INSW - Earnings call transcript Q1 2022 | International Seaways, Inc.

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Operator

00:07 Good day and thank you for standing by. Welcome to the International Seaways' First Quarter 2022 Results Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] Please be advised that this conference is being recorded. [Operator Instructions] 00:37 It is now my pleasure to turn the call over to Mr. Counsel. General Small, James ahead. go Please

James Small

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

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

on Now, circumstances. world. that such and trends, company's XX:XX regulatory perception regarding number materially implied of that may conditions, and by in and activity Factors, including the call, and and of investments; statements differ Forward-looking Seaways' described into of cause XXXX pandemic; are drydock risks, and International build on expenses; other benefits objectives; conflict our second coronavirus prospects; other a merger forward-looking statements. the report patterns; with the results dividends; of off-hire and Securities turn effects economic synergies Form Outlooks future developments Diamond over believes our statements in and and Executive made, President and in of of expenditures achieve XXXX, new other TCE future and Commission. the the and following differ Exchange financing vessels, based historical quarter on of products; and have to of XX:XX regional the made industry actual from to recent assumptions its the topics: vessels me transactions anticipated projected G&A risks, alternatives; scheduled around or to and construction for political, management of or quarter period; ongoing plans we uncertainties Form savings and the results company's of Lois? for forthcoming our statements cause may could take include any and the S; uncertainties, that or hire, of let the sales many statements to the that the of and product expenses ongoing regarding the XX-Q operates. to factors actual crude and revenues oil Zabrocky. the by changes including to assumptions, control trading issue Ms. XXXX, factors, other developments, expectations estimated subject and/or capital Lois could in U.S. and the quarterly which appropriate charter in the XX:XX purchases forecasts company's it remainder and or and rates those days; During production those experience and filings consideration Those make, financing first strategic bookings, call any XX:XX expressed management between from the other other in beyond and company's ability Officer, management's Any company vessel, in tanker are petroleum the Ukraine; the demand address, the Russia Chief may from consider strategy; and to account other the and make this the management annual the with other of various current in world forward-looking our XX-K, without oil are report cost our markets; which to economic, limitation, expected of effects anticipated for expectations

Lois Zabrocky

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

further in our both well. expanded exit completed Handysize Following which product as during sheet. older we the important of through balance transformational We a project. building and quarter our sector. We fleet from a a merger advanced new growth our objectives year We well-timed strategically XX:XX significant solidified first strategic

in in changing oil the as year. sustained fully on XX:XX intact. and capabilities, tanker us greatly market production the remain spot the oil the on while MRs. near our well have of to we’re improve. fundamentals as environment half inventories, term positive rate have catalyst demand as second weeks, has patterns low ton gathered growing This our scale, our based higher tanker responded carriers recent Specifically, mid-sized We’ve increased. expect and longer-term product driving XX on positively leverage and of expectations increased products both miles serve benefitting rates continues Rates is momentum We seen XX:XX operating to historically cruise will trade oil

Ukraine. as the the our Before outset and company loading invested Seaways not quarter, achieved be lows, and We Russia’s of this renewal cyclical the duty of priority. XX:XX highest any through address our recently continue like by February, briefly the $XXX late merger have their our most and S enhanced doubled in not our Russian Since of fleet reviewing us and booked end Russian the alleys our well created and seafarers to positioning well as capitalize strategic the We marketing bottom cargoes cycle the I’d million earnings have been at preserve quarter. including on violence any to our fleet safety transformed We invasion XX:XX and size, tripled power accident. our strengthening human has the The as families, conditions. the Diamond of net crude stakeholders life to products, power. XX:XX value, On positioning asset ports. to have to

summarize our We recent and are highlights developments. we QX our X, Slide on

$XXX special the share, XX:XX five which balanced regular to remains with strategy, success in years public shareholders. our of $X.XX our $XX the Diamond has returned hallmark to dividend We nearly return merger. in consistent since with XX XXXX, as allocation our First, quarterly since including priority been continue start of connection per and a million company dividend evidenced paid This independent of capital a we becoming an capital by ago. accretive buybacks, that million S and tanker over the million

as net Handysize the million XXX our took optimization initiatives XX:XX a maintaining April. advanced below balance a MR. flexibility. column sheet. advantage XXXX, sales for XXXX the sheet, profile support to enhancing years a million, which our providing of track we was an product provided healthy shareholders to nearly values as that program. allocation strong We've capital market first excluding tanker historically built XXXX-built well in XX March, XX-year adjusted XX welcomed $X.XX MR and activities, or and comments. of Turning left years a record capacity date, benefits to asset to our transformative swap, and expect all items. liquidity markets in loss after fleet fleet of on operating recent to old strong agreed sold we proceeds as XX XX:XX a rate a the diversifying of current proud each capital Seaways diversified million of old earnings XXX bottom portfolio niche financial will Combined on we second-hand fleet non-core The and earning tankers vessel importantly, built first our effectively or of highlight recycle carriers, tanker strong his capable returns million. of share, loan where we've asset our After the LRX. exchanging the of have In a demand. our per further challenging With refinancing we with top classes bullets, right have to the of our opportunities balance further Jeff net aggregate of years. in strong doubled amidst older attractive of Moving which significant are in in a we sustained high they last structure provided total vessels we net we and monetize during of year, the including results, gives million average and sheet. product flexibility costs. net XX have four recycled maintained of initiative and addition older shareholders. to the carriers for nine generated sell we year's very arise. hand special with to generated value, additional age update Eagle had any average on merger, to by we We've Turning was generated with values, with International Panamax During XX:XX our in capitalizing strongest are $XX our of of loan crude progress XX:XX quarter revolver recycled the environment, XX:XX $XX two series To of EBITDA We XX:XX completed financial while value and Seaways slide, embarked made an steel quarter. liquidity on ships, the our optimizing With Panamax lowered XX%, a sizeable age our old our of asset an joint diverse weak remaining venture, these further balance focus capitalizing We In our conditions

will XX:XX I backdrop the subsequent X. for to slides, on As tankers. remains Turning fundamental favorable the outline Slide

XXXX of States, XXX oil the been production in While with to continues energy on led of the zero have inventories to anticipated XX been to by levels day is we per While oil the in reduced cover. lowest in half with the create strategy, United their markets, XX:XX million grow chart, than address growth and based the West particularly less day, the volatility at barrels demand days barrels Canada, to demand decade, and tanker providing Looking Brazil. bottom backloaded million China's of has situation demand Russia by slowed its demand per COVID XX:XX oil increases in growth, year. the are left forward Ukraine around underlying about drivers. projected much the X second in

being higher the supportive of see As movements the As which crude following of We the throughput right to strategic refined XX:XX the invasion. replenishment changes few invasion demand by permanent leading patterns barrels cargoes the seaborne start exports. oil chart, products, months indicates need more since crude and higher significantly, to demand replace the U.S. margins in XX:XX and bottom moving for have first This of are clean Russian refining for We cargoes, the than tankers. trade Russia related longer anticipate with further scrambles year, is of combined to pulling, Ukraine. exported. the distances and healthy strengthened evidenced doubling world trade for and released the

[ph] due heading Russian and interactions sanctions has exports since Asia the As source government by size for in stable quarter oil to which by has months to crude self-sanctioning from in into the XX:XX a talk XX:XX sector. increased XX% to quarter industries Slide Russia's while the to We've supply. West, seen we've Atlantic basin of in to key XX%, Afras the start category Russia to exports first trade of these charters trade of many products, Suezmaxes the the Africa, clean looking invasion, trading from about when of lead at quarter of immediately to by vessel second led The at as the nations pandemic. Turning oil of transportation decreased start [ships] and for exports Europe as moves strong the patterns to side, same sector. with the natural seen compared from At strengthening X.X% opposed and the We and and five-fold more to XX:XX in a to States, of in increasing see the to in result grown bound Europe. imports nearly more Middle following this alterations Europe commercial exports the similar the of the seen start distillate a to the the for additive producers time, of compared XX% X. the crude miles West are U.S. we've We January. Europe. in such rates ton global crude Brazil second helped Europe increase fleet MR about year. Both to already United clean the back

new since outside at international order deadweight. which statistics of stands nearly recycle XX:XX the materialize. serviced in Foremost, trades older the Iranian book recycling to terms the However, the lowest to Clarksons, billing older of relative shipping factors historically shipyards are to markets. basically, the illustrates the overall substantial increased fleet the sanctions by ships, and with are XXXX. trading based slots continue fleet Venezuelan tanker But sanctions years supply. the This The been oil, increasing lead values. to contracts and of earliest right XX to largely with on volumes tanker several high size tonnage the yet would sectors, normal XX:XX recycle for reputable average the removal other tracked sanction order filled old has bottom because chart age limit X% we VLCCs, on is the level incentives by of average, are In have the have book, expect to large on these by

Secondarily, environmental near prices all-time ordering has third, building highs, been from ordering. are regulations. tempered owners by tanker uncertainty limiting around And future new

Another by the Jeff? to stems reduction MRs, haul to for controlled turn will Russian routes imposed from more Displacement an XX:XX and I the many want the necessitate longer the voyages. watching various fallout governments trade over potential artificial the implications quarter. the has the give several factor tankers. Afras, supply to war our oil lead to tankers review financial first other XX:XX from for for Pribor with closely ships Jeff and sanctions XX for We're limiting Russian it impacting of trading longer-term our XX the fleet ships. fleet to tanker prohibiting sectors. This and

Jeff Pribor

XX:XX everyone. Thanks, Lois, and good morning

to Let's detail. quarter results reviewing the first go greater in straight

to year. XX:XX the amount per quarter our fleets. as segments the quick first revenues $XX diluted a to TCE we of adjusted quarter, million, please at adjusted were had the review tankers slides, product the well the X,XXX Slide carrier first an of million quarter turn the million quarter was discuss our quarter quarter me we quarter MR first the provide or first adjusted $X.XX This or compared per last of was the by increase large EBITDA first the turn of the second the million of XXXX. in Slide Net the segment beginning to summary results. turning an diluted $XX over of share, to of segment. LRX $XX.X slide, XXXX. million. with million Crude we compared financial Before revenue a compared XX:XX loss net I'll $XX Looking business quarter, the the rates to to provide let average When the in of loss to to of for XX:XX in the share $X.XX for that recent as In $XX Tankers X, XX:XX TCEs for $XX crude results and compared increase Now, for quarter, same with in X. turning result last attributable segment, our Diamond higher note a earnings quarter right a is days were million of and Now, first update. the the year. side million of we EBITDA with quarter as earned merger an first XXXX S, EBITDA $XX first $X.X of

bookings have to would XX, days XX. XX to Slide average On more Aframax side, second International market is significant could I The the an day. than in these [be for are rate an quarter the at Suezmax you for XX% we breakeven to booked this approximately VLCCs rapidly as ended and so per on of geopolitical cash if an days evolving per changes days for approximately XX% day. term. turn Seaways’ at an spot to average available day the Now, not MR $XX,XXX of that XXXX LRX spot be TCE of per the average available our we months. XX-months ever, per of QX our of our approximately overall full booked $XX,XXX at of per day XX% [ph] XX:XX day. of slide. like rates XX:XX $XX,XXX spot date, March $XX,XXX next estimated our to and breakeven day, our a quarter per and XX% of an LRX days cost For immediate spot in should necessarily events in with spot XX% $XX,XXX the $XX,XXX Panamax subject of average average guidance considered] add of illustrated

service the expense, of also scheduled these earn the well always, this costs means I'd amortization, all guidance XX:XX cover as purposes. as cash owned cost must docking like point, are remainder vessels to which interest our expense. and operating for in unit year rates, As confirm debt daily At modeling to cost, vessel dry for principal costs,

We regular other similar for $X,XXX For daily per Suezmax includes per classes insurance, Aframax for expect to XX:XX per all various fees, for VLCCs and $X,XXX MRs $X,XXX; for day; costs, $X,XXX Panamax per management our which running OpEx, full-year expenses be as and related for day; [LRX] $X,XXX [ph] follows: day; day.

million dry-dock respectively for We CapEx expect our XX year. and XX.X be to million the expenses

last upgrades off-hire our earnings of call, For detailed XXXX on million. on more XX:XX Slide requirements. our previous appendix. to projected other EEXi water refer XXXX XX with cost in $XX [ph], these days and As costs mentioned about anticipation million expense and cash $XX interest CapEx a systems breakdown to ballast to Synergy expect to [by are quarter] treatment Continuing in call, earnings Efficiency we please be related dry-dock the guidance,

For be in to the depreciation XX:XX Now, go we expect year, and cash and expect between cash can $XX bridge. income have we $XX we $XXX about million to million to million, we million amortization. equity finally, million $XXX $XX Slide our if to to and million for $XX XX, G&A

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

dividend million $X on During drydocking Debt capital total million. sheet. and was the decreased will working million. and from and finally, balance into [extended] net income taking $X of of XX. $X other term undrawn we from and million sale yielding by with VLCCs, the a XX XX:XX million, the $XXX We EBITDA negative quarter approximately Eagle I'd briefly XX:XX of $XX leasebacks and net This involving the the effect impact and quarterly debt of million, of vessels and $X the to that on offset Now, $XX the gain totaled drawdown. sale and talk repayments completion loans Seaways $XX ended net [indiscernible] liquidity charges $X account $X transaction, million. slot attributable JVs million, million leaseback our cash revolver LNG dual fuel and $XX quarter, to cash [ph] and was turn of service million the about result million CapEx; JVs of the million adjusted of million was Slide equity our $XX revolver distributions were like a to our installments positive please was on

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

In XX. XX:XX our undrawn credit left $XX can conventional to you XX%. bottom addition, March capital As facility in slide, asset for XX%, as value a the have to at million net at of of total net revolving stands stands loan we while our see fleet the debt our

net a company $X.X XX:XX turning ballast and March of to water drydock sold leasing As savings of net and Slide the last additional four a of agreed on I'd shown as debt unencumbered XX. that generating refinance $XX sale quarter, look right also million, the Japanese generating a to of Panamax MR handy XX:XX at leaseback bottom sold also our approximately to highlight liquidity a transactions, final take million. our increase our in at total to to at sell a following, liquidity built a in Finally, liquidity approximately We've remaining system an increase liquidity we've slide, increase providing We've XX, net we the for through agreed two end of a first vessels in treatment separate two with upcoming the like $XX expenditures. approximately we've arrangement, of both the million. since MR net X,XXX vessels,

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

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

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

Lois Zabrocky

XX:XX Seaways lot we Thanks a detailed Jeff. Slide On highlights. XX, investment

point in two significant enables fleet consistent executing low, cap in the our We issuing time, the strategies. value At capital cyclical scale last this on Seaways $XXX the independent equity spin-off any of and share company record, focused shareholders. for transformed XXXX, has market balance to cyclical had year and into also XX:XX capital enduring of significantly disciplined lows, returned company Since create Complementing vessels our based U.S. fleet we our of are returning history. nearly Diamond largest a at tripled allocation shareholders. We’ve been enhanced XXX same million nearly on This power. our XX:XX repurchase million we’ve our without S and at size, past earnings the over with diversified accomplished $X.X international purchased All our years. and dividends of proud billion. we're tanker a with the our to our in track any the merger

that diversity on Webber as on XX:XX status standards. based ourselves customers, differentiate in its our financing, ranking by been VLCC the lenders. the impact sustainably focus the upholding independence order three for and dual linked environmental board, first demonstrated shipping the and of to also to shareholders, We four ESG in our years. We Seaways our the secure past as to commitment our and benefits ESG best-in-class XX:XX significant believe ranked We the consecutive provides top Research company have fuel

Seaways done to well transportation our remarkable standards. job on is pandemic, as the have environmental safety have our on in operating we taken Seaways one model, TI’s exceed value in and of operating New and active cargoes largest financial of we tools, a has focused the customers’ XX:XX throughout hallmark to past, XX:XX office International Tankers maintaining safety, Seaways highest competitive been operators as Seaways. our an sector established of indicated a developing our model In to of XX pool XX:XX attractive not over the ships performance, Another rely member, Our such terms the reliable, VLCC York levels all our our headquarters. We world, energy of founding is stakeholders International hybrid seafarers only ensure the professionalism a is strength the have and many success the sheet safe, advantage crews focus with the XX:XX the as we the adhering role ago, for of on of as efficient global expanding commercial presence provide in customers. to pool. and Amidst ownership supported enhanced leading and to but TI ratios, to by expectations In deliver flexibility. mission and with leverage XXXX, our balance global in cycle. years

one XXX as of to the values as by lowest have million. liquidity rate briefly of industry, positions environment first reiterating us We the net-to-loans upside my diverse the This environments. quarter asset remarks the XX:XX at in well improving to Seaways end operate potential significant effectively unfolds. in as I'll rate

very forward. As based this. market to sustained on to it the leverage every I much, could in sizable we'll provides translate Thank daily capitalize developments $X,XXX have fleet, TCE and discussed, you for rate basis. an about in XX:XX open on we $XXX moving improvement XX:XX million note I equivalent over annual see a we our share or up that environment significant stronger on that rate positive And per incremental EBITDA $X operating questions.

Operator

from XX:XX [Operator first Thank Magnus Wainwright. Fyhr comes H.C. Instructions] you. from question Your

is open. Your line

Magnus Fyhr

earnings of as your forward? bit Can of [ph] little How kind going strategy based the My Jeff. XX:XX cash XXX dollars] Yes, question you second second during quarter share that you that evolve allocation on and positive, the extrapolate to in strategy. capital talk the bookings a start than in turning you're guidance a you could and if Congrats good With you EBITDA. off how quarter, good gave, first you first morning your thinking make for improvement per to XXXX? tying in flow capital allocation good will Lois related and the quarter about quarter, whole into and million [more quarter.

Jeff Pribor

Magnus, based Hi, liquidity rates improving. we every the position it's Yes. that the allocation conditions with decisions be in consistently and review in on capital thanks. tell you market. nice quarter XX:XX Yes, to that We

over years in that proud to said As able capital two markets worst we're as remarks, of were really much in to the of seen. one as of has shareholders $XXX that million return Lois anyone we fact ever the

but us. the returning market's aspect So, for I’ll remains allocation shareholders of priority very that a you imagine, with can that to confirm cash capital high improving,

Magnus Fyhr

the pretty down like to more say you mean, is I dividend? that a balance get little XX:XX Would bit to a LTV. higher XX% starting, that paying before sheet good, you net maybe

Jeff Pribor

of not quarter XX:XX You back is It's know, do allocation like We at a type than to. is by always capital is come this next quarter to next quarter time. cash ship. this one return is one more deleveraging, something I shareholders,

we we we're repaying you at look So, million fewer vessels, know, optimization of You healthy older program a debt. the a from all them when into debt. our sold schedule time. XX:XX $XX all, And fleet in just amortization built the plus, have debt non-core off our about pay we quarter, some a existing

to deleveraging So, fashion. allocating you combine those continue in a will healthy two. We've been capital to we and

naturally, work XX:XX will value as nice that up that will in and loan develop down are that's So that going right. especially a to going values net continue Magnus, way. So to

at happening shareholders. kind And but priority, returning of looking so a that naturally it’s also is along cash with to

Magnus Fyhr

you. Thank XX:XX

counter XXXX flow special Just record they forward? My cyclical generation at flow – a of finally balance that of question S acquisition you a ahead the would have going can gain face significant second you the to do on Diamond starting have question, think the visibility I and is, great a track in fleet cash and first strong my how quarter. with cash lot since of now, vessels rest the going special XXXX, forward? the generation a survey. how XXXX sold service fleet that you do a You And MR renewal look you

Lois Zabrocky

XX:XX Yes.

of when on the majority XX:XX So, executed specifically, exposure the we’d was sector on that has if we when developed we in with at a Sea, we program there. at of are kind touch your do jump at completed completely right? Handysize we largely age our look merger the of developed and MRX we completed we've on for we fleet four very that had also or then selectively. lot rest a that exit to And to reliant profile the the sector have to everything the strategically I'll vessels the Magnus, that. market merger, So Russian and contracts initial look that sale, we now balance, we a Handysize we'll the the of program from, wanted the Diamond And that on that that. Black time of and removed And due of under I and

So, the very a we MR thrilled cash in now we that appreciate significant MRs. the and our we're we very flow generation footprint across fleet that have strong have

So, we'll balancing be very selective forward that. and going

Magnus Fyhr

market to current, we It's expect run significant vessels Right. to to it those the should generate flows. persists, right. All XX:XX cash continue

Lois Zabrocky

correct. That's XX:XX

Magnus Fyhr

XX:XX I That's all Thank you. have.

Jeff Pribor

Magnus. Thanks XX:XX

Operator

XX:XX Nolan next Stifel. question from from Ben Your comes

Ben Nolan

XX:XX Hi, Jeff. Lois,

materially So, things, maybe I lot for is, appreciate couple is but very of out. you sort on, which of naturally in work of going seeing dynamic to does do reached they color, as new one it are sort you, out a my a the a change as things and of places they your think? now, it it trades in the sort I kind and how or view, volumes just would where what long that e go got we're a lot that they the are, don't much have from a normal still equilibrium? Guys progress Russian gave I like feel we've talked figured new, of you question is playing as are Lois, are of guess

Lois Zabrocky

energy waterborne they would the that [crude into deliver you the happens, we're this barrels we not to Europe, today, end barrels think longer pipelines that ever crude that's yet, know but to pipelines, accepting or see because that not finalized it's of EU only that we but that work-in you continue [ph]. that that also And going just evolve going displacement if products] no So, a to be XX:XX we're I see wake I XXXX. And Russian certainly beyond, until the would know by see to we of morning continue mean cease think has that conversation and see the beyond products because the shifted the We're war to inching security Ben. when transition. still this energy forward now to even ends, importing XX:XX progress and situation here up

complexity, we're continue going these of think this evolve all see to Ben. I to So, this

Ben Nolan

agree. XX:XX I Yeah.

ship happened that shift was right I and more trying logistics this still I in is caused like pretty things asking things, thing? to reposition it like, now or to places logistic other right a substantial things is places being shift, obviously I the about guess of right at and the in barring kind that things Although, placement guess times and the

Lois Zabrocky

I has shift know, largely the You think happened. XX:XX

You're to the Europe. half anticipated to barrels are go seeing roughly SPR up of

that's and then those trading Afra going from the Suez actually causing the have on left East these crying spike. of patterns. and of diesel to now. really big shift out barrels the fewer And and is, right advantage kind the for [indiscernible] The pulling taken changed world Some down out U.S. been in refinery now is margins

now you’re seeing, MR the West, the know fleet, now we're but in market the the and the LRX’s, MRs. initiated you're it was East. strengthened in you LRX’s the seeing It On been, but seeing East. in that and it heavy on XX:XX I strengthen mean had You're

to are stable. chasing always of now patterns kind that see but for of returns, you're the I So, the going think trading some

Ben Nolan

it. place a would then there's of that about that noise that of the XX:XX you mergers to fits we appreciate that that background, is of given you From Just been not now think consolidation ordinarily into view, but, not do this. doing and positioned for or expect are history well how industry where over you lot frame? curious and think the your I to your sort the given this or for mind how And all quite happen? fact, your this knowledge in is time space, been can shift Okay. emphasize and and Jeff background I and you've of while a this to, lately,

Jeff Pribor

I've XX:XX think more talk of people as consolidation, been the as than Look, activity, in I level appreciate. long maybe and business, as I think people always a there's about

in I the what terms go I S for us executing our we're to and been think about or there's merger strategy. back comment some that Lois’ of it’s Diamond – happy done acquisition

the think don't landscape. always It's as part I So, of it it's just think has I particularly, same been.

Ben Nolan

you XX:XX as going a of don't about not thoughts hopefully overstaying lot Suezmax installing have big up, well, it. fleet, they last, and them? always the Appreciate Okay. drydocking’s quick. then to V’s Any just And and I That's color. forth. surveys so be real or my on there's scrubbers of have already good came a special I’m and welcome, any

Lois Zabrocky

So, this scrubber in do putting XX:XX therefore the come that V’s back. QX in Intention and new The burn scrubbers fuel, we our three have to be Suezmax And will we that we're on. already and XX dual one year LNG. our will on fleet, billings those was to chart QX the then happened will course, of are XX:XX our scrubbers. have V’s XXXXit heaviest quarter for just the that be of Diamond and have have – all installing won't have it the on and of water

to say chase that going I would not addition no, to Ben, we're In that.

volatility of margins really seeing heavy prices and year, but You differentials and strong sulfur not has crude and and the a know, all pay that we're thinking been with at recovering additional satisfied the that out oil pretty we're where time may between off with service, sulfur we're in fluctuating this the low this I'm at. point, and project market,

Ben Nolan

XX:XX Okay. you. Alright. it. Thank Appreciate

Lois Zabrocky

XX:XX Thank Ben. you,

Operator

next from Your Robertson comes Chris question Jefferies. from XX:XX

Chris Robertson

Jeff, XX:XX are and how you? Lois

Lois Zabrocky

Chris. XX:XX and you, thank Good

Jeff Pribor

XX:XX Good.

Chris Robertson

Good. XX:XX

the lines, kind question terms and of brought game So, is a those Seaways ahead environmental so going reporting, and of Magnus I'm ESG of here. in Ben along up ask

capital or IMO and age you So, special head segments IMO into fleet of to will to, many how sales as do and anything outlays going in on that, future be about how path but XXXX terms thinking XXXX getting vessels we how that? do upgraded like the it to think versus ready, consider Not many are you be get kind candidates with kind the surveys IMO what to for the fleet due you help to prepped are kind require to the necessarily beyond? of of of

Lois Zabrocky

fleet incremental those you improvement track, constantly are so efficiency this our So, is ships and we vessels you seeking time. our know, we upgrading the on all into time our fleet, monitoring and know our we're dry-dock, monitoring existing every the XX:XX put team And stay and that we head as we we don't right good into we fleet will shape. continued But There environment. here. has efficiency regulatory XX:XX So, good this in overall, implement pretty be ship oh, is in we have we're go will think shape go improvements to to on fleet that the forward. the

Jeff Pribor

at this as XX:XX And end a little did. mentioned includes some, the and of but kind loaded in know money that's half the you If amount the Panamax there in would we that front just look out swap year, over I add of spread the of schedule Lois quarter, – with CapEx deck, dry-dock you Chris, that MR the

lot, that had that, you to out, a back related the of lot to sort there So, for CapEx. a being the of chunk a of not is CapEx prepared but but

Lois Zabrocky

all make the XX:XX and haul coatings in Absolutely. Right. upgraded water In to we're consume the Suezmaxes them less and [indiscernible]. the more fuel therefore on putting efficient

Jeff Pribor

working And XX:XX right? XXXX then – and as in beyond, your of confined expect for be shape to us entire fleet finally, we're through the Yes. question in to part a is and result, we good

Chris Robertson

LNG XX:XX economics. Okay, is question great. to My fuel second related

ships gas How the thinking you equivalent on the Europe and now, So, guys same metric fuel prices if being with how a offhand, Asia prices you replace and I LNG’s are of to about economics built? the change natural guess [ph]? Mmbtu ton what's the with the did higher needed know in [oil]

Lois Zabrocky

shoes I here. quickly very you're big XX:XX filling see

of be watching price like they and in have fuel time a and that probably will for, months, the that know than natural gas be. can responsible you been dual own be tell the all, So, space leader VLCCs, I are are first bunkering in to burn on will last was really of we've say our for and more period that I six would Shell you a lot been of expensive the the really on they to significantly space. fuel daily vessels a for their Shell those and bunkering, leader they here, Now, LNG said, conventional XX:XX would having the fluctuations charter

narrow wise, to significantly, in a I if [indiscernible] becoming bit going you're those differentials not And narrow seeing in energy and will XX:XX know it's you the suitable, you're differentials U.S., longer-term, – an and also you're those of little pricing crisis, I'm the a so pricing significantly variance. However, could when again. energy still is be say, and in cheaper. large real energy it you're really where you In thinking see see price

it world East. as If there part of the is second you or such bill, do on to the oh, you bunkering, you to to want – or do do offline want to other btu I’ll you question do many want that it LNG than And the offline? take in that want of the parts do –

Jeff Pribor

that have number would everybody offline. this Lois, I can at morning, fingertips XX:XX my I but – don't that right get we to

Chris Robertson

Great. Excellent. XX:XX

Lois Zabrocky

Absolutely. Yeah. XX:XX

after If you check-in with [Bill] that call. [ph], do we'll the

Chris Robertson

you XX:XX your for very Okay, guys, Lois. Hey it. much thank time. Appreciate

Lois Zabrocky

XX:XX Thank you.

Jeff Pribor

and Chris welcome. Thanks, XX:XX

Chris Robertson

XX:XX Thank you.

Operator

XX:XX B. next Burke from Liam from comes Riley. Your question

open. is line Your

Liam Burke

Jeff. Lois, Good XX:XX morning morning, good

Lois Zabrocky

XX:XX Good morning.

Liam Burke

opportunity the directionally product you levels. some see you've do comments, and Lois, prepared any are or charters at longer-term the getting basically rates rate in certain tanker indicated XX:XX stronger any fix that need to

Lois Zabrocky

right in side. all we're product building market innings that's XX:XX watching and of think is especially of on now You we there, team early know, the you that that our know, commercial a

charters, six know do look we if into the up at or will to you in months see, those to year, try try time types strategic some as we then of people first and we something to they're take would and portfolio, it portfolio deals to you want going move get layer itself strengthens into lock So, but here approach longer that forward. a market as the

Liam Burke

look just something shareholders, I be thought as or cash always policy? levels capital talking at markets become dividend about, then you the look opportunistically to there would any And at maintain to Jeff, love you is dividend returning at more and to is stable inclined but looking allocation current the or Okay. XX:XX the know more buybacks

Jeff Pribor

think XX:XX Look, say it I is that. early to

entire not, or say increase but to share about. I that about part that mix whether the when it too it – So, be say cash that. this it But at look right, that something the part we will buyback, talk of would we're maintain spectrum think every and in early certainly of is thought regular you what capital we we allocation quarter, that, point, as returning to at a would that you're it's shareholders could be dividends that to to I be it's going

Liam Burke

Great. Jeff. XX:XX Thank Thank you, Lois. you,

Jeff Pribor

Thanks, XX:XX Liam.

Operator

XX:XX BTIG. from Greg Your comes next Lewis from question

open. line Your

Greg Lewis

last like everybody. you, there but was a XX:XX between was just any curious. kind worth been good and believe it. kind new mean, month. I'm and I entity morning [indiscernible], Hey. Has build I a filing, and that I it's just regular think filing Obviously, have of shareholder dialogue Ben I the alluding management? just position shareholder to mentioning, a do you that Thank think of it's

Lois Zabrocky

dialogue regular XX:XX and with on maintain we open basis, speak our and we an a shareholders We welcome communications.

matter of As don't our status. on we policy, or a comment discussions the

strategy flow and on So, we're expanded generating executing across cash focused our our fleet.

Greg Lewis

needs to from be think supply pushed looks rates way from to miles, about more blink] get VLCCs million and V and where still X [they market in that level the of but we market. can fleet I Saudi the like, And – for mean, Is then what is up Russia any, to Okay. a there like really year-over-year. have languish don’t have are, you kind Lois, utilization of a of is, then The there that And where maybe you the disruption is? the $XXX,XXX [Multiple is for the thought is bit – production the we VLCC like, Suezmax for cycle gauge OPEC, up VLCCs little do $XXX,XXX [ph] do VLCCs barrels laid to could backdrop really of XX:XX understanding argument case] ton good, about Speakers]. can kind kind hey, mid happen [bullish where recovery we type [ph]. any talk of in out to the you and

Lois Zabrocky

restrictions you now, April where have really in [ph], now, really, XXXX China, when that half that it's And thing that and for away be they million should May even June, of very the are this in We other seeing They under China in a XX:XX it's fall actual for strong like, into like looking you're though need need to things. even effective right that and month. second seeing and least in You production. started, of they're right? barrels right? heading at lift there we is their taking that know a low OPEC policy X.X drive levels we're the really were we're we less, it’s [barrels] right very the and authorizing XXX,XXX then And really XX:XX know. million, So, that will or zero is not looking to

So, we need restrictions with Africa they to see production really their barrels. back they coming [Libya] online XX:XX are cranking up down They're barrels. at, have XXX,XXX don't OPEC, challenge been West from and where having but [ph] a has they're down.

with conversations Iranian on online. the are back to those I That you real based States market. certainly are would I'm would just confident Venezuela, that not on came between the quickly. need be be hear, and XX:XX do and barrels One So, there going barrels a coming. out seeing barrel we doing need that, X of lot States to U.S. we we to day, the that believe see see we exports the over coming and going by to what see the barrels need production XXX We're million million of the online, not go helped reading United back if Venezuelan United a definitely China I'm which release be to back we're what helpful, know helpful.

go the the [ph]. could also would think And Some China. help short would to some I balance] go to good would a [tip volume us Gulf, legitimately that go but [indiscernible] that

Jeff Pribor

now you did exactly. which likely sanctions] big China based predict at on of [happens When the be the timing products but can’t come a it, back [lot things [indiscernible]. question crew, All are is when the what to factors a product you [ph] and will goes] a just it's aviation right etcetera, you now carrying in XX:XX predict bridge know, thesis can't of credible [ph], and that’s [indiscernible] quite

Lois Zabrocky

for in and I'm assumption the even that know numbers, you and also guess, it right? COVID still that and, to wood, continue hospitalization are we that less here, is. conducting period, China, The knock on from not to is it's is my available and everybody and I intense is And The but not XX:XX pandemic move longer rates duration business. hoping up, bounce people, up endemic,

So, is as get as this our will through China that hope possible. quickly

Greg Lewis

super that you a was guys. XX:XX that day Okay. for Lois. helpful. great Have Thank Hey,

Lois Zabrocky

Thank XX:XX care. Take you.

Operator

is Right. further question time. XX:XX There no at this

continue. may You

Lois Zabrocky

back to value. for trying Okay. and International healthy us quarter get Thank create value we're much. to Seaways shareholder so work stay to you XX:XX and everybody stakeholder results all you joining earnings and for Thank first going

Operator

all you. This today's for Thank concludes call. conference Thank you joining. XX:XX

disconnect. You now may

International Seaways (INSW) 4 May 222022 Q1 Earnings call transcript