INSW - Earnings call transcript Q1 2020 | International Seaways, Inc.

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Operator

Good morning, and welcome to the International Seaways First Quarter 2020 Earnings Conference Call [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to James Small, General Counsel. Please go ahead.

James Small

Thank you. welcome first Seaways quarter and call release everyone, the for of morning, to earnings International conference Good XXXX.

of call Before to we us the start like today with off by begin, advising everyone I the following. would on

this the or regarding operates. the forward-looking it company which management make in During call, statements may industry

of oil of tanker the the and company's limitation, rates and trading ability other other strategy; strategic and oil patterns; vessels other revenues of the expenses; world address, scheduled days, production G&A in Those topics: of regulatory and developments capital for for petroleum of alternatives; dry-dock world. purchases expenses, changing statements and financing financing other consideration of without and its for second or around XXXX may the effects estimated company's anticipated the markets; or and ongoing TCE outlooks economic the including periods; the the activity of products; and sales regional following objectives; estimated political the expectations XXXX quarter investments; crude demand and product coronavirus company's expenditures achieve regarding and hire charter and transactions; off-hire pandemic, other periods; and and the bookings economic, other projected and to vessel forecasts

and circumstances. factors, expected statements consider in management's conditions, experience to account such management of management developments, various of trends, believes into a factors take that current number including appropriate Any based and forward-looking assumptions and the made on are by historical other perception future

to company's that Securities by filings of quarterly that XXXX; from implied control, expectations materially many in those Form those for other and our made or results from expressed results in Factors, the uncertainties March those differ Seaways' and report we could subject quarter which beyond may ended risks statements. to XX, on make Exchange statements in our to annual actual are international Form the actual Forward-looking uncertainties include XXXX; are the Commission. differ in the assumptions, cause described risks, could or and future cause and for U.S. on report XX-K have XX-Q with which

out that Lois the over to Lois? President and call Officer, our to would I Executive turn the like Chief With Zabrocky. way, of Ms.

Lois Zabrocky

very you everyone. Thank Thank for quarter XXXX discuss Good first earnings much, International call you James. Seaways morning, our joining results. to

on we we crisis, unprecedented about quarterly our talk an safety results, Slide have turn where onshore Amid to the professionals. into of Before please we to to health X, we'd ensure all at-sea taken that and like the coronavirus. steps employees, an update the want get provide both to our of

as our we such implemented are personal boarding all our temperature includes: protective our ship. of safe equipment, have masks; and number to people and we This ships gloves, seafarers Regarding minimize the measures our check; crew, on strict daily keep of healthy. goggles, that

global of travel crew changes adhering we highest professional to While dedication seafarers their standards. our the to commitment thank their difficult, for want to restrictions levels and making are

time, efforts. work done operations, quarterly to and reporting and the completed thank administrative all have fully requirements our of enable would has functioning. efforts smoothly. XX-hour our working and all all more sincerely run our our to ship their seafarers since and IT the remotely. And to seafarers we with our With support, as freely continue XX, remotely family. on homes their from finance advanced March technical their This of all for departments, remote our to hard were continue commercial, employees to key support industry all their to connectivity, of and we designate workers. travel and We continue business planning close SEC Onshore, to We to and enabled staff

Other increases as faced. due with due to cannot This inspections, longer cost and disruptions completed arrange no staff are scrubber of which becoming to challenges dry-docking faced we in have spite customers. to transport installations, COVID-XX we SIRE although of of oil which there parts, vessel the have and Lastly, yet quickly includes spare significant be been challenging delays, that major are and shortage as the The inspections, which increasingly of in which yards. takes difficult. have

As service in priority our the and COVID-XX to environment, customers. in reliable we our operate ensuring continue to safe, leading our providing of onshore a remains professionals at-sea energy safety

highlights capitalizing the review to first tanker we on XXXX approach our robust and If you'll quarter. with market, Seaways' has our first capital, current our and turn this us served the success accomplishments. recent and to Slide balanced X, quarter allocating disciplined in combined well

continue on executing shareholders. our focus during proven first our We lasting to success for quarter. strategy allocation our highlight creating capital We the value

We quarter, our with fourth debt Number that in refinancing this retired reduced executed annual transformed higher-cost million, one, we of we structure. refinanced $XXX have expense of achieved $XX interest million combine savings on the successfully the the distinct we $XXX fronts. you we of capital When from by the debt. prepayment million savings from have four and we

and time to we leverage to position sector, public us return the strong one balance at our shipping begin shareholders. a maintained in two, our enabled have when strength cash sheet profiles Number lowest capital to shift of and the priorities

our initiated dividend, million of a we shares. and quarter, share $X.XX cash per we quarterly repurchased $XX the During

Based our to believe to Seaways stock valuation unlock attractive further represents we this NAV, an on for relative value. our opportunity

we to throughout the our priority Our how optimize capital allocate is cycle.

all quarterly we value regular dividend, during our of did shareholders to for options addition consider will our first as we unlock to to continue In the quarter.

further in we periods Seaways took strengthening delivery just market our our Guayaquil an the ahead with when million which important. are fleet, can take four, consistent advantage LRX our on opportunistically is operating volatility. modernizing the high to used now of balance of important be outstanding This of in revolver, the opportunities accretive and And future. which it's repaid on we $XX provides liquidity, three, Number earnings power recovery. of of focus additional Number we our to

that International ship our competitors This in joint venture outperformed the consistently marketplace. the will trade in has Panamax

sold deliver in which to further to older in of and profile the third age also buyers quarter, during two We quarter, expected quarter our the delivered improving of fleet. is the first which Aframaxes one the the other the

Moving environment rate to bullet, fleet with our strengthen we crude have which product strength, VLCC the market, going will the And has also positively the exposure, this the the quarter. sizable and earnings to carriers continued of next captured our only Panamaxes and market in impact forward. second to Aframaxes, to significant not MRs, but midsized sectors, and

entering of very charters on will capitalized environment and to months, for XX ranging strong to from addition favorable a second later In seven discuss the with bookings on into we periods number quarter time trading to date, high rate which by call, oil-producing companies. Jeff spot months major the

year per a a executed day, another on aged day, VLCC $XX,XXX time time in charter we one and this April, year for for locking one charter at for per VLCCs in Specifically very XX-year-old $XX,XXX of three ship. our high-return

We the two executed scheduled also rate at in vessels to seven average $XXX,XXX month May. day, charters time with an deliver of per VLCC

XX revenue joint pleased are charters all months. fleetwide in the And day over next We forward income, our our lock the on per to breakeven reduced these to venture $XX,XXX days spot rates. together time these attractive with

elevated While ensures executed we longer term the revenue anticipate at is persist, charters our market current rates, will these cycle. throughout optimized strength

ago. a Moving during $XX as quarter earnings years our strongest to quarterly and earned we share evident operating posted since the per or refinancing first to the quarter, per the net and last public items $X.XX asset excluding was over highest bullet, our income leverage related sales million, three We inception substantial of share, company. debt

million. Our first This adjusted $XX represents million. of quarter was year-over-year EBITDA increase $XX a

of strong liquidity undrawn XX, terms total had million includes liquidity, $XXX we $XX million which at our In in March position, the revolver.

global to in seen and been abrupt of million oil oil place, April, losses halt response have The demand. an per the barrels to large the demand update of day for world economy to to we day have per shelters Due COVID-XX Turning IEA and we the XXXX. X, for demand. Slide forecast decline million X global provide XX in while a in on barrels significant supply segments

in Russia May. per and in agree prices limited cuts April. demand, dropped With the March, approximately oil in to precipitously XX failed increase an beginning in and by agreement on production to production barrels On Saudi after in OPEC+ global April reached announced Arabia side, supply day an million OPEC curb

to As storage facilities oil that owners Tanker a gap market land solution. part prices. oil the result, storage from bridge historically as on of benefiting tanker the and are greatly fast, low oil leading of currently the filling are

to where is port. there elevated in storage ship space cargoes a discharge inadequate at low First, supply has congestion rate environment. shortage the This created accept supports port delays at

are This oil, of tankers on has barrels the for creating as a strong oil the the about contango, rates to the According seen as in ships Reuters, makes effect supply, floating serve slide. storage. in pushes to of further we're side traders This on of it for there demand store reducing XXX being currently Second, midst the higher. mid-April. profitable as stored of ship million chart right-hand to which

struggle the historically Uncertainty ordered on delayed have year times and overall an in suitable decarbonization been well X had with X, regarding full update shortages. XXXX. labor Only we XX also and ship deliveries provide The of ordered for be limited books order systems supply goals Slide supply. ordering. current as decarbonization as to and continues to newbuilding low. well Chinese On as propulsion tanker market the yards were installation remains XXXX, as longer year-to-date tempered Vs as Ship meet targets by in scrubbers

age, Out the becomes nearly the of old. more X.X the Moving to operate are fleet over the is years continues XX to ships bottom This the to evidenced, at XXX have lower surveys the expensive vessels and every years. half we which age that at global chart note VLCCs, right. special slide, significantly XXX of VLCC as

due ballast limited activity as the recovery, dynamics scrapping the even for required. water these into deadlines, potential has and capital on is ships year and the now market Based last Additionally, reach expenditure been building. to XXXX greater treatment scrapping

is on rates the increase been While vessels likely scrapped based have scrapping aging fleet. XXXX, in to there if no moderate,

decided the allows I have sail the of to completed program. provide the in XXXX with that take market date early we to one presently to This our complete modern vessel's XX weekend, we are VLCCs. present better VLCCs this installation and Finally, the scrubber on will programs, shift yard on June. the advantage VLCC May, Of also second her and the three to date, conditions. have alleviate natural two into installations installation end pandemic. our want ships to strong the those five dry-dock COVID-XX challenges us the the Of installations scrubber an related will installation remaining update aligns undergoing of the To conversion, in

over details Jeff provide the results. to quarter call turn to fourth now additional I'll the on

Jeff Pribor

and Lois, everyone. Thanks, good morning,

detail. more consolidated in move the to results Let's results. before the directly reviewing turning me quickly to let our But summarize quarter first deck,

the the per achieved Net first In in or quarter, $X.XX quarter $XX.X Lois of income per mentioned, diluted income million our first $XX.X net of $X.XX the of we was quarter share EBITDA ever. to for diluted compared and or XXXX. this was a share quarter $XX highest million as million,

Excluding the income extinguishment of the sale vessels, million impact and gain or share. diluted financing deferred $XX.X million million of costs of debt, on million net $X.X $XX.X of from a write-offs was $X $X.XX a per of loss

of Now business TCEs primarily first the $XX sectors. in with were resulted first the last I'll for results to the the increase average segment. This compared blended Aframax higher Tankers the segment please rates turn for and X. beginning Suezmax, $XX of quarter Tankers impact Panamax discuss quarter million segment, Slide from to Crude million in the of the VLCC, Crude our year.

LRX fleets. quarter in Carriers there compared TCE the Turning Product daily revenues of rates for resulted from higher now average quarter of to This blended MR million last the the segment. by LR, the $XX year. were $XX primarily the to impact first million increase and

across increase first $XXX to to compared Overall, revenues of top quarter million substantially the as last This left, Product driven crude reflected consolidated compared the quarter. in revenues. quarter chart for of higher principally was average segments first this XXXX. earned in quarter XXXX rates Carriers and the the first TCE daily by million Turning were year's $XX to

quarter the driven was Looking period adjusted higher compared million the at in Again, the for principally the same the this of $XX top last chart to year. EBITDA right of on by daily $XX page, increase rates. was million

for fourth each we the the revenues sequentially, results up the of quarter-to-quarter. adjusted quarter, at by half EBITDA in that Consolidated page, On quarter is, increasing the were case. TCE bottom first look $X and the million from

far, now I discuss QX first are environment. Turning on which Slide XX, QX to now rate the quarter provide forward. strong QX rate our will for the to review based thus we bookings relative significantly a and look higher

day. approximately available an at date, QX of day booked overall. booked average average available approximately day of XX% average approximately been and for an an at X monitor day. at Aframax for of Panamax per of available at $XX,XXX of or $XX,XXX our XX% vessels VLCCs XX% day days per days XX% of $XX,XXX days we per per available average of our per approximately spot spot days LRX and of First, or an Suezmax $XX,XXX have spot $XX,XXX spot

the MR booked of spot approximately quarter day. On per our XX% average side, of at we first $XX,XXX an days

are breakeven for March vessel dry-docking which rate ended XXXX, you XX, talking operating per vessels XX would TCE expense are turn if earn Now ended International on The to our well $XX,XXX rates slide. service cost the all-in G&A owned XX as rates, about months the always, costs, Slide XXXX. breakevens. amortization illustrated this principal cash costs, day and costs, breakevens for as was XX, to daily means March as cover overall scheduled our XX, expense. must the interest debt Seaways' cash These months

period. our into for rate the that note, breakeven FSO overall distributions the company $X,XXX to taking consideration Of drops from JV, for

XX we've side XXXX. Now included daily the breakeven all-in for March of the bar months the the forward on far XX, rates right ending chart,

day. overall Taking We JV $XX,XXX to from per charters, drop our contributions rate expect consideration breakeven breakeven to our $XX,XXX rate FSO per be the four time overall will day. the and our into

like At also cost this to I'd modeling guidance year your purposes. for reaffirm for the time,

$XXXX; we be and various per as all running and our $XXXX $XXXX expect fees, For daily $XXXX day. for the insurance, XXXX, today, costs, classes Aframax, per $XXXX and follows: similar regular Panamax, which MRs, of expenses remainder OpEx, includes Suezmax, management VLCCs, day; other for to and related

please and higher by update costs For for days details CapEx on to appendix projected an off XX there. the dry-dock, Slide quarter, refer in

its The modeling, cash your a expense is for and million, relates are to of expected expense. $XX guidance cost collar items. of deferred of which million hedge, is $X be $X and $X fees balance which in million with Continuing million, both to modification interest $XX XXXX, of change million of rate a redesignation discounts non-cash on mark-to-market interest unamortized interest those flow and importantly consists amortization to cash as

QX. scheduled principal for debt quarterly $XX our Additionally, calls million in in payments beginning

line $XX For which XXXX, be million a G&A million the we to in of expect and last $XX region noncash total of cash including with items, is relatively in year.

income for Finally, about, quarter. equity we million amortization and million $X expect and about depreciation in per $XX

Now if bridge. our Slide we for could turn cash XX to

million. left we of a from with liquidity right, began cash the total to Moving $XXX quarter and

in $X This During which first the the FSO the a back EBITDA. generated non-cash, the distributions figure, add JV. is from but of we million JVs, income from equity from to amount million quarter, then the in therefore the reach includes so adjusted $XX which JVs, were deducted cash we $X million cash quarter

with $XX result us of revolvers, quarter refinancing of of ended and million million along QX draw, and $XXX million total returned received the Cash CapEx. the million sale revolver of dry-docking in the from we $XX was to comprising deleveraging along, is the net cash $XX $XX with And interest and from payment purposes liquidity a Guayaquil. $XX undrawn million repayment debt on expended on we $XX toward $XX net our $XX expended million Seaways the we million. our We cash approximately vessels, shareholders, million account proceeds finally, million and $XX giving of into and $XXX taking the LRX of that an million of vessel, principal million. Moving

moving about Slide I'd briefly Now like our sheet. just to balance talk XX. to

had As of $XXX $X.X assets compared billion March of XX, to of debt. we million long-term

remained mentioned, In undrawn $XX XX. a addition, that March we revolving million as had at credit facility

loan over our As stands our conventional can right-hand of debt-to-capital see you of net XX%. fleet for on side just XX% slide, loan-to-value the our at at the total stands

Slide it kind it the independent and certified as included its in feature of tanker and loan which leading highlight firm corporate has to pleased January. the to research, been ensuring like the listed sustainability-linked loan meets very we this ESG a is sustainability-linked We're I'd turning pricing first an for principles. closed Now that mechanism by in publicly about governance XX, in facility, owner

in reduction pricing be XXXX. the in industry year-over-year. organization's XX% adjustment in target their portfolio. by climate Principles, the emissions international of aligns assess it it carbon the ship linked gas will The trajectory global the framework to used the efficiency institutions the The of relates the in fleet emissions as to alignment that with reductions International maritime financial targeted emissions greenhouse Such reductions by to Seaways Poseidon finance followed outlined COX

working goals meet receive If a discount we to banking We future we'll truly and that modest years, their supports are pay with if modest pleased targets be in we the ours. don't. a we'll group a increase, or

That remarks. concludes my financial

So now turn for remarks. call her like back I'd Lois closing to the to

Lois Zabrocky

you Thank Jeff. much, very

turn of please to first If we some highlights just quarter. XX, Slide you the to reiterate could want from the

make public to $XXX by unlock shipping We annual and profiles sector. allocating the interest continue the shareholder value refinancing of market. take maintain capital advantage and the transformed capital effectively the to million current This high-cost $XX one completing to progress expense robust in tanker January. million reduced markets, in company lowest debt of We our of successfully us leverage enabled of

allocation of second initiating our substantial quarterly and and share we of execute Aframax take strength shares opportunistically dividend the age disciplined balanced regular improving power. older another a result continue position, purchased and the first further earnings repurchasing profile or our third Aframax cash scheduled As quarter, in quarter the and capital per included quarter And our strategy, quarter. place cash we $X.XX during a strengthening Guayaquil, one Seaway of our balance of the to fleet. to the sheet older LRX, We the sale during which an sold

rate to and are has our sizable strengthen, fleet earnings well captured spot positioned continued of and crude strength the the exposure, we forward. the as environment generate and in significant tankers Second, product quarter, with second substantial moving market to

quarter XX strong of profitable rates addition we capitalized In charters on X by into to from to time a to second entering number date, bookings months. elevated ranging highly

our the While months. conditions XX next income, $XX,XXX important charters tankers, reduced for venture our the these day together favorable on it's per we with anticipate revenue time continued over breakeven days that fleet-wide joint to spot

believe quarter our company, demonstrate substantial as highlighted $XXX Finally, million share environment. robust including first strong earnings with our XXXX by we in the quarterly a $XXX quarter with over results, cash. total ended position million cash We public of a in highest prospects per rate Seaways' and entered a liquidity,

We have term. for business always managed long the our

MRs, And shareholder combined ensures cycle the throughout with Seaways Vs, positioned our Panamax Afra, at our time exposure attractive highly executed rates, our fleet create recently flow is and value. generate cash substantial and to sizable charters to and significant Suez, lasting

Thank much, open questions. you to and up very we it can

Operator

comes [Operator first Giveans Randy question from Jefferies. Instructions] The of

Randy Giveans

record another be second the on record. that quarter again, will Congrats, Yes. quarter. clear It's pretty a

keep it So going.

Now a your balance sheet, In of cash. obviously, producing already very you're environment, free this strong. lot

my repurchases. your of standing forward? uses you a Now you So out I'm of the just so are for cash chair, share ovation preferred know, what going giving this

we should that at to are levels? expect continue pretty the discounted So shares that now still

Lois Zabrocky

your topic. Jeff, it's favorite

Jeff Pribor

good. capital than It's better all about talking like I Nothing allocation.

concurrently We returned X do we mean as tells to were that. as nothing to the we story for and and allocation liquidity cash thank selling done, quarter. QX. we flexibility, can Look, the forward, QX. Because look balance the vessel which ways as We had able sheet shareholders talked do we you than looking do cash a us strong We capital vessels. we've and better we well back. X think got substantially, in So two bought about. as older them by I refinancing a gave I start deleveraged all same in right, of really you that And ways.

and bought in we We've much. you, put keep will Thank shares. $XX fixed regular the million of [indiscernible] dividend, back which very quarter-to-quarter,

anything able to do like we So about them don't sequential, we those. good all do feel I think if being all think I can it's together.

plans don't immediate we another have buy So any ship. to

I along proceeding think schedule our new is that well we deleveraging quite the outlined. under

balance comfortable repurchasing. certainly have, and the we and say continuing liquidity certainly with feel still the I'd we sheet price for looks that So share attractive on,

Randy Giveans

thank transparency that charters Slide then time you a all on there. your accept like details I'll as yes. the the And X. for I question, on second

in seeing? So X? market? of or kind can you what of how you give time For or balance instead that are you're charter do us So of that? rates staying full And then months current sense Or the liquidity of a X the X-year of lock that just charters why example, instead spot? X months X maybe

Lois Zabrocky

point patience than does time. So is very contango one deal you in really to more to little a takes bit this it see the a any it quickly customers execute effort responding a X-year and or environment deal. in And where at month year one seven

we but layering approach According a in demand. it significant like pretty still the reduced, that, has be So there pundits, to think lot looks still the contango is going a across forward, have of a It's there May, than significant. more oil lot supply we ship. in dramatically. portfolio will been not simply still And

materializes. a that the is opportunities significant not level. forward which going depending as And is oil advantage right that that's take we see would adjusting So very prices say volatility, additional the I today. look to whether oil then upon run-up the in market of market or And now, again, and new to we'll to tanker to

Randy Giveans

for of month you maybe, a kind seven time Can or us charters? year one current give a range,

Lois Zabrocky

increases that a month charter, really $XX,XXX you around you're a will day being vessels bit, taken. $XX,XXX, think even as probably per additional see But then contango, today. and probably watch For I we the little six if

Operator

ahead. question Please Stifel. comes of next The Nolan from go Ben

Ben Nolan

I've premium a crude in seen, trading At a are moment, the I LRs. market. anchors some start healthy larger from what of but couple, product pretty with your to have you're So we'll trading at at those the healthy pretty

positioned about back we earnings the terms the curious vessels think in of quarter here? Just in are those power you half the for should guys how of where

Lois Zabrocky

one and present. a on very We have that's lucrative clean, trading she is LRX voyage at

but her her we we in put earn well, So Aframax the with expect sector. to

she So our on we took clean trading where look our fleet, just clean of. delivery will we her. trading trade so. clean product earnings Panamax be carriers. on storage actually a And being is intention remain on for the Guayaquil that that's the and high to is And And vessel to taken the in to very is that continue her prompt, you're seeing environment, strong now this product

Ben Nolan

And the rest are trading of Panamax dirty Yes? LRXs the, let's as trade? say, the all in as

Lois Zabrocky

I stronger spot QX, correct, for but That's going per you're just stacks out that date on than vessels up which our to highlight $XX,XXX. anybody probably to Panamaxes, there. QX that And would in then is the $XX,XXX see market the day was

joint Panamax stacks spot rates. strongly that think I the very venture International up So on

Ben Nolan

that purposes, like charter sort come buying seems handful you is correct? a modeling already -- guys. are were chartering believe, keeping size for thinking higher the And about always chartering just you I niche, scheduled have via to of the maybe in or that the that That off for And of or it Is there's either assets of real any position case MRs think. is more? that in. But also, your that I

Lois Zabrocky

due were Two from are We we removed we seven So with now service MRs had And you're five. complexities vessels providers. the third-party correct. enjoying have that market. to operating,

for would right values I first not quarter vessels, Whether vessel where the or quite sector. we MRs I are. with enjoying now buy additional was day we'd strong, think in think the, we're be and that our careful almost per $XX,XXX

we So our platform that as the in might strength add not first opportunities. we do, we trading but to see thing be our would trading

Ben Nolan

me, and over. And then I'll turn lastly for it

and VLCC a then you the things CapEx And you the How to of with X cadence ahead should X respect You mentioned scrubbers remaining we on on And in to, installed more of committed those couple on and see? pretty A about think installing going those? firmly it are Or process. shifted wait X? is to XXXX. to scrubbers that.

Lois Zabrocky

you you'll if pretty to Ben, QX XX, cash go healthy QX. the So a breakdown Page see and of for

QX we So you work yards get the Indeed, on have for for difficult really in are outfitting made laborers million about of the on coronavirus behind lot sector. a when China the us. to it, challenges think in $X And the and it to hitting VLCC our get CapEx to scrubbers.

we did have So big challenge QX. did, pretty a in that here

and very all amazingly diligently out. that through worked those and ships very turned working They're well. guys The

our And on remaining So will see everything we've the three, got eyes forward. how we develops.

intention when to is them date. present for natural additional Our of is dry-dock it their them you're out install taking not time. then service And

adding just dry-dock. onto regular job that the You're

world present how and our then that's see intention, So let's the normalizes.

Operator

The next Omar question from Clarksons comes Nokta of Platou Securities.

Omar Nokta

Just maybe, I to question open-ended Seaways. maybe thinking and I'm step for a But International about ask. this back taking about apologize just

obviously lot going the tons is just cash a market is obviously with logical. the gives been refinance. on And repaying it conservative the direction you free on forward. which the have now, very guys You fairly on debt and getting It derisks obviously, conservative building more on you're of dividend, the aggressive cash, flexibility going platform to whole of very buyback, conservative and you've be acquisitions. obviously, your finished But as and

that's like big a you'd way? itself know to large-scale you but do see company? think long stand from So out as feel building think here? what keep you larger see you get it that I just XXXX International Or a now, And your when that like you Are and a it's how kind to, the Seaways mean do game question, to of we things preparing and what is, do I beyond, we for want thoughts playing company splash very playing about you that of a where into on patiently? that.

Lois Zabrocky

Omar. opportunity, an it's Yes,

our we are I So playing that would Jeff team, definitely say myself, long and management and a Seaways game.

buying an the moves in paid immediately was it's are down was That But of very good was our give done want in real example team the to type make immediately before this that a value the environments. a earnings we selling continue, And improve and want the the some sold we at running and leaderboard prepared QX, of refinance, And to And a we're the individual, million as The well think in and to to down that LNG in coronavirus company moves executed for are Seaways. we Seaways. locked debt. couple on we fleet we our of then that all $XXX to just shareholders be such a keep moving finance we ship, profile, up idle. January. power, is but The strength. never We moved market to that, continue our here, great a horizon. for team,

Omar Nokta

That's, think, a And said answer. on you prices you good be Ben's careful are. had was I The, question. that's a asset follow-up to appreciate need that. think to I I made, we where comments I

of do yield entered cash to a at where about we meant asset wanted that or at rates high... maybe point that prices what get that. too you think this into, feel is that high? are are, they, least guess you you've Or TCEs, by the relatively Just flow especially Do low the sense ones I when seems they're

Lois Zabrocky

Yes.

Omar Nokta

ask to wanted meant. you what just I Yes,

Lois Zabrocky

perfectly cycle might moment, in come at be where So pretty plays are asset prices the or the make look very look we up able values that not to lot asset out a are when the do not you as to maybe the million huge lower. bottom, as but a not that $XXX patient that have of dramatically. ships close, right? were at whether and we cyclical and you bought, X.X would But asset years, at values today, ships somewhat, If really buy we this wait we exact splash at, spent, we

our we they opportunities go take cycle, us. As when to through come the

Omar Nokta

FSOs. question It's switching on that. been one thought just then And had gears, the since maybe a about about the maybe we've I while just

another still there's left of on years charter of think couple I those.

where from have sort comment feedback oil Anything can Now extension with work? on gotten on? you prices the are, that that any that, of on charter potential risks to extending you or the

Lois Zabrocky

about, And off-hire. QX. those FSOs fields Those not to say, the are on on continue charters and Shaheen Al XXXX, X continue simply as on would and operate. indeed you that, Omar, existing X.X know, I operate without quite the go fully fields They the through have Well, utilized offshore FSOs any left years that charter. those are do to

with so are ideally field, we, be to for and continues forward look it vessels customer. And highly that And conversations those productive. we to suited our

share So can when we future, will… forward conversations to in the and we we look more,

Omar Nokta

have you in sort Or they those anything they're noticed necessarily, any lines? those they're using ships? change how of Whether But haven't storing less? along

Lois Zabrocky

took We FSOs. is the the of two actually really those a they recent X advantage unique million which had of where barrels, to opportunity availability

utilizing they So those really vessels. fully are

Jeff Pribor

and QX I of game. go, conservative choices Omar, allocation not want the just to to on We're deleveraging a to were the are I'd wanted room this cash you that we're But case as on Hey, possibility. the able that I before maybe major, in in that, obviously think said highlight and the that in do Well, answer little Lois' these earlier proud of major about allocation, sort other to what just same a and capital say areas. -- all environment. about continue -- see mentioned add the we aggressive fact to we're four long in you I on -- indeed, I we

in still when attractive One more buying become that -- optionality, of of you or your the future net deleveraging you assets they the returning whether to it leaves doesn't things preclude puts is options. those shareholders. options all So that now I and place it further any It it's whether just about right? for cash a like good with it's it's

that us. first for comes So up that's probably why helps. it Hope

Operator

question comes Please ahead. Liam from The next Riley go of FBR. B. Burke

Liam Burke

VLCCs you the lot global as storage. Would of into benefits floating of some you the equation, the that side Lois, the supply in longer-term to the them as storage being fleet, On the are floating expect off-line, these to fact to are you a be now older come VLCCs back anticipate, come scrapped the there rather than highlighted of do used macro, fleet? them

Lois Zabrocky

depend Liam, market it's carefully. that all to very the all going watch upon and timing, we

due owners the reluctant environment, But scrap So on of be and very scrap at seen you've in of a be challenges lot that yards also, to to levels. high would kind an closed front. coronavirus this the

older -- whether be there demand and not or rates to vessels maybe will the And that will upon let's scrap. market recover, create quickly going whether unwinds healthier determine then say, will XXXX, is As they those will a ahead will for or and how what go opportunity be depending in able storage then forward.

Liam Burke

side. at tanker fleet? your requirements to products for refined fleet the rates storage or longer-term Are product -- the looking sustained the anticipating area And you help the in that of of

Lois Zabrocky

the be country every match world have calibrate and Yes, where refineries different short different answer. demand all at. the would all you think producing and trying around I -- that to is And

excess you So When side. you running, still high, too when production running products. see too and refineries say, you is the then you refineries see crude see on low it high, see then

building products there be VLCCs, expect will or really vessels to the are storing storing that are we as across that new So And Suezmaxes space. are indeed be it well.

across sector tanker really now. the there's space a in So storage right the

Operator

Greg of Lewis The next Please question comes ahead. go BTIG. from

Greg Lewis

been it's Lois, on ask to kind touched kind of wanted thoughts. the I a capital bit, just through and you of little question, allocation a

across look a fleet, some vessels we there's classes. younger International fleet, smaller as So Seaways some vessels, the it's asset across mixed

vessels. older at look talked bit vessels But older in renewal, we're prices. tend you and than now, really, we and relative what really increase on the right getting in is I'm vessels, up more some about basis is at cycle, As in asset little of fleet to what a any which newer a these value

Is I'm some modern-ish just ship? first interest there's there if trying buying that maybe fleet that all, thinking is that I on on understand plan, them? think kind then in in problem is just maybe than older a you're So but that a is buying? I be holding my have think just vessels, is the the if guys of and a tonnage it of what's strategy? way guess follow-up of is, kind out of trying not no new to we to this, selling peers ships those the about, that not of and And do and a there's that enough you running lot, some actuality, about to problem And any taking should in in, any there of that's and back? a plan, is of your buying are equity that's block more required way going renewal terms

Lois Zabrocky

a that of certainly, these appreciate true when, more. is some Well, it plan older is vessels

you a double I'll So response. give

that see out. on a you Tanabe, those on As so we're significantly 'XX after much able XX to moving and fix able opportunity on of our that. do flow to that. capture Aframaxes, then to that again VLCCs, which old, is some you this And being in year you're that Took years Then dispose cash really, to 'XX, brings able charter that. of our may some be that the builds, do vessel of

of downside that. a risk any defraying on really you're like So your vessel

more than off would it's then But bit So to we that. part on older where not, can simultaneously. general spectrum, in period. we at we see try when then look where across ship newer perceive look sell approach. not your we're buy would value will unusual where for value, we capitalize we and we the And the little in of you're the And we realizing and We mark it. opportunistic a a high vessels be

Greg Lewis

about just a maybe ships just that is pool there's happening? to I that And an with the that would that other ways the scaling limitations some pool. renewal that process of around really there I'm that would what those up is, LRX kind there. is wondering mean, prevent looking that, pool, or started But at limitations Panamax I Or the way that you of Panamax think guess trade not an I would, vessels? from be and renew Is to then there as it's yes, size MR? i.e.,

Lois Zabrocky

can are an are international while that Canal old those fleet, Canal America. between North at are forth really flexible. easily and on of those and the Panamaxes pretty And often thing key for Aframax trade they South the ships. this and the are box. transits. time, Well, transit trades suited the a back And dirty most ideally dirty. It's the go lot and this all of Panamax They Panama Panama do, use There's the

to So you really trade. put there, MR want clean-based in don't which mostly is an

that and trade a it's on. well-established persist that's we continue to So

Greg Lewis

And that a trade. a that of Panamax as in the then just up vessels as isn't aren't following mentioned you given old, maybe niche a might an be the the international Is fair as, get trade vessels it statement? And that. in this it becomes The broader older big on trade of earlier issue. Really drag in that market. XX somewhat years this like over nature just

Lois Zabrocky

Panamaxes and them in Well, our a and made lot of XXXX we up. on lined investment

good earning right fleet year, and really are XXXX very ships expected We be a to those now. that in well

Jeff Pribor

non-core year. would mentioned this you selectively think been I selling LNG We note have assets venture joint conference older like Yes, the to call, ships. we X last and on that not mention

So the or we way plan assets. grow our and to sell that is of as part older noncore the definitely see as to fleet renew

continue. That sense. makes going that's So to

and look that the place, the tells another you shorter-term to facility, called in that of vessels the it's of it name part it's you facility which for you is, at head phase put we the that need If didn't are core eventually. new the in other transition out it's, is clue, lending called transition

is of to right term, and too, strategy modicum Omar's kind Because that, be you that cash of renewal disposal flow growth of fund our combination they to and our goes thought, able the question, the when from your operating vessels to a of time. want get long a to

you leverage, year, low. when could are that for assets the know, you episodically, you So meet wait with because as have every lower acquisitions don't objective. prudently, It make a comes X we you typically

the cash. a disposal for your operating or your to is, and So growth outside noncore having But alone idea have flow, vessels support go you of renewal lot dry for assets can cash of growth, got to older powder that. without

Operator

of J. Mintzmyer comes from The question next Investor's Edge. Value

J. Mintzmyer

if strong in, $XXX,XXX. strong? about bit off point the a little recently call little think But you Is say, that was some. appreciate the current X doesn't there's that new out I the I Can a months the flowing taking It's pessimism to even good we've Is talk to fixed X these of fixtures some with charter? market do has to six you in at XX-month highlight, still there bid the seen fallen We've seen that existent? for Occidental rates? charters. Or clearly see month results of still long-term Hess bit spot the market. for, them. Look, charters, a lot want announcing the

Lois Zabrocky

a a the you've week, I potential and to you're the moment that adjusts taking think see at breather everything seen activity. lot now and this steady little itself. market storage is while that, the more the charterers starting bit And of out

those So executed with is, half were date. first what you May have second that when to half charters were all April, are, realize vessels

show vessels and are list. the you're So position the But to starting see up Vs storing show in that's of now to cargoes. world, these getting what their to now up lot is starting around a fit and going

in we here, we that So some start out between that's there coming think may that think that, weeks. And don't to okay, couple And steadying we XX see will there's additional we to that storage. XX and in runway think of left that. be the

J. Mintzmyer

almost historics, All Yes, there. see right. to the course, we'll markedly, charts the of have back of the compared rates And off to develops. how have came -- they're but of that course,

one. June. XX, good And it's I'm Slide very of a for current looking and small that as on up outlier revision here of call comments I breakdown have the coming of to facility? at Going Slide XX, massive cost. That in bottom is terms clear debt a one Any I your in on you a a see believe that facility, other

Lois Zabrocky

that, unsecured debt. I'll that just say is

But So in Jeff on cost. one. that is turn that reflected it the to in I over will to then jump

Jeff Pribor

remaining last when the almost did of fleet renewing we XXXX the order not it, call that debt and in patchwork, equity to that's 'XX. Yes, of issue in our I piece

$XX amounts baby the It's and as unsecured. bond. smaller so noted, it's So because And it's it's Lois par. called

up unsecured. it So June. actually a attractive is rate until uncallable said, is relatively for it That

But get about be allocation we that. when -- no yes, choice choice. that it's will a capital there, So

an option we We want that. have will if to reduce

any at the J., definitely June. that will it's yet haven't of So come up made X end decision but

J. Mintzmyer

a keep One question. last definitely watching. to Yes, good thing

did notice spent on I allocation. repurchases. think a capital had discussion good you I $XX the we about call share on million

not if have before we QX So flow, cash I look, see to looking and we're I'm an now and the I your DHT are mean as talking to I mean, at flat. million. you we're quarter add -- shares $XX well in around QX XX. QX, of and right And that's up trading you're [Indecipherable] put did they're like NAV that amazing that's If going. shares your we put north good only well. financials. But XX in And yesterday. at current probably $XX

a give to You maybe think looking you're there Is you few remaining annual of XX% trade that authorization? $XX some sort at increase require have maybe or take, that NAV, So like down. about left. percent or Or at up shares How a that that way million meeting? do does further?

Jeff Pribor

years in million two last from it for $XX the was -- started. place that think when authorization lasted it put have in I we No,

-- So a got to for some not this an where authorization, go. companies, not through tie something we why true and were other it might once-a-year know I request. we to it's we that's run have to be one But ways If for just would you're authorization. a that's asking But it can renewed to to Board a AGM. thing, that back that our go we it's be

pretty that's it routine. at look I'd So

J. Mintzmyer

are rates authorization. whatever of stock you that, you you great, I where to hate out and does Yes, reason understand for to the for run get to seem a be and not position in June and

guess Thanks for So quarter. luxury good the that's you're luck you. shares problem, again to But buying good at if a I $XX.

Operator

back session. closing to This turn our CEO, any Lois question-and-answer I over the remarks. like for Instructions] Zabrocky, to conference would concludes [Operator

Lois Zabrocky

Thank you call. earnings joining for so much. Seaways' Thank you all

stay continue much. of really challenging all these will hope advantage very every to safe to this Thank in opportunity of We value. call times. shareholder on healthy create And family and take everyone we your you and

Operator

concluded. you The presentation. attending today's now conference for has Thank

may now disconnect. You

International Seaways (INSW) 9 May 202020 Q1 Earnings call transcript