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 2024.
HIGHLIGHTS & RECENT DEVELOPMENTS
Quarterly Results:
- Net income for the third quarter of 2024 was $92 million, or
$1.84 per diluted share.
- Adjusted net income(1) for the third quarter of 2024 was $78
million, or $1.57 per diluted share.
- Adjusted EBITDA(1) for the third quarter of 2024 was $130
million.
Robust Balance Sheet:
- Total liquidity was approximately $694 million as of September
30, 2024, including total cash (1) of $153 million and $541 million
undrawn revolving credit capacity.
- Repaid $50 million on the Company’s $500 million RCF,
increasing undrawn revolver capacity.
- Net loan-to-value remained historically low at approximately
13.5% as of September 30, 2024.
Fleet Optimization Program:
- Sold a 2008-built MR for net proceeds of approximately $24
million.
Returns to Shareholders:
- Repurchased 501,646 shares for a total cost of approximately
$25 million, representing an average purchase price of $49.81 per
share.
- Paid a combined $1.50 per share in regular and supplemental
dividends in September 2024.
- Declared a combined dividend of $1.20 per share to be paid in
December 2024, representing 75% of adjusted net income(1) for the
third quarter.
“We continue to execute on our balanced capital allocation
strategy, utilizing our strong cash generation in third quarter to
deliver double-digit returns to our shareholders,” said Lois K.
Zabrocky, International Seaways President and CEO. “Including the
combined dividend of $1.20 per share declared for the fourth
quarter, aggregate dividends in 2024 will total $5.77 per share, or
12% of the average share price. We remain committed to a balanced
capital allocation approach, as we continue to look for attractive
opportunities to enhance our fleet, while optimizing returns to
shareholders.”
Ms. Zabrocky added, “Market fundamentals remain strong for
tankers in the near term, supported by global oil demand growth,
which is expected to be at or above historical growth rates.
Ton-mile demand remains elevated due to geopolitical events that
could take significant time to unwind. While newbuilding orders
have risen to about 13% of the global tanker fleet, nearly half of
the existing fleet is expected to be over 20 years old by the time
the newbuildings deliver into the market. We expect that these
dynamics will continue to drive strong earnings, positioning
Seaways to generate significant free cash flow and continue
building on our track record of investing in our fleet and
returning substantial cash flow to shareholders.”
Jeff Pribor, the Company’s CFO stated, “We returned nearly $100
million to investors in dividends and share repurchases during the
third quarter, representing 84% of the prior quarter’s adjusted net
income that was returned to shareholders. With ample cash and
liquidity of $694 million, a record low net loan-to-value and low
spot cash break evens, we are well-positioned to continue creating
value by executing our balanced capital allocation strategy.”
THIRD QUARTER 2024 RESULTS
Net income for the third quarter of 2024 was $92 million, or
$1.84 per diluted share, compared to net income of $98 million, or
$1.99 per diluted share, for the third quarter of 2023. The
decrease was primarily driven by a decrease in TCE revenues(1) and
an increase in vessel expenses and depreciation and amortization,
reflecting the delivery of six modern MR vessels during the second
quarter of 2024, partially offset by gains on the sale of one
vessel in the third quarter of 2024.
Shipping revenues for the third quarter were $225 million,
compared to $242 million for the third quarter of 2023.
Consolidated TCE revenues(1) for the third quarter were $220
million, compared to $236 million for the third quarter of
2023.
Adjusted EBITDA(1) for the third quarter was $130 million,
compared to $151 million for the third quarter of 2023.
Crude Tankers
Shipping revenues for the Crude Tankers segment were $103
million for the third quarter of 2024, compared to $114 million for
the third quarter of 2023. TCE revenues(1) were $99 million for the
third quarter, compared to $111 million for the third 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 $29,700, $38,000 and $25,100 per day,
respectively, compared with approximately $41,000, $38,700 and
$34,000 per day, respectively, during the third quarter of
2023.
Product Carriers
Shipping revenues for the Product Carriers segment were $122
million for the third quarter of 2024, compared to $127 million for
the third quarter of 2023. TCE revenues(1) were $121 million for
the third quarter, compared to $125 million for the third quarter
of 2023. This decrease is primarily attributable to a decline in
LR1 spot earnings to approximately $46,900 per day from $56,300 per
day partially offset by an increase in MR spot earnings to $29,000
per day from $26,600 per day.
YEAR-TO-DATE 2024 RESULTS
Net income for the nine months ended September 30, 2024 was $381
million, or $7.66 per diluted share, compared to net income of $424
million, or $8.58 per diluted share, for the first nine months of
2023.
Shipping revenues for the nine months ended September 30, 2024
were $757 million, compared to $821 million for the first nine
months of 2023. Consolidated TCE revenues(1) for the first nine
months of 2024 were $743 million, compared to $808 million for the
first nine months of 2023.
Adjusted EBITDA(1) for the nine months ended September 30, 2024
was $488 million, compared to $565 million for the first nine
months of 2023.
Crude Tankers
Shipping revenues for the Crude Tankers segment were $355
million for the first nine months of 2024, compared to $399 million
for the first nine months of 2023. TCE revenues(1) for the Crude
Tankers segment were $344 million for the first nine months of
2024, compared to $389 million for the first nine months of
2023.
Product Carriers
Shipping revenues for the Product Carriers segment were $402
million for the first nine months of 2024, compared to $422 million
for the first nine months of 2023. TCE revenues(1) for the Product
Carriers segment were $399 million for the first nine months of
2024 compared to $419 million for the first nine months of
2023.
BALANCE SHEET ENHANCEMENTS
During the third quarter of 2024, the Company repaid $13 million
in mandatory payments required under its existing debt facilities
and sale leaseback arrangements. For the nine months ended
September 30, 2024, the Company repaid $56 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 $95 million and undrawn revolver capacity of $257 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 $13 million, 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. The sustainability-linked features
are aimed at reducing the Company’s 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 million and included the collateral vessel
in the $500 Million RCF. The $500 Million RCF saves approximately
$20 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, which was repaid during the third quarter. Following
the repayments and amortizing capacity during the third quarter,
aggregate undrawn revolving capacity was $541 million at September
30, 2024.
FLEET OPTIMIZATION PROGRAM
In July 2024, the Company sold a 2008-built MR for net proceeds
of approximately $24 million. During 2024, the Company sold three
vessels for aggregate net proceeds of $72 million. 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 connection with vessel
sales, the Company recorded gains of $41 million in aggregate
during 2024.
During the nine months ended September 30, 2024, the Company
took delivery of six modern MR vessels for an aggregate
consideration of $232 million. In connection with the acquisitions,
the Company issued 623,778 common shares to the sellers,
representing 15% of the aggregate consideration with the remaining
funding provided by cash on hand.
During 2024, the Company entered into three 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. From October 1, 2024 through
expiry, total future contracted revenues aggregate to approximately
$345 million, excluding any applicable profit share.
The Company has contracts to build 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.
RETURNS TO SHAREHOLDERS
In September 2024, the Company paid 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.
On November 6, 2024, the Company’s Board of Directors declared a
combined dividend of $1.20 per share of common stock, composed of a
regular quarterly dividend of $0.12 per share of common stock and a
supplemental dividend of $1.08 per share of common stock. Both
dividends will be paid on December 27, 2024, to shareholders with a
record date at the close of business on December 13, 2024.
During the third quarter of 2024, the Company repurchased and
retired 501,646 shares of its common stock in open market
purchases, at an average price of $49.81 for an aggregate cost of
approximately $25 million. In November 2024, the Company’s Board of
Directors authorized an increase to $50 million for the share
repurchase program that 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 third
quarter 2024 results at 9:00 a.m. Eastern Time on Thursday,
November 7, 2024. To access the call, participants should dial
(833) 470-1428 for domestic callers and (929) 526-1599 for
international callers and entering 730934. 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, 2024, by dialing (866) 813-9403 for domestic callers
and +44 204 525 0658 for international callers, and entering Access
Code 826562.
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 83 vessels,
including 13 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 14 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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Shipping Revenues:
Pool revenues
$
170,007
$
194,465
$
603,970
$
701,634
Time and bareboat charter revenues
36,842
27,587
99,030
66,849
Voyage charter revenues
18,341
19,656
54,000
52,558
Total Shipping Revenues
225,190
241,708
757,000
821,041
Operating Expenses:
Voyage expenses
5,503
5,756
14,537
13,434
Vessel expenses
71,269
64,596
202,490
188,516
Charter hire expenses
7,245
11,297
20,841
30,599
Depreciation and amortization
39,304
33,363
109,974
95,356
General and administrative
13,411
12,314
37,494
35,082
Other operating expenses
985
—
2,715
—
Third-party debt modification fees
-
148
168
568
(Gain)/loss on disposal of vessels and
other assets, net
(13,499)
74
(41,402)
(10,648)
Total operating expenses
124,218
127,548
346,817
352,907
Income from vessel operations
100,972
114,160
410,183
468,134
Other income
3,211
646
8,525
8,308
Income before interest expense and income
taxes
104,183
114,806
418,708
476,442
Interest expense
(12,496)
(16,817)
(37,808)
(51,678)
Income before income taxes
91,687
97,989
380,900
424,764
Income tax benefit/(provision)
1
(52)
1
(432)
Net income
$
91,688
$
97,937
$
380,901
$
424,332
Weighted Average Number of Common
Shares Outstanding:
Basic
49,544,412
48,861,356
49,302,367
49,008,901
Diluted
49,881,317
49,275,022
49,677,238
49,442,825
Per Share Amounts:
Basic net income per share
$
1.85
$
2.00
$
7.72
$
8.65
Diluted net income per share
$
1.84
$
1.99
$
7.66
$
8.58
Consolidated Balance Sheets
($ in thousands)
September 30,
December 31,
2024
2023
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$
103,309
$
126,760
Short-term investments
50,000
60,000
Voyage receivables
191,093
247,165
Other receivables
15,682
14,303
Inventories
378
1,329
Prepaid expenses and other current
assets
9,721
10,342
Current portion of derivative asset
2,087
5,081
Total Current Assets
372,270
464,980
Vessels and other property, less
accumulated depreciation
2,045,331
1,914,426
Vessels construction in progress
24,401
11,670
Deferred drydock expenditures, net
82,628
70,880
Operating lease right-of-use assets
12,295
20,391
Pool working capital deposits
33,794
31,748
Long-term derivative asset
214
1,153
Other assets
16,913
6,571
Total Assets
$
2,587,846
$
2,521,819
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
45,796
$
57,904
Current portion of operating lease
liabilities
7,673
10,223
Current installments of long-term debt
49,823
127,447
Total Current Liabilities
103,292
195,574
Long-term operating lease liabilities
6,773
11,631
Long-term debt
600,689
595,229
Other liabilities
2,462
2,628
Total Liabilities
713,216
805,062
Equity:
Total Equity
1,874,630
1,716,757
Total Liabilities and Equity
$
2,587,846
$
2,521,819
Consolidated Statements of Cash
Flows
($ in thousands)
Nine Months Ended September
30,
2024
2023
(Unaudited)
(Unaudited)
Cash Flows from Operating
Activities:
Net income
$
380,901
$
424,332
Items included in net income not affecting
cash flows:
Depreciation and amortization
109,974
95,356
Amortization of debt discount and other
deferred financing costs
3,093
4,491
Deferred financing costs write-off
—
1,952
Stock compensation
5,736
5,912
Earnings of affiliated companies
(42)
20
Other – net
(519)
(2,140)
Items included in net income related to
investing and financing activities:
Gain on disposal of vessels and other
assets, net
(41,402)
(10,648)
Loss on extinguishment of debt
—
1,323
Payments for drydocking
(43,855)
(27,622)
Insurance claims proceeds related to
vessel operations
1,004
2,858
Changes in operating assets and
liabilities
38,626
67,085
Net cash provided by operating
activities
453,516
562,919
Cash Flows from Investing
Activities:
Expenditures for vessels, vessel
improvements and vessels under construction
(216,589)
(192,218)
Proceeds from disposal of vessels and
other assets
71,915
20,036
Expenditures for other property
(880)
(1,035)
Investments in short-term time
deposits
(125,000)
(210,000)
Proceeds from maturities of short-term
time deposits
135,000
215,000
Pool working capital deposits
(1,532)
(1,334)
Net cash used in investing activities
(137,086)
(169,551)
Cash Flows from Financing
Activities:
Borrowing on revolving credit
facilities
50,000
50,000
Repayments on revolving credit
facilities
(50,000)
—
Repayments of debt
(39,851)
(323,685)
Proceeds from sale and leaseback
financing, net of issuance and deferred financing costs
—
169,717
Payments on sale and leaseback financing
and finance lease
(36,831)
(123,732)
Payments of deferred financing costs
(5,759)
(3,006)
Premium and fees on extinguishment of
debt
—
(1,323)
Repurchase of common stock
(25,000)
(13,948)
Cash dividends paid
(225,385)
(247,001)
Cash paid to tax authority upon vesting or
exercise of stock-based compensation
(7,055)
(5,158)
Net cash used in financing activities
(339,881)
(498,136)
Net decrease in cash and cash
equivalents
(23,451)
(104,768)
Cash and cash equivalents at beginning of
year
126,760
243,744
Cash and cash equivalents at end of
period
$
103,309
$
138,976
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, 2024 and the comparable period of
2023. Revenue days in the quarter ended September 30, 2024 totaled
6,671 compared with 6,663 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 $954 and $874 per day for
the three months ended September 30, 2024 and 2023,
respectively.
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Spot
Fixed
Total
Spot
Fixed
Total
Crude Tankers
VLCC
Average TCE Rate
$
29,711
$
31,903
$
40,961
$
35,319
Number of Revenue Days
881
276
1,157
870
297
1,167
Suezmax
Average TCE Rate
$
38,044
$
30,979
$
38,708
$
30,973
Number of Revenue Days
1,014
183
1,197
1,012
184
1,196
Aframax
Average TCE Rate
$
25,119
$
38,574
$
34,046
$
38,652
Number of Revenue Days
186
91
277
232
73
305
Total Crude Tankers Revenue
Days
2,081
550
2,631
2,114
554
2,668
Product Carriers
Aframax (LR2)
Average TCE Rate
$
-
$
39,498
$
32,603
$
-
Number of Revenue Days
-
69
69
92
-
92
Panamax (LR1)
Average TCE Rate
$
46,899
$
-
$
56,295
$
-
Number of Revenue Days
594
-
594
685
-
685
MR
Average TCE Rate
$
29,006
$
21,920
$
26,563
$
21,200
Number of Revenue Days
2,685
692
3,377
2,836
382
3,218
Total Product Carriers Revenue
Days
3,279
761
4,040
3,613
382
3,995
Total Revenue Days
5,360
1,311
6,671
5,727
936
6,663
Revenue days in the above table exclude 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 September 30, 2024, INSW’s fleet totaled 82 vessels, of
which 62 were owned, 14 were chartered in and six contracted
newbuildings.
Total at September 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
34
4
38
1,901,526
Product Carriers
41
5
46
2,536,915
Total Operating Fleet
62
14
76
8,961,616
Newbuild Fleet
LR1
6
-
6
441,600
Total Newbuild Fleet
6
-
6
441,600
Total Operating and Newbuild
Fleet
68
14
82
9,403,216
(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
September 30,
Nine Months Ended
September 30,
($ in thousands)
2024
2023
2024
2023
Net income
$
91,688
$
97,937
$
380,901
$
424,332
Third-party debt modification fees
-
148
168
568
Write-off of deferred financing costs
-
1,343
-
1,952
(Gain)/loss on disposal of vessels and
other assets, net of impairments
(13,499)
74
(41,402)
(10,648)
Provision for settlement of multi-employer
pension plan obligations
44
-
1,019
-
Loss on extinguishment of debt
-
1,211
-
1,323
Adjusted Net Income
$
78,233
$
100,713
$
340,686
$
417,527
Weighted average shares outstanding
(diluted)
49,881,317
49,275,022
49,677,238
49,442,825
Adjusted Net Income per diluted share
$
1.57
$
2.04
$
6.85
$
8.44
(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 September
30,
Nine Months Ended September
30,
($ in thousands)
2024
2023
2024
2023
Net income
$
91,688
$
97,937
$
380,901
$
424,332
Income tax (benefit)/provision
(1)
52
(1)
432
Interest expense
12,496
16,817
37,808
51,678
Depreciation and amortization
39,304
33,363
109,974
95,356
EBITDA
143,487
148,169
528,682
571,798
Third-party debt modification fees
-
148
168
568
Write-off of deferred financing costs
-
1,343
-
1,952
(Gain)/loss on disposal of vessels and
other assets, net of impairments
(13,499)
74
(41,402)
(10,648)
Provision for settlement of multi-employer
pension plan obligations
44
-
1,019
-
Loss on extinguishment of debt
-
1,211
-
1,323
Adjusted EBITDA
$
130,032
$
150,945
$
488,467
$
564,993
(C) Cash
September 30,
December 31,
($ in thousands)
2024
2023
Cash and cash equivalents
$
103,309
$
126,760
Short-term investments
50,000
60,000
Total Cash
$
153,309
$
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:
September 30
December 31
March 31
June 30
September 30
Net cash provided by operating activities
(1)
$
148,463
$
125,483
$
156,442
$
167,939
$
129,135
Repayments of debt (1)
(132,152)
(108,365)
(19,538)
-
-
Payments on sale and leaseback (1)
(10,946)
(12,233)
(12,146)
(12,179)
(12,506)
Less: optional prepayments (2)
104,312
(3)
88,382
-
-
-
Expenditures for vessels (1)
(4,150)
(12,941)
(26,420)
(176,455)
(13,714)
Expenditures for other property (1)
(449)
(436)
(701)
(100)
(79)
Less: payments for acquiring vessels
(2)
-
11,548
23,200
174,896
11,854
Free Cash Flow
$
105,078
$
91,438
$
120,837
$
154,101
$
114,690
(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 acquiring vessels
include the contractual payments for the LR1 newbuildings. In
addition, during the three months ended March 31, 2024, the Company
announced the acquisition of six 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 $50 million as of September
30, 2023. During October 2023, the Company repaid the outstanding
amounts on the facility.
(E) Time Charter Equivalent (TCE) Revenues
Consistent with general practice in the shipping industry, the
Company uses TCE revenues, which represents shipping revenues less
voyage expenses, as a measure to compare revenue generated from a
voyage charter to revenue generated from a time charter. Time
charter equivalent revenues, a non-GAAP measure, provides
additional meaningful information in conjunction with shipping
revenues, the most directly comparable GAAP measure, because it
assists Company management in making decisions regarding the
deployment and use of its vessels and in evaluating their financial
performance. Reconciliation of TCE revenues of the segments to
shipping revenues as reported in the consolidated statements of
operations follow:
Three Months Ended September
30,
Nine Months Ended September
30,
($ in thousands)
2024
2023
2024
2023
Time charter equivalent revenues
$
219,687
$
235,952
$
742,463
$
807,607
Add: Voyage expenses
5,503
5,756
14,537
13,434
Shipping revenues
$
225,190
$
241,708
$
757,000
$
821,041
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106146002/en/
Investor Relations & Media: Tom Trovato,
International Seaways, Inc. (212) 578-1602
ttrovato@intlseas.com
Grafico Azioni International Seaways (NYSE:INSW)
Storico
Da Ott 2024 a Dic 2024
Grafico Azioni International Seaways (NYSE:INSW)
Storico
Da Dic 2023 a Dic 2024
