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 fourth
quarter and full year of 2023.
HIGHLIGHTS & RECENT DEVELOPMENTS
Record Annual Earnings:
- Net income for the full year of 2023 was $556.4 million, or
$11.25 per diluted share, representing an increase of $168.6
million compared to the full year of 2022, which was $387.9
million, or $7.77 per share. Net income for the fourth quarter was
$132.1 million, or $2.68 per diluted share, compared to net income
of $218.4 million, or $4.40 per diluted share, in the fourth
quarter of 2022.
- Adjusted net income(A), defined as net income excluding special
items, for the fourth quarter of 2023 was $107.6 million, which
excludes gains on vessel sales and write-off of deferred financing
costs.
- Adjusted EBITDA(B) for the fourth quarter was $158.8 million
and for the full year of 2023 was $723.8 million.
Balance Sheet Enhancements:
- Total liquidity was approximately $601 million as of December
31, 2023, including cash and short-term investments(C) of $187
million and $414 million of undrawn revolving credit capacity.
- Prepaid nearly $300 million in debt during 2023 in addition to
mandatory debt repayments of approximately $150 million and $27
million in debt prepayments related to vessel sales.
- 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 per share in regular and supplemental
dividends in December 2023.
- Returned over $320 million to shareholders during 2023. The
Company paid over $308 million in dividends, representing $6.29 per
share and repurchased shares for $14 million at an average price of
$38.
- Declared a combined dividend of $1.32 per share composed of a
supplemental dividend of $1.20 per share and $0.12 per share of a
regular quarterly cash dividend to be paid in March 2024. The
combined dividend represents 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 after
debt repayment during the fourth quarter of 2023.
- Increased contracted revenues to $354 million by entering into
two new time charter agreements during the fourth quarter of
2023.
“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 16% of our average market
capitalization during 2023 to shareholders through dividends and
share repurchases. Looking ahead, we expect to continue executing
this balanced approach and further building on our track record of
opportunistically renewing the fleet, improving the balance sheet,
and returning substantial cash to shareholders.”
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 $600 million in total liquidity and
the lowest net-loan-to-value ratio in Company history at 17%. As
part of our balanced capital allocation strategy, we proactively
de-levered, exceeding our mandatory debt repayments by nearly $300
million in 2023, which reduced our break evens to below $14,500 per
day. As we continue to generate free cash, we expect to build on
our track record of compelling shareholder returns.”
FOURTH QUARTER 2023 RESULTS
Net income for the fourth quarter of 2023 was $132.1 million, or
$2.68 per diluted share, compared to net income of $218.4 million,
or $4.40 per diluted share, for the fourth quarter of 2022. The
decrease in net income for the fourth quarter of 2023 was driven by
the lower spot earnings primarily due to lower OPEC+ production.
The reported net income for the fourth quarter of 2023 includes the
impact of one-time items, consisting of the gain on disposal of
vessels, and write-off of deferred financing costs, which
aggregated to $24.6 million. Excluding these items, net income for
the fourth quarter of 2023 was $107.6 million, or $2.18 per diluted
share.
Shipping revenues for the fourth quarter were $250.7 million,
compared to $338.2 million for the fourth quarter of 2022.
Consolidated TCE revenues(D) for the fourth quarter were $247.9
million, compared to $335.7 million for the fourth quarter of
2022.
Adjusted EBITDA for the fourth quarter was $158.8 million,
compared to $254.3 million for the fourth quarter of 2022.
Crude Tankers
Shipping revenues for the Crude Tankers segment were $125.2
million for the fourth quarter of 2023, compared to $152.9 million
for the fourth quarter of 2022. TCE revenues were $123.3 million
for the fourth quarter, compared to $150.7 million for the fourth
quarter of 2022. This decrease was primarily attributable to lower
spot rates as the average spot earnings of the VLCC, Suezmax,
Aframax sectors were approximately $43,000, $47,300, and $44,000
per day, respectively, compared with approximately $64,600,
$59,100, and $62,000 per day, respectively, during the fourth
quarter of 2022.
Product Carriers
Shipping revenues for the Product Carriers segment were $125.6
million for the fourth quarter, compared to $185.2 million for the
fourth quarter of 2022. TCE revenues were $124.7 million for the
fourth quarter, compared to $184.9 million for the fourth quarter
of 2022. This decrease is primarily attributed to lower spot
earnings in the LR1 and MR sectors that averaged approximately
$46,200 and $31,500 per day, respectively, in the fourth quarter of
2023, compared to approximately $64,000 and $39,700 per day,
respectively, during the fourth quarter of 2022.
FULL YEAR 2023 RESULTS
Net income for the year ended December 31, 2023, was $556.4
million, or $11.25 per diluted share, compared to net income of
$387.9 million, or $7.77 per diluted share, for the year ended
December 31, 2022. The reported net income for 2023 includes the
impact of one-time items, consisting of the gain on disposal of
vessels, debt modification expenses, and write-off of deferred
financing costs and loss on extinguishment of debt, which
aggregated $31.4 million. Excluding these items, net income for
2023 was $525.1 million, or $10.62 per diluted share.
Shipping revenues for the year ended December 31, 2023, were
$1,071.8 million, compared to $864.7 million for the year ended
December 31, 2022. Consolidated TCE revenues for the year ended
December 31, 2023, were $1,055.5 million, compared to $853.7
million for the year ended December 31, 2022.
Adjusted EBITDA for the year ended December 31, 2023 was $723.8
million, compared to $549.1 million for the year ended December 31,
2022.
Crude Tankers
TCE revenues for the Crude Tankers segment were $512.2 million
for the year ended December 31, 2023, compared to $321.9 million
for the year ended December 31, 2022. Shipping revenues for the
Crude Tankers segment were $524.0 million for the year ended
December 31, 2023, compared to $331.7 million for the year ended
December 31, 2022.
Product Carriers
TCE revenues for the Product Carriers segment were $543.3
million for the year ended December 31, 2023, compared to $531.9
million for the year ended December 31, 2022. Shipping revenues for
the Product Carriers segment were $547.8 million for the year ended
December 31, 2023, compared to $533.0 million for the year ended
December 31, 2022.
BALANCE SHEET ENHANCEMENTS
During 2023, the Company extinguished approximately $324 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 execution of a new revolving credit
facility that increased revolving credit capacity by $160 million
with an attractive margin, maturity extension and age-adjusted
amortization profile. The transaction resulted in a prepayment of
existing debt of $104 million and a drawdown on the new facility of
$50 million. During the fourth quarter, the Company prepaid
approximately $71 million of debt, including a $50 million payment
on the aforementioned revolving credit facility. The Company’s
revolving credit is fully undrawn with capacity of $414
million.
The Company also paid approximately $27 million on the $750
Million Credit Facility in connection with the sales of three
2008-built MRs during 2023.
RETURNING CASH TO SHAREHOLDERS
In December 2023, the Company paid 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. For the year ended December 31, 2023, the Company
has paid combined dividends of approximately $6.29 per share.
On February 28, 2024, the Company’s Board of Directors declared
a combined dividend of $1.32 per share of common stock, composed of
a regular quarterly dividend of $0.12 per share of common stock and
a supplemental dividend of $1.20 per share of common stock. Both
dividends will be paid on March 28, 2024, to shareholders with a
record date at the close of business on March 14, 2024.
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 $38.03 at an aggregate
cost of approximately $14 million.
The Company currently has $50 million authorized under its share
repurchase program, which expires at the end of 2025.
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 $232 million. The Company expects to finance 15%
of the total consideration with shares of common stock with the
balance funded by available liquidity. Each of the six vessel
purchases is subject to the satisfaction of closing conditions
customary for vessel purchases. Delivery of the vessels is expected
to be completed by the end of the second quarter 2024.
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 $354 million remaining under time
charter agreements from January 1, 2024 through charter expiry,
excluding any applicable profit share.
During 2023, the Company sold three 2008-built MRs, which
generated approximately $39 million in net proceeds after debt
repayment.
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. During the fourth quarter, the Company entered into an
option agreement for two additional, dual-fuel ready LR1 vessels at
the same shipyard for delivery during the third quarter of 2026 at
an additional cost of $116 million. Under the terms of the
agreement, the Company’s option will expire on March 31, 2024.
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 into 2030 with an oil major
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. One vessel was delivered in March
2023 while the other delivered in April 2023.
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
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 2023 for the Company, and in similar sections of other
filings made by the Company with the SEC from time to time. The
Company assumes no obligation to update or revise any
forward-looking statements. Forward-looking statements and written
and oral forward-looking statements attributable to the Company or
its representatives after the date of this release are qualified in
their entirety by the cautionary statements contained in this
paragraph and in other reports previously or hereafter filed by the
Company with the SEC.
Category: Earnings
Consolidated Statements of
Operations
($ in thousands, except per share
amounts)
Three Months Ended
Fiscal Year Ended
December 31,
December 31,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Shipping Revenues:
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
250,734
338,157
1,071,775
864,665
Operating Expenses:
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
Weighted Average Number of Common
Shares Outstanding:
Basic
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
Per Share Amounts:
Basic net income per share
$
2.70
$
4.45
$
11.35
$
7.85
Diluted net income per share
$
2.68
$
4.40
$
11.25
$
7.77
Consolidated Balance Sheets
($ in thousands)
December 31,
December 31,
2023
2022
ASSETS
Current Assets:
Cash and cash equivalents
$
126,760
$
243,744
Short-term investments
60,000
80,000
Voyage receivables
247,165
289,775
Other receivables
14,303
12,583
Inventories
1,329
531
Prepaid expenses and other current
assets
10,342
8,995
Current portion of derivative asset
5,081
6,987
Total Current Assets
464,980
642,615
Vessels and other property, less
accumulated depreciation
1,914,426
1,680,010
Vessels construction in progress
11,670
123,940
Deferred drydock expenditures, net
70,880
65,611
Operating lease right-of-use assets
20,391
8,471
Finance lease right-of-use assets
-
44,391
Pool working capital deposits
31,748
35,593
Long-term derivative asset
1,153
4,662
Other assets
6,571
10,041
Total Assets
$
2,521,819
$
2,615,334
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
57,904
$
51,069
Current portion of operating lease
liabilities
10,223
1,596
Current portion of finance lease
liabilities
-
41,870
Current installments of long-term debt
127,447
162,854
Total Current Liabilities
195,574
257,389
Long-term operating lease liabilities
11,631
7,740
Long-term debt
595,229
860,578
Other liabilities
2,628
1,875
Total Liabilities
805,062
1,127,582
Equity:
Total Equity
1,716,757
1,487,752
Total Liabilities and Equity
$
2,521,819
$
2,615,334
Consolidated Statements of Cash
Flows
($ in thousands)
Fiscal Year Ended December
31,
2023
2022
Cash Flows from Operating
Activities:
Net income
$
556,446
$
387,891
Items included in net income not affecting
cash flows:
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 $853 and $723 per day for
the three months ended December 31, 2023 and 2022, respectively,
and approximately $861 and $706 per day for the years ended
December 31, 2023 and 2022, respectively.
Three Months Ended December
31, 2023
Three Months Ended December
31, 2022
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)
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
Fiscal Year Ended December 31,
2023
Fiscal Year Ended December 31,
2022
Spot
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.
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:
Three Months Ended December
31,
Fiscal Year Ended December
31,
($ 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
$2.18
$4.19
$10.62
$7.62
(B) EBITDA and Adjusted EBITDA
EBITDA represents net income before interest expense, income
taxes, and depreciation and amortization expense. Adjusted EBITDA
consists of EBITDA adjusted for the impact of certain items that we
do not consider indicative of our ongoing operating performance.
EBITDA and Adjusted EBITDA do not represent, and should not be a
substitute for, net income or cash flows from operations as
determined in accordance with GAAP. Some of the limitations are:
(i) EBITDA and Adjusted EBITDA do not reflect our cash
expenditures, or future requirements for capital expenditures or
contractual commitments; (ii) EBITDA and Adjusted EBITDA do not
reflect changes in, or cash requirements for, our working capital
needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the
significant interest expense, or the cash requirements necessary to
service interest or principal payments, on our debt. While EBITDA
and Adjusted EBITDA are frequently used as a measure of operating
results and performance, neither of them is necessarily comparable
to other similarly titled captions of other companies due to
differences in methods of calculation. The following table
reconciles net income as reflected in the consolidated statements
of operations, to EBITDA and Adjusted EBITDA:
Three Months Ended December
31,
Fiscal Year Ended December
31,
($ 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
International Seaways (NYSE:INSW)
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