Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Entity Registrant Name | INTERNATIONAL SEAWAYS, INC. | |
Entity Incorporation, State or Country Code | 1T | |
Entity File Number | 1-37836-1 | |
Entity Tax Identification Number | 98-0467117 | |
Entity Address, Address Line One | 600 Third Avenue | |
Entity Address, Address Line Two | 39th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10016 | |
City Area Code | 212 | |
Local Phone Number | 578-1600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,373,073 | |
Entity Central Index Key | 0001679049 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock (no par value) | |
Trading Symbol | INSW | |
Security Exchange Name | NYSE | |
Rights To Purchase Common Stock [Member] | ||
Title of 12(b) Security | Rights to Purchase Common Stock | |
No Trading Symbol Flag | true | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 139,501 | $ 126,760 |
Short-term investments | 75,000 | 60,000 |
Voyage receivables, net of allowance for credit losses of $238 and $191 including unbilled receivables of $234,260 and $237,298 | 242,955 | 247,165 |
Other receivables | 11,887 | 14,303 |
Inventories | 593 | 1,329 |
Prepaid expenses and other current assets | 15,086 | 10,342 |
Current portion of derivative asset | 5,049 | 5,081 |
Total Current Assets | 490,071 | 464,980 |
Vessels and other property, less accumulated depreciation of $452,717 and $427,274 | 1,890,796 | 1,914,426 |
Vessels construction in progress | 11,905 | 11,670 |
Deferred drydock expenditures, net | 72,884 | 70,880 |
Operating lease right-of-use assets | 17,195 | 20,391 |
Pool working capital deposits | 33,998 | 31,748 |
Long-term derivative assets | 2,213 | 1,153 |
Other assets | 32,360 | 6,571 |
Total Assets | 2,551,422 | 2,521,819 |
Current Liabilities: | ||
Accounts payable, accrued expenses and other current liabilities | 42,046 | 57,904 |
Current portion of operating lease liabilities | 10,169 | 10,223 |
Current installments of long-term debt | 127,535 | 127,447 |
Total Current Liabilities | 179,750 | 195,574 |
Long-term operating lease liabilities | 9,270 | 11,631 |
Long-term debt, net | 564,203 | 595,229 |
Other liabilities | 3,309 | 2,628 |
Total Liabilities | 756,532 | 805,062 |
Commitments and contingencies | ||
Equity: | ||
Capital - 100,000,000 no par value shares authorized; 48,999,765 and 48,925,562 shares issued and outstanding | 1,488,531 | 1,490,986 |
Retained earnings/(accumulated deficit) | 306,659 | 226,834 |
Stockholders Equity Subtotal | 1,795,190 | 1,717,820 |
Accumulated other comprehensive loss | (300) | (1,063) |
Total equity before noncontrolling interest | 1,794,890 | 1,716,757 |
Total Liabilities and Equity | $ 2,551,422 | $ 2,521,819 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Unbilled voyage receivable (in dollars) | $ 234,260 | $ 237,298 |
Voyage receivables, allowance for credit losses | 238 | 191 |
Vessels and other property, accumulated depreciation | $ 452,717 | $ 427,274 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares, issued | 48,999,765 | 48,925,562 |
Common stock, shares, outstanding | 48,999,765 | 48,925,562 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Shipping Revenues: | ||
Shipping revenues | $ 274,401 | $ 287,130 |
Operating Expenses: | ||
Voyage expenses | 3,473 | 3,810 |
Vessel expenses | 63,381 | 58,769 |
Charter hire expenses | 6,648 | 8,800 |
Depreciation and amortization | 34,153 | 29,548 |
General and administrative | 12,374 | 11,246 |
Third-party debt modification fees | 0 | 407 |
Gain on disposal of vessels and other assets, net | (51) | (10,748) |
Total operating expenses | 119,978 | 101,832 |
Income from vessel operations | 154,423 | 185,298 |
Other income | 2,954 | 4,281 |
Income before interest expense and income taxes | 157,377 | 189,579 |
Interest expense | (12,887) | (16,947) |
Income before income taxes | 144,490 | 172,632 |
Income tax benefit | 0 | 1 |
Net income | 144,490 | 172,633 |
Net income/(loss) attributable to the Company | $ 144,490 | $ 172,633 |
Weighted Average Number of Common Shares Outstanding: | ||
Basic | 48,972,842 | 49,138,613 |
Diluted | 49,377,948 | 49,646,331 |
Per Share Amounts: | ||
Basic net income per share | $ 2.95 | $ 3.51 |
Diluted net income per share | $ 2.92 | $ 3.47 |
International Crude Tankers Segment [Member] | ||
Shipping Revenues: | ||
Shipping revenues | $ 126,867 | $ 132,411 |
Operating Expenses: | ||
Depreciation and amortization | 20,049 | 17,226 |
Gain on disposal of vessels and other assets, net | (2) | |
International Product Carriers Segment [Member] | ||
Shipping Revenues: | ||
Shipping revenues | 147,534 | 154,719 |
Operating Expenses: | ||
Depreciation and amortization | 14,104 | 12,294 |
Gain on disposal of vessels and other assets, net | (49) | |
Pool Revenue Leases [Member] | ||
Shipping Revenues: | ||
Shipping revenues | 226,282 | 259,578 |
Time and Bareboat Charter Leases [Member] | ||
Shipping Revenues: | ||
Shipping revenues | 31,049 | 13,150 |
Voyage Charter Leases [Member] | ||
Shipping Revenues: | ||
Shipping revenues | $ 17,070 | $ 14,402 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Pool revenues, received from companies accounted for by the equity method | $ 83,898 | $ 91,707 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 144,490 | $ 172,633 |
Other comprehensive income/(loss), net of tax: | ||
Net change in unrealized income/(losses) on cash flow hedges | 673 | (3,838) |
Defined benefit pension and other postretirement benefit plans: | ||
Net change in unrecognized prior service costs | 12 | (30) |
Net change in unrecognized actuarial losses | 78 | (194) |
Other comprehensive income/(loss), net of tax | 763 | (4,062) |
Comprehensive income | $ 145,253 | $ 168,571 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 144,490 | $ 172,633 |
Items included in net income/(loss) not affecting cash flows: | ||
Depreciation and amortization | 34,153 | 29,548 |
Amortization of debt discount and other deferred financing costs | 1,038 | 1,556 |
Deferred financing costs write-off | 0 | 166 |
Stock compensation | 1,691 | 1,900 |
Earnings of affiliated companies | 0 | 20 |
Other - net | (250) | (823) |
Items included in net income/(loss) related to investing and financing activities: | ||
Gain on disposal of vessels and other assets, net | (51) | (10,748) |
Payments for drydocking | (9,971) | (12,978) |
Insurance claims proceeds related to vessel operations | 206 | 950 |
Changes in operating assets and liabilities: | ||
Decrease in receivables | 4,210 | 41,746 |
Decrease in deferred revenue | (5,068) | (260) |
Net change in inventories, prepaid expenses and other current assets and accounts payable, accrued expense, and other current and long-term liabilities | (14,006) | (2,888) |
Net cash provided by operating activities | 156,442 | 220,822 |
Cash Flows from Investing Activities: | ||
Expenditures for vessels, vessel improvements and vessels under construction, including deposits for acquisitions | (26,420) | (66,722) |
Proceeds from disposal of vessels and other property, net | 0 | 20,021 |
Expenditures for other property | (701) | (524) |
Pool working capital deposits | (782) | 0 |
Investments in short term time deposits | (75,000) | (90,000) |
Proceeds from maturities of short term time deposits | 60,000 | 65,000 |
Net cash used in investing activities | (42,903) | (72,225) |
Cash Flows from Financing Activities: | ||
Repayments of debt | (19,538) | (137,449) |
Proceeds from sale and leaseback financing, net of issuance and deferred financing costs | 0 | 55,722 |
Payments of deferred financing costs | (306) | (514) |
Payments on sale and leaseback financing and finance lease | (12,146) | (34,619) |
Cash dividends paid | (64,662) | (98,313) |
Cash paid to tax authority upon vesting or exercise of stock-based compensation | (4,146) | (2,619) |
Net cash used in by financing activities | (100,798) | (217,792) |
Net increase/(decrease) in cash and cash equivalents | 12,741 | (69,195) |
Cash, cash equivalents and restricted cash at beginning of year | 126,760 | 243,744 |
Cash, cash equivalents and restricted cash at end of period | $ 139,501 | $ 174,549 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock [Member] Restricted Stock | Common Stock [Member] Restricted Stock Units (RSUs) [Member] | Common Stock [Member] | Retained Earnings / (Accumulated deficit) [Member] Restricted Stock | Retained Earnings / (Accumulated deficit) [Member] Restricted Stock Units (RSUs) [Member] | Retained Earnings / (Accumulated deficit) [Member] | Accumulated Other Comprehensive Loss [Member] Restricted Stock | Accumulated Other Comprehensive Loss [Member] Restricted Stock Units (RSUs) [Member] | Accumulated Other Comprehensive Loss [Member] | Restricted Stock | Restricted Stock Units (RSUs) [Member] | Total |
Balance, beginning at Dec. 31, 2022 | $ 1,502,235 | $ (21,447) | $ 6,964 | $ 1,487,752 | ||||||||
Net income | 0 | 172,633 | 0 | 172,633 | ||||||||
Other comprehensive income/(loss) | 0 | 0 | (4,062) | (4,062) | ||||||||
Dividends declared | 0 | (98,321) | 0 | (98,321) | ||||||||
Forfeitures of vested restricted stock awards and exercised stock options | (2,619) | 0 | 0 | (2,619) | ||||||||
Compensation relating to restricted stock units awards | $ 268 | $ 1,412 | $ 0 | $ 0 | $ 0 | $ 0 | $ 268 | $ 1,412 | ||||
Compensation relating to stock option awards | 220 | 0 | 0 | 220 | ||||||||
Balance, ending at Mar. 31, 2023 | 1,501,516 | 52,865 | 2,902 | 1,557,283 | ||||||||
Balance, beginning at Dec. 31, 2023 | 1,490,986 | 226,834 | (1,063) | 1,716,757 | ||||||||
Net income | 0 | 144,490 | 0 | 144,490 | ||||||||
Other comprehensive income/(loss) | 0 | 0 | 763 | 763 | ||||||||
Dividends declared | 0 | (64,665) | 0 | (64,665) | ||||||||
Forfeitures of vested restricted stock awards and exercised stock options | (4,146) | 0 | 0 | (4,146) | ||||||||
Compensation relating to restricted stock units awards | $ 291 | $ 1,301 | $ 0 | $ 0 | $ 0 | $ 0 | $ 291 | $ 1,301 | ||||
Compensation relating to stock option awards | 99 | 0 | 0 | 99 | ||||||||
Balance, ending at Mar. 31, 2024 | $ 1,488,531 | $ 306,659 | $ (300) | $ 1,794,890 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | Note 1 — Basis of Presentation: The accompanying unaudited condensed consolidated financial statements include the accounts of International Seaways, Inc. (“INSW”), a Marshall Islands corporation, and its wholly owned subsidiaries. Unless the context indicates otherwise, references to “INSW”, the “Company”, “we”, “us” or “our”, refer to International Seaways, Inc. and its subsidiaries. As of March 31, 2024, the Company’s operating fleet consisted of 73 wholly-owned or lease financed and time chartered-in oceangoing vessels, engaged primarily in the transportation of crude oil and refined petroleum products in the International Flag trade through its wholly owned subsidiaries. In addition to our operating fleet, six LR1 newbuilds are scheduled for delivery to the Company between the second half of 2025 and third quarter of 2026, bringing the total operating and newbuild fleet to 79 vessels. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and notes required by generally accepted accounting principles in the United States. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. All intercompany balances and transactions within INSW have been eliminated. Investments in 50% or less owned affiliated companies, in which INSW exercises significant influence, are accounted for by the equity method. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Note 2 — Significant Accounting Policies: For a description of all of the Company’s material accounting policies, see Note 2, “Summary of Significant Accounting Policies,” to the Company’s consolidated financial statements as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K. The following is a summary of any changes or updates to the Company’s critical accounting policies for the current period: Concentration of Credit Risk — (Dollars in thousands) Allowance for Credit Losses - Balance at December 31, 2023 $ 191 Provision for expected credit losses 47 Balance at March 31, 2024 $ 238 During the three months ended March 31, 2024 and 2023, the Company did not have any individual customers who accounted for 10% or more of its revenues apart from the pools in which it participates. The pools in which the Company participates accounted in aggregate for 96% and 95% of consolidated voyage receivables at March 31, 2024 and December 31, 2023, respectively. Deferred finance charges — Interest expense relating to the amortization of deferred financing charges amounted to $0.8 million and $1.3 million for the three months ended March 31, 2024 and 2023, respectively. Vessels construction in progress — Recently Issued Accounting Standards In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER COMMON SHARE [Abstract] | |
EARNINGS PER COMMON SHARE | Note 3 — Earnings per Common Share: Basic earnings per common share is computed by dividing earnings, after the deduction of dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units not classified as participating securities. Participating securities are defined by ASC 260, Earnings Per Share Weighted average shares of unvested restricted common stock considered to be participating securities totaled 27,897 and 48,890 for the three months ended March 31, 2024 and 2023, respectively. Such participating securities are allocated a portion of income, but not losses under the two-class method. As of March 31, 2024, there were 470,936 shares of restricted stock units and 180,703 stock options outstanding and considered to be potentially dilutive securities. Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Net income allocated to: Common Stockholders $ 144,413 $ 172,466 Participating securities 77 167 $ 144,490 $ 172,633 For the three months ended March 31, 2024 and 2023 earnings per share calculations, there were 405,106 and 507,718 dilutive equity awards outstanding, respectively. Awards of |
BUSINESS AND SEGMENT REPORTING
BUSINESS AND SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
BUSINESS AND SEGMENT REPORTING [Abstract] | |
BUSINESS AND SEGMENT REPORTING | Note 4 — Business and Segment Reporting: The Company has two reportable segments: Crude Tankers and Product Carriers. Adjusted income/(loss) from vessel operations for segment purposes is defined as income/(loss) from vessel operations before general and administrative expenses, third-party debt modification fees and gain on disposal of vessels and assets, net. The accounting policies followed by the reportable segments are the same as those followed in the preparation of the Company’s condensed consolidated financial statements. Information about the Company’s reportable segments as of and for the three months ended March 31, 2024 and 2023 follows: Crude Product (Dollars in thousands) Tankers Carriers Other Totals Three months ended March 31, 2024: Shipping revenues $ 126,867 $ 147,534 $ — $ 274,401 Time charter equivalent revenues 123,962 146,966 — 270,928 Depreciation and amortization 20,049 14,104 — 34,153 Gain on disposal of vessels and other assets, net (2) (49) — (51) Adjusted income from vessel operations 69,892 96,854 — 166,746 Adjusted total assets at March 31, 2024 1,508,859 802,668 — 2,311,527 Expenditures for vessels and vessel improvements 276 26,144 — 26,420 Payments for drydocking 2,103 7,868 — 9,971 Three months ended March 31, 2023: Shipping revenues $ 132,411 $ 154,719 $ — $ 287,130 Time charter equivalent revenues 129,285 154,035 — 283,320 Depreciation and amortization 17,226 12,294 28 29,548 Gain on disposal of vessels and other assets, net — (10,748) — (10,748) Adjusted income/(loss) from vessel operations 84,541 101,690 (28) 186,203 Adjusted total assets at March 31, 2023 1,455,356 809,251 — 2,264,607 Expenditures for vessels and vessel improvements 65,728 994 — 66,722 Payments for drydocking 2,128 10,850 — 12,978 Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Time charter equivalent revenues $ 270,928 $ 283,320 Add: Voyage expenses 3,473 3,810 Shipping revenues $ 274,401 $ 287,130 Consistent with general practice in the shipping industry, the Company uses time charter equivalent revenues, which represent 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, provide 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. Reconciliations of total adjusted income from vessel operations of the segments to income before income taxes, as reported in the condensed consolidated statements of operations follow: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Total adjusted income from vessel operations of all segments $ 166,746 $ 186,203 General and administrative expenses (12,374) (11,246) Third-party debt modification fees — (407) Gain on disposal of vessels and other assets, net 51 10,748 Consolidated income from vessel operations 154,423 185,298 Other income 2,954 4,281 Interest expense (12,887) (16,947) Income before income taxes $ 144,490 $ 172,632 Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow: (Dollars in thousands) March 31, 2024 March 31, 2023 Adjusted total assets of all segments $ 2,311,527 $ 2,264,607 Corporate unrestricted cash and cash equivalents 139,501 156,220 Restricted cash — 18,329 Short-term investments 75,000 105,000 Other unallocated amounts 25,394 27,374 Consolidated total assets $ 2,551,422 $ 2,571,530 |
VESSELS
VESSELS | 3 Months Ended |
Mar. 31, 2024 | |
VESSELS [Abstract] | |
VESSELS | Note 5 — Vessels: Impairment of Vessels and Other Property During the three months ended March 31, 2024, the Company gave consideration as to whether events or changes in circumstances had occurred since December 31, 2023, that could indicate that the carrying amounts of the vessels in the Company’s fleet may not be recoverable. The Company determined that no held-for-sale or held-for-use impairment indicators existed for the Company’s vessels as of March 31, 2024. Vessel Acquisitions and Construction Commitments On February 23, 2024, the Company entered into agreements to acquire two 2014-built and four 2015-built MR Product Carriers for an aggregate consideration of approximately $232 million, payable 85% in cash and 15% in shares of common stock of the Company. Each of the six vessel purchases is subject to satisfaction of closing conditions customary for vessel purchases. Three of the six vessels were delivered between April and early May 2024, and delivery of the remaining three MRs is expected to be completed by the end of the second quarter of 2024. An initial purchase price deposit totaling In March 2024 the Company declared options to build two additional dual-fuel ready LNG 73,600 dwt LR1 Product Carriers at the same shipyard from which its other four newbuild LR1s were ordered. The six LR1s are scheduled for delivery between the second half of 2025 and the third quarter of 2026 for an aggregate cost of approximately $347 million. The remaining commitments on the contracts for the construction of the LR1 newbuilds as of March 31, 2024 was $335.5 million, which will be paid for through a combination of long-term financing and available liquidity. Disposal/Sales of Vessels On March 18, 2024, the Company entered into a memorandum of agreement for the sale of a During the quarter ended March 31, 2023, the Company delivered a 2008-built MR to the buyer and recognized a gain of $10.9 million. |
VARIABLE INTEREST ENTITIES (VIE
VARIABLE INTEREST ENTITIES (VIEs) | 3 Months Ended |
Mar. 31, 2024 | |
VARIABLE INTEREST ENTITIES (VIEs) [Abstract] | |
VARIABLE INTEREST ENTITIES (VIEs) | Note 6 — Variable Interest Entities (“VIEs”): Unconsolidated VIEs As of March 31, 2024, all of the seven commercial pools in which the Company participates were determined to be VIEs for which the Company is not considered a primary beneficiary. The following table presents the carrying amounts of assets and liabilities in the condensed consolidated balance sheet related to the unconsolidated VIEs as of March 31, 2024: (Dollars in thousands) Condensed Pool working capital deposits $ 33,998 In accordance with accounting guidance, the Company evaluated its maximum exposure to loss related to these unconsolidated VIEs by assuming a complete loss of the Company’s investment in these VIEs. The table below compares the Company’s liability in the condensed consolidated balance sheet to the maximum exposure to loss at March 31, 2024: (Dollars in thousands) Condensed Maximum Exposure to Other Liabilities $ – $ 33,998 In addition, as of March 31, 2024, the Company had approximately $232.0 million of trade receivables from the pools that were determined to be a VIE. These trade receivables, which are included in voyage receivables in the accompanying condensed consolidated balance sheet, have been excluded from the above tables and the calculation of INSW’s maximum exposure to loss. The Company does not record the maximum exposure to loss as a liability because it does not believe that such a loss is probable of occurring as of March 31, 2024. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES | Note 7 — Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures: The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows: (Dollars in thousands) March 31, 2024 December 31, 2023 Fair Value Level Cash and cash equivalents $ 139,501 $ 126,760 Level 1 Short-term investments (1) 75,000 60,000 Level 1 $750 Million Facility Term Loan (2) (94,581) (113,598) Level 2 ING Credit Facility (2) (20,313) (20,833) Level 2 Ocean Yield Lease Financing (2) (304,626) (311,907) Level 2 BoComm Lease Financing (3) (200,731) (210,186) Level 2 Toshin Lease Financing (3) (12,875) (13,566) Level 2 Hyuga Lease Financing (3) (12,959) (13,643) Level 2 Kaiyo Lease Financing (3) (11,785) (12,419) Level 2 Kaisha Lease Financing (3) (11,881) (12,519) Level 2 (1) Short-term investments consist of time deposits with original maturities of between 91 and 180 days. (2) Floating rate debt – the fair value of floating rate debt has been determined using level 2 inputs and is considered to be equal to the carrying value since it bears a variable interest rate, which is reset every three months. (3) Fixed rate debt – the fair value of fixed rate debt has been determined using level 2 inputs by discounting the expected cash flows of the outstanding debt. Derivatives At March 31, 2024, the Company was party to amortizing interest rate swap agreements with major financial institutions participating in the $750 Million Facility Term Loan that effectively converts the Company’s interest rate exposure from a three-month SOFR floating rate to a fixed rate of 2.84% through the maturity date of February 22, 2027 . The interest rate swap agreements, which contain no leverage features, are designated and qualify as cash flow hedges and have a remaining aggregate notional value of $310.5 million as of March 31, 2024, covering for accounting purposes, the $94.6 million principal balance outstanding under the $750 Million Facility Term Loan and $215.9 million outstanding under the Ocean Yield Lease Financing. Also, as of March 31, 2024, approximately $0.2 million in net gains from previously terminated interest rate swaps are Derivatives are recorded on a net basis by counterparty when a legal right of offset exists. The Company had the following amounts recorded on a net basis by transaction in the accompanying unaudited condensed consolidated balance sheets related to the Company’s use of derivatives as of March 31, 2024 and December 31, 2023: (Dollars in thousands) Current portion of derivative asset Long-term derivative Other March 31, 2024: Derivatives designated as hedging instruments: Interest rate swaps $ 5,049 $ 2,213 $ 857 Total $ 5,049 $ 2,213 $ 857 December 31, 2023: Derivatives designated as hedging instruments: Interest rate swaps $ 5,081 $ 1,153 $ 961 Total $ 5,081 $ 1,153 $ 961 The following tables present information with respect to gains and losses on derivative positions reflected in the condensed consolidated statements of operations or in the condensed consolidated statements of comprehensive income. The effect of cash flow hedging relationships recognized in other comprehensive income excluding amounts reclassified from accumulated other comprehensive income/(loss) for the three months ended March 31, 2024 and 2023 follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Derivatives designated as hedging instruments: Interest rate swaps $ 3,098 $ (1,454) Total other comprehensive income/(loss) $ 3,098 $ (1,454) The effect of the Company’s cash flow hedging relationships on the condensed consolidated statement of operations for the three months ended March 31, 2024 and 2023 follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Derivatives designated as hedging instruments: Interest rate swaps $ (2,071) $ (1,782) Discontinued hedging instruments: Interest rate swap (354) (602) Total interest expense $ (2,425) $ (2,384) See Note 11, “Accumulated Other Comprehensive Income,” for disclosures relating to the impact of derivative instruments on accumulated other comprehensive income/(loss). The following table presents the fair values, which are pre-tax, for assets and liabilities measured on a recurring basis: (Dollars in thousands) March 31, 2024 December 31, 2023 Fair Value Level Derivative Assets (interest rate swaps) $ 8,119 $ 7,195 Level 2 (1) (1) For the interest rate swaps, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take into account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty and the Company. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
DEBT [Abstract] | |
DEBT | Note 8 — Debt: Debt consists of the following: (Dollars in thousands) March 31, 2024 December 31, 2023 $750 Million Facility Term Loan, due 2027, net of unamortized deferred finance costs of $2,775 and $3,124 $ 91,806 $ 110,474 ING Credit Facility, due 2026, net of unamortized deferred finance costs of $266 and $295 20,046 20,538 Ocean Yield Lease Financing, due 2031, net of unamortized deferred finance costs of $2,528 and $2,656 302,099 309,250 BoComm Lease Financing, due 2030, net of unamortized deferred finance costs of $3,983 and $4,166 226,349 229,583 Toshin Lease Financing, due 2031, net of unamortized deferred finance costs of $287 and $302 13,561 13,903 Hyuga Lease Financing, due 2031, net of unamortized deferred finance costs of $251 and $265 13,445 13,786 Kaiyo Lease Financing, due 2030, net of unamortized deferred finance costs of $213 and $227 12,163 12,518 Kaisha Lease Financing, due 2030, net of unamortized deferred finance costs of $224 and $238 12,269 12,624 691,738 722,676 Less current portion (127,535) (127,447) Long-term portion $ 564,203 $ 595,229 Capitalized terms used hereafter have the meaning given in these condensed consolidated financial statements or in the respective transaction documents referred to below, including subsequent amendments thereto. ING Credit Facility On April 18, 2024, the Company prepaid the outstanding principal balance of $20.3 million and terminated the ING Credit Facility. $750 Million Credit Facility On April 26, 2024, the Company, International Seaways Operating Corporation (the “Borrower”) and certain of their subsidiaries entered into a second amendment that amended and extended the $750 Million Credit Facility with Nordea Bank Abp, New York Branch (“Nordea”), BNP Paribas, Crédit Agricole Corporate & Investment Bank (“CA-CIB”), DNB Markets Inc., and Skandinaviska Enskilda Banken AB (PUBL) (or their respective affiliates), as mandated lead arrangers and bookrunners; ING Bank N.V., London Branch and Danish Ship Finance A/S (or their respective affiliates), as lead arrangers and National Australia Bank Limited, as co-arranger. Nordea is acting as administrative agent, collateral agent, coordinator and security trustee under the amended agreement, and CA-CIB is acting as sustainability coordinator. Immediately prior to the closing of the second amendment, the $750 Million Facility, had a remaining term loan balance of $94.6 million and undrawn revolver capacity of $257.4 million. The amended agreement consists of a $500 million revolving credit facility (the “$500 Million Revolving Credit Facility”) that matures on January 31, 2030. That maturity date is subject to acceleration upon the occurrence of certain events (as described in the credit agreement). The $500 Million Revolving Credit Facility is secured by a first lien on certain of the Company’s vessels (the “Collateral Vessels”), along with their earnings, insurances and certain other assets, as well as by liens on certain additional assets of the Borrower. Under the terms of the $500 Million Revolving Credit Facility capacity is reduced on a quarterly basis by approximately $12.8 million, based on a 20-year The $500 Million Revolving Credit Facility also contains customary representations, warranties, restrictions and covenants applicable to the Company, the Borrower and the subsidiary guarantors (and in certain cases, other subsidiaries), including financial covenants that are consistent with existing financial covenants in the $750 Million Credit Facility and require the Company (i) to maintain a minimum liquidity level of the greater of $50 million and 5% of the Company’s Consolidated Indebtedness; (ii) to ensure the Company’s and its consolidated subsidiaries’ Maximum Leverage Ratio will not exceed 0.60 to 1.00 at any time; (iii) to ensure that Current Assets exceeds Current Liabilities (which is defined to exclude the current potion of Consolidated Indebtedness); and (iv) to ensure the aggregate Fair Market Value of the Collateral Vessels will not be less than 135% of the aggregate outstanding principal amount of the $500 Million Revolving Credit Facility. Debt Covenants The Company was in compliance with the financial and non-financial covenants under all of its financing arrangements as of March 31, 2024. Interest Expense Total interest expense before the impact of capitalized interest, including amortization of issuance and deferred financing costs, commitment, administrative and other fees for all of the Company’s debt facilities for the three months ended March 31, 2024 and 2023 was $12.8 million and $18.4 million, respectively. Interest paid for the Company’s debt facilities for the three months ended March 31, 2024 was $12.1 million. Interest paid for the Company’s debt facilities for the three months ended March 31, 2023 was $19.1 million including $1.3 million of the pre-delivery expenses paid for the first and second dual-fuel LNG VLCC newbuilds. |
TAXES
TAXES | 3 Months Ended |
Mar. 31, 2024 | |
TAXES [Abstract] | |
TAXES | Note 9 — Taxes: As of March 31, 2024, the Company believes it will qualify for an exemption from U.S. federal income taxes under Section 883 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and U.S. Treasury Department regulations for the 2024 calendar year, so long as less than 50 percent of the total value of the Company’s stock is held by one or more shareholders who own 5% or more of the Company’s stock for more than half of the days of 2024. The Company reviews its provisions for uncertain tax positions relating to freight taxes in various tax jurisdictions on a regular basis and may update its assessment of its tax positions based on available information at that time. Such information may include additional legal advice as to the applicability of freight taxes in relevant jurisdictions. Freight tax regulations are subject to change and interpretation; therefore, the amounts recorded by the Company may change accordingly. There were no changes in such reserve recorded during the three months ended March 31, 2024 and 2023. Additionally, a number of countries, including some in which certain of the Company’s subsidiaries are domiciled, have drafted or are actively considering drafting legislation to implement the Organization for Economic Cooperation and Development's (“OECD”) international tax framework, including the Pillar Two Model Rules. These model rules call for a minimum global tax of 15% on large multinational enterprises with possible application from January 1, 2024 or later, depending on implementation by the individual countries in which the Company is domiciled. As currently enacted, the Pillar Two Model Rules have no impact on the Company’s consolidated financial statements in 2024, however, the Company is monitoring these developments and evaluating the necessary steps it can take to minimize the impact, if any, to the Company’s consolidated financial statements and operations going forward. |
CAPITAL STOCK AND STOCK COMPENS
CAPITAL STOCK AND STOCK COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
CAPITAL STOCK AND STOCK COMPENSATION [Abstract] | |
CAPITAL STOCK AND STOCK COMPENSATION | Note 10 — Capital Stock and Stock Compensation: The Company accounts for stock-based compensation expense in accordance with the fair value method required by ASC 718, Compensation – Stock Compensation Director Compensation – Restricted Common Stock On February 19, 2024, Mr. Nadim Qureshi resigned from the Board of Directors of the Company. Mr. Qureshi’s resignation was not the result of any disagreement with the Company or the Board on any matter relating to the Company’s operations, policies or practices. In connection with his resignation, the Board approved the accelerated vesting of the 2,635 restricted shares of INSW common stock previously granted to Mr. Qureshi in June 2023 (valued at approximately $0.1 million) and the Company did not seek reimbursement of any cash director fees paid to Mr. Qureshi in advance for the first quarter of 2024. In consideration of this action, Mr. Qureshi entered into a one-year agreement not to compete with the Company’s crude and product tanker operations. Management Compensation Stock Options There were no stock options granted during the three months ended March 31, 2024 and 2023. A total of 58,893 and 12,940 stock options were exercised during the three months ended March 31, 2024 and 2023, respectively, by certain senior officers of the Company at an average exercise price of $21.76 and $22.54 per share, respectively. Restricted Stock Units During the three months ended March 31, 2024, the Company granted 48,078 time-based restricted stock units (“RSUs”) to certain of its senior officers. The weighted average grant date fair value of these awards was $52.57 per RSU. Each RSU represents a contingent right to receive one share of INSW common stock upon vesting. All of the RSUs awarded will vest in equal installments on each of the first three anniversaries of the grant date. During the three months ended March 31, 2024, the Company also granted 48,080 performance-based RSUs to certain of its senior officers. Each performance stock unit represents a contingent right to receive RSUs based upon the covered employees being continuously employed through the end of the period over which the performance goals are measured and shall vest as follows: (i) one-half of the target RSUs shall vest on December 31, 2026, subject to INSW’s return on invested capital (“ROIC”) performance in the three-year ROIC performance period relative to a target rate (the “ROIC Target”) set forth in the award agreements; and (ii) one-half of the target RSUs shall vest on December 31, 2026, subject to INSW’s three-year total shareholder return (“TSR”) performance relative to that of a performance peer group over a three-year performance period (“TSR Target”). Vesting is subject in each case to the Human Resources and Compensation Committee of the Company’s Board of Directors’ certification of achievement of the performance measures and targets no later than March 15, 2027. The weighted average grant date fair value of the awards with performance conditions was determined to be $52.57 per RSU. The weighted average grant date fair value of the TSR based performance awards which have a market condition was estimated using a Monte Carlo probability model and determined to be $41.08 per RSU. Dividends On February 28, 2024, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.12 per share of common stock and a supplemental cash dividend of $1.20 per share of common stock. Both dividends totaling $64.7 million were paid on March 28, 2024 to stockholders of record as of March 14, 2024. On May 7, 2024, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.12 per share of common stock and a supplemental dividend of $1.63 per share of common stock. Both dividends will be paid on June 26, 2024 to stockholders of record as of June 12, 2024. Share Repurchases No shares were acquired under the Company’s stock repurchase program during the three months ended March 31, 2024 and 2023. In connection with the settlement of vested restricted stock units and the exercise of stock options, the Company repurchased 102,523 and 59,292 shares of common stock during the three months ended March 31, 2024 and 2023, respectively, at an average cost of $52.94 and $55.16 , respectively, per share (based on the market prices on the dates of vesting or exercise) from employees and certain members of management to cover withholding taxes. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | Note 11 — Accumulated Other Comprehensive Income: The components of accumulated other comprehensive loss, net of related taxes, in the condensed consolidated balance sheets follow: (Dollars in thousands) March 31, 2024 December 31, 2023 Unrealized gains on derivative instruments $ 10,022 $ 9,349 Items not yet recognized as a component of net periodic benefit cost (pension plans) (10,322) (10,412) $ (300) $ (1,063) The changes in the balances of each component of accumulated other comprehensive income/(loss), net of related taxes, during the three months ended March 31, 2024 and 2023 follow: (Dollars in thousands) Unrealized gains on cash flow hedges Items not yet recognized as a component of net periodic benefit cost Total Balance as of December 31, 2023 $ 9,349 $ (10,412) $ (1,063) Current period change, excluding amounts reclassified from accumulated other comprehensive loss 3,098 90 3,188 Amounts reclassified from accumulated other comprehensive loss (2,425) — (2,425) Balance as of March 31, 2024 $ 10,022 $ (10,322) $ (300) Balance as of December 31, 2022 $ 16,912 (9,948) 6,964 Current period change, excluding amounts reclassified from accumulated other comprehensive income (1,454) (224) (1,678) Amounts reclassified from accumulated other comprehensive income (2,384) — (2,384) Balance as of March 31, 2023 $ 13,074 $ (10,172) $ 2,902 Amounts reclassified out of each component of accumulated other comprehensive income/(loss) follow: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Statement of Operations Reclassifications of gains on cash flow hedges: Interest rate swaps entered into by the Company's subsidiaries (2,071) (1,782) Interest expense Reclassifications of losses on discontinued hedging instruments Interest rate swap entered into by the Company's subsidiaries (354) (602) Interest expense Total before and net of tax $ (2,425) $ (2,384) At March 31, 2024, the Company expects that it will reclassify $5.3 million (gross and net of tax) of net gain on derivative instruments from accumulated other comprehensive income to earnings during the next twelve months attributable to interest rate swaps held by the Company. See Note 7, “Fair Value of Financial Instruments, Derivatives and Fair Value Disclosures,” for additional disclosures relating to derivative instruments. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE [Abstract] | |
REVENUE | Note 12 — Revenue: Revenue Recognition The majority of the Company’s contracts for pool revenues, time charter revenues, and voyage charter revenues are accounted for as lease revenue under ASC 842. The Company’s contracts with pools are short term which are cancellable with up to 90 days’ notice. As of March 31, 2024, the Company is a party to time charter out contracts with customers on three VLCCs, two Suezmaxes, one Aframax, and six MRs, with expiry dates ranging from August 2024 to April 2030. The Company’s contracts with customers for voyage charters are short term and vary in length based upon the duration of each voyage. Lease revenue for non-variable lease payments is recognized over the lease term on a straight-line basis and lease revenue for variable lease payments (e.g., demurrage) is recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. Lightering services provided by the Company’s Crude Tanker Lightering Business, and voyage charter contracts that do not meet the definition of a lease are accounted for as service revenues under ASC 606. In accordance with ASC 606, revenue is recognized when a customer obtains control of or consumes promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The following tables present the Company’s revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three months ended March 31, 2024 and 2023: Crude Product (Dollars in thousands) Tankers Carriers Totals Three months ended March 31, 2024: Revenues from leases Pool revenues $ 90,046 $ 136,236 $ 226,282 Time charter revenues 20,804 10,245 31,049 Voyage charter revenues from non-variable lease payments 948 1,053 2,001 Revenues from services Voyage charter revenues from lightering services 15,069 — 15,069 Total shipping revenues $ 126,867 $ 147,534 $ 274,401 Three months ended March 31, 2023: Revenues from leases Pool revenues $ 108,799 $ 150,779 $ 259,578 Time charter revenues 9,686 3,464 13,150 Voyage charter revenues from non-variable lease payments 2,238 326 2,564 Voyage charter revenues from variable lease payments – 150 150 Revenues from services Voyage charter revenues from lightering services 11,688 — 11,688 Total shipping revenues $ 132,411 $ 154,719 $ 287,130 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers, and significant changes in contract assets and liabilities balances, associated with revenue from services accounted for under ASC 606. Balances related to revenues from leases accounted for under ASC 842 are excluded from the table below. (Dollars in thousands) Voyage receivables - Billed receivables Contract assets (Unbilled voyage receivables) Contract liabilities (Deferred revenues and off hires) Opening balance as of January 1, 2024 $ 6,512 $ 1,029 $ — Closing balance as of March 31, 2024 6,583 690 — We receive payments from customers based on the schedule established in our contracts. Contract assets relate to our conditional right to consideration for our completed performance obligations under contracts and decrease when the right to consideration becomes unconditional or payments are received. Contract liabilities include payments received in advance of performance under contracts and are recognized when performance under the respective contract has been completed. Deferred revenues allocated to unsatisfied performance obligations will be recognized over time as the services are performed. Performance Obligations All of the Company’s performance obligations are generally transferred to customers over time. The expected duration of services is less than one year. There were no material adjustments in revenues from performance obligations satisfied in previous periods recognized during the three months ended March 31, 2024 and 2023. Costs to Obtain or Fulfill a Contract As of March 31, 2024, there were no unamortized deferred costs of obtaining or fulfilling a contract. European Union’s Emissions Trading System Commencing January 1, 2024, the European Union’s Emissions Trading System (“EU ETS”) was extended to cover Carbon dioxide (“CO 2 Shipping companies will have to surrender EU ETS emissions allowances (“EUA”) for each ton of reported CO 2 emissions in the scope of the EU ETS. There is a phase-in period for the regulations, as allowances will have to be submitted for 40% of 2024 emissions, 70% of 2025 emissions and 100% of emissions for 2026 and subsequent years. Beginning in 2026, the scope of the EU ETS will also be expanded to include Methane (“CH 4 2 EUAs are valued based upon a market approach utilizing prices published on an EUA market index. The value of the EUAs to be provided to the Company pursuant to the terms of its agreements with the charterers of its vessels and the commercial pools in which it participates is included in shipping revenues in the condensed consolidated statements of operations. The value of the EUA obligations incurred by the Company under the EU ETS while its vessels are on-hire is included in voyage expenses, or in vessel expenses while its vessels are off-hire, in the condensed consolidated statements of operations. EUAs held by the Company are intended to be used to settle its EUA obligations and are accounted for as intangible assets. The Company did not hold any EUAs as of March 31, 2024. EUAs relating to 2024 emissions are required to be surrendered to the EU authorities in September 2025. The following table presents the components of the non-cash revenues and expenses recognized for EUAs earned and incurred during the three months ended March 31, 2024: (Dollars in thousands) Pool revenues $ 388 Time charter revenues 131 Total shipping revenues $ 519 Voyage expenses $ 519 The value of EUAs due to the Company from its charterers or commercial pools in which it participates, and the value of the EUAs the Company is obligated to surrender to the EU authorities is $0.5 million as of March 31, 2024 and is included in other receivables and other liabilities |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
LEASES [Abstract] | |
LEASES | Note 13 — Leases: As permitted under ASC 842, the Company has elected not to apply the provisions of ASC 842 to short term leases, which include: (i) tanker vessels chartered-in where the duration of the charter was one year or less at inception; (ii) workboats employed in the Crude Tankers Lightering business which have a lease term of 12-months or less; and (iii) short term leases of office and other space. Contracts under which the Company is a Lessee The Company currently has two major categories of leases – chartered-in vessel and leased office and other space. The expenses recognized during the three months ended March 31, 2024 and 2023 for the lease component of these leases are as follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Operating lease cost Vessel assets Charter hire expenses $ 2,367 $ 1,067 Finance lease cost Vessel assets Amortization of right-of-use assets — 715 Interest on lease liabilities — 121 Office and other space General and administrative 226 228 Voyage expenses 45 45 Short-term lease cost Vessel assets (1) Charter hire expenses 1,365 4,269 Total lease cost $ 4,003 $ 6,445 (1) Excludes vessels spot chartered-in under operating leases and employed in the Crude Tankers Lightering business for periods of less than one month each, totaling $0.7 million and $0.1 million for the three months ended March 31, 2024 and 2023, respectively, including both lease and non-lease components. Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 264 $ 937 Finance cash flows used for finance leases — 23,955 Supplemental balance sheet information related to leases was as follows: (Dollars in thousands) March 31, 2024 December 31, 2023 Operating lease right-of-use assets $ 17,195 $ 20,391 Current portion of operating lease liabilities $ (10,169) $ (10,223) Long-term operating lease liabilities (9,270) (11,631) Total operating and finance lease liabilities $ (19,439) $ (21,854) Weighted average remaining lease term - operating leases 4.47 years 4.42 years Weighted average discount rate - operating leases 5.81% 5.90% 1. Charters-in of vessel assets: As of March 31, 2024, the Company has a commitment to time charter-in one LR1 through to June 2025. The minimum lease liabilities and related number of operating days under this operating lease as of March 31, 2024 are as follows: (Dollars in thousands) Amount Operating Days 2024 $ 7,256 275 2025 4,301 163 Total lease payments (lease component only) 11,557 438 less imputed interest (431) Total operating lease liabilities $ 11,126 2. The Company has operating leases for offices and a lightering workboat dock space. These leases have expiry dates ranging from December 2024 to May 2033. The lease for the workboat dock space contains renewal options executable by the Company for periods through December 2027. We have determined that the options through December 2024 are reasonably certain to be executed by the Company, and accordingly the options are included in the lease liability and right of use asset calculations for such lease. Payments of lease liabilities for office and other space as of March 31, 2024 are as follows: (Dollars in thousands) Amount 2024 $ 952 2025 1,093 2026 1,113 2027 1,077 2028 1,077 Thereafter 4,754 Total lease payments 10,066 less imputed interest (1,753) Total operating lease liabilities $ 8,313 Contracts under which the Company is a Lessor See Note 12, “Revenue,” for discussion on the Company’s revenues from operating leases accounted for under ASC 842. The future minimum contracted revenues, before the deduction of brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, two Suezmaxes, one Aframax, and six MRs, and the related revenue days as of March 31, 2204 are as follows: (Dollars in thousands) Amount Revenue Days 2024 $ 85,310 3,158 2025 82,414 3,017 2026 47,856 1,604 2027 33,945 1,095 2028 34,038 1,098 Thereafter 41,013 1,323 Future minimum revenues $ 324,576 11,295 Future minimum contracted revenues do not include the Company’s share of time charters entered into by the pools in which it participates or profit-sharing above the base rate on the newbuild dual-fuel LNG VLCCs. Revenues from a time charter are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the minimum future charter revenues, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future. In April 2024, the Company entered into non-cancelable time charter agreements with durations ranging from 32 to 34 months |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | Note 14 — Contingencies: INSW’s policy for recording legal costs related to contingencies is to expense such legal costs as incurred. Multi-Employer Plans The Merchant Navy Officers Pension Fund (“MNOPF”) is a multi-employer defined benefit pension plan covering British crew members that served as officers on board INSW’s vessels (as well as vessels of other owners). The trustees of the plan have indicated that, under the terms of the High Court ruling in 2005, which established the liability of past employers to fund the deficit on the Post 1978 section of MNOPF, calls for further contributions may be required if additional actuarial deficits arise or if other employers liable for contributions are not able to pay their share in the future. As the amount of any such assessment cannot be reasonably estimated, no reserves have been recorded for this contingency in INSW’s consolidated financial statements as of March 31, 2024. The MNOPF annual actuarial funding report as of March 31, 2023, showed its funded status as being in deficit by approximately £11 million, but at March 31, 2024, no additional employer contributions have been sought or assessed. The next full actuarial valuation will be as of March 31, 2024. The Merchant Navy Ratings Pension Fund (“MNRPF”) is a multi-employer defined benefit pension plan covering British crew members that served as ratings (seamen) on board INSW’s vessels (as well as vessels of other owners) more than 20 years ago. Based on a High Court ruling in 2015, the Trustees of the MNRPF levied assessments to recover the significant deficit in the plan from participating employers. Participating employers include current employers, historic employers that have made voluntary contributions, and historic employers such as INSW that have made no deficit contributions. Calls for contributions may be required if additional actuarial deficits arise or if other employers liable for contributions are unable to pay their share in the future. A reserve of $0.3 million has been recorded in INSW’s consolidated financial statements as of March 31, 2024, based on the Trustees of the MNRPF’s estimated calculation of INSW’s share of the March 31, 2023 deficit valuation, which is expected to be finalized by June 30, 2024. Spin-Off Related Agreements On November 30, 2016, INSW was spun off from OSG as a separate publicly traded company. In connection with the spin-off, INSW and OSG entered into several agreements, including a separation and distribution agreement, an employee matters agreement and a transition services agreement. While most of the obligations under those agreements were subsequently fulfilled, certain provisions (including in particular mutual indemnification provisions under the separation and distribution agreement and the employee matters agreement) continue in force. Legal Proceedings Arising in the Ordinary Course of Business The Company is a party, as plaintiff or defendant, to various suits in the ordinary course of business for monetary relief arising principally from personal injuries, wrongful death, collision or other casualty and to claims arising under charter parties and other contract disputes. A substantial majority of such personal injury, wrongful death, collision or other casualty claims against the Company are covered by insurance (subject to deductibles not material in amount). Each of the claims involves an amount which, in the opinion of management, should not be material to the Company’s financial position, results of operations and cash flows. In late July 2023, one of the Company’s vessels was arrested in connection with a commercial dispute arising earlier in 2023. Although the vessel was subsequently released, the arresting parties continue to seek approximately $25 million in security. The underlying commercial dispute is in arbitration in England. The Company is defending itself vigorously against the arrest and the allegations in the underlying dispute. The Company is currently unable to predict the outcome of this matter, and no estimate of liability has been accrued at this time. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk — (Dollars in thousands) Allowance for Credit Losses - Balance at December 31, 2023 $ 191 Provision for expected credit losses 47 Balance at March 31, 2024 $ 238 During the three months ended March 31, 2024 and 2023, the Company did not have any individual customers who accounted for 10% or more of its revenues apart from the pools in which it participates. The pools in which the Company participates accounted in aggregate for 96% and 95% of consolidated voyage receivables at March 31, 2024 and December 31, 2023, respectively. |
Deferred finance charges | Deferred finance charges — Interest expense relating to the amortization of deferred financing charges amounted to $0.8 million and $1.3 million for the three months ended March 31, 2024 and 2023, respectively. |
Vessels construction in progress | Vessels construction in progress — |
Recently issued accounting standards | Recently Issued Accounting Standards In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures |
CONTINGENCIES (Policy)
CONTINGENCIES (Policy) | 3 Months Ended |
Mar. 31, 2024 | |
CONTINGENCIES [Abstract] | |
Legal costs | INSW’s policy for recording legal costs related to contingencies is to expense such legal costs as incurred. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Activity for allowance for credit losses | (Dollars in thousands) Allowance for Credit Losses - Balance at December 31, 2023 $ 191 Provision for expected credit losses 47 Balance at March 31, 2024 $ 238 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER COMMON SHARE [Abstract] | |
Components of Calculation of Earnings Per Share | Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Net income allocated to: Common Stockholders $ 144,413 $ 172,466 Participating securities 77 167 $ 144,490 $ 172,633 |
BUSINESS AND SEGMENT REPORTING
BUSINESS AND SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BUSINESS AND SEGMENT REPORTING [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about the Company’s reportable segments as of and for the three months ended March 31, 2024 and 2023 follows: Crude Product (Dollars in thousands) Tankers Carriers Other Totals Three months ended March 31, 2024: Shipping revenues $ 126,867 $ 147,534 $ — $ 274,401 Time charter equivalent revenues 123,962 146,966 — 270,928 Depreciation and amortization 20,049 14,104 — 34,153 Gain on disposal of vessels and other assets, net (2) (49) — (51) Adjusted income from vessel operations 69,892 96,854 — 166,746 Adjusted total assets at March 31, 2024 1,508,859 802,668 — 2,311,527 Expenditures for vessels and vessel improvements 276 26,144 — 26,420 Payments for drydocking 2,103 7,868 — 9,971 Three months ended March 31, 2023: Shipping revenues $ 132,411 $ 154,719 $ — $ 287,130 Time charter equivalent revenues 129,285 154,035 — 283,320 Depreciation and amortization 17,226 12,294 28 29,548 Gain on disposal of vessels and other assets, net — (10,748) — (10,748) Adjusted income/(loss) from vessel operations 84,541 101,690 (28) 186,203 Adjusted total assets at March 31, 2023 1,455,356 809,251 — 2,264,607 Expenditures for vessels and vessel improvements 65,728 994 — 66,722 Payments for drydocking 2,128 10,850 — 12,978 |
Reconciliation of Revenue from Segments to Consolidated | Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Time charter equivalent revenues $ 270,928 $ 283,320 Add: Voyage expenses 3,473 3,810 Shipping revenues $ 274,401 $ 287,130 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliations of total adjusted income from vessel operations of the segments to income before income taxes, as reported in the condensed consolidated statements of operations follow: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Total adjusted income from vessel operations of all segments $ 166,746 $ 186,203 General and administrative expenses (12,374) (11,246) Third-party debt modification fees — (407) Gain on disposal of vessels and other assets, net 51 10,748 Consolidated income from vessel operations 154,423 185,298 Other income 2,954 4,281 Interest expense (12,887) (16,947) Income before income taxes $ 144,490 $ 172,632 |
Reconciliation of Assets from Segment to Consolidated | Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow: (Dollars in thousands) March 31, 2024 March 31, 2023 Adjusted total assets of all segments $ 2,311,527 $ 2,264,607 Corporate unrestricted cash and cash equivalents 139,501 156,220 Restricted cash — 18,329 Short-term investments 75,000 105,000 Other unallocated amounts 25,394 27,374 Consolidated total assets $ 2,551,422 $ 2,571,530 |
VARIABLE INTEREST ENTITIES (V_2
VARIABLE INTEREST ENTITIES (VIEs) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
VARIABLE INTEREST ENTITIES (VIEs) [Abstract] | |
Schedule of Variable Interest Entities | (Dollars in thousands) Condensed Pool working capital deposits $ 33,998 |
Schedule of Variable Interest Entities Liability in Condensed Consolidated Balance Sheet to Maximum Exposure to Loss | (Dollars in thousands) Condensed Maximum Exposure to Other Liabilities $ – $ 33,998 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows: (Dollars in thousands) March 31, 2024 December 31, 2023 Fair Value Level Cash and cash equivalents $ 139,501 $ 126,760 Level 1 Short-term investments (1) 75,000 60,000 Level 1 $750 Million Facility Term Loan (2) (94,581) (113,598) Level 2 ING Credit Facility (2) (20,313) (20,833) Level 2 Ocean Yield Lease Financing (2) (304,626) (311,907) Level 2 BoComm Lease Financing (3) (200,731) (210,186) Level 2 Toshin Lease Financing (3) (12,875) (13,566) Level 2 Hyuga Lease Financing (3) (12,959) (13,643) Level 2 Kaiyo Lease Financing (3) (11,785) (12,419) Level 2 Kaisha Lease Financing (3) (11,881) (12,519) Level 2 (1) Short-term investments consist of time deposits with original maturities of between 91 and 180 days. (2) Floating rate debt – the fair value of floating rate debt has been determined using level 2 inputs and is considered to be equal to the carrying value since it bears a variable interest rate, which is reset every three months. (3) Fixed rate debt – the fair value of fixed rate debt has been determined using level 2 inputs by discounting the expected cash flows of the outstanding debt. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | (Dollars in thousands) Current portion of derivative asset Long-term derivative Other March 31, 2024: Derivatives designated as hedging instruments: Interest rate swaps $ 5,049 $ 2,213 $ 857 Total $ 5,049 $ 2,213 $ 857 December 31, 2023: Derivatives designated as hedging instruments: Interest rate swaps $ 5,081 $ 1,153 $ 961 Total $ 5,081 $ 1,153 $ 961 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Loss | The effect of cash flow hedging relationships recognized in other comprehensive income excluding amounts reclassified from accumulated other comprehensive income/(loss) for the three months ended March 31, 2024 and 2023 follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Derivatives designated as hedging instruments: Interest rate swaps $ 3,098 $ (1,454) Total other comprehensive income/(loss) $ 3,098 $ (1,454) The effect of the Company’s cash flow hedging relationships on the condensed consolidated statement of operations for the three months ended March 31, 2024 and 2023 follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Derivatives designated as hedging instruments: Interest rate swaps $ (2,071) $ (1,782) Discontinued hedging instruments: Interest rate swap (354) (602) Total interest expense $ (2,425) $ (2,384) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the fair values, which are pre-tax, for assets and liabilities measured on a recurring basis: (Dollars in thousands) March 31, 2024 December 31, 2023 Fair Value Level Derivative Assets (interest rate swaps) $ 8,119 $ 7,195 Level 2 (1) (1) For the interest rate swaps, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take into account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty and the Company. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DEBT [Abstract] | |
Schedule of Long-term Debt Instruments | (Dollars in thousands) March 31, 2024 December 31, 2023 $750 Million Facility Term Loan, due 2027, net of unamortized deferred finance costs of $2,775 and $3,124 $ 91,806 $ 110,474 ING Credit Facility, due 2026, net of unamortized deferred finance costs of $266 and $295 20,046 20,538 Ocean Yield Lease Financing, due 2031, net of unamortized deferred finance costs of $2,528 and $2,656 302,099 309,250 BoComm Lease Financing, due 2030, net of unamortized deferred finance costs of $3,983 and $4,166 226,349 229,583 Toshin Lease Financing, due 2031, net of unamortized deferred finance costs of $287 and $302 13,561 13,903 Hyuga Lease Financing, due 2031, net of unamortized deferred finance costs of $251 and $265 13,445 13,786 Kaiyo Lease Financing, due 2030, net of unamortized deferred finance costs of $213 and $227 12,163 12,518 Kaisha Lease Financing, due 2030, net of unamortized deferred finance costs of $224 and $238 12,269 12,624 691,738 722,676 Less current portion (127,535) (127,447) Long-term portion $ 564,203 $ 595,229 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of related taxes, in the condensed consolidated balance sheets follow: (Dollars in thousands) March 31, 2024 December 31, 2023 Unrealized gains on derivative instruments $ 10,022 $ 9,349 Items not yet recognized as a component of net periodic benefit cost (pension plans) (10,322) (10,412) $ (300) $ (1,063) The changes in the balances of each component of accumulated other comprehensive income/(loss), net of related taxes, during the three months ended March 31, 2024 and 2023 follow: (Dollars in thousands) Unrealized gains on cash flow hedges Items not yet recognized as a component of net periodic benefit cost Total Balance as of December 31, 2023 $ 9,349 $ (10,412) $ (1,063) Current period change, excluding amounts reclassified from accumulated other comprehensive loss 3,098 90 3,188 Amounts reclassified from accumulated other comprehensive loss (2,425) — (2,425) Balance as of March 31, 2024 $ 10,022 $ (10,322) $ (300) Balance as of December 31, 2022 $ 16,912 (9,948) 6,964 Current period change, excluding amounts reclassified from accumulated other comprehensive income (1,454) (224) (1,678) Amounts reclassified from accumulated other comprehensive income (2,384) — (2,384) Balance as of March 31, 2023 $ 13,074 $ (10,172) $ 2,902 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified out of each component of accumulated other comprehensive income/(loss) follow: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Statement of Operations Reclassifications of gains on cash flow hedges: Interest rate swaps entered into by the Company's subsidiaries (2,071) (1,782) Interest expense Reclassifications of losses on discontinued hedging instruments Interest rate swap entered into by the Company's subsidiaries (354) (602) Interest expense Total before and net of tax $ (2,425) $ (2,384) |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE [Abstract] | |
Schedule of Disaggregated Revenue | The following tables present the Company’s revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three months ended March 31, 2024 and 2023: Crude Product (Dollars in thousands) Tankers Carriers Totals Three months ended March 31, 2024: Revenues from leases Pool revenues $ 90,046 $ 136,236 $ 226,282 Time charter revenues 20,804 10,245 31,049 Voyage charter revenues from non-variable lease payments 948 1,053 2,001 Revenues from services Voyage charter revenues from lightering services 15,069 — 15,069 Total shipping revenues $ 126,867 $ 147,534 $ 274,401 Three months ended March 31, 2023: Revenues from leases Pool revenues $ 108,799 $ 150,779 $ 259,578 Time charter revenues 9,686 3,464 13,150 Voyage charter revenues from non-variable lease payments 2,238 326 2,564 Voyage charter revenues from variable lease payments – 150 150 Revenues from services Voyage charter revenues from lightering services 11,688 — 11,688 Total shipping revenues $ 132,411 $ 154,719 $ 287,130 |
Schedule of Contract Related Receivables, Assets and Liabilities with Customers | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers, and significant changes in contract assets and liabilities balances, associated with revenue from services accounted for under ASC 606. Balances related to revenues from leases accounted for under ASC 842 are excluded from the table below. (Dollars in thousands) Voyage receivables - Billed receivables Contract assets (Unbilled voyage receivables) Contract liabilities (Deferred revenues and off hires) Opening balance as of January 1, 2024 $ 6,512 $ 1,029 $ — Closing balance as of March 31, 2024 6,583 690 — |
Schedule of components of the non-cash revenues and expenses recognized for EUAs earned and incurred | The following table presents the components of the non-cash revenues and expenses recognized for EUAs earned and incurred during the three months ended March 31, 2024: (Dollars in thousands) Pool revenues $ 388 Time charter revenues 131 Total shipping revenues $ 519 Voyage expenses $ 519 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Lease [Abstract] | |
Schedule of lease cost | The Company currently has two major categories of leases – chartered-in vessel and leased office and other space. The expenses recognized during the three months ended March 31, 2024 and 2023 for the lease component of these leases are as follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Operating lease cost Vessel assets Charter hire expenses $ 2,367 $ 1,067 Finance lease cost Vessel assets Amortization of right-of-use assets — 715 Interest on lease liabilities — 121 Office and other space General and administrative 226 228 Voyage expenses 45 45 Short-term lease cost Vessel assets (1) Charter hire expenses 1,365 4,269 Total lease cost $ 4,003 $ 6,445 (1) Excludes vessels spot chartered-in under operating leases and employed in the Crude Tankers Lightering business for periods of less than one month each, totaling $0.7 million and $0.1 million for the three months ended March 31, 2024 and 2023, respectively, including both lease and non-lease components. |
Supplemental lease information | Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, (Dollars in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 264 $ 937 Finance cash flows used for finance leases — 23,955 Supplemental balance sheet information related to leases was as follows: (Dollars in thousands) March 31, 2024 December 31, 2023 Operating lease right-of-use assets $ 17,195 $ 20,391 Current portion of operating lease liabilities $ (10,169) $ (10,223) Long-term operating lease liabilities (9,270) (11,631) Total operating and finance lease liabilities $ (19,439) $ (21,854) Weighted average remaining lease term - operating leases 4.47 years 4.42 years Weighted average discount rate - operating leases 5.81% 5.90% |
Schedule of lease maturity receivables | The future minimum contracted revenues, before the deduction of brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, two Suezmaxes, one Aframax, and six MRs, and the related revenue days as of March 31, 2204 are as follows: (Dollars in thousands) Amount Revenue Days 2024 $ 85,310 3,158 2025 82,414 3,017 2026 47,856 1,604 2027 33,945 1,095 2028 34,038 1,098 Thereafter 41,013 1,323 Future minimum revenues $ 324,576 11,295 |
Office Space And Lightering Workboat Dock Space [Member] | |
Lease [Abstract] | |
Schedule of lease maturity receivables | Payments of lease liabilities for office and other space as of March 31, 2024 are as follows: (Dollars in thousands) Amount 2024 $ 952 2025 1,093 2026 1,113 2027 1,077 2028 1,077 Thereafter 4,754 Total lease payments 10,066 less imputed interest (1,753) Total operating lease liabilities $ 8,313 |
Time Charters-In [Member] | |
Lease [Abstract] | |
Schedule of lease maturity receivables | As of March 31, 2024, the Company has a commitment to time charter-in one LR1 through to June 2025. The minimum lease liabilities and related number of operating days under this operating lease as of March 31, 2024 are as follows: (Dollars in thousands) Amount Operating Days 2024 $ 7,256 275 2025 4,301 163 Total lease payments (lease component only) 11,557 438 less imputed interest (431) Total operating lease liabilities $ 11,126 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment property | Dec. 31, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Number of vessels in fleet | 79 | |
Number of reportable segments | segment | 2 | |
Investments in and advances to affiliated companies | $ | $ 33,998 | $ 31,748 |
Other assets | $ | $ 32,360 | $ 6,571 |
Maritime Equipment Not Including New Builds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Number of vessels in fleet | 73 | |
Newbuilds Pending Delivery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Number of vessels in fleet | 6 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts receivable | $ 238 | $ 191 | |
Reversal of expected credit losses | (47) | ||
Amortization of financing costs | 800 | $ 1,300 | |
Proceeds from Insurance Settlement, Operating Activities | 206 | 950 | |
Credit facility, maximum borrowing capacity | $ 750,000 | ||
Number of vessels in fleet | property | 79 | ||
Vessel/Fleet [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Interest costs capitalized | $ 200 | 1,700 | |
Newbuilds Pending Delivery [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of vessels in fleet | property | 6 | ||
Newbuilds Completed for Entity and Delivered [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of vessels in fleet | property | 3 | ||
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Pool Revenue Leases [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 96% | 95% | |
Core Term Loan Facility, Core Transition Facility, Sinosure Credit Facility and 8.5% Senior Notes [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred finance costs, gross | $ 10,500 | $ 11,300 | |
$750 Million Credit Facility | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Credit facility, maximum borrowing capacity | 750,000 | ||
$160 Million Revolving Credit Facility [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Credit facility, maximum borrowing capacity | 160,000 | ||
$750 Million Facility Revolving Loan and $160 Million Revolving Credit Facility [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred finance costs, gross | $ 4,300 | $ 4,500 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Activity for allowance for credit losses) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Balance Beginning | $ 191 |
Provision for expected credit losses | (47) |
Balance Ending | $ 238 |
EARNINGS PER COMMON SHARE (Narr
EARNINGS PER COMMON SHARE (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Participating securities allocated a portion of income | 27,897 | 48,890 |
Antidilutive securities excluded from computation of earnings per share, amount | 633,945 | 852,546 |
Dilutive awards | 405,106 | 507,718 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 470,936 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 180,703 |
EARNINGS PER COMMON SHARE (Reco
EARNINGS PER COMMON SHARE (Reconciliation of Net Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EARNINGS PER COMMON SHARE [Abstract] | ||
Net Income (Loss) Available to Common Stockholders, Basic | $ 144,413 | $ 172,466 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 77 | 167 |
Net (loss)/income | $ 144,490 | $ 172,633 |
BUSINESS AND SEGMENT REPORTIN_2
BUSINESS AND SEGMENT REPORTING (Reportable Segments Information) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenues, services | $ 274,401 | $ 287,130 |
Time charter equivalent revenues | 270,928 | 283,320 |
Depreciation and amortization | 34,153 | 29,548 |
Gain/(loss) on disposal of vessels and other assets | (51) | (10,748) |
Gain on disposal of vessels and other assets, net of impairments | (10,748) | |
Adjusted income/(loss) from vessel operations | 166,746 | 186,203 |
Adjusted total assets | 2,311,527 | 2,264,607 |
Expenditures for vessels and vessel improvements | 26,420 | 66,722 |
Payments for drydocking | 9,971 | 12,978 |
Time Charter Equivalent Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 270,928 | |
Time charter equivalent revenues | 283,320 | |
Vessel Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Gain/(loss) on disposal of vessels and other assets | (51) | (10,748) |
Adjusted income/(loss) from vessel operations | 166,746 | 186,203 |
International Crude Tankers Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 126,867 | 132,411 |
Depreciation and amortization | 20,049 | 17,226 |
Gain/(loss) on disposal of vessels and other assets | (2) | |
Gain on disposal of vessels and other assets, net of impairments | 0 | |
Adjusted income/(loss) from vessel operations | 69,892 | 84,541 |
Adjusted total assets | 1,508,859 | 1,455,356 |
Expenditures for vessels and vessel improvements | 276 | 65,728 |
Payments for drydocking | 2,103 | 2,128 |
International Crude Tankers Segment [Member] | Time Charter Equivalent Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 123,962 | |
Time charter equivalent revenues | 129,285 | |
International Product Carriers Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 147,534 | 154,719 |
Depreciation and amortization | 14,104 | 12,294 |
Gain/(loss) on disposal of vessels and other assets | (49) | |
Gain on disposal of vessels and other assets, net of impairments | (10,748) | |
Adjusted income/(loss) from vessel operations | 96,854 | 101,690 |
Adjusted total assets | 802,668 | 809,251 |
Expenditures for vessels and vessel improvements | 26,144 | 994 |
Payments for drydocking | 7,868 | 10,850 |
International Product Carriers Segment [Member] | Time Charter Equivalent Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 146,966 | |
Time charter equivalent revenues | 154,035 | |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | 0 | 0 |
Depreciation and amortization | 0 | 28 |
Gain/(loss) on disposal of vessels and other assets | 0 | |
Gain on disposal of vessels and other assets, net of impairments | 0 | |
Adjusted income/(loss) from vessel operations | 0 | (28) |
Adjusted total assets | 0 | 0 |
Expenditures for vessels and vessel improvements | 0 | 0 |
Payments for drydocking | 0 | 0 |
Other Segments [Member] | Time Charter Equivalent Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, services | $ 0 | |
Time charter equivalent revenues | $ 0 |
BUSINESS AND SEGMENT REPORTIN_3
BUSINESS AND SEGMENT REPORTING (Reconciliation of Time Charter Revenue to Shipping Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Time charter equivalent revenues | $ 270,928 | $ 283,320 |
Add: Voyage expenses | 3,473 | 3,810 |
Revenue, non lease | 274,401 | 287,130 |
Time Charter Equivalent Services [Member] | ||
Time charter equivalent revenues | $ 283,320 | |
Revenue, non lease | $ 270,928 |
BUSINESS AND SEGMENT REPORTIN_4
BUSINESS AND SEGMENT REPORTING (Reconciliation of Income/(Loss) from Vessel Operations to Loss Before Reorganization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total adjusted income/(loss) from vessel operations of all segments | $ 166,746 | $ 186,203 |
General and administrative expenses | (12,374) | (11,246) |
Third-party debt modification fees | 0 | (407) |
Gain on disposal of vessels and other assets, net | 51 | 10,748 |
Consolidated loss from vessel operations | 154,423 | 185,298 |
Other income | 2,954 | 4,281 |
Interest expense | (12,887) | (16,947) |
Income before income taxes | 144,490 | 172,632 |
Vessel Operations [Member] | ||
Total adjusted income/(loss) from vessel operations of all segments | 166,746 | 186,203 |
General and administrative expenses | (12,374) | (11,246) |
Third-party debt modification fees | 0 | (407) |
Gain on disposal of vessels and other assets, net | 51 | 10,748 |
Consolidated loss from vessel operations | 154,423 | 185,298 |
Other income | 2,954 | 4,281 |
Interest expense | (12,887) | (16,947) |
Income before income taxes | $ 144,490 | $ 172,632 |
BUSINESS AND SEGMENT REPORTIN_5
BUSINESS AND SEGMENT REPORTING (Reconciliation of Assets of Segments to Consolidated Amounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Segment Reporting Information [Line Items] | |||
Adjusted total assets | $ 2,311,527 | $ 2,264,607 | |
Cash and cash equivalents | 139,501 | $ 126,760 | 156,220 |
Restricted cash, current and noncurrent | 0 | 18,329 | |
Short-term investments | 75,000 | 60,000 | 105,000 |
Other unallocated amounts | 25,394 | 27,374 | |
Total assets | 2,551,422 | $ 2,521,819 | 2,571,530 |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted total assets | $ 0 | $ 0 |
VESSELS (Vessel Acquisitions an
VESSELS (Vessel Acquisitions and Construction Commitments - Narrative) (Details) $ in Millions | 1 Months Ended | ||
Feb. 23, 2024 USD ($) property | Mar. 31, 2024 USD ($) property | Feb. 29, 2024 USD ($) | |
MR Vessels Acquired 2 2014 Built and 4 2015 Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Payments to acquire equipment | $ | $ 23.2 | ||
Payment percentage of acquired vessels in cash | 85% | ||
Payment percentage of acquired vessels in shares of common stock | 15% | ||
MR Vessels Acquired 2 2014 Built and 4 2015 Built [Member] | Scenario, Plan [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Purchase agreement, purchase amount | $ | $ 232 | ||
MR Vessels Acquired 2 2014 Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of vessels acquired | 2 | ||
MR Vessels Acquired 4 2015 Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of vessels acquired | 4 | ||
LR1 Vessel Ordered to be Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Purchase agreement, purchase amount | $ | $ 347 | ||
Number of vessels acquired | 6 | ||
Remaining cost of construction of vessels | $ | $ 335.5 | ||
LR1 Vessels Newly Ordered Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of vessels acquired | 2 | ||
LR1 Vessels Previously Ordered Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of vessels acquired | 4 |
VESSELS (Disposal_Sales of Vess
VESSELS (Disposal/Sales of Vessels - Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 18, 2024 USD ($) property | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Gain (loss) on disposition of property | $ 51 | $ 10,748 | |
Proceeds from sale of vessel | $ 23,000 | ||
MR Vessel 2009 Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number Of Vessels Marketed To Be Sold | property | 1 | ||
MR Vessel 2008 Built [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gain (loss) on disposition of property | $ (10,900) |
VARIABLE INTEREST ENTITIES (V_3
VARIABLE INTEREST ENTITIES (VIEs) (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Variable Interest Entity [Line Items] | |||
Accounts receivable, net, current | $ 242,955 | $ 247,165 | |
Payments on debt | $ 19,538 | $ 137,449 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of commercial pools | item | 7 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | FSO Joint Venture [Member] | |||
Variable Interest Entity [Line Items] | |||
Accounts receivable, net, current | $ 232,000 |
VARIABLE INTEREST ENTITIES (V_4
VARIABLE INTEREST ENTITIES (VIEs) (Balance Sheet Carrying Amounts Related to VIEs) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Pool working capital deposits | $ 33,998 |
VARIABLE INTEREST ENTITIES (V_5
VARIABLE INTEREST ENTITIES (VIEs) (Comparison of Liability to Maximum Exposure to Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Other Liabilities | $ 3,309 | $ 2,628 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 33,998 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Apr. 26, 2024 | Apr. 25, 2024 | Dec. 31, 2023 | |
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 750,000 | ||||
Derivative, notional amount | 310,500 | ||||
Aggregate principal payments required | 691,738 | $ 722,676 | |||
Net change in unrealized gains/(losses) on cash flow hedges | (673) | $ 3,838 | |||
Derivative instruments, gain (loss) reclassification from accumulated oci to income, estimated net amount to be transferred | 5,300 | ||||
Amortized out of accumulated other comprehensive income | 200 | ||||
$750 Million Facility Term Loan | |||||
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | |||||
Derivative, notional amount | 94,600 | ||||
Aggregate principal payments required | 91,806 | 110,474 | |||
Debt face amount | 750,000 | ||||
$750 Million Credit Facility | |||||
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 750,000 | ||||
Derivative, fixed interest rate | 2.84% | ||||
Derivative, maturity date | Feb. 22, 2027 | ||||
Debt face amount | $ 750,000 | $ 750,000 | |||
Ocean Yield Lease Financing | |||||
Fair Value Of Financial Instruments Derivatives And Fair Value Disclosures [Line Items] | |||||
Derivative, notional amount | $ 215,900 | ||||
Aggregate principal payments required | $ 302,099 | $ 309,250 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Other Than Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 139,501 | $ 126,760 |
Short-term investments | 75,000 | |
Fair Value, Inputs, Level 2 [Member] | $390 Million Facility Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 60,000 | |
Fair Value, Inputs, Level 2 [Member] | $750 Million Facility Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | (94,581) | (113,598) |
Fair Value, Inputs, Level 2 [Member] | ING Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | (20,313) | (20,833) |
Fair Value, Inputs, Level 2 [Member] | Ocean Yield Lease Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | (304,626) | (311,907) |
Fair Value, Inputs, Level 2 [Member] | BoComm Lease Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | (200,731) | (210,186) |
Fair Value, Inputs, Level 2 [Member] | Toshin Lease Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | (12,875) | (13,566) |
Fair Value, Inputs, Level 2 [Member] | Hyuga Lease Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | (12,959) | (13,643) |
Fair Value, Inputs, Level 2 [Member] | Kaiyo Lease Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | (11,785) | (12,419) |
Fair Value, Inputs, Level 2 [Member] | Kaisha Lease Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | $ (11,881) | $ (12,519) |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Portion of Derivative Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 5,049 | $ 5,081 |
Non Current Portion of Derivative Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 2,213 | 1,153 |
Other Receivables [Member] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 857 | 961 |
Designated as Hedging Instrument [Member] | Current Portion of Derivative Assets [Member] | Interest Rate Swap [Member] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 5,049 | 5,081 |
Designated as Hedging Instrument [Member] | Non Current Portion of Derivative Assets [Member] | Interest Rate Swap [Member] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 2,213 | 1,153 |
Designated as Hedging Instrument [Member] | Other Receivables [Member] | Interest Rate Swap [Member] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 857 | $ 961 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Effect of Cash Flow Hedging Relationships) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total other comprehensive loss | $ 3,098 | $ (1,454) |
Interest Rate Swap [Member] | ||
Total other comprehensive loss | $ 3,098 | $ (1,454) |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Effect of Cash Flow Hedging Relationships on Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | $ (2,425) | $ (2,384) |
Interest Expense [Member] | ||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | (2,425) | (2,384) |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | (354) | (602) |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Effective portion of gain/(loss) reclassified from accumulated other comprehensive loss | $ (2,071) | $ (1,782) |
FAIR VALUE OF FINANCIAL INSTR_8
FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Fair Values of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ||
Derivative Asset | $ 8,119 | $ 7,195 |
DEBT (Schedule of Long-term Deb
DEBT (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt | ||
Aggregate principal payments required | $ 691,738 | $ 722,676 |
Less current portion | (127,535) | (127,447) |
Long-term portion | 564,203 | 595,229 |
$750 Million Facility Term Loan | ||
Debt | ||
Aggregate principal payments required | 91,806 | 110,474 |
Unamortized discount and deferred finance costs | 2,775 | 3,124 |
ING Credit Facility | ||
Debt | ||
Aggregate principal payments required | 20,046 | 20,538 |
Unamortized discount and deferred finance costs | 266 | 295 |
Ocean Yield Lease Financing | ||
Debt | ||
Aggregate principal payments required | 302,099 | 309,250 |
Unamortized discount and deferred finance costs | 2,528 | 2,656 |
BoComm Lease Financing | ||
Debt | ||
Aggregate principal payments required | 226,349 | 229,583 |
Unamortized discount and deferred finance costs | 3,983 | 4,166 |
Toshin Lease Financing | ||
Debt | ||
Aggregate principal payments required | 13,561 | 13,903 |
Unamortized discount and deferred finance costs | 287 | 302 |
Hyuga Lease Financing | ||
Debt | ||
Aggregate principal payments required | 13,445 | 13,786 |
Unamortized discount and deferred finance costs | 251 | 265 |
Kaiyo Lease Financing | ||
Debt | ||
Aggregate principal payments required | 12,163 | 12,518 |
Unamortized discount and deferred finance costs | 213 | 227 |
Kaisha Lease Financing | ||
Debt | ||
Aggregate principal payments required | 12,269 | 12,624 |
Unamortized discount and deferred finance costs | $ 224 | $ 238 |
DEBT (750 Million Credit Facili
DEBT (750 Million Credit Facility) (Details) - USD ($) $ in Millions | Apr. 26, 2024 | Mar. 18, 2024 | Apr. 25, 2024 | Mar. 31, 2024 |
Debt | ||||
Credit facility, maximum borrowing capacity | $ 750 | |||
Proceeds from sale of vessel | $ 23 | |||
$750 Million Credit Facility | ||||
Debt | ||||
Credit facility, maximum borrowing capacity | 750 | |||
Debt face amount | $ 750 | $ 750 | ||
$750 Million Facility Term Loan | ||||
Debt | ||||
Debt face amount | $ 750 | |||
Line of credit facility, amount outstanding | 94.6 | |||
$750 Million Facility Revolving Loan | ||||
Debt | ||||
Line of credit facility, amount outstanding | $ 257.4 | |||
$500 Million Revolving Credit Facility (2nd Amendment to $700 Million Facility) | ||||
Debt | ||||
Credit facility, maximum borrowing capacity | 500 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 405.4 | |||
Line of credit facility, amount outstanding | $ 94.6 | |||
Debt instrument adjusted profile term | 20 years | |||
Scheduled future quarterly principal amortization | $ 12.8 | |||
Debt instrument, basis spread on variable rate | 1.85% | |||
Minimum liquidity level, threshold amount | $ 50 | |||
Minimum liquidity level, threshold percentage of debt | 5% | |||
Threshold leverage ratio | 0.60% | |||
Debt instrument covenant, fair market value of the core collateral vessels, threshold percentage of outstanding principal amount | 135% |
DEBT (ING Credit Facility) (Det
DEBT (ING Credit Facility) (Details) - USD ($) $ in Millions | Apr. 18, 2024 | Mar. 31, 2024 |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 750 | |
ING Credit Facility | Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of secured debt | $ 20.3 |
DEBT (Debt Covenants) (Details)
DEBT (Debt Covenants) (Details) | 3 Months Ended |
Mar. 31, 2024 | |
DEBT [Abstract] | |
Debt instrument, covenant compliance | The Company was in compliance with the financial and non-financial covenants under all of its financing arrangements as of March 31, 2024. |
DEBT (Interest Expense - Narrat
DEBT (Interest Expense - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest paid, net | $ 12.8 | $ 18.4 |
Interest expense, debt | $ 12.1 | 19.1 |
Very Large Crude Carrier 2 Newbuilds [Member] | ||
Pre-delivery interest expenses | $ 1.3 |
CAPITAL STOCK AND STOCK COMPE_2
CAPITAL STOCK AND STOCK COMPENSATION (Director Compensation - Restricted Commons Stock - Narrative) (Details) - Restricted Stock - Director Nadim Qureshi [Member] - USD ($) $ in Millions | 1 Months Ended | |
Feb. 19, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Other than options, grant date fair value | $ 0.1 | |
Accelerated shares vested | 2,635 |
CAPITAL STOCK AND STOCK COMPE_3
CAPITAL STOCK AND STOCK COMPENSATION (Management Compensation - Stock Options - Narrative) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Management [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, options | 0 | 0 |
Senior Officers [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options exercised | 58,893 | 12,940 |
Stock option average exercise price | $ 21.76 | $ 22.54 |
CAPITAL STOCK AND STOCK COMPE_4
CAPITAL STOCK AND STOCK COMPENSATION (Management Compensation - Restricted Stock Units - Narrative) (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Total Shareholder Return Performance Based Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, per share | $ / shares | $ 41.08 |
Senior Officers [Member] | Time Based Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 48,078 |
Granted, per share | $ / shares | $ 52.57 |
Grant date, value, per share | shares | 1 |
Senior Officers [Member] | Performance Based Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 48,080 |
Granted, per share | $ / shares | $ 52.57 |
CAPITAL STOCK AND STOCK COMPE_5
CAPITAL STOCK AND STOCK COMPENSATION (Dividends - Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
May 07, 2024 | Mar. 28, 2024 | Feb. 28, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends Declaration Date | Feb. 28, 2024 | ||||
Dividends Record Date | Mar. 14, 2024 | ||||
Dividend Payment Date | Mar. 28, 2024 | ||||
Regular Quarterly Dividend per Share | $ 0.12 | ||||
Supplemental Dividend per Share | $ 1.20 | ||||
Total Dividends Paid | $ 64,700 | $ 64,662 | $ 98,313 | ||
Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends Declaration Date | May 07, 2024 | ||||
Dividends Record Date | Jun. 12, 2024 | ||||
Dividend Payment Date | Jun. 26, 2024 | ||||
Regular Quarterly Dividend per Share | $ 0.12 | ||||
Supplemental Dividend per Share | $ 1.63 |
CAPITAL STOCK AND STOCK COMPE_6
CAPITAL STOCK AND STOCK COMPENSATION (Shares Repurchased) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CAPITAL STOCK AND STOCK COMPENSATION [Abstract] | ||
Repurchase of common shares | 0 | 0 |
Shares paid for tax withholding for share based compensation | 102,523 | 59,292 |
Shares paid for tax withholding for share based compensation, per share amount | $ 52.94 | $ 55.16 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) [Abstract] | |
Derivative instruments, gain (loss) reclassification from accumulated oci to income, estimated net amount to be transferred | $ 5.3 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) [Abstract] | ||
Unrealized gains on derivative instruments | $ 10,022 | $ 9,349 |
Items not yet recognized as a component of net periodic benefit cost (pension plans) | (10,322) | (10,412) |
Accumulated other comprehensive loss | $ (300) | $ (1,063) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Changes in Components of AOCI, Net of Related Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balance, beginning | $ 1,716,757 | $ 1,487,752 |
Other comprehensive income/(loss), net of tax | 763 | (4,062) |
Balance, ending | 1,794,890 | 1,557,283 |
Accumulated Other Comprehensive Loss [Member] | ||
Balance, beginning | (1,063) | 6,964 |
Current period change, excluding amounts reclassified from accumulated other comprehensive income/(loss) | 3,188 | (1,678) |
Amounts reclassified from accumulated other comprehensive income/(loss) | (2,425) | (2,384) |
Other comprehensive income/(loss), net of tax | 763 | (4,062) |
Balance, ending | (300) | 2,902 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Balance, beginning | 9,349 | 16,912 |
Current period change, excluding amounts reclassified from accumulated other comprehensive income/(loss) | 3,098 | (1,454) |
Amounts reclassified from accumulated other comprehensive income/(loss) | (2,425) | (2,384) |
Balance, ending | 10,022 | 13,074 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Balance, beginning | (10,412) | (9,948) |
Current period change, excluding amounts reclassified from accumulated other comprehensive income/(loss) | 90 | (224) |
Balance, ending | $ (10,322) | $ (10,172) |
ACCUMULATED OTHER COMPREHENSI_6
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Amounts Reclassified out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unrealized losses on available-for-sale securities: | ||
Equity in income of affiliated companies | $ 144,490 | $ 172,632 |
Interest expense | 12,887 | 16,947 |
Other income | 2,954 | 4,281 |
Total reclassified out of AOCL, before tax | (2,425) | (2,384) |
Interest Rate Cap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Interest expense | (354) | (602) |
Interest Rate Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Unrealized losses on available-for-sale securities: | ||
Interest expense | $ (2,071) | $ (1,782) |
REVENUE (Narrative) (Details)
REVENUE (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | |
Revenues, Total | $ | $ 274,401,000 | $ 287,130,000 |
Capitalized contract cost, gross | $ | $ 0 | |
Lease cancellation period notice | 90 days | |
Very Large Crude Carrier [Member] | ||
Number of vessels party to contracts | property | 3 | |
Aframaxes [Member] | ||
Number of vessels party to contracts | property | 1 | |
Suezmax | ||
Number of vessels party to contracts | property | 2 | |
MR Vessel [Member] | ||
Number of vessels party to contracts | $ | 6 |
REVENUE (Schedule of Disaggrega
REVENUE (Schedule of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue, non lease | $ 274,401 | $ 287,130 | |
Shipping revenues | 274,401 | 287,130 | |
International Crude Tankers Segment [Member] | |||
Revenue, non lease | 126,867 | 132,411 | |
Shipping revenues | 126,867 | 132,411 | |
International Product Carriers Segment [Member] | |||
Revenue, non lease | 147,534 | 154,719 | |
Shipping revenues | 147,534 | 154,719 | |
Other Segments [Member] | |||
Revenue, non lease | 0 | 0 | |
Pool Revenue Leases [Member] | |||
Shipping revenues | 226,282 | 259,578 | |
Pool Revenue Leases [Member] | Fixed-Price Contract [Member] | |||
Revenue, operating leases | $ 226,282 | $ 259,578 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Shipping revenues | Shipping revenues | |
Pool Revenue Leases [Member] | International Crude Tankers Segment [Member] | Fixed-Price Contract [Member] | |||
Revenue, operating leases | $ 90,046 | $ 108,799 | |
Pool Revenue Leases [Member] | International Product Carriers Segment [Member] | Fixed-Price Contract [Member] | |||
Revenue, operating leases | 136,236 | 150,779 | |
Voyage Charter Leases Non Variable Payments [Member] | Fixed-Price Contract [Member] | |||
Revenue, lease non-variable | 2,001 | 2,564 | |
Voyage Charter Leases Non Variable Payments [Member] | International Crude Tankers Segment [Member] | Fixed-Price Contract [Member] | |||
Revenue, lease non-variable | 948 | 2,238 | |
Voyage Charter Leases Non Variable Payments [Member] | International Product Carriers Segment [Member] | Fixed-Price Contract [Member] | |||
Revenue, lease non-variable | 1,053 | 326 | |
Voyage Charter Leases Variable Payments [Member] | Fixed-Price Contract [Member] | |||
Revenue (expense), operating leases | 150 | ||
Voyage Charter Leases Variable Payments [Member] | International Product Carriers Segment [Member] | Fixed-Price Contract [Member] | |||
Revenue (expense), operating leases | 150 | ||
Time and Bareboat Charter Leases [Member] | |||
Shipping revenues | 31,049 | $ 13,150 | |
Time and Bareboat Charter Leases [Member] | Fixed-Price Contract [Member] | |||
Revenue, operating leases | $ 31,049 | $ 13,150 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Shipping revenues | Shipping revenues | |
Time and Bareboat Charter Leases [Member] | International Crude Tankers Segment [Member] | Fixed-Price Contract [Member] | |||
Revenue, operating leases | $ 20,804 | 9,686 | |
Time and Bareboat Charter Leases [Member] | International Product Carriers Segment [Member] | Fixed-Price Contract [Member] | |||
Revenue, operating leases | 10,245 | $ 3,464 | |
Voyage Charter Leases [Member] | |||
Shipping revenues | 17,070 | $ 14,402 | |
Voyage Charter Leases [Member] | Lightering Services Component [Member] | |||
Revenue, non lease | 15,069 | 11,688 | |
Voyage Charter Leases [Member] | International Crude Tankers Segment [Member] | Lightering Services Component [Member] | |||
Revenue, non lease | $ 15,069 | $ 11,688 |
REVENUE (Schedule of Contract R
REVENUE (Schedule of Contract Related Receivables, Assets and Liabilities with Customers) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
REVENUE [Abstract] | ||
Voyage receivables - receivables | $ 6,583 | $ 6,512 |
Contract asset (voyage receivables unbilled receivables) | 690 | 1,029 |
Contract liability (deferred revenues) | $ 0 | $ 0 |
REVENUE (Components of non-cash
REVENUE (Components of non-cash revenue and expenses recognized for EUAs) (Details) - European Union's Emissions Trading System ("EU ETS") $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Total shipping revenues | $ 519 |
Voyage expenses | 519 |
Other receivables | |
Value of EUAs receivable from its charterers or commercial pools in which it participates | 500 |
Other Liabilities | |
Value of EUAs due to European Union Authorities | 500 |
Pool revenues | |
Total shipping revenues | 388 |
Timer charter revenues | |
Total shipping revenues | $ 131 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) property lease | Apr. 30, 2024 USD ($) | |
Leases [Line Items] | ||
Number of major categories of leases | lease | 2 | |
Subsequent Event [Member] | ||
Leases [Line Items] | ||
Net minimum lease payments | $ 86,000,000 | |
MR Vessel [Member] | ||
Leases [Line Items] | ||
Number of vessels chartered | property | 6 | |
Aframaxes [Member] | ||
Leases [Line Items] | ||
Number of vessels chartered | 1 | |
Very Large Crude Carrier [Member] | ||
Leases [Line Items] | ||
Number of vessels chartered | 3 | |
Suezmax | ||
Leases [Line Items] | ||
Number of vessels chartered | 2 | |
Minimum | Time Charters-In [Member] | Two 2009 MRs and One 2014 LR2 Vessels [Member] | Subsequent Event [Member] | ||
Leases [Line Items] | ||
Lessor, operating lease, term of contract | 32 months | |
Maximum | ||
Leases [Line Items] | ||
Excluded vessels chartered period | 1 month | |
Maximum | Two 2009 MRs and One 2014 LR2 Vessels [Member] | Subsequent Event [Member] | ||
Leases [Line Items] | ||
Lessor, operating lease, term of contract | 34 months |
LEASES (Schedule of lease cost)
LEASES (Schedule of lease cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating lease, cost | $ 6,648 | $ 8,800 |
Total lease cost | 4,003 | 6,445 |
Vessel/Fleet [Member] | Charter Hire Expense [Member] | ||
Operating lease, cost | 2,367 | 1,067 |
Short-term lease, cost | 1,365 | 4,269 |
Vessel/Fleet [Member] | Vessel Expense [Member] | ||
Amortization of right-of-use assets | 0 | 715 |
Interest on lease liabilities | 0 | 121 |
Office Space [Member] | General and Administrative Expense [Member] | ||
Operating lease, cost | 226 | 228 |
Office Space [Member] | Voyage Expense [Member] | ||
Operating lease, cost | 45 | 45 |
Lightering Services Component [Member] | Vessel/Fleet [Member] | ||
Short-term lease, cost | $ 700 | $ 100 |
LEASES (Supplemental lease info
LEASES (Supplemental lease information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows used for operating leases | $ 264 | $ 937 | |
Finance cash flows used for finance leases | 0 | $ 23,955 | |
Current portion of operating lease liabilities | (10,169) | $ (10,223) | |
Operating Lease, Liability, Noncurrent | 9,270 | 11,631 | |
Operating Lease, Right-of-Use Asset | 17,195 | 20,391 | |
Total operating and finance lease liabilities | $ 19,439 | $ 21,854 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 5 months 20 days | 4 years 5 months 1 day | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.81% | 5.90% |
LEASES (Bareboat and Time Chart
LEASES (Bareboat and Time Charters-In) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Leases [Line Items] | |
2025, operating days | 163 days |
Time Charters-In [Member] | |
Leases [Line Items] | |
2024 | $ 7,256 |
2025 | 4,301 |
Total lease payments | 11,557 |
less imputed interest | (431) |
Total operating lease liabilities | $ 11,126 |
2024, operating days | 275 days |
Operating days, total | 438 days |
LEASES (Future Minimum Lease Ob
LEASES (Future Minimum Lease Obligations for Office Space) (Details) - Office Space And Lightering Workboat Dock Space [Member] $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Line Items] | |
2024 | $ 952 |
2025 | 1,093 |
2026 | 1,113 |
2027 | 1,077 |
2028 | 1,077 |
Thereafter | 4,754 |
Total lease payments | 10,066 |
less imputed interest | (1,753) |
Total operating lease liabilities | $ 8,313 |
LEASES (Future Minimum Revenues
LEASES (Future Minimum Revenues on Charters-Out) (Details) - Charters-Out [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2024 | $ 85,310 |
2025 | 82,414 |
2026 | 47,856 |
2027 | 33,945 |
2028 | 34,038 |
Thereafter | 41,013 |
Net minimum lease payments | $ 324,576 |
2024, revenue days | 3158 days |
2025, revenue days | 3017 days |
2026, revenue days | 1604 days |
2027, revenue days | 1095 days |
2028, revenue days | 1098 days |
Thereafter | 1323 days |
Revenue Days | 11295 days |
CONTINGENCIES (Narrative) (Deta
CONTINGENCIES (Narrative) (Details) £ in Millions | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 GBP (£) | |
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought | $ 25,000,000 | ||
Loss Contingency Accrual | $ 0 | ||
Merchant Navy Officers Pension Fund [Member] | |||
Loss Contingencies [Line Items] | |||
Multiemployer plans status, deficit | £ | £ 11 | ||
Multiemployer plans deficit amount for entity | $ 0 | ||
Merchant Navy Ratings Pension Fund [Member] | |||
Loss Contingencies [Line Items] | |||
Multiemployer plans deficit amount for entity | $ 300,000 | ||
Multiemployer period of performance in the past | 20 years |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 144,490 | $ 172,633 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |