in undrawn
revolving credit capacity, approximately $771 million in gross debt
outstanding and 30 unencumbered vessels.
- Balance Sheet Enhancements:
- Executed a new revolving credit facility agreement (the “$160
Million Revolving Credit Facility”) which resulted in, among other
things, the:
- Increase in total revolving capacity of $160 million, of which
$50 million was drawn as of September 30, 2023.
- Prepayment of $104 million of the principal outstanding of the
$750 Million Credit Facility.
- Reduction of cash break-even costs by nearly $1,000 per day to
approximately $14,750 per day through lower debt service
costs.
- Net loan to value is lowest in Company history at 19%.
- In October 2023, the Company prepaid an additional $21 million
of the $750 Million Credit Facility and repaid the full $50 million
drawn on the new $160 Million Revolving Credit Facility.
- Returns to Shareholders:
- Paid a combined $1.42 per share in regular and supplemental
dividends in September 2023.
- Declared a combined dividend of $1.25 per share composed of a
supplemental dividend of $1.13 per share and $0.12 per share of a
regular quarterly cash dividend to be paid in December 2023.
- Cumulative cash returns of over $320 million paid over the last
twelve months through dividends and share repurchases.
- Fleet Optimization Program:
- Sold a 2008-built MR for net proceeds of $13 million after debt
repayment in October 2023
- Declared options for two scrubber-fitted, dual-fuel (LNG)
ready, LR1 newbuildings for delivery in the first quarter of 2026.
In aggregate, the Company has four LR1s on order with a total
contract price of $231 million with deliveries beginning in the
second half of 2025.
- Increased contracted revenues to $344 million by entering into
a new time charter agreement.
“We continued to generate significant cash and earnings from our
diversified portfolio of crude and product tankers during the third
quarter,” said Lois K. Zabrocky, International Seaways’ President
and CEO. “Seaways remains committed to returning cash to
shareholders by declaring a combined dividend of $1.25 per share
for the fourth quarter. Including this declaration, aggregate
dividends during 2023 will be $6.29 per share increasing our
cumulative returns to shareholders to over $320 million. Moving
forward, we remain dedicated to a balanced capital allocation
approach, which enables us to pay substantial dividends, execute
opportunistic share buybacks, and reinvest in our fleet to maximize
long-term shareholder value.”
Ms. Zabrocky added, “We expect the tanker markets’ attractive
supply and demand dynamics to continue to drive strong tanker
earnings for the foreseeable future. Supply side growth remains
limited due to evolving regulations and limited newbuild capacity
in the near term at shipyards while the world fleet continues to
age. Positive tanker demand fundamentals are supported by
increasing oil demand and higher tanker utilization from the
shifting global energy trade, with geopolitical tensions driving
further focus on energy security.”
Jeff Pribor, the Company’s CFO stated, “Maintaining a strong and
diverse capital structure remains a top priority for Seaways.
During the third quarter, we continued to enhance our balance
sheet, executing a new revolving credit facility agreement that
increased our total revolving capacity, which together with further
de-leveraging, reduced our cash breakeven costs nearly $1,000 per
day. We are pleased with our success to-date, lowering our
breakeven levels to amongst the lowest in the industry at $14,750
per day in a diversified tanker company. This further improves our
ability to generate free cash, and, combined with our ample
liquidity of $581 million and net loan-to-value ratio of 19%,
ensures Seaways is ideally positioned to optimize returns to
shareholders.”
THIRD QUARTER 2023 RESULTS
Net income for the third quarter of 2023 was $97.9 million, or
$1.99 per diluted share, compared to net income of $113.4 million,
or $2.28 per diluted share, for the third quarter of 2022. Net
income for the third quarter of 2023 reflects the write-off of
deferred finance costs, debt modification fees and a loss on
extinguishment of debt, aggregating $2.8 million. Net income
excluding these items was $100.7 million, or $2.04 per diluted
share. The decrease in net income for the third quarter of 2023 was
primarily driven by an increase in charter hire expenses, an
increase in vessel expenses, primarily due to the impact of VLCC
newbuilding deliveries combined with inflationary increases in
lubes, stores and spares; and an increase in depreciation and
amortization due to the impact of VLCC newbuilding deliveries as
well as increased drydockings and amortization.
Shipping revenues for the third quarter were $241.7 million,
compared to $236.8 million for the third quarter of 2022.
Consolidated TCE revenues for the third quarter were $236.0
million, compared to $234.5 million for the third quarter of
2022.
Adjusted EBITDA for the third quarter was $150.9 million,
compared to $157.1 million for the third quarter of 2022.
Crude Tankers
Shipping revenues for the Crude Tankers segment were $114.3
million for the third quarter of 2023, compared to $77.1 million
for the third quarter of 2022. TCE revenues were $110.8 million for
the third quarter, compared to $75.2 million for the third quarter
of 2022. This increase was primarily attributable to substantially
higher spot rates as the average spot earnings of the VLCC and
Suezmax sectors were approximately $41,000 and $38,700 per day,
respectively, compared with approximately $24,400 and $34,200 per
day, respectively, during the third quarter of 2022. These rate
increases were supplemented by an increase in revenue days from
both the VLCC and Suezmax fleets and partially offset by lower
average Aframax sector spot earnings of approximately $34,000 per
day in the third quarter of 2023, compared to $38,300 per day
during the third quarter of 2022.
Product Carriers
Shipping revenues for the Product Carriers segment were $127.5
million for the third quarter, compared to $159.8 million for the
third quarter of 2022. TCE revenues were $125.2 million for the
third quarter, compared to $159.4 million for the third quarter of
2022. This decrease is primarily attributed to lower spot earnings
in the MR sector that averaged approximately $26,600 per day in the
third quarter of 2023, compared to $36,000 per day during the third
quarter of 2022. This rate decrease was partially offset by higher
average LR1 sector spot earnings of approximately $56,300 per day
in the third quarter of 2023, compared to $41,000 per day during
the third quarter of 2022.
THIRD QUARTER YEAR-TO-DATE 2023 RESULTS
Net income for the first nine months of 2023 was $424.3 million,
or $8.58 per diluted share, compared to net income of $169.5
million, or $3.40 per diluted share, for the first nine months of
2022.
Shipping revenues for the first nine months of 2023 were $821.0
million, compared to $526.5 million for the first nine months of
2022. Consolidated TCE revenues for the first nine months of 2023
were $807.6 million, compared to $518.1 million for the first nine
months of 2022.
Adjusted EBITDA for the first nine months of 2023 was $565.0
million, compared to $294.8 million for the first nine months of
2022.
Crude Tankers
TCE revenues for the Crude Tankers segment were $389.0 million
for the first nine months of 2023, compared to $171.1 million for
the first nine months of 2022. Shipping revenues for the Crude
Tankers segment were $398.8 million for the first nine months of
2023, compared to $178.8 million for the first nine months of
2022.
Product Carriers
TCE revenues for the Product Carriers segment were $418.6
million for the first nine months of 2023 compared to $346.9
million for the first nine months of 2022. Shipping revenues for
the Product Carriers segment were $422.2 million for the first nine
months of 2023, compared to $347.7 million for the first nine
months of 2022.
DELEVERAGING INITIATIVES
During the third quarter of 2023, the Company entered into a new
revolving credit facility agreement (the “$160 Million Revolving
Credit Facility”, or the “Revolver”), which resulted in an increase
in total revolving capacity by $160 million. The Revolver matures
in March 2029 and capacity is reduced on a quarterly basis based on
a 20-year age-adjusted profile of the five collateral vessels. The
Revolver bears an interest rate of term SOFR+190bps (the “margin”)
and includes similar sustainability-linked features as included in
the $750 Million Credit Facility, which could impact the margin by
7.5 basis points. The Company drew $50 million under the Revolver
to partially fund a prepayment of $104 million of the principal
outstanding on the $750 Million Credit Facility and the release of
four vessels from its collateral package. During October 2023, the
Company repaid the $50 million outstanding on the Revolver.
For the first ten months of 2023, the Company has extinguished
approximately $316 million of debt. During the first quarter, the
Company amended the $750 Million Credit Facility, which included a
prepayment of $97 million on the term loan, increased the capacity
of the revolving credit facility tranche by $40 million and
released 22 vessels from the collateral package. During the second
quarter, the Company prepaid approximately $75 million in debt with
the exercise of purchase options for two vessels under
sale-leaseback agreements for $46 million and the prepayment of $29
million on the $750 Million Credit Facility, which also released
another vessel from the collateral package. During the third
quarter, a net prepayment of $54 million resulted from the
aforementioned activities. In October, the Company prepaid
approximately $71 million of debt, consisting of approximately $21
million on the $750 Million Credit Facility that released one
additional vessel from the collateral package and $50 million
payment on the Revolver. The Company also paid approximately $19
million on the $750 Million Credit Facility in connection with the
sales of two 2008-built MRs during 2023.
As of November 1, 2023, the Company has approximately $771
million in outstanding debt, 30 unencumbered vessels and undrawn
revolving credit capacity of approximately $417 million.
RETURNING CASH TO SHAREHOLDERS
In September 2023, the Company paid a combined dividend of $1.42
per share of common stock, composed of a regular quarterly dividend
of $0.12 per share of common stock and a supplemental dividend of
$1.30 per share. For the nine months ended September 30, 2023, the
Company has paid combined dividends of approximately $5.04 per
share.
On November 6, 2023, the Company’s Board of Directors declared a
combined dividend of $1.25 per share of common stock, composed of a
regular quarterly dividend of $0.12 per share of common stock and a
supplemental dividend of $1.13 per share of common stock. Both
dividends will be paid on December 27, 2023, to shareholders with a
record date at the close of business on December 13, 2023.
For the nine months ended September 30, 2023, the Company
repurchased and retired 366,483 shares of its common stock in open
market purchases, at an average price of $38.03 at an aggregate
cost of approximately $14 million. The Company has $50 million
authorized under its share repurchase program, which was increased
in the second quarter of 2023. In November 2023, the Company’s
Board of Directors extended the expiry of the program to the end of
2025.
FLEET OPTIMIZATION PROGRAM
The Company entered into contracts and declared options to build
a total of four scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels
in Korea with K Shipbuilding Co, Ltd at a price in aggregate of
approximately $231 million. Two contracts were executed in August
2023 with two additional options that were exercised in October
2023. The vessels are expected to be delivered beginning in the
second half of 2025 through the first quarter of 2026. Upon
delivery, these vessels are expected to deliver into our niche,
Panamax International Pool, which has consistently outperformed the
market.
In the third quarter, the Company entered into a time charter
agreement for three years on a 2008-built MR. During 2023, the
Company has entered into six, time charter agreements: one
2017-built Aframax, three 2008-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 $344 million remaining under time charter agreements
from October 1, 2023 through charter expiry, excluding any
applicable profit share.
During 2023, the Company sold two 2008-built MRs, which
generated approximately $24 million in net proceeds after debt
repayment, including one MR that delivered to buyers in October
2023.
During 2023, the Company took delivery of three dual-fuel VLCC
newbuildings. The vessels were ordered for an aggregate contract
price of $288 million, which are financed under sale leaseback
arrangements at a fixed rate of approximately $4.25%. The vessels
have commenced long-term time charters with an oil major for the
next seven years at a base rate of $31,000 per day plus a profit
share component.
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 $41 million,
representing a discount at the time of approximately 45% to the
market value of these vessels.
CONFERENCE CALL
The Company will host a conference call to discuss its third
quarter 2023 results at 9:00 a.m. Eastern Time (“ET”) on Tuesday,
November 7, 2023. To access the call, participants should dial
(833) 470-1428 for domestic callers and (929) 526-1599 for
international callers and entering 300167. 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
November 14, 2023, by dialing (866) 813-9403 for domestic callers
and +44 204 525 0658 for international callers, and entering Access
Code 180542.
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 76 vessels,
including 13 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, nine LR1s,
of which two are newbuildings, and 36 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 (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 plans to issue
dividends, the Company’s prospects, including statements regarding
vessel acquisitions, 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 2022 for the Company, the Quarterly Report on Form 10-Q
for the quarter ended March 31, 2023, 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
Consolidated Statements of
Operations
($ in thousands, except per share
amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Shipping Revenues:
Pool revenues
$
194,465
$
215,240
$
701,634
$
463,729
Time and bareboat charter revenues
27,587
8,487
66,849
22,795
Voyage charter revenues
19,656
13,102
52,558
39,984
Total Shipping Revenues
241,708
236,829
821,041
526,508
Operating Expenses:
Voyage expenses
5,756
2,283
13,434
8,448
Vessel expenses
64,596
58,565
188,516
178,445
Charter hire expenses
11,297
7,797
30,599
22,799
Depreciation and amortization
33,363
27,728
95,356
81,984
General and administrative
12,314
11,839
35,082
32,852
Third-party debt modification fees
148
71
568
1,158
Loss/(gain) on disposal of vessels and
other assets, net of impairments
74
139
(10,648
)
(9,339
)
Total operating expenses
127,548
108,422
352,907
316,347
Income from vessel operations
114,160
128,407
468,134
210,161
Equity in results of affiliated
companies
-
(1
)
-
434
Operating income
114,160
128,406
468,134
210,595
Other income/(expense)
646
360
8,308
(440
)
Income before interest expense and income
taxes
114,806
128,766
476,442
210,155
Interest expense
(16,817
)
(15,332
)
(51,678
)
(40,630
)
Income before income taxes
97,989
113,434
424,764
169,525
Income tax provision
(52
)
(7
)
(432
)
(63
)
Net income
$
97,937
$
113,427
$
424,332
$
169,462
Weighted Average Number of Common
Shares Outstanding:
Basic
48,861,356
49,312,716
49,008,901
49,493,315
Diluted
49,275,022
49,743,700
49,442,825
49,758,196
Per Share Amounts:
Basic net income per share
$
2.00
$
2.30
$
8.65
$
3.42
Diluted net income per share
$
1.99
$
2.28
$
8.58
$
3.40
Consolidated Balance Sheets
($ in thousands)
September 30,
December 31,
2023
2022
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$
138,976
$
243,744
Short-term investments
75,000
80,000
Voyage receivables
219,827
289,775
Other receivables
11,285
12,583
Inventories
1,143
531
Prepaid expenses and other current
assets
11,567
8,995
Current portion of derivative asset
7,092
6,987
Vessels held for sale
8,985
-
Total Current Assets
473,875
642,615
Vessels and other property, less
accumulated depreciation
1,947,740
1,680,010
Vessels construction in progress
-
123,940
Deferred drydock expenditures, net
72,314
65,611
Operating lease right-of-use assets
22,738
8,471
Finance lease right-of-use assets
-
44,391
Pool working capital deposits
33,501
35,593
Long-term derivative asset
4,520
4,662
Other assets
6,334
10,041
Total Assets
$
2,561,022
$
2,615,334
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
42,850
$
51,069
Current portion of operating lease
liabilities
9,784
1,596
Current portion of finance lease
liabilities
-
41,870
Current installments of long-term debt
134,703
162,854
Total Current Liabilities
187,337
257,389
Long-term operating lease liabilities
14,021
7,740
Long-term debt
706,999
860,578
Other liabilities
2,588
1,875
Total Liabilities
910,945
1,127,582
Equity:
Total Equity
1,650,077
1,487,752
Total Liabilities and Equity
$
2,561,022
$
2,615,334
Consolidated Statements of Cash
Flows
($ in thousands)
Nine Months Ended September
30,
2023
2022
(Unaudited)
(Unaudited)
Cash Flows from Operating
Activities:
Net income
$
424,332
$
169,462
Items included in net income not affecting
cash flows:
Depreciation and amortization
95,356
81,984
Loss on write-down of vessels and other
assets
—
1,697
Amortization of debt discount and other
deferred financing costs
4,491
3,630
Amortization of time charter hire
contracts acquired
—
842
Deferred financing costs write-off
1,952
610
Stock compensation
5,912
4,447
Equity in results of affiliated
companies
20
(10,017
)
Other – net
(2,140
)
(774
)
Items included in net income related to
investing and financing activities:
Gain on disposal of vessels and other
assets, net
(10,648
)
(11,036
)
Loss on extinguishment of debt
1,323
—
Loss on sale of investments in affiliated
companies
—
9,513
Cash distributions from affiliated
companies
—
2,250
Payments for drydocking
(27,622
)
(36,280
)
Insurance claims proceeds related to
vessel operations
2,858
4,545
Changes in operating assets and
liabilities
67,085
(114,672
)
Net cash provided by operating
activities
562,919
106,201
Cash Flows from Investing
Activities:
Expenditures for vessels, vessel
improvements and vessels under construction
(192,218
)
(87,603
)
Proceeds from disposal of vessels and
other property, net
20,036
79,476
Expenditures for other property
(1,035
)
(674
)
Investments in short-term time
deposits
(210,000
)
(80,000
)
Proceeds from maturities of short-term
time deposits
215,000
—
Pool working capital deposits
(1,334
)
1,862
Proceeds from sale of investments in
affiliated companies
—
138,966
Net cash (used in)/provided by investing
activities
(169,551
)
52,027
Cash Flows from Financing
Activities:
Borrowings on long term debt, net of
lenders' fees
—
641,050
Borrowings on revolving credit
facilities
50,000
—
Repayments of debt
(323,685
)
(744,034
)
Proceeds from sale and leaseback
financing, net of issuance and deferred financing costs
169,717
88,791
Payments and advance payment on sale and
leaseback financing and finance lease
(123,732
)
(28,640
)
Payments of deferred financing costs
(3,006
)
(782
)
Premium and fees on extinguishment of
debt
(1,323
)
—
Repurchase of common stock
(13,948
)
(20,017
)
Cash dividends paid
(247,001
)
(14,830
)
Cash paid to tax authority upon vesting or
exercise of stock-based compensation
(5,158
)
(3,174
)
Net cash used in financing activities
(498,136
)
(81,636
)
Net (decrease)/increase in cash, cash
equivalents and restricted cash
(104,768
)
76,592
Cash, cash equivalents and restricted cash
at beginning of year
243,744
98,933
Cash, cash equivalents and restricted cash
at end of period
$
138,976
$
175,525
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 ended September 30, 2023 and the comparable period of
2022. Revenue days in the quarter ended September 30, 2023 totaled
6,663 compared with 6,541 in the prior year quarter. 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 $874 and $835 per day for
the three months ended September 30, 2023 and 2022,
respectively.
Three Months Ended September
30, 2023
Three Months Ended September
30, 2022
Spot
Fixed
Total
Spot
Fixed
Total
Crude Tankers
VLCC
Average TCE Rate
$
40,961
$
35,319
$
24,427
$
43,905
Number of Revenue Days
870
297
1,167
812
92
904
Suezmax
-
-
Average TCE Rate
$
38,708
$
30,973
$
34,244
$
27,685
Number of Revenue Days
1,012
184
1,196
849
92
941
Aframax
-
-
Average TCE Rate
$
34,046
$
38,652
$
38,287
$
-
Number of Revenue Days
232
73
305
366
-
366
Total Crude Tankers Revenue
Days
2,114
554
2,668
2,027
184
2,211
Product Carriers
Aframax (LR2)
Average TCE Rate
$
32,603
$
-
$
-
$
17,149
Number of Revenue Days
92
-
92
-
89
89
Panamax (LR1)
-
-
Average TCE Rate
$
56,295
$
-
$
40,973
$
-
Number of Revenue Days
685
-
685
830
-
830
MR
-
-
Average TCE Rate
$
26,563
$
21,200
$
35,986
$
-
Number of Revenue Days
2,836
382
3,218
3,411
-
3,411
Total Product Carriers Revenue
Days
3,613
382
3,995
4,241
89
4,330
Total Revenue Days
5,727
936
6,663
6,268
273
6,541
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.
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 September 30, 2023, INSW’s fleet totaled 77 vessels, of
which 63 were owned and 14 were chartered in.
Total at September 30, 2023
Vessel Fleet and Type
Vessels Owned
Vessels Chartered-in1
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
552,698
MR
33
4
37
1,853,675
Product Carriers
40
5
45
2,489,064
Total Operating Fleet
61
14
75
8,913,765
Newbuild Fleet
LR1
2
-
2
147,200
Total Newbuild Fleet
2
-
2
147,200
Total Operating and Newbuild
Fleet
63
14
77
9,060,965
(1)
Includes bareboat charters, but excludes
vessels chartered in where the duration of the charter was one year
or less at inception.
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) 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 condensed consolidated
statements of operations, to EBITDA and Adjusted EBITDA:
Three Months Ended September
30,
Nine Months Ended September
30,
($ in thousands)
2023
2022
2023
2022
Net income
$
97,937
$
113,427
$
424,332
$
169,462
Income tax provision
52
7
432
63
Interest expense
16,817
15,332
51,678
40,630
Depreciation and amortization
33,363
27,728
95,356
81,984
EBITDA
148,169
156,494
571,798
292,139
Amortization of time charter contracts
acquired
-
159
-
842
Third-party debt modification fees
148
71
568
1,158
Gain on sale of interest in DASM
-
(135)
-
(135)
Loss/(gain) on disposal of vessels and
other assets, net of impairments
74
139
(10,648)
(9,339)
Loss on sale of investments in affiliated
companies
-
1
-
9,513
Write-off of deferred financing costs
1,343
349
1,952
610
Loss on extinguishment of debt
1,211
-
1,323
-
Adjusted EBITDA
$
150,946
$
157,078
$
564,994
$
294,788
(B) Cash
September 30,
December 31,
($ in thousands)
2023
2022
Cash and cash equivalents
$
138,976
$
243,744
Short-term investments
75,000
80,000
Total Cash
$
213,976
$
323,744
(C) 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 September
30,
Nine Months Ended September
30,
($ in thousands)
2023
2022
2023
2022
Time charter equivalent revenues
$
235,952
$
234,546
$
807,607
$
518,060
Add: Voyage expenses
5,756
2,283
13,434
8,448
Shipping revenues
$
241,708
$
236,829
$
821,041
$
526,508
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107293944/en/
Investor Relations & Media: Tom Trovato,
International Seaways, Inc. (212) 578-1602
ttrovato@intlseas.com
International Seaways (NYSE:INSW)
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