INSW - Earnings call transcript Q4 2021 | International Seaways, Inc.

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Operator

Hello, and welcome to the International Seaways' Fourth Quarter and Full-Year 2021 Results. My name is Katie, and I will be coordinating your call today. [Operator Instructions] I will now hand over to your host, James Small, General Counsel to begin. James, please go ahead.

James Small

Thank you. welcome fourth Seaways' XXXX. quarter and call release everyone, the for and morning, to earnings International conference Good fiscal year

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

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

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

over Chief to let Lois to call and the Ms. our Executive Now, President me turn Officer, Lois? Zabrocky.

Lois Zabrocky

Thank much, very our James. International you you our discuss fourth Thank everyone. and to Seaways' full-year joining XXXX quarter Good earnings call results. for morning,

this call Ukraine. invasion this Russia into morning, hold we the continues As its

of in our and by All violence, of those thoughts way those in morning. affected are all this the danger's

Turning Seaways. results, pivotal was to Seaways' XXXX a year for International

to July March difficulty] this optimism pull demand our improving our from [technical create by from As of position, Projections strengthened tanker per environment. improved on has feeds demand runs for ability value an this enhanced we enduring increase our capitalize for shareholders. This market returned. million to barrels and to tanker year. Oil we our rate market year, to four refinery day, an increased for

barrels States, with XXXX. cuts and million affirmed now to turn month. of has Inventory where for increase United of their X.X at we about highlighted recovering. shareholders. transformational XXX,XXX to our is summarize add slide return our is momentous The our remainder company, production at have per XXXX, as barrels the structure. level, built day. Canada, balance top-performing is fleet and OPEC leverage, in by in we year. over balanced advantage maximize Since ships an per expected merger commercial substantial Non-OPEC in April XXXX. four, per XXX,XXX day. continue This unwind XXXX, This developments. the since take capital ago, sheet shareholders. success our record, optimizing market Guyana, will lowest Our have And pace is accretive independent our completion continued. we will capital to strategy favorable our Please supply at Brazil, years are tanker in becoming five should strengthening barrels should a of an employed Oil demand, the for oil executing With and significant are value operating we our pools. order allocation draws to Inventories mentioned, our and track

returns cyclical at quarter, been purchasing our We're our approach the tanker is of reflects XXXX. of of of the bullets. over million balance dividend XXXX, ships first Combined returned of outlined proud of series we strong regular to to this repurchases And proven third years, and conditions, $XX in component to as in $XX to million quarterly market returned has $X.XX, In the $XX $XX.X our addition as that while in lows, This sheet. shareholders shareholders, with well two fourth shareholders. very a last has challenging million nearly amidst a paid the have importantly, special Seaways key in quarter. share million the $XX dividends to capital million returning maintaining in

Diamond series the net merger asset our with doubling of company. the S listed Seaways tanker slide, and XXXX next our the the bullets of now nearly on we U.S. is upper-right size. diversified fleet largest completed in value our Turning to tripling

in expect realize over in $XX XXXX. million We to synergies

in average $XX of our lowered in all benefit $XX our million, implemented of values, and older we of permanent years. age During of proceeds efforts, the the age This and a These cost After on million. capitalized has estimates. which to refinement secondhand deep an years. demand. healthy teams including resulted steel of represent of approximating synergies sale consolidation. program. structure This nine the cost optimization repayment recycling fleet received XX did merger, to And aggregate our integration dive a a after approximately XX net strong our We resulted below performance, into tankers the profile with fleet or debt historic a

strong bolstered delivery presence earning And deliver in counterparty Panamax our the Panamax this we earned built pool, same venture, International. Earlier in to-date. the per our join we where $XX,XXX the Eagle next to joint LRX. the of built We XXXX week, day a have have first XXXX MR. Panamax we Seaways will took will Eagle; week, Seaways niche The quarter over

processed Panamax XXXX-built agreed in recycling to responsible with Kong a ESG line all accordance been in with also our oversight commitment convention. recycling, We sell our and have Hong In February. under the vessels recycled to for

the sheet further maintained a have column long-term balance Seaways success. for left-hand strong bottom the slide, to of we positioning Moving

We attractive financial our capital will have including initiatives structure year, number more made call. of and significant into get our detail Jeff a the in that financing this his on of progress enhancing portion flexibility

loan of approximately debt, leases senior with tanker balanced and to some liquidity in effectively value markets. $XXX have With with options, operated million, is bond. Our a largely XX% small fixed we of challenging total net purchases yearend

$X.XX our to cost was on our gains loss Turning share or results, sales. financial vessel and fourth per net $XX merger-related excluding quarter million

for fourth environment, million same items. we or full-year loss million the the the and $X.XX rate year. a quarter of million excluding share $XX In $XX weak sustained generated Our was adjusted for EBITDA per net $XX

a Turning is oil the address Ukraine energy overview providing in to creating market, fundamental tremendous Russia we underlying volatility slide of and demand five, while the driver the the tanker balance. supply situation broad and in current

all-time million nearly fading to highs boosted United oil States, XXXX. barrels XXX anticipate X Oil production growth. over world to impact production per the by as in in global contributing end XXXX the Guyana to million increase mentioned Canada, and XXXX. indicate to of the on demand this day is West With pandemic in the of day Brazil, barrels oil expected projections demand, increasing at We per the

price by in increases may has of cost its be today. demand a high Incremental dynamics tankers. the This moved targets on likely based compliance challenged as these production sea. short OpEx oil very While for to production country, fallen by is environment be

supply tanker in Iranian per over increase watching negotiations the moment. which by day year. We discussed the of And reduce supply barrels the million a by end are of closely would lifting could commercial outcome of sanctions oil we this as the

chart, With such as grade to in of XX lowest bottom days demand Brent the seven providing buyers, levels at and oil inventories reduced supply cover. from strong right in western have find been Looking WTI Russia forward years the are to struggling demand.

six, Europe we've marketplace. We Fareast even are exports the to On in turn crude vessel the and we long seeing U.S. supply. the to slide been to hauls missing that

to the years As you same X.X% since grown the tanker chart, fleet on start the increased can pandemic. left has bottom global average the fleet see XX age of the At the average. has nearly time, of the in

of the highs adjusting Recycling to limit potential volume believe We early as and XXXX has see 'XX. into in after inflation. growth continue the half recycled historic are increase we to recycling fleet particularly latter for values

In to Iranian removal trades terms these the stands older to as that are tanker assets factors by normal international of the to limit largely markets. expect at oil, lowest This would sanctions because the outside the recycling is fleet the X% of continue book trading on serviced sanctions relative level the overall are of The several size we vessels, order by lead the deadweight. supply. sanction ever

XXXX XXXX. are shipyards often newbuilding contracts in filled with slots for other sectors, with reputable shipping Foremost, the late earliest in or

And tempered finally, highs. has ordering. of us prices ordering tanker by to on Secondarily, a around from newbuilding owners Jeff? has are financial And Jeff. would to over will regulations. limiting near had the now future like this turn give further time environmental the dive call review. also he And been the effect all uncertainty I

Jeff Pribor

good Thanks, everyone. Lois, morning, and

reviewing results to quarter more in detail. directly move Let's fourth the

the loss Before of per let to our $X.XX EBITDA And $XX share XXXX. results. the million of in quarter quarter, share just turning consolidated $X.XX $XXX.X million per generated for In quickly or $XX.X summarize the or adjusted million. the net an me we diluted diluted fourth to quarter deck, was fourth compared

write-off excluding and of merger-related cost financing aggregating vessels was of impact per However, impairments, share. million, $X.XX deferred have net been would the -- million diluted or extinguishment the on debt, of loss loss including of $XX.X the $X.X cost disposal

Now eight, at the in summarizes year-over-year quarter EBITDA slide and The both this in of results crude and of the revenue the the XX half full-year and primarily of you QX lower business the last blended if fourth to sectors. top resulted decrease located the page. months rates product bottom turn slide average slide the our impact segments for half oil the from and of in

slide Now you earnings a quarter as to of turn if nine, XXXX quarter review update fourth and first provide this we point.

QX $XX,XXX of XX% of an average our $XX,XXX day, XX% day, days XX% booked approximately available at average an our day per per spot spot thus in per of Aframax/LRX spot $XX,XXX days at an approximately bookings VLCCs XX% $XX,XXX far, days Suezmax average available average Panamax available an day. at for spot available also, we of For days of and at of of per

XX% to XX% product at day. the an change per market subject our be approximately add average an side, with quarter as handysize I for would term. average to quarter days booked rates Turning of approximately MR evolving $XX,XXX immediate these we global geopolitical first of spot of to should full days at significant our construed per the not in that the day in events and of spot $XX,XXX like guidance rapidly

per estimated Turning to for on is cash XX Seaways International January to this for breakeven slide. be months estimated full cost XX beginning breakeven illustrated X is overall as $XX,XXX TCE the rate next months. slide the day XX, the

costs interest provide, this point, cost our and operating year always I'd means are service expense. expense purposes. for we costs, cover costs, fleet provide must costs, daily earn vessel modeling also to and all debt the like which to G&A that cash At schedule principal for in your As these guidance drydocking

fees, line $X,XXX, for measured Suezmax day. day, and $X,XXX XXXX, various day, for for for So, daily all this for our per for $X,XXX, for which VLCCs expect we year similar related includes $X,XXX Aframax Panamax MR per $X,XXX, OpEx, classes expenses [indiscernible], regular costs, Handysize per insurance, $X,XXX

related million upgrades respectively. in to We XXXX and and requirements. costs expenses other EEXi million anticipation are CapEx $XX.X to These systems ballast expect $XX.X of water Synergy treatment Efficiency be and drydock

interest refer $XX to to For on can projected in we expect you XX million XXXX drydock $XX and expense be details off an to the appendix cost days guidance, approximately for CapEx higher Continuing million. slide with update. by quarter,

we we For G&A million the of depreciation And to $XX expect in $XXX finally, and be income in and million cash the expect for amortization. approximately year, region $XX about million. equity

million if synergies. to we can turn slide Now I ask to XX, highlighted you in cost $XX

these $XX the expenses based to Diamond that in been million savings were timing the flow as that office companies a with $X contract over year will two management and an and than totaling $XXX separate. XXXX. administrative At to administrative are synergies expenses in slide, million S. have confident saying are fees, connection million insurances. with but result the board This remaining natural and in $X the connection realized synergies synergies this technical the last you'll of includes the as $X These merger very illustration ship related merger, realize $XX savings team savings dollars our ebb And the management to incurred, company would of the to expect more of We related with cost public in these capital audit the consolidated OpEx year on There's of million. bottom in and fees $X based see such general million consolidating of be expenses, other savings. we in of as with other are a management tangible and million cost on of determination

deploy anyone historical vessels given revenues. we of $XX generate to Finally, greater compared with who believe million Typically, of the the revenue recommend tools we in INSW rates million the TCE scale, now commercial to vessels our not add model by synergies over management, of with earned the we these $XX we to do other your compared tools pre-merger. which benefit performance

value there You've the historical this we versus TCE estimates, in is captured likely performance. already added just are pointing pools your out, in

benefit synergy another merger. this the is of So,

to XX for go bridge. cash let's Now slide our

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

at our JVs the adjusted from Equity JV. in were million FFO the and $XX installments quarter, million income dual expanded also decreased fuel We've million. cash our from the During we CapEx, EBITDA positive $XX million was which net in in $X from repayments, newbuilds. JVs that $XX connection by swap million, cash distributions the on financing $XX a $X drydocking pay facilities. million credit transactions totaled and included the proceeds these sale sales, of discuss proceeds enhancements from just pay to vessel payments revolving leaseback a issues repayments a debt liquidity The for I'll of with voluntary debt minute. are in several facility, Sinosure on down LNG

and million cash that we quarter Finally, account and undrawn into XX. and debt $XX and of $XX working the other result service, million changes, approximately taking total $XX dividend impact of $XXX that the $XX at the million in revolver million is $XXX capital quarterly December million ended yielding million at

on fourth to turning to liquidity slide the briefly sheet balance Before touch specifics of our quarter XX, I'd and like enhancements.

As we've of net in proceeds yielded QX. a mentioned, fleet program million implemented which optimization Lois $XX

of of million, under that refinancing used the therefore, loan think $XXX a by prepay balance existing The $XXX into outstanding liquidity discussed million to signature approximately repay lease earnings as our million arrangement $XXX revolving Sinosure facilities. I overall calls, financing was our had collateralized earnings which previous credit the increased our and Additionally, to a facility, last used in we entered VLCCs six for this of credit call proceeds facility. were

two Lastly, in of with three we refinanced proceeds Aframax two MRs through was completed the XXXX, these $XX completed in at fourth net and transactions January. and million leasebacks, were

Now, to sheet I'd little discuss our to like XX turn slide a more. to balance

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

revolving as of as we addition, December had undrawn XX. of mentioned, million credit $XXX In as facility renamed

bottom debt slide, our at capital see can the the on As XX%. you total left stays to net of

program complete quality that debt January, leaseback arrangements. are and LNG hedges portion it which X, attached I'd XXXX the be increased the the now to also end, newbuilds of a is was the approximately financed highlight forthcoming leased noted current net $X like previously structure to are bill of financing paid and BoComm. Since our for XX%. fuel dual to by better for to fixed liquidity a financing year payment in the X our This sale conventional should the million, at newbuilding their While with environment financing in MR newbuildings as value with our stands contract vessels noted, Shell These February. built XX%, or in of fleet loan our earnings fully year's final are announced finalizes and

Turning of XX/XX, slide of to we as completed our debt reflective at merger. look XX, a

with see, total of by you billion million revolving As is our $X.XX capacity. $XXX debt balance undrawn

to As due or debt we our vast continue capital competitive reflects cost profile with majority my concludes maturity XXXX in the and That later. maintain a debt balance long-term healthy a of sheet, highly remarks. of

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

Lois Zabrocky

company. disciplined continues On Since allocation Jeff. for significant strategy, we complementing Seaways the to of you, diversified been our issuing which purchased vessels tanker create to our transformed highlights. acting us and we the company was XXXX, balanced the largest at attractive based Seaways in equity. detailed million any to on capitalize enables U.S. our completed execute have value slide internal decisively spin-off without lows, and capital into cyclical opportunities, which enduring Thank We've XX, growth shareholders. that we $XXX

Diamond the our $XX with shareholders to our capital Returning have balanced we're asset doubled a repurchases. fleet to and size last last our our central in our value merger our and proud net million remains two dividends allocation triple returned component Our capital power. to approach significantly of scale years to S and and earnings enhanced over shareholders year

provides customers, standards significant Seaways VLCC environment the our our newbuilding shipping dual-fuel shareholders is and to linked commitment to and by of the our company financing, first key upholding sustainability the of our and to Our benefit diversity order, commitment our as independence believe our the We board, differentiators. ESG secure lenders. status another best-in-class our that to demonstrated as

the have initiatives ESG companies At rankings our stringent is seafarers. is consecutive is Seaway's on and dedicated by possible years, unrelenting focus of cargoes three ranked top leading crews the meeting the adhering on hybrid Amidst of weather operating both of transportation past requirements reliable, our and to job level remarkable the core been for our efficient rely this the highest ensure pandemic, proud a We as we research customers. of four that a made exacting is seafarers ship's in the This particularly the first model, energy professional energy adhering supporting in our an on well but the working the to reached day. of milestone and XX% environmental our to for share as that have safety number safety model X,XXX safety, have to done to of global We focused over not safe, We're which seafarers. increase our standards. only to ESG vaccinating standards, we're flexibility. a commitment every

TI taken competitiveness of In in TI's founding terms as In Seaways leading over a XXXX, largest such advantage to as sector model, is International, Seaways. commercial ownership, the Joint many our to International world. pools, Venture, office one headquarters. with INSW operators we pool. our of and provide of Tankers operating York Panamax VLCC in the New pool the expand role And ago, years the member, XX established City a active global we have competitive

to Seaways one has maintaining and of of net million. potential I'll hallmark lowest balance sheet balance environment. well to we to success loan take my to by steps industry, structure significant sheet in We're strength, on improving briefly capital environment. upside values been enhance with our diverse Seaways $XXX asset in continue the Another well the operate of focus rate our our liquidity to end as positioned tanker as discussing the remarks

a And this. like open provides you on rate that share day translate that number $X,XXX a Thank rate of have the earnings we in in to conventional million would second-half us incremental charter tankers, over call, it the earlier our leverage sizable could annum. I $X mentioned capitalize XXXX. improvement $XXX see time per we of to of or on now fleet Based note very every about per to equivalent daily the stronger questions. much. EBITDA significant for up As developments XX to operating market on to environment positive we per

Operator

from [Operator Jefferies. Please take go Instructions] first Randy our question ahead. We Giveans from

Randy Giveans

it Lois How's Howdy, going? Jeff. and

Lois Zabrocky

How Very good, Randy. today? are you

Jeff Pribor

Hey, Randy.

Randy Giveans

I'm doing well.

around skewed First current just but jumps are crazy we're a being just routes. of most right, question, those seeing rates, some by Black of Sea average kind the rates, couple in of headline

what at any doing you for cargoes or are classes? for And booking rates more I So, your vessels of are levels various Russia, Ukraine? in around you INSW, today asset specifically, guess

Lois Zabrocky

Okay.

XXth, International let's just at situation. last any the is cargoes questions, of the take Russian a the loading not ports. fresh booked So, this fluid And Randy. since Russia And invaded so we very first the your have for Seaways, on any Ukraine week,

seeing and You're every sanctions trading day. change

then and legal one first number making is safety, So, foremost that we're navigating and sure the out is, Seaways there. at labyrinth

receive discount, the some sure Black understand payments. sure, going For make in able are at, of Sea, where wanting. we And now are you to and have trading a you're that that Euros cargoes to $XX the are there cargoes these

So, we closely pools. of with each extremely this monitoring are our simply situation

you see change shares, wanted, Derek this in high Solon, take that the sector. Of differentiation there on are one Commercial seen the Chief levels starting I'm broader seen those that if Randy, on trading. very increase $XX,XXX to seeing we're it realize top, Derek the from is see on potentially have where cargo we -- just looking a between our it's you're even Black to that, thin share thing and to per of are you ships you seeing, basis, not, course, trade I Aframaxes, down those a in but somewhere Sea, a come going daily And of I trading day, trade you're of before all and Suezmaxes at little VLCC and say, -- know, what in have rates, the When effectively you an and of would this and non-Russian Officer you're that our much around some to bit that kind we working. are have Derek, what jumps and

mind to I it's changeable they're So, Derek? just situation. in that keep important think very highly

Derek Solon

Lois. Thanks,

me? Randy, you can hear So,

Randy Giveans

Yes, I can.

Lois Zabrocky

go ahead. Okay,

Derek Solon

Randy. Thanks,

that, from as to the the today, up around $XX,XXX Lois coming in fixing across a that's sort led mean even $XX,XXX has the a I in sector, coming uncertainty I the in their Mediterranean touched market, aggression Aframax at levels right, on, up grabbing of Lois Russian invasion. the are Ukraine, think yes, come Russian kind have toppy right, risk VLCCs before, coming from like money even rates. up the that's a of market, that, because lot the around rates, Same real of around have these the Lois fixtures day, more markets But day, low that $XX,XXX, prior the and and has, earning Suezmax $XX,XXX, said, were pull the of of is the $XX,XXX, African though numbers. the whereas sector to of seen on that of the board. in back West So, to impacted four-digit said, out with risk the the kind Like Afra up Russia to we all real, headline the markets

a to giving of and [ships the kind is this side. lift all clean So, doing] [Ph]

Randy Giveans

Okay.

Lois Zabrocky

Does that you some clarity? give

Randy Giveans

Yes.

clearly, we're So, is of seeing that's look elevated. Sea we rest -- world so, But is XXX, well, average the can't XX, to of Oh, is which because use some course, Suezmax going at definitely Black just the understandable. more strengthening,

the bigger up Okay. on guess, question. That's following that, fair. I just then picture And

right, tanker on for conflict what implications, of from Ukraine, the this or last yourself cargoes a have so, said In that terms trade to of persists, not if region for in weeks, any in be clearly, loaded thoughts around potential the view? impacts disruptions kind would the your week you if months, not Russia, and any

Lois Zabrocky

to And now it. a had which discounted that. at this kind see see you $XXX. $XXX, of you barrel, at $X or like I think Brent per of WTI see been WTI we're starting $X to blowout, Brent, and reestablishing that morning was

barrels for year, just you're XXX,XXX and these trades, and like another in with day along quarter, I U.S., looks were -- time. come demand this start to of market the And them. patterns per seen can something if also day Europe barrels, for like those million we and haul some you spiking. trading this let's going a reemergence to longer the going where the been say So, think think really see it's missing Western-based we a go, some barrels see that, barrels we've for fighting really to from And had up, which of I

and efficiency a So, product into ended, been trading the start up see for the crude is put all And and you some time. reemerge, the trading there in marketplace. that start bit to you haven't to trades

believe So, everybody in even it I to same do per this, we the look but day, incentivizes they're and at non-OPEC, out said do you pressure OPEC+ XXX,XXX it do increase it going believe supply, the can -- oil at time, and strain know, will I Saudis there their came be barrels that, to those volumes.

Randy Giveans

about yes, Russia. then, All want to I call this that's And make don't fair. right, Yes. certainly

to sales, that balance and for I great shape, is keeps or better. positive note, getting your what vessel guess, incremental is it additional priority, sheet a in from some ongoing then what liquidity and either now obviously, repurchases. share plan share the more finish on know, mentioned So, in so that's coming the clearly is likely quarters? you should Is be continue price see the great to a remains undervalued here? also your as rates profitable repayments, debt I to

Lois Zabrocky

Yes.

has that know, -- capital you cash you type around to for of tip priority, having volatility So, a to market start the constant sure, earners fleet. now, seeing at that right when turn and definitely the the Randy. remains we're looking into fleet, I real into these shareholders we're a the conversations returning in

still on where at a these the other lot pruning tip vessels, we but to cash will continue way, carefully look ships. scales very now really So, may we -- making the you're of

would you if So, say I want comments. as the see to well any to capital to to the that and return I both shareholders, priority other of as turn then of add would vessels, from Jeff

Jeff Pribor

No, I to did year. fleet just you. the job we just underscore what tremendous a said Randy expanding last mentioned And you

about fleet good Not newbuilds, repayment, not merger priority do to to bottom say come to enough aim shares. this capital we there's our the we we do profile, could occasional shareholders. debt to really deal cash be to fuel the the nothing that's schedule, the buying in attractive that's S feel At really how to been up, with at that's So, to is there's Diamond of returning said, as amortization so going point, then of cycle. you growth including taken have allocated more we accretive and that but the care kind of the

very high a priority. So, that remains

Randy Giveans

sorry Great, Thank yes, interview I you. for questions. would all the agree. conclude And there, my I'll

Jeff Pribor

Thanks, Randy.

Operator

take from from Clarksons ahead. Omar We'll go our question Securities. Nokta next Please

Omar Nokta

Thank you. several earnings into is increase far big led Hi, couple series a I'll everything. just a did Panamax here guys. follow-ups. past appreciate substantial. a trading seen, the But from your maybe performance we've as queue. lowest back the Randy to power pretty covering thought days. I you first, of But was that such the spikes thus over in mentioned, there? rates go the Maybe least to XX,XXX clearly, LRX Yes, to asked slide good questions I comment. that quarter pretty of that driving on your the But I at What is

Lois Zabrocky

performed in was under on that basin, the with the first Caribbean on think I volumes opportunistically, QX, bolster our a Those That course know, a International this proud were the we're the their you've and and sector, flipping Joint trade seen of kind older, DTP the trade, charter to time Eagle, then that's picked QX, Suezmaxes affected North and really stronger of America. has Panamax they ins been Caribbean what of of out and QX. Vs particularly of kind And Ecuador And to us. of mean, QX, of negatively oil, more I vessels is in as better Seaways, in also where position year come particularly fleet. the up in ships, on tend in why to you lot bigger had that January, something picking pressure. fuel sister as MR the well barrels quarter, differentiator up Venture, back probably for the over in more South one three we the and

Jeff Pribor

barrels within so now. hemisphere, staying Any Panamax on are helped that's going staying opposed ships, Ecuadorian as Trans-Pacific, the bigger increasingly the closer, to

Omar Nokta

different you. this. that for Randy, asked Thank the Thanks and topic

feel there's you unlocking more potentially be liquidity. stronger guess, thoughts the do to But feel, the is tapped but I guess I Just guess, a more lot refinance? now at And about liquidity/doing would and even that to on FSO then, sources a this now in big sale good you've has cash, you so, the coming different clearly, you joint debt leaseback second, how any you're a point, and do capital of even mean position healthier bunch much that brought that liquidity XX-year I know have soon, up generally clearly, do of soon, contract almost, about up VLCCs the stronger of I but stream quarterly the venture, with starting contract that there? discussions in any earnings a any new securitization been it's I with revenue the on into and up starting that up, unlocked of position, horizon? on that more related

Lois Zabrocky

payments So, answer start before at I we payments funded there call, CapEx on newbuilding three fully this with, on Jeff to and it or in noted juncture. the the remaining the VLCCs that, are jumps would

horizon. on that's have think I our we unfunded no one payments newbuilding So, thing

that's So, set about, be in to up refinancing? I'll to answer of then that Jeff the turn more question to on one debt really thing XXXX. kind things And ahead. team one there and done did Go the XXXX to us the of is just for

Jeff Pribor

things to is and the and dual because all the at window, from of value. great on diversifying source as just which selected like as say, of Yes, just that are, our really mean, sources program banks, these benefit you add what know also would of enhanced little refinancings what is more we last our sure. for build is to to financings support relationships I we year a it banks financing additional we when Well, important financing, appreciate of immediately post-merger, financings to have higher and loan the a a shipping liquidity those did to we, another you there an work, July we give way

picked program we So, the basically it and we selected had, program. we we probably, a executed

of of the we the completion mean They'll something at look Or call, think can quarterly secure certainly MR, announced at small doesn't in not balance log. optimizing of we've probably sort that if have the two, ships transactions smaller I So, as but we're got next the the that's remain. or and program that's so thinking it else. always sheet, our looking sort whether

as So, done. we that have, there's always be things can

a execute in make a place we basically, But and the things program. we to Just put little program better.

find if and benefit is last pretty same that I'll an it's ourselves under partner gives and find this is correct a with evaluation think as with for that, but our a very So, satisfied appropriate our us that And cash the we can we to the now. quarter FSL, fully value. will the good and good that where I shareholders say the on and it's close quarter, we're flex our flow partner, asset monetization, very that

do but a just our [indiscernible] tell of can't be than it priority you our more to partner. that, We expect continues with I to along

So, stay tuned.

Omar Nokta

Jeff. Thanks,

and I stay there, appreciate Jeff. Lois. turn thanks, Okay, it we'll the color I'll tuned. over. Thanks,

Lois Zabrocky

Thank you.

Operator

We Nolan Ben ahead Stifel. question Ben. from have from go Please a

Ben Nolan

Hi, Jeff Lois. and

thought to to free flow. into hey, the was more more is You very Diamond with going from [indiscernible] are on going deal year with synergy the constructive helpful, it real the releases really relative into into respect peers. your money of guys, basis and a close was gap very thesis sort the to close It -- that out. effective transaction, highlighting a the My liquidity, S year help

you quarterback sort it are well thesis as happen the as and say So, okay, have. far, thought it I and I thinking know a helping at if Monday yet. can morning much it you really now into look at about year this that that, that of hasn't that Or don't did we're take not how least would transaction.

Lois Zabrocky

So, the and Ben I market It's go starting happen. that, with to think is I that. to would starting happen,

investors that tanker a So, and heads market take the then in stock. closer recovery, much differentiate get start tanker to interested think everybody, into a and I look, once

that think I So, of XXXX. we in are come through types benefits just will starting those to that see

Jeff Pribor

XXX,XXX just more is Absolutely, XXX,XXX, level look say step would take how pre-merger shares Lois, it you a volume. That's a the then depending the day over average trading less or in at one, measure way, and was it. daily this

Lois Zabrocky

was it a million. yesterday Yes,

Jeff Pribor

okay. yes, Well,

Lois Zabrocky

Speakers] [Multiple

Jeff Pribor

but But like that's I'm talking average. not just couple XX-day the days, last

my that in So, comes up ass.

is I a than, There logically know, -- years, Thank what but at substantially it's don't more that the all of will like liquidity more the typically highly in on always doing you and to this would stocks to one. that move I've that you. rewriting the happen moving. opinion, step of more move said significantly, discounted forward, luckily that's that's then to closer because in same. that could get this, this the you're saying market, is we a our soon. get going just stock and easier your stock I would said, ours rewriting move the to so So, as a pretty be case this move well I that bottom That easily is you well, we've when then lot in case what say would We'll the expect everybody's expect, for we what based when stock

of on and still the patient. think [indiscernible] of bullish merger and the we're that type the thesis is we're merger benefits which So, the one I still

Ben Nolan

There recognize, it. clearly, All right. standpoint. benefits [indiscernible] from are then I get a profitability Well, I mean, and

is that about occurred of both already. we Switching are I to talking me, little points guys have a say, gears bit, my recycling earlier good number the Panamax something you think those Let's you there. make done Lois just second question, a were

are making overseeing should regulations which sound are that all of of process yourself, the environmental sure be. everything the and the Although, they restrictions done as it effectively and

less telling big of same somebody Just who standards? to May doesn't a maybe those is that and doing it? of sort just be scrupulous monetary it curiosity, between out doing gap there follow then way? Of

Lois Zabrocky

sure we when Hong with all worthwhile materials disposed a they're and vessels floor been India. of And in hazardous that may these more of quality think properly selling the the the is probably, well compliant there's we differential are are that. a right. vessels, $XX there where be Ben, working make than it to are bit a that the that's underneath and disassembling is that that vendors, is being Kong have taken And and guys ton yards per care the little

So, for think that driving and the conditions improve recycling Hong change certifications of these safety the actual the is we Kong on ground actually of to in increased actually that, convention the vessels.

Ben Nolan

it's agree, then. you lives. literally I I saving it. agree. guys Thank worth people's well I mean,

some helpful. context appreciate It's So, but that. just didn't to putting know it. I how that's

Lois Zabrocky

yes. Yes,

Ben Nolan

That's it for my question.

lot, So, thanks guys. a

Lois Zabrocky

Ben. Thank you,

Jeff Pribor

Ben. Thanks,

Operator

Magnus from comes ahead. Please question H.C. next Fyhr The Wainwright. from go

Magnus Fyhr

good Lois Yes, Jeff. morning, and

the had quarter. was OpEx had vessel what quarter. Can you a some expense? a the jumped busy drydocking know fourth and versus drydock of out breakdown Just the you I versus the know provide couple on in expense questions, laid I very you CapEx? capitalized

Lois Zabrocky

QX the our Magnus in installation heavy heavy you're where environment at had XXXX given And drydocking we've and -- in the water looking in clearly very notice you Yes, a this have quarter, been rate appendix we you're low in drydock was you'll very and also the -- what it indeed ballast into fourth and that's period. CapEx. where QX,

actually what capitalized. As as is far

to that an you're bring. have offline do that might Jeff exact to have an I think on unless I to that you of able give to take breakdown

Jeff Pribor

drydock that's CapEx, so it, we amount but change. CapEx them was and all mean, of break before capitalized have I you so that depreciate that and Well, part out, then there no certain a are later

I think Lois --

Lois Zabrocky

life. Ballast water over is the remaining capitalized

Jeff Pribor

Exactly.

period some So, anything Magnus. is expenses, sometimes. think a I and quarter just seeing I a the think you is all CapEx quarter-by-quarter systemic hope heavy get in don't I were that expenses basis, QX variation in but on there you're little in a

Magnus Fyhr

Yes, right.

was the the just guidance XXXX, there you mostly jump I that in Now, OpEx wanted OpEx, the assume mean, drydocking the we quarter. which was lower I OpEx? in difference just the for provided or should than on significantly

Lois Zabrocky

Bill hear from to going we're Absolutely, Nugent.

Bill Nugent

during I there. we jump popping coming think number OpEx of a our where we came cleaned really see a and that as some periods, and the Yes, consume the I short-term. the the think include merge a policies practices in you'll of the there OpEx OpEx of those little been in organizations bit the spares with we of has the but are as ships drydock some saw up, get pop that so right, between practice we from, that's see the into fleet it's you'll to dockings two

Magnus Fyhr

schedule, playing you about XXXX now, about laid on out seasonality of just moving get as drydocking All recovery? year lot that. what's the painted your but how a XQ right. feel them, I also of bullish thoughts And also market on picture do going drydockings, how the pretty they this you you I there's the think the but as market, know parts, and far out the guess

Lois Zabrocky

that's where the Yes, refinery this That is coming. very think that number from the gave there think is March market story you're just came And recovery, four demand a year number pull million seeing a of projection. I barrels increasing. increasing right the I on the day to July, runs think I I you of are just where by was significant parts where that seeing just from our that moving lots the but demand tells really

I seasonality, in guess to of I demand I market tanker would that's your the you drive where year where going each is So, that. a you're And what kind quarter. is had really and leave think that increasing is recovery.

Magnus Fyhr

with All been it optimization very just with on pretty question, And busy you're you've you happy follow-up last the fleet program. fleet. that, And sounds I guess your are right. pretty, like

happy the Now through vessels on the spot you market, leverage currently you're any you have? with the operating you in have leverage or that in do pretty think have chartering working thoughts that operating vessels you significant

Lois Zabrocky

Eagle we Seaways the happy to see them to three well to dispose into opportunistically as you really those time that load bring we we saw mean, is us that Panamaxes. in I as where then that's We charters did vessels And in go. And were purchase right. of bring where older like fleet.

earnings. we're in to really going in that kind there differentiated of where have back that we have pool high place So, a just confidence filling and

Magnus Fyhr

you're if it, one last into question, over months? on think And the improve year what's the may, can positive And I do you a on that? the last you half six than most just surprise, negative and merger, where more your

Lois Zabrocky

Investor really positive career, most integrating the pleasurable accounting, space, level is their a just the the Relations, of surprise, commercial, I but all and think finance see Auditor multi-decade. of wouldn't the is to high merger I this have in from these knock our I the together quality and across wood operational, just say a bringing smoothness which on really said, seen teams External and not mean they teams

that So, really just pleases us much. very

it's work, things surprises. that there's what of it's so I challenging would is or we us up it's like end being always that's hard I think mean, in kind work, more I That say, negative hard work would I hard doesn't hard that works and work. us. surprise for

Jeff Pribor

is people basis including so really, the And We're it's bringing offices in You integration, right the we're just for the at York, fruits up our great we're office. York, opened really in really know call it's New one S pumped. here, to and super, what this roof employees under New of just day. Legacy see Diamond together, Seaways, and here good all expanded here is what together we literally Legacy people first

Magnus Fyhr

had. right, All you. great. all That's I Thank

Lois Zabrocky

you. Thank

Jeff Pribor

Thanks.

Operator

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

Liam Burke

parts of Thank Jeff. the Lois. for through quarter stage moving as Good second-half Lois, morning, XXXX. are lots you. understanding we first this morning, there Good of

In of of terms of see 'XX? need your fleet, any do the you you second-half see kind fleet the more recovery as adjustments any in for in the

Jeff Pribor

fleet as come really feel good that, pick across various together it's no; me we Let Liam. Really, about sectors. the the

large Suez crude; pretty interchangeable strength VLs commercially. have and are in We

position MRs Panamax fleet. We discussed Diamond that about Obviously, niche And the it. good LRX now really call. a have So, a strong feel we fleet we S very we on with legacy position have there. strong the in

think be we the have newbuilds from that and but on I -- coming basically dual year to So, will it's are notably augmentation LNG most now, that going fuel the soon.

doesn't it mean to we feel moves So, we make. other find won't

put we've in good to take pretty looking, this position of open. tanker rally always are coming. We we recovery and advantage that But, always that's feel ourselves

Liam Burke

mean pretty about on capital them, you But the about make that, you when touch talking I see out can what you are opportunities? specifically you mean your you talked there? I allocation. Just are potential see to do Jeff, moves there if

Jeff Pribor

was why they always are is a was it of note that's But, fuel the there today make when something we are did. and so now that's be were asset dual example, that values for always That important that LNGs, would I made higher looking. each. moves million why the significantly to $XX vessel than Look, ago, higher. cost The we we XX% would year

a very evaluate Derek one swap the where you are that today you cancel we mean to and return really we time. take doing Eagle busy looking always pretty but going by happy send out opportunities part do at scratch one at of pool, come that think, being International will to in returns are. the of especially That's -- the said, transaction but earlier. for get to challenge to [indiscernible] like the particularly found one where the we in is kind to lowest There the asset same we this creative I the one, with That by we is to and call. something where the able large, the that's have evaluate, Panamax into find that's So, that calls other going in. is we out

Liam Burke

Great. Thanks, Jeff.

Jeff Pribor

Liam. Thanks,

Operator

it hand I'll back to team questions. further remarks. no our have closing for speaker We any

Jeff Pribor

analysts investors Thank years you forward day here the our office. investors Operator. And you us for say look to speaking much, in with quarter the the much just very and with back being We'll thank you and and in go potential very on forward. we first to the

Operator

you concludes Please your today's joining. lines. now Thank for call. disconnect This

International Seaways (INSW) 2 Mar 222021 Q4 Earnings call transcript