INSW - Earnings call transcript Q2 2021 | International Seaways, Inc.

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Operator

Good morning. And welcome to the International Seaways Second Quarter 2021 Earnings Conference Call. Participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to conference like Small, to now Counsel. General would turn over the James I ahead. go Please

James Small

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

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

objectives; company’s periods; historical XXXX the to expected second markets; following developments, petroleum forward-looking plans and drydock G&A management’s During operates. factors vessel sales rates experience address, may of capital management the for assumptions including appropriate company’s forward bookings of including These make other a the in by transactions; topics: merger perception believes on other ability statements our for from financing oil in other other Coronavirus and or or crude days; circumstances. our of the investments; and statements the management political cost changes number quarter to the ongoing the outlooks prospects, call, and tanker consider off-hire Diamond around regulatory financing other estimated taken into and economic, Any patterns; revenues purchases strategic production developments or made and and and the in other the activity pandemic, this trends, account strategy, and and and world achieve may shipping; various S of the vessels world. trading issue to looking that the of benefits and conditions, and company such with the newbuild and product statements regional anticipated without factors are regarding dividends; of and demand future estimated current management expenses expenditures regarding other and any forecast effects industry it alternatives; and oil savings products; limitation, in which based vessels; periods; the XXXX of of scheduled of TCE anticipated and of charter construction expectations synergies expenses; hire projected and consideration company’s economic its

in Forward-looking and differ XX-Q or company’s from assumptions, results from are cause uncertainties Factors, that the actual which have International call XXXX materially the Exchange first Executive beyond control for XXXX, way, of cause those made in the to and filings Zabrocky. Lois Officer, that described on quarterly and to that U.S. statements. actual like over Form expressed to uncertainties could future differ those make of Seaways’ statements are our Securities to turn XX-K, may the the quarter many or report we out With results our that President risks by in Ms. subject Form risks, other Lois? on would the of expectations, include to Commission. Chief could its implied and the and annual I report with

Lois Zabrocky

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

of Seaways based operational and leading position of safety achieve maintained first our detail ability stringent, tanker the merger with merger. as Combining a second U.S. significant achieving stakeholders. bellwether, an focus deep merger The optimization solidified as value our with shareholders. a long-term enhanced enhance S -- accretive as completed to two with bullet, to status to recap to last fleet the financial customer diversified scale standards. well and capabilities, transformational we our for our and and four, industry to with industry the have shared we’re We owners, slide strength. relationships month. Diamond and culture strengthen quarter, we long-term unrelenting our create review During Starting our return in an our On capital excited

compelling asset deliver into benefits and merger our its to our to our stage. recovery triples to stakeholders, net market tanker poised The strategic moves doubles and value now our shareholders as and ships. financial the the to We’re of XXX fleet size

U.S. benefits, be accretive cost the diversified share. we tanker largest will We and merger realize estimate flow have synergies to the other Among $X company. revenue of expect earnings cash million $XX We we listed to created of savings per annual both million. and

synergies XXXX. realized these expect in we Importantly, to fully be

our we our increased going forward. liquidity, and will which a market rewriting have We opportunities anticipate trading capitalization of our for equity provide equity valuation

quarter $XX.X vessel The impairment our second and preserved we net per maintain charges. have leverage bullet, loss for of financial ratios lowest next $X.XX strength was million, the tank one shipping. We net our the excluding in share,

of Importantly, of the the had million we $XXX serving as million. This challenging $XXX environment. us a throughout of at please liquidity total includes This cash. quarter, well cash end note, is the rate

reflect we $XXX we prices. As ships the market. optimization, second-hand Fleet actively liquidity. have older of in total today, prices at attractive have approximately resilient million selling These been

after $XX We in of million $XX repayment of debt. expect net million proceeds

is preserved XXXX XXXX balance incurred in water liquidity remaining XXXX. a the protects have and this flexibility sheet $XX provides of going found then these on million costs in -- forward been and details have drydock ballast We would our forward. appendix. Further These and capital combined additional allocation expenses. The sales

$XX prior includes beginning over shareholders. closing. regular million This that we just $XX.X to Since the $XX merger the XXXX, we special share of in to returned final million pay moving million dividend have repurchases $XX.X to million dividends, in Now the and our a of bullet.

to move five. Let’s slide

tanker sector. strong sector strength power about focused sectors. conference and Vs on solidified product in -- our while power transformational crude product tanker positions created U.S. complimentary large we crude Suezmaxes, with in Here strategic and the we in talk We new Diamond the joined alleys We with combination and S. base two a our together companies, alley

sizable a diversified have fleet product and crude tankers. We and of

destocking from complete well levels. inventory to recovers, and ahead fundamentals as industry production are near-term us, oil executes long-term the positioned global as higher OPEC+ We positive demand of developments, benefit as

company, combined integrate and customers and As our we team members to together of the merged the to shareholders. value for newest all welcome company of turn the time $XXX Seaways slide lasting to Please our ability, look forward than would greater create To have focus Seaways on vessels. XXX entities, of illustrate million, working revenue of In XXXX, an with continuing charter we $XXX earnings the million. equivalent six. earned to we seamlessly power EBITDA combined

with VLCC. adhere dual XX% VLCC early our Seaways will These principles. be will energy refinancing more and throughout progressing International ESG smoothly today’s EEDI efficiency efficient IMO the three environmental in sustainability These the building index more highly We’re their and vessels outperform of efficient future first efficient targets. vessels line vessels our for regulations life substantially old signing to than industry a on on delivery XXXX. linked being is will on These Daewoo and in be modern the in LNG target Building fuel XXXX will eco XXXX. state-of-the-art surpass XX% a in early than VLCC. XX-year design

sector. million reflecting yard container sustainability our plate fleet materially the estimates steel achieved Vessels vessels We’re $XX the initiatives million to per ship. appreciated the maritime rapidly with our prices that in $XX The very for price strength appreciate value vessels. filling ships have LNG proud by implementing the since and in it, in and be three that

for charters capture base profit our rate sharing upside. VLCC’s to allowing downside these providing that seven-year a to stable and time with on Shell is is that us and secure flows protecting With the strong cash

tanker over current years and fleet significantly cycle expect for four $XXX to cycle. the independent stock $XXX to acquired at is This at the company cycle. of We bottom newer than in benchmark no chart route. ago, more traded the S to Diamond invested million earn low point Since tanker illustrates million different, an in Slide commitment tanker with the have including exceeding a the publicly rates our the seven. working becoming Seaways

value acquired slide As appreciated contributed nine alone. the million XXXX adjusted since income ships in materially cumulative we age have that an chart their basis on on operating and the the have $XXX during a acquisition in shows,

project and Shell in ability represents adeptly further this The $X.XX right the transformative appreciation merger illustrate at attractive per and the time INSW S newbuildings, Diamond million the newbuildings, or $XX of stock Shell opportunities cycle. move share with our of to identify this. Our

increase day July. and implemented update the shots of This on from day December. COVID their the million world, Delta top supply per of through barrels to will agreement We the variant period acting is by barrels X.X an add the globally. XXX,XXX increase to monthly. per market to OPEC+ over In vaccination August barrels on May slide This is in throughout day been per world. billion oil have from turn administered eight. spite Let’s provide increases X.X X the now Right case on the million demand. supply to increase of

over in this suppressed our the OPEC+ by levels. growth a the day June. X.X increases per of XX administering world This reflected the a We’re jumps tempered forecast Slide going COVID being oil XXXX million and in per by we’re to XXXX, number demand ship year-over-year X.X magnitude demand XXXX enabled historic we reopening on by in the in and IEA nine, the air XX currently day decarbonisation a the market, same that production demand in demand Combined economic day. per strengthening barrels at and administered has and barrels shots at oil book July on slide, the be they newbuilding low demand, in globally, surge and levels. day. rate recovery forward. in ordering last optimistic market declined on in environment barrels barrels the drawdowns oil set a and begin, These tanker for to are all the economic per pace regulations, Uncertainty and up tankers. XXXX. over projected million they tanker stronger and in The with orders million to X by as overall encouraged of a In million pre-COVID chart of VLCC rebounding in XX needed is stage year were million with travel the the remains costs, have all are of right-hand by are and supply the at levels, recovery, consistent global order increase the ordered for newbuilding XXXX now hire XXX this have oil This vaccinations year-to-date recovery signals type inventories side, drawdown.

we on at Looking based potential, on a the take fleet, are look these. there ageing recycling candidates global numerous

is the X% of of slide, the XX side years old, XX.X old. right-hand the is at fleet the least least XX% existing at On years

aging book VLCC VLCC X.X% at the compares order then fleet to XX% on So an the sector. this of

will who As them and the these steel Based low reach to required prices. financial our to ship trading. a record Jeff? potential keep spot particularly substantial us capital investments I’m building, water over on for ballast going the recycling Jeff turn it and Pribor, to environment give the CFO given has been review. age deadlines, these treatment dynamics, rate now

Jeff Pribor

good Lois, everyone. Thanks, and morning,

directly more Let’s results to quarter reviewing the move second in detail.

Before EBITDA turning diluted the quickly quarter $X.XX or of for XXXX. me impact loss second In in per compared had let second income of per impairment The million exclude million $XX.X million. net consolidated to summarize charges net share $XX share. narrows we and of related the the our diluted net just or share, and to the million quarter quarter costs, slides, the $XX.X diluted vessel $XX.X or was results. $X.XX the integration per $X.XX When loss to we merger

the were could discuss a Crude for million decrease I’ll each for Panamax primarily Suezmax, average business year. or million Aframax of TCE’s you beginning resulted of Tanker and to sectors. XX. the last the in segment. first lower the results I with to the quarter charter segment of The to daily segments Crude in impact time from ask of if slide equivalent VLCC, compared second quarter, $XX turn our Tanker Now rates the $XXX

The second substantially the of daily INSW for Turning this revenues $XX million by was quarter $XX lower Product million by LRX, average This second left, daily XXXX also to blended compared of Overall, compared top revenues the Carrier quarter as XXXX. the was last for LRX reflected last year were to average were second quarter, across quarter. the lower principally driven to quarter TCE in segment, decrease compared the earned $XXX fleets. million our consolidated period-over-period million, for quarter TCE the due rates and $XX in second MR fleet rates chart for the in year. to to fleets

$XX million page, Looking $XX in compared adjusted quarter the of million lower XXXX, average the to adjusted top the to EBITDA daily turn of second rates. right by driven quarter, was EBITDA in in again

last period. TCE compared bottom $XXX revenues $XXX prior a XXXX, the XX, XX look the On million for months we Consolidated sorry, year XXXX, $XX the over of XX and results million at to and and $XXX $XXX half the million, EBITDA page, ended LTM respectively, our the were basis. adjusted months million for year-over-year last million -- on June and

like in the and track the quarterly slide beginning shareholders I’d returning to Now of since well $XX over record turning returned to to XX, shareholders We’ve to share XXXX. our form in as as highlight dividends, of special million buybacks. capital

can over are dividends. purchased $XX value we share X% the merger. we remains in committed shareholders or further As authorization quarterly XXXX continuing nearly on million cap, to share utilizing priority Based We paid and program you further in immediately from value see INSW -- our $X.XX closing unlock dividend shares to pie pre-merger regular in to and share to year-to-date. outstanding per a of chart, $XX.X us the a and paid shareholder of a Creating pay to prior for XXXX million our $XX worth market special opportunistically this dividend repurchase $XX X% and our million enduring a quarterly post-merger. an X% approximately represents million return

earnings review turning a and third quarter Now second XX, slide update. we’ve to provided quarter

an at day. average an of For average far, and per of spot -- XX% available our at QX, days an per days day, a of $X,XXX available XX% spot of spot Aframax per we the XX% days Suezmax of XX,XXX LRX in of $XX,XXX QX spot XX% of VLCCs for day Panamax day, at day, booked our results a days per approximately thus our $XX,XXX proximately look available and average at

we at Handysize $X,XXX third quarter approximately our side at of day. XX% On spot MR per spot day per product -- the booked XX% XX% our days $X,XXX of days and

XXXX, Now and rate rates breakevens per our -- to These June slide. our are vessels cost, breakeven if expense. interest XX, owned months. expense months you costs, all-in this amounts service on International which cash operating must costs, the overall are principle debt cover for as as drydocking daily the cost to earn was the XX, illustrated own turn scheduled slide XX XX day TCE over Seaways amortization, ended G&A vessels vessel means well cash last $XX,XXX the

per On the breakevens excluding amortization. for shown current day. slide the is principal was cash case, the this breakeven In also months $XX,XXX XX

of breakeven INSW chart to larger far estimated right-hand refer all-in which of combined shows Diamond I side bar vessels, S the Now as the will the for the fleet. daily rates fleet inclusive

the cash per the next for Over the modeling XX for you months, the as to see for right-hand day, time, breakeven combined $XX,XXX in guidance fleet combined cost purposes. some this your side. the on like provide the company can box At is I’d

includes remainder we which the similar various for management OpEx, of XXXX, all other follows. For costs, expenses be running regular classes related expect daily fees as to and insurance,

each $X,XXX Handysize day. and excluding In case, day, per finally, per COVID-XX. per $X,XXX, For $X,XXX and impacts Panamax attributed day, to per VLCCs for $X,XXX for Suezmax for Aframax $X,XXX day, $X,XXX MRs any

by again for in can company company with interest quarter. for we about you Continuing a million projected on the XX slide an the expense refer per $XX be to the CapEx, basis, guidance For days appendix will expect XXXX for combined update. details remainder on off-hire combined quarter, cash drydock, cost

reflects now remainder the G&A merger. INSW For factor in previous G&A expected transitioning quarter combined, synergies the This Diamond as both $XX in the and well. cash of million approximately to of be a year, per XX% region expect the for from for we of S, guidance less

amortization. $XX the finally, be quarterly are achieved synergies cost expected million XXXX. about in figure full million income And for we is quarterly depreciation expect stated, and in $X previously and to equity As

VLCCs. to quarter, turn quarter liquidity left right, XX could was Now moving slide $XXX principal EBITDA JVs two And income received of are principal We scheduled scheduled were $XX and sales agreement $X to positive vessels result $XXX total the in million, from delivered that to deposits build capital payments cash Seaways for million $XX expended on from million cash in total as fuel $X quarter XXXX. was other cash net the and in you CapEx million bridge, of $X quarterly Finally and of debt positive dividend our equity the the International of and buyers liquidity third drydocking payments if working the million, adjusted dual $X be account interest our cash impact installment million on of our be of from FSO on to three yielding $X second part at with the million, distributions end interest cash $XXX by JV first in and our $XX -- LNG taking into $XX were million million. with and million. of the undrawn the decreased and during in We revolver, of the million $XX approximately quarter million the million the and of charges cash to

As of mentioned, approximately $XXX total liquidity as at million. stands today, Lois

briefly slide like sheet. talk Now XX, turning to our balance about to I’d

pre-merger $X.X to As of long-term International $XXX June had XXth, assets, debt. of of seaways compared million million

addition, million remains -- date In still had million $XX of that of that undrawn and $XXX revolving we as credit undrawn. remained

net or was loan side can our the our see value that conventional slide, to of was XX% at net you As the our debt-to-total right-hand date XX%. cap on fleet

and of X.XX% and we with is fixed continue Now The weighted a accounting XXth the average forma net XX% loan-to-asset provide a and company to as cost approximately for The debt mentioned, low Lois maintain we slide debt or if amortization was well note of we of schedule interest capital, facilities debt XX% the balance our move cost billion, ratios XX, merger. to reflect net debt-to-capital this the net point on XX%. quarterly at slide total post-merger pro a debt this as June listed value hedged. note combined $X.X just XX%, of including and as of of competitive that highly leverage

would vast I’d strong out dates much are majority no of diverse relationship turn we back banks. major to remarks, to the earlier XXXX. than group, like support closing have debt global continue your for call which Lois, XX you banks. highlight that I concludes addition, point that leading very this now the the shipping We to to I’d like finally, In And -- appreciate maturity matures group to the my ongoing of includes comments. the very

Lois Zabrocky

you call strategic vision conclude XX, I new On the the of so Seaways. our by slide Jeff. want detailing Thank to much, International

suited We’re leader, are highest and position sector energy and operational shareholder a and power focused customers. on focus, fundamentals. benefit and record and strategy, best-in-class capitalizing capability evolving leading achieving to needs the taking our our track tanker on alleys, industry discipline capital of as balanced scale With positive value. long-term on executing ideally our Based meet poised to to on further the the fleet, we’re steps continue combined we with and allocation from companies diversified enhanced to and crude and ESG standards products maximize

demand our sheet environment. operating the as back and will opportunities strength, platform, our OPEC+ in to per following our expect fully -- XXXX. production on their and capitalize diverse plan. for nature be increases $XX Based shareholders as benefit inventory our oil rate merger, costs We revenue global attractive million completes of we as destocking of $XX to sizable in as Seaways the of recovers, positioning synergies realized million upon the balance have the close merger, we accretive Complementing maintained

which to part this financial focus, strength, to we’ll capital of served our us allocation at in point preserving accretive the to continue As balanced and in strategic execute cycle remain strategy. true well and has our

and highlighted regular $XX.X we’ve reiterate, in per returning by as share will dividend, of recent of form over million the million $X.XX authorization. shareholders outstanding to dividends, our representing XXXX. We our capital beginning related million a quarterly share $XX buybacks merger well share, as and since special as $XX repurchase prioritize shareholders, quarterly returned dollars dividends to the To

well larger term, gap. recovery to creating product crude rerated the shareholder upside upmost Thank increased as near open to we close tanker value have the over and both longer as and will market leadership Based we an Finally, potential we now believe equity market Seaways. to it the importance on of much have enduring and industry remains capitalization, our questions. the NAV and you to very the

Operator

with first you. will the ahead. Instructions] Thank And Please from Clarksons. [Operator go question Nokta come Omar

Omar Nokta

Thank on officially and you. morning last Hi, Diamond closing deal Hi, month. S Good Jeff. Lois. the congratulations

Lois Zabrocky

Thank you very much.

Jeff Pribor

Hi, Omar.

Omar Nokta

mark, and which Yeah. I’ve had mass you you mentioned getting is Obviously, a to obviously gives significant just vessel question. footprint. a the critical XXX

something some are older telegraphed. You is ships which selling you and

So in chunk away I to is in the those maybe in a and those about particular, involved capacity wondering… just But of niche a surprise. trade ask have been want segment. take just not fleet I sold do the for big your Panamaxes it’s South and America you so know vessels that

Lois Zabrocky

Yeah.

Omar Nokta

to changing kind those, about trade … of those the in future? be replaced or are is that

Lois Zabrocky

we we’re No. strategy Definitely, not a and a International. And Kong No. is we premium Panamax then, is the our will Omar, convention And of really the where strong or mark. International indeed, sold of will turn XX in the in those component part be those past Hong green what recycling vessels, taking niche of it’s and in right we done earn trade critical XXXX tankers what to now. some with Panamax trading recycling prices consistent for early XX-year have unfortunately, in really are supplementing our advantage and operate

of chartered In a vessel have in recently couple years. fact, we a for just

of pool XX going the in today. the look are prices the vessels are to because bulk will to strong presence simply Panamax where we And sort of we So is turn recycling our of take years and because back strategic, that advantage very there. then Panamax old to tactical, up wanted sale those

Omar Nokta

we increase Lois. seen clear. -- and the significantly And prices have it’s year. scrap Thanks, -- this good point, you’re pretty It’s it. Got a

at you share? sell. overall, give Just assets would Any you specifics the moment, non-core can maybe question regarding, you’re color sort -- as of the on looking to non-core what at you on any can deem the other potentially

Lois Zabrocky

that, have of vessels in we are flow calculation Well, a on say fleet all where constant prices going the on versus our in their discounted we cash their always market. the

prune, we part advantage take will it capital our just of and to to so, where continue look is can vessels older that the preservation. ongoing And a strategy, we of are

Omar Nokta

it. just ships the Got Lois, about just you’ve XX to to Okay. And final agreed sell. wanted ask one maybe I up, follow

You low are to going But to to there seems $XX million cushion. you netting on bringing the at a that vessel $XXX generally be and that there $XXX a Is about little after relative least talked million repayment. being what too on nice I in speaking, had have -- can am get debt Obviously that. cash just the you or share I assessed aggressive anything over valuation?

Lois Zabrocky

the happy is being of some say and are ships mentioned, What such that Omar, sort and as and older prices achieved, of for these vessels heritage that them, we’ve fleet I the the some have sold as would Panamaxes, are detail these on not of list you I through do go Tanabe mortgages out, that it as we’re with recycle. Seaways

So up has a really I market you not. value had the and prices have are have secondhand even are those secondhand strong spot -- held recycle on ships. value -- And though different the as secondhand said, but very those may prices the

ballast fleet. prices And achieving shared drydocks So we waters. saving be quite we happy particular, feel across we’re in think, that the that the on that factoid the in where I with we’re we’ll

vessels are ballast treatment have due Board. not saving we’re imminently systems and water do So the on some drydock of that

outlay and that. that saving prices off-hire, well those expense those we’re reflect some that of as and capital as So

Omar Nokta

Okay. Appreciate That overall. makes for will color the you that. Well, it sense. I over. thank turn

Lois Zabrocky

Omar. much, so you Thank

Omar Nokta

Yeah. Thanks.

Operator

from next with be Randy will go ahead. Please Jefferies. And Giveans the question

Randy Giveans

Jeff, and is going. Lois what Howdy,

Lois Zabrocky

good. Hey. you How We’re Randy? are

Randy Giveans

Yeah. Good.

Jeff Pribor

Hi, Randy.

Randy Giveans

is hot topic a Congrats. the industry. in consolidation Congrats on the certainly merger,

So glad here. something making happen INSW to actually see

looking of guess merger. I So at the the benefits

You will cost mentioned in XXXX. synergies the be $XX million in

if over kind savings curious flow look statement? for those savings of timing we income through the cost time ramp should the exactly Just to it and of or the cost where

Lois Zabrocky

quickly having for a seated company, the away, dirt, to course, of example, facilities. costs auditors, traded fairly to to of having realized, to cost external -- having really, policies, are being insurance low be for these having of some example, immediately rent to D&O So boards, publicly fall

So vessels revenue costs savings that additional we manage away those the pools a on fall those ultra the are of structural gas we we Norient and product is vessels shifting On taken which on costs, such types over be realizing structured quickly. are capital the the Penfield. we you have look and and commercial from will time. more will that’s will Suezmaxes And have our additional very integration and plan for from and over the CPTA, to perspective, areas, pool to where as,

those so And revenue to accrue believe immediately. synergies start will we

Randy Giveans

Perfect.

looking crude on industry-wide of you debate And then product outlook. Okay. of There’s kind a tankers. clearly, both the to been both kind operate, and strength of in terms of

to it, do outperform first which and let’s call in the sub-sector improve you So other, which to I is likely guess expect XXXX?

Lois Zabrocky

into is would then the flowing we’re the we look East, even talking by over double-digit Western simply as strengthening And the strengthened Basin. now today in LRs and sector, and and that is last speak, time relative, everything -- market particular, through really where has So LRXs in the is and MR low Far at charter the I still returns. equivalent week

can you the see However, on Carrier moment Product side. more being closely crude at the the fundamentals then balanced

Randy Giveans

Got it.

Okay.

Lois Zabrocky

observe. what the with we zero Delta crude variant. adjusting really side, expect this a from locking down policy, so have right we tolerance they’re as now, They China’s COVID So

demand recovery we’re or out it in So resilient. that’s lead through more been we But China not has but of yet, in things. the -- post-COVID very affecting

So we do expect strengthen the XXXX. crude also in side to

Randy Giveans

so Thanks it That’s much. Okay. me. for

Lois Zabrocky

you, Thank Randy.

Jeff Pribor

Randy. Thanks,

Operator

Ben be from ahead. will question Please next the with Nolan Stifel. And go

Ben Nolan

Good Jeff. Lois, Thank morning, you. All right.

start are end free there, assets to appreciated. want I well, values and of is, couple, have it liquidity, a that asset you’re got I’ve talking So about the something you selling older at long short with up that

wait million You’ve better share done share you gap things for closing the kind repurchases you share, you to a bit closing and bet or did I down using of repurchase How just year. $XX do first? the of need little value about get a last proactively think, hatches value, to think the

Lois Zabrocky

and I’ll give how you, I’ll Ben? take stab So, to And it my first Jeff. are then

think closely do the be that I So, level. market been spot continue breakeven below have lower that watch that, Ben. very imperative rates and recovery, it The the we demands developments in is to experienced, cash been due to have

program. priority to have And about number still things. of to over a one. beyond repurchase turn kind that talk that, So I’ll $XX balancing do Jeff it then we clearly, is million And

Jeff Pribor

began balance the really of been fixed we instituted our that the Yeah. and that call. we sheet quarterly dividend on -- put to but quarters debt redo flexible since six It’s that anyway, for cash with allowed the more where mentioned only in shareholders dividend it’s amazing, we return to

far your raise are going And doing going and both be we we’re benchmarks, to single-digit to so, I we to patient something think, right? last just shareholders, shareholder going So a got to to think, it, however, question and industries, and what you -- to how that. like, if keep yield, to the those are do go. more look year other numbers that’s It’s what Those the do, are we and it. good some total, to -- answer return help time we quarter-over-quarter numbers, like at high want X% I so you this X% year call we’re have to continue just is, with execute those we stock at

-- say to it’s crummy do I continue the more can to say balancing, it’s work in much think quotes, day we’re eye as But team here, the we an to some new said, this, And just is legally just on, on. Lois rest whole I’ll and market, record story. the the mean, members, that as said, welcoming it’s a a of the is merger, and whole busy tell we of of end going track the do. factor the all so is think because allocation that, Seaways that summer I to with closed. it with least, least, Lois well to not work what going done everyone been yeah, time there’s is continuing get to now with And that to for capital course, and preparing there’s team on that over kind we earns as a of say But done. put but the do And lot but been go of closing So, great we’re valuation. we’ve know, and the better the other the I of which quarter-by-quarter. how to only Lois

we say, go tanker this the look, is, hey, need there to and ahead. to largest So company diversified traded just now investors publicly that talk is

six quarters going around billion a of got actively cash of we XXX track $X have $X -- got over assets shareholders. and record, We ships, to returning and growing have

be miracles about happen patient But overnight. walk So then the just don’t keep walk. talk the walking we’ll and to talk we’ll walking doing -- and

time, going it hope to over do I that’s So Ben.

Ben Nolan

Yeah.

assume like that you’re or to level you So a and leverage did there’s assets? are just done as with guess, happen sold -- XX older. XX as share high an the sort the have kind all whatever of repurchases It obviously, still, of list, vein or things fleet looks still those more and need do that sort the -- what you’re you XX falls like it guess, I that you to like doing little -- -- sales old ships, bit increased just older ships. flexibility, running years I have it increased, the of -- and grading Is down in do of right? that fair that but They’re there looks the you

Lois Zabrocky

want moves as continue, no, into come how would a that we up. is we’re to situation. everything will earnings take to we not quickly like, then value opportunistic back? Ben, what will our of we’ll recovery? And say, and values see expect both in the -- and go pace -- you what market These purposeful are half just to secondhand go And account I So, say, the those balance and making we’re and to and that up seconds we

be but turn the careful judicious, So, we’ll continue fleet forward. and to we indeed going will

Ben Nolan

sort does in and my there? long-term what fit business question here. lot it’s you curious, different am that of generator. this prospects light about with hopefully we’re for gears the that doing the lightering what all sort are how on COVID latter are shifting last I’m cash fundamentally I flow think curious been stuff. Okay. or closing about Gulf things strategically going do of a How the Coast talk we And then and the nice that forward, of in now asset don’t in business, this part you’re

Lois Zabrocky

Ben, touch I it high in and business, it’s think, with close service that a fleet, size the quite strategically it’s us very to the a lightering intensive. our fits a fleet customers, spot brings of

in, but vowels allows just trading by U.S. particularly of, relationships. been have COVID, have So really coming it deepen everything The out affected fewer Gulf, the base. so to pretty you patterns diversified fewer a else, right? the coming barrels like we And

having is see we So Panama strength.

Coast on U.S. West the lighting in We’re Bahamas. the

that resurgence oil spot anything, haven’t come increased. a us. I a where in it The to will lot, So, particular, have volume that. saw And these start though we increased we we in with with you even if strong has add to well see trade you of of in month Jeff. volumes seen June, And fits a race. wanted think know along lightering don’t underlying

Jeff Pribor

No. It did recap.

Ben Nolan

All Thanks, it. guys. Appreciate right. Yeah.

Lois Zabrocky

Thank you.

Jeff Pribor

Thanks, Ben.

Operator

next from the comes ahead. Please H.C. go with And Fyhr Wainwright. question Magnus

Magnus Fyhr

Lois. Yeah. morning, morning, Jeff. Good Good

Jeff Pribor

Magnus. Hi,

Magnus Fyhr

Just I strong a have a liquidity. have I balance the on sheet. mean, you question

you and assets have more some probably some assets to sold left sell. You’ve

the the picks up, Diamond about there’s million With $XX looks like from merger, guess, it the amortization plus I side.

liquidity extend toolbox What left to and for uncertainty couple deal paid recovery do with potential the and the guys to a the to some have You address this more dividend a a delayed quarter? with here quarters? to you this of run in runway

Lois Zabrocky

jump there, to want Jeff? you Do in

Jeff Pribor

a million that quarters, with good it -- with all, So if the back approaching as we of strong deal, couple all that and helpful. positive we COVID the associated the lot sheet start yeah, Magnus, of the $XXX and ended cash fact execute storage a was costs Diamond floating to stock clarity S really of we us that, year the year it and were the opportunity a last in over right? far place with there as merger, I liquidity, first well started Yeah. rest, the balance we or super on really gave good Sure. with a up Oh! from and bump

release as strong $XXX we’re press completed in we at we’re most in we of right? after even and of liquidity plus, the is completed, those and listed So the position. a now, in with be deck said the slide As script, the asset sales, merger really still to

for else. number from they have we off kind that was last the things we vessels I facility that tools need So didn’t year. that unencumbered INSW toolkit, and paid the facilities or fleet, of a to of core transition other don’t do But much say that the the there’s what sorry, correctly,

the if still that, vessels older at we those sell them, are those want some like are to day, us. Panamax valuable very so to don’t not of that So, recycling

those. always You can look putting at leverage on

good be So, have, we we more that rate feel now there’s for, turns of think stand where out of number allowing tools a right but environment. it this even and a I we really if about quarters couple to

hope that I So answers but. Magnus, question, your

Magnus Fyhr

size revolver, extend that company? any some the thoughts the increase to amortization mean, of mean, the on consolidating I debt, increased for with maybe or Yeah. the I

Jeff Pribor

do I would I mean, at this yes, to sheet this it we do that a just transaction, we we balance in look made saying, lot didn’t gymnastics, of both lot anything good Lois the more order a -- the I way, put it’s around going it to on. that just really was I that much put to as close will I been need have and mean, complicated. had would And if balance sheet

we’re seamless. S really significant the have group with that, the that bank grateful with really overlap So former Diamond bank was legacy group we

the of near-term said, which there’s hanging probably We that that million quarter. in balance a of $XX that a you’ve out some the there there know terms sheet. maturities. got low there’s gave charts of sure, smoothing in pretty pushing -- like or absolutely, Now optimization But, amortization, fruit you or robust out we on the evaluating

we So at optimize we the we no But, always balance sheet. can yeah, to to will look things -- it. do urgency

do So we’ll that.

Magnus Fyhr

Thank Well, you. Great. thank.

Lois Zabrocky

Thank you.

Jeff Pribor

Magnus. Thanks,

Operator

from next Lewis will be go The with BTIG. question ahead. Please Greg

Greg Lewis

of ask, in for talking morning, I in of terms selling Lois, dive what fleet. profile, about a I pick we the just we our of no good them retirement, and but about of, vessels, wanted they’re Omar kind longer talk Hey. was Thank the up not fitting you, kind and everybody. guess, as little hey, some bit I’ll and… the more to were

Lois Zabrocky

Yeah.

Greg Lewis

what you’re as wondering Diamond at ship are then looking S I’m a going -- rates rate us we are and that is, rates in of the vessels your the acquisition, think of -- market, while. a how the -- for for secondhand what it’s doing about was type in rates higher or … look been I really whether well appetite prices talking And market? lot haven’t

to there tonnage? some was was somebody of interest we’re flag follow where one-off was there pick as that in understand, a of was willing buyers saw upward price rate kind environment, like multiple kind mean, I So this just -- we’re and more kind that of trying to to that or lot you without of asset seeing inflation, through a early was that there, plant of the there assets? are

Lois Zabrocky

up that asset see and has of Combination really group, it recovered. deeper you -- individual be and has deep. have sales the price steel then market holding there that other gone It a it’s and some not in and a the But Right. of kind that’s will extraordinarily in the having secondhand of the Yes. held when -- up. reflection The the and that recycle market. rates definitely of prices, holding piece of up newbuilding new is side market

multiple ships have on. MOAs interest buyers each from the that we one is there transacted on of So

Greg Lewis

probably question one. until Okay. Great. And this be just a you’ll getting sure then you another that is do I’m

You seems every somebody it’s could those I maybe other towards market? some a talk contracts. migration VLCC is I there is mean state successfully three alternative won day little mean -- fuel about talking right LNG tonnage? ESG bit dual type you of fuel is LNG that and now a of -- contracted what LNG or the Is tenders dual for ongoing about fuel. the

Lois Zabrocky

they’re really has do you’ve we There seen deep is this… So most I vessels So that Aframaxes be that are inquiries, seeing very right? inquiry open an you incredibly building So, market, definitely see to look will that believe LPG a the dual burn burning, again newbuildings fuel. Certainly, LPG, you’re Product been still the of Carrier and couple and right? continue at not methanol market, VLCC. some right? bespoke specific, for if

Greg Lewis

Okay.

Lois Zabrocky

something a us is everything, talk we call we’re with we and obviously, the that’s because …this foreseeable up are keeping everything on, watching this for following to -- future. is of innovation the be about going every going for all

Greg Lewis

Yeah.

much, very All everybody. Thank right. you Okay.

Lois Zabrocky

you. Thank

Jeff Pribor

Greg. Thanks, Thanks.

Operator

gentlemen, back and over conference any our concludes this remarks. to the like Ladies question-and-answer Zabrocky I the Lois for would closing session. turn

Lois Zabrocky

being to second to want for our price XXXX. call. Seaways we XXXX of on recovery I’d quarter and everyone end tanker really to forward able market going look and And earnings joining gap XXXX to into just our net really thank our asset into value close

thank very So much. you

Operator

conference The thank you. attending for you now presentation. has today’s Thank And concluded.

now may You disconnect.

International Seaways (INSW) 9 Aug 212021 Q2 Earnings call transcript