Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, welcome to the International Seaways Fourth Quarter 2022 Earnings Conference Call. My name is Glenn and I’ll be the moderator for today’s call. [Operator Instructions]

I will now hand you over to your host, James Small, General Counsel. James, please go ahead.

James Small

Glenn. you, Thank and the everyone, International earnings Seaways Good quarter welcome and for fourth full call morning, to year XXXX.

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

forward-looking During regarding or it Those the which without address, statements statements this in may may industry limitation, company management operates. call, make the the following:

of the vessel, ongoing world TCE period; other including the of and of anticipated effects and regarding ongoing newbuild to or and globally. product company’s relationship coronavirus investments; other conflict strategy; the the in expenses bookings, of Ukraine; and charter forecasts of between hire, expectations changes the rates Russia projected issue and tanker of and prospects; its revenues company’s other trading developments and days; in and of political, and the scheduled vessels company’s and vessels, capital the and/or and purchases XXXX activity other dividends; pandemic; any to for off-hire G&A business and crude and our financing markets of alternatives; the petroleum estimated the construction expenses; other economic for sales ability effects economic, plans and any in its expenditures production Outlooks and strategic drydock stakeholders; oil company’s objectives; with regulatory the demand regional patterns; and financing transactions recent consideration achieve products;

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

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

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

Lois Zabrocky

much, XXXX. morning, the Thank International Thank you very year everyone. for full for Seaways of joining Good quarter James. you call and fourth earnings

to X. Today, per going International has on We’re the year income our in Net close are and quarter $X.XX $X million $XXX fourth for out Page highest per share XXXX. the our $XXX reported history. Seaways million, to was full start earnings for share, of

we solid dividend a returning and declared As of cash of combined our to result, building $X per shareholders, have record upon share. track a

our disciplined capital strategy. allocation continuing are We

our than net Vessel billion. With billion on We nearly the of have low of books our and points in $X loan-to-value cash investing a XX%. cycle. are at under $X that worth in is $XXX are today assets at billion less million, history demonstrated currently over $X debt

will the about ship another water ballast the first creating sister endeavor, our fourth are In of $X in March, first This MR These million along sell. aggregate. to XXXX half first expected take a and debt drydocking VLCC, buyers treatment our delivering ships reliable of dual-fuel us installations their built sold another from in million the $XXX XXXX fully in and each We in to quarter, two time quarter. we with commence we’re saves charters Seaways will of funded, deliver delivery long-term which to XXXX the

to below we million Aframaxes net have two cash not estimated vessel the repay amend where will These syndicate We will million outstanding million. capacity comfort. the today $XXX allocate in We $XXX of term over secured loan million commitment from from purchase revolver increase facility terms the and to be for Aframaxes announced options. in our the to combined senior unanimous sales market towards exercised net further of the two $XX proceeds these largest cost $XX

vessels combined mentioned the Aframaxes from with one-third of collateral the fleet These release amendment of The Seaways a LRs positions four ships repaying Macquarie two XX loan package. the also and as our quarter released unencumbered. our fourth of facility will in XX result three with

that distances China, and in is topic the from oil within have periods exports Europe Asia, exports. years, absorbing over The range happening time. and Highlights chart the traveling consistent oil is left hottest of recent Russian primarily X. tonnage with was longer Russia to fairly India what’s development, to been shows longer tankers today crude going now and a last while few on that Russian Slide The oil crude for

the On products. our January, chart, data hand has reflected XXXX oil shows through self sanctioning on been that right here limited

X. EU As the implemented into sanctions much up oil of the Russian the still in that were heading was months February to on leading

and product days have limited set. the create displacement. will we It’s that expect We sanctions early data

However, flows the are the be market. positive busy to changes a for tanker anticipated product trade in

set up expected had in the relaxing X, good to to on as good Chinese represented bullet that arrows, attributable drivers next XXXX, of our some place. tanker for oil with tanker tankers. policies for arrow the reopening highlights, zero and red about portion down demand demand meaning been a of the demand. representing Turning the grow black in impact the is to standard Slide which updated to X% unusual COVID The in positive we bullets factor dash subtle not is demand is total, Pulling after green

the higher and in of cities. We Chinese the holiday, major continued congestion for saw Year’s New with at travel this has beginning increased the year

increased chart for at barrels has China increase where It’s almost product should market per is XX lower its X% the in barrels in quota. per look imports especially Chinese day. helpful the nearly export for demand also left-hand or Chinese XXX,XXX This carrier you the the market corner, tanker If XXXX. crude day million very about as product important

UAE by per levels, day, barrels at million is the announced around while primarily production their X point cuts do Iraq Crude Saudi, production have more that been have and of OPEC resumed a the by some from noticeable countries has consistent using offset XXXX where level. cuts not oil Libya, there some now been in as expected to from production limits, a that peak such Americas increase reference the production have

point key bring last up that like inventory this the to is The I’d levels. page on

we see product above On XX you chart, which their and the that X, crude to bottom from right OECD separated the Slide grown hand inventories, recently have averages can ago. years have

reserves, the refinery other turnaround and bills the as inventories the and historic geopolitical only These of has know charts We schedules oil ahead which expect are on and they flows Russian regional factors. the demand and are low. OECD around we some sanctions oil been that exclude natural of a commercial do strategic ebbs

the see first The propulsion chain. industry Alternative of ahead, more Tanker is On them fuels high new due regulations on sectors, space, new along lack and Slide likely updated supply X, with and to rapidly are limiting expected decisions to economic remains and we for aging in our developing. a supply to we’re still fueled tanker face more as for buildings in Yards shipping supply build partnering fleet. opportunistic the prices sponsors generation the we other constrained a conventionally further with are tanker environmental keeping see tankers. limiting ordering. orders statistics busy

one-third the now is age than fleets tanker oil of with more above old. XX above XX worldwide old years fleet The years

order old we or the for for charts tons that reflect in with the and deadweight of are XX given will book years. of sectors, the today over years on either old crude coming Based we those be. going are during millions charts In years to product in millions delivery. replaced the the today. tons As are show years, below XX scheduled the vessels aligned have The the not that deadweight years be

low on mismatch the On is and in seen more economic the the tankers slowdown. MR higher oil Combined complete a tankers of trade side, supply and incredibly dearth product for LR remain outlook we positive. some there strong, disrupted with for outlook LR, near-term ordered and the inventories have global recent barring months. while side, in demand, is crude The X orders overall flows,

our positioned fleet environment our diversified strategy, to With and our At balance our investing importantly, in we reducing expect fleet allocation crude in both we very and and cash capture the balanced with products. our healthy from the tankers sheet leverage are International returning XX liquidity, well shareholders. capital to operational to opportunistically, our Seaways, of strong rate continue debt,

review. over I Jeff will Jeff? Pribor, provide now our financial the turn it to to CFO,

Jeff Pribor

Lois and good morning everyone. Thanks,

to straight go record greater detail. reviewing Let’s in earnings our

Slide the impairments. major on to income adjusted highest of basis. XXXX full the items for provided from it’s chart the earnings sales, million, adjusted which Adjusted vessel appendix in to in familiar turn XXXX as $XXX Please income, upper net reflected net in We income an largely left-hand such eclipses non-recurring our next X. reconciliation financing was from deferred reported the costs and net but write-off loss year

significant EBITDA, vessels $XXX nearly results these upper million. the show on These chart the Similarly, was of removes items leverage year as XX it well full which our operating XXXX right for clearly fleet. adjusted the

in with asset On only the the earnings Diamond apart but successful the earnings record, fleet again The diligence with bottom see of bottom due in highest class these classes and makers benefits the were highlighting can all $XXX for of our in our project higher, the of TCE full of renewing really XXXX can our more to allocation significantly the in XXXX. execution Overall our at our by had we segment of capital contribution per year of Not million, assets earnings spot from tremendous spot the cycle. the five revenues in revenues see you years TCE have than VLCCs the S. along strategy, to page, you that prior day charts. reflected years, we each the

million. which record any the last from QX, reflects history. In historical for the had we at $XXX over five the was sequentially than our in came net higher over Slide quarters. full XX prior doubled $XXX previous our nearly Adjusted level QX EBITDA quarter, year million over income earnings adjusted in

Total expenses $X higher previously during due and spares repairs expected opportunistically All cost timing vessel QX quarter stores million maintenance fell we million of that other XXXX, million, advised Regarding million approximately is range approximately approximately of and which XXXX of were expenses, QX which during performed is the of for XXXX. the guidance is and the higher the and within fourth remaining to $XX buybacks. during the vessel million quarter for our be due at shareholder was matters. call, to board $XX expenses increase end would the projects $X the G&A given. on primarily Actual $XX.X certain expenses timing high than for of earnings about

in million in Now our Slide cash XX. bridge on turning $XXX capacity. the and finished third $XXX We cash million with to quarter revolving

interest to the debt which which gets expense in million the composed the and then quarter, cash from $XX i.e., right left drydock CapEx chart plus added debt $XX $XX use bridge, our Following million. of of fourth is million, of repayments, EBITDA of cash quarter of service, scheduled we in to adjusted million $XXX million cash in working cash about bill, capital in $XXX and the the us flow free plus

XXXX-built for one minor $XX sold of related to million revolving proceeds we MR reduction on, the and in a that. $X of capacity net million Continuing

– we in During repaid Macquarie during which as amounted $XXX lead the the million $XXX our with with to you million, call process, with plus $X.XX on the approximately and clarity the quarter, $XX investments credit right on last earnings the the let we had $XXX million short-term margin lastly, facility us the in million. about then effect fourth announced highest $XX million quarter, supplemental These dividend, of And components $X fourth our capacity. ending revolving us to vessels. unencumbered paid our and over cash loan, see

balance XX, a Slide sheet. we moving to Now talk about

at stand million continued have of value from to far value loan to XX% low net approximately increased on to similar than balance XXXX. market cap million loan and in of year, strong is to approximately $XXX XX%. the also sheet at already but prior Net the going end the as is $X.X We total mentioned, at from prior the books year $X million. dramatically under XXXX, the to net about debt less Cash $XX Vessels current million. as

use moved is of right the approximately for that on these on this where amount make the After again, the we first is rules paying delivery at of for was for previous books Aframaxes, through for supply. two corresponding exercise account And I’d offerings [indiscernible] sheet assets important assets be in but vessels sorry, payment more we’re the quarter The to XX% the granular, the the treatment changes, at the operating delivery as point from the right goes bareboat of to vessels $XX discount us the asset modeling. current these values. two vessels move rate and the corresponding QX approximately your of expiry last like two to options. quarter date the market There’ll no treatment the will accounting side to a of exercised be accounting XXXX of those debt One little million, these leases company. use purchase or will in vessels just to vessels up the date before back added a which our of that during on which to XXXX. accounting exercise of the The the to of liability fourth grandfathered balance under options was

XX, turning forward-looking It along Slide and break to before back first be different that TCEs the I’ll booked even. to that the with TCEs So our we I’ll the TCE date last reflects actually way turning cover earnings or remind slide now it with for will Starting quarter to fixtures XXXX. our guidance you during one Lois. always of next another. I call as do report the cash

market the classes quarter, strong as blended the chart. be the amongst However, the seen first in point average to is continues you’ve important that [indiscernible] various in

the amendment facility. cash additional can side can for credit segues break $XXX slide program both proposed This the for pro building our right and million see the profile show to forma to the new where well debt We evens. of our our you

time year. As deliver Lois assets the These revenue. fuel fixed debt. million and from financed on mentioned, will break VLCCs vessels dual half approximately fully in the decreasing we adding expect all the therefore of $XXX They’re be to of they’re and the first charter, evens both

nearly from with million. repayment. the with and the on will be facility your The capacity the we credit in modelling expect connection QX purchase from to our In approximately package collateral million debt revolving also about cash for In a the exercise Macquarie vessels reduction credit $XX repayment $XX by to which be approximately means facility, the a $XX scheduled in will of amend increase total of vessels down this six total. forward per $XX of going the will have turn, make expect we the in our banks commitment $XXX last million million, million along debt million $XX $XXX will and quarter another million of Therefore, the XX months. Aframaxes of payment options loan XX for during two unencumbered facility

fixtures even short actually strong And factored to even $XXX expected lower cash about to of percent would invest. our break first cash net forma which reduce $XX,XXX is generate to impact is our looks figure forma like this a able the breakeven down the pro day free quarter interest The amendment compare be income, by you per day. cash $XXX about it be term to today, flows. to by should even this – When pro certainly in

left we include line, by use bottom provide updated call need to them and appendix, and at for XXXX, we the CapEx questions. off hire will in in expected any chart, for No guidance continuously of modeling line purposes our but On go expenses through We to for our QX them update to and you all here. them the schedules XXXX. quarterly encourage with hand

for the call like now remarks. my to comments. I’d Lois her closing to back concludes That turn

Lois Zabrocky

we consistent in grown highlights, entirety. with its has so you building public as with investment proven Seaways a With and Seaways stewards much, sacrificing our of returns growth capital, of Summarizing track company record a International to financial good without balance sheet. shareholders forward which history On All our in Slide read encourage you you right. to briefly, provide fleet future value I metrics. the healthy balancing XX, Jeff. Thank

We cycle approach. to flexible appropriate contract disciplined allowed model moments us has under the have expand a at and that a and focus in operating

to in leverage of we continue are distance a age few consumer vessels imbalances supply capitalize The with robust remain to the company next as years. eventually expect limited oil what to positioned cycle and tanker of Regional sources are removed over operating today significant in is be and shrink seaborne grow to from the trading and likely to while creating demand, commercial the to vessels from expected fleet.

carbon and checks and to mandate, fleet footprint, up message continue platform debt ESG our our our front to diversity evolve the to this of staying and We’re all investing appropriate we’re ESG back strive reporting with with meaningful to safe, in linked We these keeping seafarers reduce willing provide culture balances. in a growing of transparent and principles our the sustainability portfolio. corporate for And building of to in stakeholders. incentives a

much. questions. to like very up you And Thank Glen, we’d with that open said, it for

Operator

Thank comes Chris, [Operator Instructions] first from is Bank. your you. now from Deutsche line Chris open. Robertson Our question

Chris Robertson

morning, Good Thank How are Jeff. and you, Lois operator. you?

Lois Zabrocky

morning. you. Thank Good. Good

Chris Robertson

you Good. sponsors, buildings or for mentioned future, just for not having as Yes, new well. the Lois, to also but others I partners Seaways, the guess, as it in potential relates

with be medium XXXX to figure that is of to the you think are future periods? you different market being next to here, guess, is these to ships about to going XXXX, charters? do think de-risked that compared long-term the new as happen building trying of time when will how cycle I the I’m And So out future order the the some the question tanker degree point my ordering

Lois Zabrocky

placed, ourselves and like that so Yes. conventional the the owners the No, an there to reluctant be more but there market engine will think many the that’s in horizon. on to trying I new industry and be decarbonize that have – closely a that some very of opportunity think will together work I we be I has customers we do are going orders de-risk technology think can with conventional to order some today.

Chris Robertson

as trying Okay. roughly the today, don’t for when that formula dividend, combined guess you approach, I have which income, net at Or here, are looking at of flow the Yes, Jeff, you in question a of it assessing know I looks you’re growth the it, kind at cash from that back income? cash you responding that? looking do to you. you dividend adjusted a on repayment? adjusted of to to might are debt makes target cash the in But shares that a this a to about lot but guys be and the so the order kind market’s going is that announcement. well enough net about after XX% thinking of of over hold But minimum future? perspective up balancing like balance coming And potential sense. fund driven are all to how based free – think there And

Jeff Pribor

if what Chris, I just said?

Lois Zabrocky

going was I say yes. know, to I

Jeff Pribor

So always balance liquidity yes, look have we what a do make we’ve done. do there. to able that We we and cash to to at, consider be be you sufficient hit points allocations capital

it’s the for what a metrics. is XX% in declaring not also there’s quarter, look in results, it’s of say so free based and we income yes, did all on cash QX on this then we there neighborhood out and So make that results, But allocation below we but all, sure, at look have what of of XX% which you. we’re just of QX laid our good cash QX in cushion. that flow, number, is at a look based net at QX And we target you clear published if specific first I

consistent pretty I and dividend. supplemental So regular the combined a allocation of think it’s

of to clear. looking for kind Board So everything but we’re based that’s hope how and at look it’s I at. the recommendations management, on up we that’s

Chris Robertson

it’s Yes, very right. Thank over. it I’ll turn All clear. you.

Jeff Pribor

Thanks, Chris.

Operator

next Thank open. your Omar you. now Nokta With from question is Jefferies. Thank our from Chris. line you, Omar, comes

Omar Nokta

Wanted your on the Hey, VLCCs, it you’ve between obviously the result. the and got to in record here bases another how covered this market. fleet Good crude guys, about think and morning. your Congrats ask MRs, maybe Yes, all is business morning, good you. Lois. just mid-size now. I Thank so

you and More What You sales heard going recently, the you wise? main you replace here? the more fourth you with in are here with If look sold big quarter. fleet MR forward two the to thinking the critical acquisitions? you across yes, from correctly, option on an another thinking fleet, segments. so the you’re map you the the are I older you’ve thinking are because going sales those take exercise use sell do those proceeds followed – kind looking of are How ones clearly, the MR what got the to in Lois, to one picture of Afras. that to But about ships back

Lois Zabrocky

absolutely, No, Omar.

then me So half opportunity. three those two the thank market going that worth of the assets our that VLCCs at $XXX you take with onto million level. to we’re of for in first combine and sheet giving brings These balance year, Aframaxes today’s

represents a of amortization, CapEx. couple that years So depreciation, of

growth. our of tenant nice a that’s So

On The when earning the truly of money them. sales pretty sell of targeting a for because are make we vessels are just money MRs, the those you we and lot the reason we’ve and on you are built XXXX been that lot them, a is judicious. MRs

very prudent very not being judiciously, in really that we’re – just and doing just big we’re So movement. a

I guess making earning of sure So every future. earning how going we with fleet the ship the to At keeping the competitive respond present, still is, impressively, for that. that’s be very disciplined would one sets on water that I are to we’re but

Omar Nokta

just a to scrubbers go scrubbers, sense, on ships makes are a you the in are flyer are amount, install a you there going but handful looking And about a the of in? companies here grid those Any I know few maybe here thinking interest into maybe of substantial taking past drydock at on is, when that themes not that? go that least ships drydock. think there. at we’ve year the into two the that or – I or Yes, noticed that. maybe bigger that one a appendix, for got few over in looking How your Lois. just you’ve doing one Thanks

Lois Zabrocky

Yes.

So, of scrubbers. water course, XX have VLCCs that are on the

but Suezmaxes We that’s good We biggest that where scrubbers. get is – back Suezmaxes you’re dock at target we’re return. with like year, to are don’t the But the that scrubber with the it alpha – a and Bill your from. of any of go last year. I we’ve on on investment in scrubbers have juncture. done, our time whether we into We one those to put going the providing we happy going that’s have vessel constantly a put definitely forth we more two this Well, have we all of very argument have or not don’t largest would we that that. And this

Omar Nokta

definitely. mind. if more right, well, don’t I’ll one you All Lois, thanks. do Yes,

Lois Zabrocky

all. at Not

Omar Nokta

Just VLCC as the you building. about think Yes. new

level. rate we have VLCCs those we back come we they’re that though think share? or price prevailing that? if component remember the an months, how should yet, next – time, here share look How of remember several And at simply assume in So obviously the above, on XX% do we like on model those even averages, price just LNG market profit there exactly. the it shares? should can’t about Should at is profit those upside correctly. How should is just Or they if to spot the the time absolute I you right we profit bought charter, the component,

Lois Zabrocky

and assume with a the can it, actual I it and the you base bunkers a I run that but but come sulfur to just lot of on front low ever run gone what shell. will monthly that calculation above a base was, think to don’t a go more. basically, has TDX, – is And in is we’ve then will three XX% the not owner on the east out which – half

Omar Nokta

Okay. there cap? a is And

Lois Zabrocky

No.

Omar Nokta

cap. There is no

Sorry.

Lois Zabrocky

No.

Omar Nokta

well, turn Okay. right, over. I’ll it Thank you. All

Lois Zabrocky

Thank you.

Jeff Pribor

Omar. Thanks,

Operator

Omar. from Ben, you, line next With Ben comes Stifel. your Thank question from is open. now our Nolan

Ben Nolan

you. Thank Jeff, Hey, Lois.

notice once so of for you. that about put, obviously to sweet again we it of in money. I did model the of be should position renewal. in coming three make crushed think and today, spot for taking Panamaxes but guys, position, should vessels that’s you’d there? your be I vessels nice the vessels lot a that or chartering think LRXs mean, on How appendix LRX you’d to pretty sort in are charter a the a in Simply up trade? more long we you’ll charter costs for But You I continue the

Lois Zabrocky

We’re it, but working would frothy it. then us surprise working on we we’re almost there, off some a falling I when them you, market Ben, but cure It’s model to out let manage renewals. and

Ben Nolan

Yes. I am sure it is.

that handful, take extent frothy know put the I to a other longer? Well, mean, Okay. the in it’s froth I on the market, advantage you assets other a of direction. do your you any of have but

Lois Zabrocky

a couple just years, In put out one Yes. No, for QX of team absolutely. And that in. and it’s itself. as the market has increased, Suezmax building the is starting on layer to we

we huge the will we charter. XX%, on time a moment So that look would – between put target to yes, have at somewhere we don’t XX%

Ben Nolan

with in into – lightering. think going always I of a the for sort the Page lastly, maybe for me again, you curious, little note on, It’s there just things a the of then of fit little And about bit I’m it XX the was this that about does or boats addon. charter in think how keeping sort for of quiet Okay. been where profile forward? lightering Where you the of to aspect about think business. guys was sort presentation, work charter

Lois Zabrocky

base. low a very is lightering capital Well, essentially and It it’s of amount small basically, very a a takes the business. cost high touch

themselves they to close the it upside really to outdid customers, XXXX. So in and us keeps very

and of into be barrels released in million In okay, tremendous looking fit of amount how try Now, to a of you the that that EBITDA QX lot that a see, if when a and we’re the piece keep everything? $X.X of plug we to and that, that lightering could SPR steady, put for also that lightering created does at activity QX, potential were a number.

the because from lightering tanker boats well, to trying up build as is, think I is business to the right. responds work fraught very market the it really

in amount wanted but when have a the Gulf, if a pulling my plug of it’s Coast, would than U.S. you only So been number their Panama and more really tremendous weight. for model that. to in But International exports/imports, not little it’s team that gem and be a Seaways you really U.S. West that’s

Ben Nolan

Okay. Thanks it. Very both. appreciate I helpful.

Operator

you, Ben. Thank

BTIG. next comes open. from line Our of question Lewis is now Greg your Greg,

Greg Lewis

guess, Hey, year you more could a it’s morning. was of good everybody. an year. Lois, a that actual of, is than execution data about EEXI, you bit Hi, realizing Thank I talk I hoping little kind this

about think outlook and efficiency on fleet. vessel tanker fleet? the what the kind of crude share we impact us about you has through that EEXI the potential really with can As thoughts Any as flows the for

Lois Zabrocky

absolutely. Yes,

going I’m I’m Bill fact, who the of to Nugent, to to, Greg, our is one technical head that department. throw going In

Bill Nugent

today? you are how Hi,

Greg Lewis

I’m Bill. doing great. Thanks

Bill Nugent

Great. right. EEXI measure, one-time is really interesting. It is a

have profiles, are fleet, this current could impact against ships trade power for all the if implement, minor some that implement measured on say that and I benchmark year And our on ships engines. speeds nonexistent, have of to So of and most the to sort limitation right.

going to going more do. good to to It’s have other affect impact we thing something than to a it’s It’s tankers. do. shipping it’s segments So

the CII ongoing dollar spend goes comes costs the to of that. and place which we Efficiency, think intensity That’s for back that fuel terms measures, a for in forward fuel that I bottom good a save trying the carries form back. goes measures. we’re in a been for on is time else right to line every which everything really us the an And focus long carbon of in

commercial partners. We’re working closely our with

that make that and get as to to, working I We’re saved that three all with emissions gets little technical tons of answered of hope that. fuel add focused up that we’re ton bits partners that result question. the your sure the every of on day that a that our saved me

Greg Lewis

chartered Ben’s Yes, Is vessels, Coast, them? that then opt someone not the I think follow kind throw around that trade of the does did charter Lois, flow that absolutely. of just in right them out up about with in your relationship the run i.e. talk to INSW trade, Panamax is want just Great. then vessels way pushed can’t given what those – And vessels then those trade. in to are and those vessels, pack, West else the question and event, that into it, on that

Lois Zabrocky

a a it Well, Ecuador grow Chile pool is venture joint with International that that Ultra in to particular, way, of in International, Flopec Seaways which Panamax is a not of se. don’t let’s look we per put this and venture and that’s joint –

Panamaxes with Aframaxes However, on and West there in many vessels, and are trade of the out Ecuador. that cargos and Coast

sure. So an that’s it’s trade, open for

some European some vessels charter trade chartered ends If also before owners, so for clean of may they but based we are in. those were here, trading our them

was or So before with there’s a States fuel United mentioned lot BGO now, strength that real a heavy, lot the Xs a A they’re was I’ve of refineries. and that’s right clean was in from oil going traded dirty importing Russia. barrels In being XXX,XXX of whether LR opportunity. particular, that into day

very well. is Suezmax Afras only not the And the really helped so and as the strong, Panamaxes but that’s keep

Greg Lewis

chartered then on I always clearly a sheet And at – and – this mean, in just the there’s vessels to this position great is I the that, position the Okay. up in we’ve at past in the good point. know balance balance ability between that buy about vessels. talked following

maybe I You we in that kind agnostic, maybe or kind did look market’s to frothy. guess, the you’re charter whether that But decide whether future. wondering as of bit way we stay going trade, it’s buy. or for ahead. to chartering mention to going foreseeable we of And I are whether farther I’m for a it buying, the mean, we’re that little

Lois Zabrocky

Yes. agnostic. Yes,

Just look the for opportunity.

Greg Lewis

answers. great. Thank the the you for question. for you Okay, Thank

Lois Zabrocky

you, Greg. No, thank

Operator

from [Operator question you, comes now Instructions] is next from We line our Riley. Liam, your open. B. Liam Burke have Greg. Thank

Liam Burke

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

Lois Zabrocky

Liam. Hey

Liam Burke

ride spot as very classes time vessels like, do chartering Lois, prefer you interest start certain frothy to out, ones some of into or the these rates them start or getting market? to

Lois Zabrocky

spot at We’d love having that presence market moment, the obviously.

have that Remembering that the time in are opportunistically of XDs time a a We lay into do they the look coming rate. to they will some have charters. charter profit fleet. share, but Yes, base these

sort at vessel would that, get that’s at of charter XX% our in time Suezmaxes, approach the those saying, MRs, to was we our And some very sort probably So some bucket, potentially look that we put in and multi-year charter to classes good XX% on add other we some look then look the provided moment. of one-year we to the to I maybe do on, into time moment, as can that a enough time put doesn’t lot really alpha sheet. make charter balance

Liam Burke

share of you you or but with flow internally? that you. don’t that allocate have percentage the thank to do have I you’d dividend, any Jeff, about you variable cash of dividend, variable And Great, how us, do that think to component mean, the on

Jeff Pribor

Yes. Hi Liam.

substantial sees of very point of with you cash combined regular a of look deck. Everyone’s relative of it’s our dividend, a the we we’ll portion that their what board So in in and balancing total. just combined at their out their quarter in to based I – flow. a to did fit million bridge if And for right we the that dividend presentation quarter. cash prior that’s is had free would a about the with different little income from that, what the XX% flow by stick so is And cash on quarter supplemental that’s similar as net Q terminology And flow cash $XXX around dividend depreciation. free

as So, as at we well. the very I way price competitive think also share as find look that this we percentage and a it of

last to look the mainly guide a think two quarters. I cash that’s but free flow, Liam, we’ve done the So, what at in good

Liam Burke

Lois. you, Thank Thank Jeff. Great. you,

Lois Zabrocky

Thank you, Liam.

Operator

you, Thank Liam.

remarks. to We line. have Lois now closing for no hand questions further back I’ll on the

Lois Zabrocky

in much. Seaways, you for today company very you interest Glenn. very your Thank you and Thank the for much, International everyone tomorrow. Thank tanker

Operator

Thank concludes Ladies and you call. joining. Thank this you. for today’s gentlemen,

disconnect You may now lines. your

International Seaways (INSW) 28 Feb 232022 Q4 Earnings call transcript