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 second
quarter 2024.
HIGHLIGHTS & RECENT DEVELOPMENTS
Strong Quarterly Earnings:
- Net income for the second quarter of 2024 was $144.7 million,
or $2.91 per diluted share.
- Adjusted net income(1) for the second quarter of 2024 was
$118.0 million, or $2.37 per diluted share.
- Adjusted EBITDA(1) for the second quarter of 2024 was $167.0
million.
Fleet Optimization Program:
- Took delivery of six eco MRs, built between 2014 and 2015, in
the second quarter of 2024.
- Sold three MRs with an average age of 15.8 years, for net
proceeds of $72 million after fees and commissions. Two vessels
were delivered to the buyers during the second quarter of 2024 and
the third ship was delivered in mid-July 2024.
- As a result, the Seaways MR fleet average age was reduced by
one year.
Balance Sheet Enhancements:
- Executed an amendment on senior secured debt facilities,
increasing our revolving credit capacity by nearly $150 million and
reducing mandatory repayments by nearly $20 million per quarter,
leading to a reduction of spot cash break even costs by $3,000 per
day.
- Total liquidity was approximately $682 million as of June 30,
2024, including total cash (1) of $176 million and $506 million
undrawn revolving credit capacity.
- Net loan-to-value remained historically low at approximately
14% as of June 30, 2024.
Returns to Shareholders:
- Paid a combined $1.75 per share in regular and supplemental
dividends in June 2024.
- Declared a combined dividend of $1.50 per share to be paid in
September 2024, representing 64% of adjusted net income(1) for the
second quarter.
- Following the dividend payment in September 2024, combined
dividend payments over the last twelve months will aggregate to
$5.82 per share, representing a dividend yield of over 12%.
“We maintained strong momentum in the second quarter, drawing on
Seaway’s substantial cash flows to continue to execute the
Company’s balanced capital allocation strategy for the benefit of
shareholders,” said Lois K. Zabrocky, International Seaways
President and CEO. “We continued to renew our MR fleet, one of the
strongest earning classes, with the acquisition of six modern
vessels and sales of older tonnage. At the same time, we increased
our liquidity to position the Company for future growth while
returning a 12% yield to shareholders.”
Ms. Zabrocky added, “We believe markets will continue to show
strength based on sustained attractive supply and demand
fundamentals, highlighted by positive oil demand trends, higher
ton-mile demand, and limited shipyard capacity for new orders,
which will inhibit any significant volume of tanker deliveries for
the foreseeable future. We expect to take further advantage of
these dynamics moving forward, as we focus on building our track
record of opportunistic investment in the fleet and compelling
shareholder returns.”
Jeff Pribor, the Company’s CFO stated, “Over the last twelve
months, Seaways has generated free cash flow(1) of nearly $475
million, underscoring our significant operating leverage and boding
well for future value creation. In addition, we enhanced our free
cash flow(1) during the second quarter with the execution of the
new revolving credit facility that reduced our mandatory debt
repayments by about $20 million per quarter and lowered spot
breakeven rates. Additionally, the new revolving credit capacity
allows us to maintain a level of enhanced financial flexibility to
pursue additional growth opportunities. With a historically strong
balance sheet, highlighted by liquidity of $682 million, and
supported by long-term market tailwinds, we believe we are ideally
positioned to optimize shareholder returns.”
SECOND QUARTER 2024 RESULTS
Net income for the second quarter of 2024 was $144.7 million, or
$2.91 per diluted share, compared to net income of $153.8 million,
or $3.11 per diluted share, for the second quarter of 2023. The
decrease in results in the second quarter of 2024 was primarily
driven by a decrease in TCE revenues(1) and an increase in
depreciation partially offset by gains on the sale of two vessels
in the second quarter of 2024.
Shipping revenues for the second quarter were $257.4 million,
compared to $292.2 million for the second quarter of 2023.
Consolidated TCE revenues(1) for the second quarter were $251.8
million, compared to $288.3 million for the second quarter of
2023.
Adjusted EBITDA(1) for the second quarter was $167.0 million,
compared to $205.1 million for the second quarter of 2023.
Crude Tankers
Shipping revenues for the Crude Tankers segment were $125.4
million for the second quarter of 2024, compared to $152.2 million
for the second quarter of 2023. TCE revenues(1) were $120.9 million
for the second quarter, compared to $148.9 million for the second
quarter of 2023. This decrease was attributable to a decrease in
spot rates as the average spot earnings of the VLCC, Suezmax and
Aframax sectors were approximately $46,400, $45,000 and $31,500 per
day, respectively, compared with approximately $52,300, $61,300 and
$53,500 per day, respectively, during the second quarter of
2023.
Product Carriers
Shipping revenues for the Product Carriers segment were $132.0
million for the second quarter of 2024, compared to $140.0 million
for the second quarter of 2023. TCE revenues(1) were $131.0 million
for the second quarter, compared to $139.4 million for the second
quarter of 2023. This decrease is attributable to a reduction in
revenue days due to the decrease in the chartered-in fleet, vessel
sales and an increase in offhire from drydocking and repairs.
FIRST HALF 2024 RESULTS
Net income for the first half of 2024 was $289.2 million, or
$5.83 per diluted share, compared to net income of $326.4 million,
or $6.59 per diluted share, for the first half of 2023.
Shipping revenues for the first half of 2024 were $531.8
million, compared to $579.3 million for the first half of 2023.
Consolidated TCE revenues(1) for the first half of 2024 were $522.8
million, compared to $571.7 million for the first half of 2023.
Adjusted EBITDA(1) for the first half of 2024 was $358.4
million, compared to $414.0 million for the first half of 2023.
Crude Tankers
Shipping revenues for the Crude Tankers segment were $252.2
million for the first half of 2024, compared to $284.6 million for
the first half of 2023. TCE revenues(1) for the Crude Tankers
segment were $244.8 million for the first half of 2024, compared to
$278.2 million for the first half of 2023.
Product Carriers
Shipping revenues for the Product Carriers segment were $279.6
million for the first half of 2024, compared to $294.8 million for
the first half of 2023. TCE revenues(1) for the Product Carriers
segment were $278.0 million for the first half of 2024 compared to
$293.5 million for the first half of 2023.
FLEET OPTIMIZATION PROGRAM
During the second quarter, the Company took delivery of six
modern MR vessels for an aggregate consideration of $232 million.
In connection with the acquisition of the six vessels, the Company
issued an aggregate 623,778 common shares to the sellers,
representing 15% of the aggregate consideration. The remaining 85%
of aggregate consideration was funded with cash on hand.
The Company has sold three vessels as of July 31, 2024. In the
second quarter of 2024, a 2009-built MR and a 2008-built MR were
sold for aggregate net proceeds of $48 million. In July 2024, the
Company sold another 2008-built MR for net proceeds of
approximately $25 million. In each of the vessel sales, the Company
recorded a gain on sale, of which $28 million was recognized during
the second quarter.
During the second quarter, the Company entered into three new
time charter agreements on two 2009-built MRs and a 2014-built LR2.
The charters have durations of around three years and were
delivered to the charterers during the third quarter. As a result
of the agreements, future contracted revenues increased by $86
million.
The Company entered into contracts and declared options to build
a total of six scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels
in Korea with K Shipbuilding Co, Ltd at a price in aggregate of
approximately $359 million. The vessels are expected to be
delivered beginning in the second half of 2025 through the third
quarter of 2026. These vessels are expected to deliver into our
niche Panamax International Pool, which has consistently
outperformed the market.
BALANCE SHEET ENHANCEMENTS
During the second quarter of 2024, the Company repaid $12
million in mandatory payments required under its existing debt
facilities and sale leaseback arrangements. For the six months
ended June 30, 2024, the Company repaid $44 million of mandatory
debt payments.
In April 2024, the Company amended and extended the $750 Million
Facility, under which the Company had a remaining term loan balance
of $94.6 million and undrawn revolver capacity of $257.4 million
prior to closing. The new agreement consists of a $500 million
revolving credit facility (the “$500 Million RCF”) that matures in
January 2030. Under the terms of the $500 Million RCF, capacity is
reduced on a quarterly basis by approximately $12.8 million each
quarter, based on a 20-year age-adjusted profile of the collateral
vessels. The $500 Million RCF bears an interest rate based on term
SOFR +185bps (the “margin”) and includes similar
sustainability-linked features as included in the $750 Million
Credit Facility, which could impact the margin by five basis
points, that are aimed at reducing the carbon footprint, targeting
expenditures toward energy efficiency improvements and maintaining
a safety record above the industry average. Prior to executing the
agreement, the Company prepaid the outstanding balance on the ING
Credit Facility of $20.3 million and included the collateral vessel
in the $500 Million RCF. The $500 Million RCF saves $19.5 million
per quarter in mandatory debt repayments and reduces future
interest expense through a margin reduction of over 85 basis
points.
In June 2024, the Company borrowed $50 million under the $500
Million RCF. In July 2024, $30 million was repaid and the Company
expects to repay an additional $20 million in August 2024.
Following the repayments and amortizing capacity during the third
quarter, the Company expects undrawn revolving capacity to increase
to $540 million.
RETURNS TO SHAREHOLDERS
In June 2024, the Company paid a combined dividend of $1.75 per
share of common stock, composed of a regular quarterly dividend of
$0.12 per share of common stock and a supplemental dividend of
$1.63 per share.
On August 6, 2024, the Company’s Board of Directors declared a
combined dividend of $1.50 per share of common stock, composed of a
regular quarterly dividend of $0.12 per share of common stock and a
supplemental dividend of $1.38 per share of common stock. Both
dividends will be paid on September 25, 2024, to shareholders with
a record date at the close of business on September 11, 2024.
The Company currently has $50 million authorized under its share
repurchase program, which expires at the end of 2025.
(1) This is a non-GAAP financial measure used throughout this
press release; please refer to the section “Reconciliation to
Non-GAAP Financial Information” for explanations of our non-GAAP
financial measures and the reconciliations of reported GAAP to
non-GAAP financial measures.
CONFERENCE CALL
The Company will host a conference call to discuss its second
quarter 2024 results at 9:00 a.m. Eastern Time on Wednesday, August
7, 2024. To access the call, participants should dial (833)
470-1428 for domestic callers and (929) 526-1599 for international
callers and entering 832060. 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
August 14, 2024, by dialing (866) 813-9403 for domestic callers and
+44 204 525 0658 for international callers, and entering Access
Code 931256.
ABOUT INTERNATIONAL SEAWAYS, INC.
International Seaways, Inc. (NYSE: INSW) is one of the largest
tanker companies worldwide providing energy transportation services
for crude oil and petroleum products in International Flag markets.
International Seaways owns and operates a fleet of 82 vessels,
including 13 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 13 LR1s
(including six newbuildings), and 38 MR tankers. International
Seaways has an experienced team committed to the very best
operating practices and the highest levels of customer service and
operational efficiency. International Seaways is headquartered in
New York City, NY. Additional information is available at
https://www.intlseas.com.
Forward-Looking Statements
This release contains forward-looking statements. In addition,
the Company may make or approve certain statements in future
filings with the U.S. Securities and Exchange Commission (the
“SEC”), in press releases, or in oral or written presentations by
representatives of the Company. All statements other than
statements of historical facts should be considered forward-looking
statements. These matters or statements may relate to plans to
issue dividends, the Company’s prospects, including statements
regarding vessel acquisitions and disposals, expected synergies,
trends in the tanker markets, and possibilities of strategic
alliances and investments. Forward-looking statements are based on
the Company’s current plans, estimates and projections, and are
subject to change based on a number of factors. Investors should
carefully consider the risk factors outlined in more detail in the
Annual Report on Form 10-K for 2023 for the Company and in similar
sections of other filings made by the Company with the SEC from
time to time. The Company assumes no obligation to update or revise
any forward-looking statements. Forward-looking statements and
written and oral forward-looking statements attributable to the
Company or its representatives after the date of this release are
qualified in their entirety by the cautionary statements contained
in this paragraph and in other reports previously or hereafter
filed by the Company with the SEC.
Category: Earnings
Consolidated Statements of
Operations
($ in thousands, except per share
amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Shipping Revenues:
Pool revenues
$
207,681
$
247,591
$
433,963
$
507,169
Time and bareboat charter revenues
31,139
26,112
62,188
39,262
Voyage charter revenues
18,589
18,500
35,659
32,902
Total Shipping Revenues
257,409
292,203
531,810
579,333
Operating Expenses:
Voyage expenses
5,561
3,868
9,034
7,678
Vessel expenses
67,840
65,151
131,221
123,920
Charter hire expenses
6,948
10,502
13,596
19,302
Depreciation and amortization
36,517
32,445
70,670
61,993
General and administrative
11,985
11,522
24,083
22,768
Other operating expenses
1,454
—
1,730
—
Third-party debt modification fees
168
13
168
420
(Gain)/loss on disposal of vessels and
other assets, net
(27,852
)
26
(27,903
)
(10,722
)
Total operating expenses
102,621
123,527
222,599
225,359
Income from vessel operations
154,788
168,676
309,211
353,974
Other income
2,360
3,381
5,314
7,662
Income before interest expense and income
taxes
157,148
172,057
314,525
361,636
Interest expense
(12,425
)
(17,914
)
(25,312
)
(34,861
)
Income before income taxes
144,723
154,143
289,213
326,775
Income tax provision
-
(381
)
-
(380
)
Net income
$
144,723
$
153,762
$
289,213
$
326,395
Weighted Average Number of Common
Shares Outstanding:
Basic
49,387,193
49,029,784
49,180,019
49,083,897
Diluted
49,721,858
49,404,837
49,550,928
49,525,282
Per Share Amounts:
Basic net income per share
$
2.93
$
3.13
$
5.88
$
6.64
Diluted net income per share
$
2.91
$
3.11
$
5.83
$
6.59
Consolidated Balance Sheets
($ in thousands)
June 30,
December 31,
2024
2023
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$
176,141
$
126,760
Short-term investments
-
60,000
Voyage receivables
223,079
247,165
Other receivables
16,785
14,303
Inventories
1,850
1,329
Prepaid expenses and other current
assets
12,228
10,342
Current portion of derivative asset
4,532
5,081
Total Current Assets
434,615
464,980
Vessels and other property, less
accumulated depreciation
2,081,508
1,914,426
Vessels construction in progress
12,137
11,670
Deferred drydock expenditures, net
79,184
70,880
Operating lease right-of-use assets
14,778
20,391
Pool working capital deposits
33,238
31,748
Long-term derivative asset
1,888
1,153
Other assets
17,322
6,571
Total Assets
$
2,674,670
$
2,521,819
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
52,118
$
57,904
Current portion of operating lease
liabilities
10,017
10,223
Current installments of long-term debt
49,598
127,447
Total Current Liabilities
111,733
195,574
Long-term operating lease liabilities
6,958
11,631
Long-term debt
663,054
595,229
Other liabilities
5,489
2,628
Total Liabilities
787,234
805,062
Equity:
Total Equity
1,887,436
1,716,757
Total Liabilities and Equity
$
2,674,670
$
2,521,819
Consolidated Statements of Cash
Flows
($ in thousands)
Six Months Ended June
30,
2024
2023
(Unaudited)
(Unaudited)
Cash Flows from Operating
Activities:
Net income
$
289,213
$
326,395
Items included in net income not affecting
cash flows:
Depreciation and amortization
70,670
61,993
Amortization of debt discount and other
deferred financing costs
2,059
3,128
Deferred financing costs write-off
—
721
Stock compensation
3,633
3,873
Earnings of affiliated companies
—
20
Other – net
(433
)
(1,560
)
Items included in net income related to
investing and financing activities:
Gain on disposal of vessels and other
assets, net
(27,903
)
(10,722
)
Payments for drydocking
(24,425
)
(18,992
)
Insurance claims proceeds related to
vessel operations
888
2,698
Changes in operating assets and
liabilities
10,679
46,902
Net cash provided by operating
activities
324,381
414,456
Cash Flows from Investing
Activities:
Expenditures for vessels, vessel
improvements and vessels under construction
(202,875
)
(188,068
)
Proceeds from disposal of vessels and
other property, net
48,043
20,070
Expenditures for other property
(801
)
(586
)
Investments in short-term time
deposits
(75,000
)
(175,000
)
Proceeds from maturities of short-term
time deposits
135,000
135,000
Pool working capital deposits
(782
)
—
Net cash used in investing activities
(96,415
)
(208,584
)
Cash Flows from Financing
Activities:
Borrowing on revolving credit
facilities
50,000
—
Repayments of debt
(39,851
)
(192,856
)
Proceeds from sale and leaseback
financing, net of issuance and deferred financing costs
—
169,717
Payments and advance payment on sale and
leaseback financing and finance lease
(24,325
)
(112,786
)
Payments of deferred financing costs
(5,759
)
(1,146
)
Repurchase of common stock
—
(13,948
)
Cash dividends paid
(151,595
)
(177,565
)
Cash paid to tax authority upon vesting or
exercise of stock-based compensation
(7,055
)
(5,009
)
Net cash used in financing activities
(178,585
)
(333,593
)
Net increase/(decrease) in cash and cash
equivalents
49,381
(127,721
)
Cash and cash equivalents at beginning of
year
126,760
243,744
Cash and cash equivalents cash at end of
period
$
176,141
$
116,023
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 June 30, 2024 and the comparable period of 2023.
Revenue days in the quarter ended June 30, 2024 totaled 6,234
compared with 6,742 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 $858 and $859 per day for
the three months ended June 30, 2024 and 2023, respectively.
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
Spot
Fixed
Total
Spot
Fixed
Total
Crude Tankers
VLCC
Average TCE Rate
$
46,350
$
37,339
$
52,307
$
43,056
Number of Revenue Days
828
273
1,101
781
294
1,075
Suezmax
Average TCE Rate
$
45,045
$
31,044
$
61,267
$
30,990
Number of Revenue Days
1,001
182
1,183
988
181
1,169
Aframax
Average TCE Rate
$
31,450
$
38,500
$
53,482
$
-
Number of Revenue Days
190
91
281
364
-
364
Total Crude Tankers Revenue
Days
2,019
546
2,565
2,133
475
2,608
Product Carriers
Aframax (LR2)
Average TCE Rate
$
55,485
$
-
$
25,594
$
17,829
Number of Revenue Days
58
-
58
41
50
91
Panamax (LR1)
Average TCE Rate
$
53,066
$
-
$
63,606
$
-
Number of Revenue Days
506
-
506
780
-
780
MR
Average TCE Rate
$
35,007
$
21,553
$
28,331
$
20,819
Number of Revenue Days
2,597
508
3,105
2,954
309
3,263
Total Product Carriers Revenue
Days
3,161
508
3,669
3,775
359
4,134
Total Revenue Days
5,180
1,054
6,234
5,908
834
6,742
Revenue days in the above table excludes days related to full
service lighterings. In addition, during 2024 and 2023, certain of
the Company’s vessels were employed on transitional voyages, which
are excluded from the table above.
During the 2024 and 2023 periods, each of the Company’s LR1s
participated in the Panamax International Pool and transported
crude oil cargoes exclusively.
Fleet Information
As of June 30, 2024, INSW’s fleet totaled 83 vessels, of which
63 were owned, 14 were chartered in and six contracted
newbuildings.
Total at June 30, 2024
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
522,698
MR
35
4
39
1,951,525
Product Carriers
42
5
47
2,586,914
Total Operating Fleet
63
14
77
9,011,615
Newbuild Fleet
LR1
6
-
6
441,600
Total Newbuild Fleet
6
-
6
441,600
Total Operating and Newbuild
Fleet
69
14
83
9,453,215
(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) 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 June
30,
Six Months Ended June
30,
($ in thousands)
2024
2023
2024
2023
Net income
$
144,723
$
153,762
$
289,213
$
326,395
Third-party debt modification fees
168
13
168
420
Write-off of deferred financing costs
-
555
-
721
(Gain)/loss on disposal of vessels and
other assets, net of impairments
(27,852
)
26
(27,903
)
(10,722
)
Provision for settlement of multi-employer
pension plan obligations
975
-
975
-
Adjusted Net Income
$
118,014
$
154,356
$
262,453
$
316,814
Weighted average shares outstanding
(diluted)
49,721,858
49,404,837
49,550,928
49,525,282
Adjusted net income per diluted share
$
2.37
$
3.12
$
5.30
$
6.40
(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 condensed consolidated
statements of operations, to EBITDA and Adjusted EBITDA:
Three Months Ended June
30,
Six Months Ended June
30,
($ in thousands)
2024
2023
2024
2023
Net income
$
144,723
$
153,762
$
289,213
$
326,395
Income tax provision
-
381
-
380
Interest expense
12,425
17,914
25,312
34,861
Depreciation and amortization
36,517
32,445
70,670
61,993
EBITDA
193,665
204,502
385,195
423,629
Third-party debt modification fees
168
13
168
420
Write-off of deferred financing costs
-
555
-
721
(Gain)/loss on disposal of vessels and
other assets, net
(27,852
)
26
(27,903
)
(10,722
)
Provision for settlement of multi-employer
pension plan obligations
975
-
975
Adjusted EBITDA
$
166,956
$
205,096
$
358,435
$
414,048
(C) Cash
June 30,
December 31,
($ in thousands)
2024
2023
Cash and cash equivalents
$
176,141
$
126,760
Short-term investments
-
60,000
Total Cash
$
176,141
$
186,760
(D) Free Cash Flow
Free cash flow represents cash flows from operating activities,
less mandatory repayments of debt (including those under sale and
leaseback agreements) less capital expenditures excluding payments
made to acquire a vessel or vessels, which the Company believes is
useful to investors in understanding the net cash generated from
its core business activities after certain mandatory
obligations.
($ in thousands)
2023
2024
For the three months ended:
June 30
September 30
December 31
March 31
June 30
Net cash provided by operating activities
(1)
$
193,634
$
148,463
$
125,483
$
156,442
$
167,939
Repayments of debt (1)
(55,407
)
(132,152
)
(108,365
)
(19,538
)
-
Payments on sale and leaseback (1)
(78,167
)
(10,946
)
(12,233
)
(12,146
)
(12,179
)
Less: optional prepayments (2)
92,482
104,312
(3)
88,382
-
-
Expenditures for vessels (1)
(121,366
)
(4,150
)
(12,941
)
(26,420
)
(176,455
)
Expenditures for other property (1)
(62
)
(449
)
(436
)
(701
)
(100
)
Less: payments for acquiring vessels
(2)
115,162
-
11,548
23,200
174,896
Free cash flow
$
146,276
$
105,078
$
91,438
$
120,837
$
154,101
(1)
Reflects current period balance on the face of the Consolidated
Statement of Cash Flows, less the prior quarter’s balance on the
face of the Consolidated Statement of Cash Flows. The captions have
been adjusted for summary purposes; the complete list of captions
are as follows, in order as in the table above: Net cash provided
by operating activities, Repayments of debt, Payments and advance
payment on sale and leaseback financing and finance lease,
Expenditures for vessels, vessel improvements and vessels under
construction, and Expenditures for other property. For the period
ended September 30, 2023, Repayments of Debt include the line item
Premium and fees on extinguishment of debt.
(2)
Payments for vessels under construction represent the contractual
payments on three dual-fuel VLCCs that delivered in the first half
of 2023 and contractual payments for the LR1 newbuildings in Q4
2023. In the three months ended 2024, the Company announced the
acquisition of 6 eco MRs for a total contract price of $232
million, of which 10% was paid in deposit in the same quarter. The
vessels delivered during the second quarter of 2024.
(3)
In connection with the execution of the revolving credit facility
(“$160 Million Facility”) in the third quarter of 2023, the Company
drew $50 million as of September 30, 2023. During October 2023, the
Company repaid the outstanding amounts on the facility.
(E) Time Charter Equivalent (TCE) Revenues
Consistent with general practice in the shipping industry, the
Company uses TCE revenues, which represents shipping revenues less
voyage expenses, as a measure to compare revenue generated from a
voyage charter to revenue generated from a time charter. Time
charter equivalent revenues, a non-GAAP measure, provides
additional meaningful information in conjunction with shipping
revenues, the most directly comparable GAAP measure, because it
assists Company management in making decisions regarding the
deployment and use of its vessels and in evaluating their financial
performance. Reconciliation of TCE revenues of the segments to
shipping revenues as reported in the consolidated statements of
operations follow:
Three Months Ended June
30,
Six Months Ended June
30,
($ in thousands)
2024
2023
2024
2023
Time charter equivalent revenues
$
251,848
$
288,335
$
522,776
$
571,655
Add: Voyage expenses
5,561
3,868
9,034
7,678
Shipping revenues
$
257,409
$
292,203
$
531,810
$
579,333
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806592844/en/
Investor Relations & Media Contact: Tom Trovato,
International Seaways, Inc. (212) 578-1602
ttrovato@intlseas.com
International Seaways (NYSE:INSW)
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