INSW - Earnings call 4 2023 | International Seaways, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, all, and welcome to the International Seaways Fourth Quarter and Full Year 2023 Results Call. [Operator Instructions]

I would now like to hand this conference call over to our host, James Small, International Seaways' General Counsel. Please go ahead.

James Small

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

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

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

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

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

Lois Zabrocky

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

record Investor can our our for You website. XXXX of Seaways. the was find presentation a year section on Relations International

eclipsed for was million, quarter income million, $XXX gains figures per net fourth costs. on are vessel per income per $X.XX share. of $X.XX the share. XXXX's million, $XXX was and $XXX Net of financing net deferred $XX.XX income a Included write-off XXXX of share. Our This these sales in

capacity million XXXX, is the undrawn million and in balance to Excluding an to million we our announced $XXX sub $XXX MR per an across prepayment $XXX these amortization size X debt for vessels that in $XXX million fleet. net but revolving We purchase moments, level unencumbered our well his of In the our was thunder, a in in sizable revolver. Jeff a little incremental recycle signed stealing our repaid will sheet which fleet in net this impressive highlight we just to value. schedule. market we for bit few reduced $XXX debt $XXX our below just adjusted vessels natural Seaways we year the XX of closed our for and ECO the million. and we with MOA doubled total million. Today, $XXX income cash breakeven million credit to million special items, million level was $XX,XXX in the quarter. With $XXX year, over of XXXX $XXX liquidity, day million $XXX during debt,

We of price available will from this that remainder prior quarter. stock liquidity. the XX% fleet expect We high-quality X anticipate the this are shares be age of to end financed through of for and of of year. the to MR MRs common overall closing These the reduce the series by second transactions our fund vessels our

sales of XX% MRs ships merger with to we the value older for generated purchase net crystallize strong sold price their earnings nearly their since S sales. debt ships after $XX These realized market. The in X the Diamond from tanker in at million strong all-in returned the XXXX, During in due bottom both of proceeds repayment. our the and XXXX price

vessels Finally, revenue in an X X added over our portfolio, million Charter-Out we has $XXX with which to of now term years. average contracted nearly

substantial the you right-hand continue earnings, On a of where can see to portion slide, shareholders. the to strong lower returning the share our chart we

Seaways, over plus in Today, levers we dividends year. to we per of dividend $X.XX combined upon committed balanced and returned a quarter. repurchases. pulled a to shareholders record, our in $XXX build our capital We million declaring on During market share Seaways to XXXX, million to value $XXX XXXX. we strategy. the to average the $XX provide this secure paid end cap the return all future over of shareholders, million be net at This to is Combined, paid of XX% the income. At allocation XX% we're adjusted of our

with to out We LRX today. We're in beyond strong continue selected we the the and revenues grade renewing venture. investing fleet, joint time MR fleet, secure to our high customers vessels profitable have charted

XX%. net sheet to with of is strong value loan balance Our

only the would vessels, and a over liquidity company have smaller for so $XXX where expect low, them We with company tanker breakeven fleet you crude. for large not a million is half

yield share to with share continue our shareholders success double-digit the We value. with on

for tanker XXXX, forecast. oil and X.X day tankers, million day market is is supply compelling forward. Any a market Pulling developments per macro the some oil dashes our positive countries This growth Much for landing. side oil demand, Slide the and transportation. Slide X the Russian data global environment at the be to highlights. tanker the robust continues tanker supportive up the a demand concentrated of from trends. In demand Americas, forecast the Americas It upon and recent growth short bottom and incremental updated trade production to demand demand story. demand about in demand for be bullets support The projected underlies supply and with ton-mile neutral and million on indicating seaborne an trade with barrels Asia for tanker very mostly market coming oil long-haul demand above Turning estimated are growth increases from years. on call further towards on representing With black highlight largely structurally inventories for oil X.X% page, new few we impact focused growth is Asia, going imports oil, in Particularly the green per supported for leaning We've softer hinges disruptions constructive X. quite with the with chart where bullets The coming average of a therefore, short year-over-year. tanker suggesting the are arrows in next seaborne strong of low. the XXXX this remains down next X. for XXXX structurally sanctions East arrows to of part is negatives. Europe in within supply the is for representing around Non-OPEC Middle to commercial growth tankers. West, barrels drivers and as from red transportation trends Russia. the that

do need XXXX, you that bars even left-hand through to in Since showing will aligning years on dark order each order of XX on the existing would On They from the is commercial not largely the operating next trading old need specifically, we few today. the years fixed point. the book we book that inflection at lower be graph, years the In by be relative down at candidates the break the the water. chart, least around the old on order vessels to vessel potential XX the are that XX fleet more and the see years can very this age. fleet removed by broad class are replace vessels

term. prices orders will face the the the last Essentially, shipyards over right-hand expected show We industry. in lower we of the tanker not been future sectors in cycle they pending size of foundation expect ships meteoric deliveries continues number rise are tanker percentage remain rise years. health categories, and regulations, very as of of turns, exponentially. either near the most to are have The chart, full In the a for the shipping other XX of age On than as rationalize, laying total fleet fleet XX robust. they when a lower years the over do owners environmental new largely reaching the

We expect next a tankers for over few years. great run the

As demand oil market. will At of of East. in need is by should mentioned, Seaways, as continue coming the the production the capturing increase regional growth driven continue tanker in for and oil imbalances tankers the non-OECD to from the the West oil strength is we

left to of and financial CFO, sheet of provide possible Seaways. I'll Jeff? the the track Jeff We shareholders, growing turn our it returning will maintaining build Pribor, record upon our over balance utilize a now to healthy every value to to review.

Jeffrey Pribor

was quarter On million everyone. costs. the Slide Lois, $X.XX of $XXX impact share. X, includes financing deferred per net Thanks, you net adjusted income $XXX items, write-off This or vessel morning, these income exclude the gains of million. the fourth special was and diluted for sales and on good When

to from adjusted quarter a same right In the which $XXX fourth excludes chart, for upper earnings reconciliation XXXX appendix, the million, earnings. provided items. reported the we've On also was EBITDA the special adjusted of

repairs the guidance with largest were in docks quarter expected, new dual-fuel maintenance few the increased -- a fourth with storing, of spend of and dry out in as expense Vessel due were on VLCCs. with during changes range note training variance I'd our as like crude quarter income statement. some G&A to higher fell While well mostly than costs opportunity line and with for the items the to line our guidance. expenses expenses point for expectations, third

of about in side, strong vessel expenses, With year. On the nearly $X about in contributed in hire and million $X $XX a the million revenue. $X $X quarter and Lightering Lightering in our another business the revenue the million of business million in quarter, record EBITDA $XX million fourth had charter G&A, for million earning

quarter now million $XXX Turning We Slide bridge with $XXX of X. $XXX our the liquidity of undrawn capacity. cash, in in on total debt revolving million a cash composed began to million,

allocation the today's capital the $XXX cash million $XX of X and less proceeds capital debt million over during our working generated we of $XX quarter the sold million the in to share, we in price. The free year, dock dry debt XX% a combine on the million for flow capital repayments bars and on you $XXX million. along fourth $XX service about to share net a cash interest the million about We in $XX repayments or and million of fourth our left adjusted of due first remaining had bridge, our quarter. on flow flow representing quarter for over right for expenditures of debt chart draw scheduled Following expense. after cash EBITDA for a on quarter. the the quarter. definition composed yield received bridge achieved reflect cash free of $XX for XXXX about We less therefore the vessels Then When $X the cash timing cash from free our about during

We of orders. ] first progress out in payments the X [ also million $XX X spent for

of be paid $XX quarter, last debt, or share we per which it our just $XX since credit about could increased drawn about announced repaid and we we revolving million million As capacity again $X.XX in of to liquidity undrawn million dividends in debt short-term $XX These us million in million $XXX then investments the during in $XXX million led and capacity. $XXX revolving components cash with and quarter. an ending

to moving Slide XX. Now,

million. $XXX books the market XX%. the of current the Cash billion. detailed values on left-hand remains on $X with of on loan We about detailed at to $X page, at right in just end the liquidity have financial bottom position by sheet of versus equates the the of debt shown gross billion at this balance a $XXX page. Vessels over strong side a approximately And the and cost are net the million to value over of year strong

fixed or our average Our all-in debt to today -- equates interest is to above hedged an cost XX% interest rates, less XXX of rate basis about which than points weighted SOFR. X%

balanced capital execute earlier, mentioned a on continue allocation Lois As strategy. we to

in a straight for sheet shareholders the same We second quarter positioned support our quarter. share dividend. balance adjusted per prior the are have At combined of income This $X.XX growth. net returning time, to we for to represents XX% the

of $XX,XXX continuing our We growth debt our to with by and shareholders. issuance. XX%, liquidity we returning and are share X share continue per as cash results to purchasing renewal MRs cash portion net for day opportunities in With enable look a available prioritize successful to will well and below the as XXXX, breakeven in below to fleet

TCE the that day we for be breakevens a same, remind next blended you may On our turn to have of forward-looking as $XX,XXX fleet-wide reflects booked-to-date last quite quarter with TCE the aligned per that call for I'll earnings actual TCE quarter. spot levels. our not please the of slide in first average the XXXX, fixtures today, but cover, guidance This Slide Starting I'll and cash with XX. our of TCE about

interest of breakeven, months, cash which are long-term as this On were day charters. they well have for our the and XX $X,XXX than see reflective new At cash today. as daily principal on before right-hand can revenues last displayed our the cash per plus any CapEx year, you breakevens next time of cost side our our and the we profit the fixed higher slide, share

repeat fleet. a our of that, in day cash renew amount XX% shareholders, $XXX And breakevens to returned our XXXX, yield representing taking to steps year-over-year. we share the that the reduced Just per in also we've average while million over $X,XXX price to considerable on

like our for average earnings, our spot compare breakevens looks Seaways. very quarter the see you to forward, Looking first can XXXX you were another to strong of if quarter

in and estimates bottom first XXXX. the the at Looking modelers this the we left-hand out chart expenses guidance provided for for there, quarter for updated

to We use for modeling appendix plan line, to and schedules XXXX this line by also but don't my you quarterly and them included in off-hire XXXX. the I CapEx purposes. That our concludes encourage expected remarks. for read

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

Lois Zabrocky

achieved very Thank low and crude strategy. executed In fleet leverage, between evenly tankers. Seaways product operating Jeff. earnings XXXX, split our in record you We had breakeven. XXXX, much, significant a We with nearly cash

fleet leverage trimmed Panamax fleet. well entered market VLCCs upon IRR extremely that for and that sharing the year, and in XX% ordered to strong operating joint us that are to enables some on continue returned We the delivery LRXs and International profit develop X Last us with dual-fuel to MRs our We capitalize running older X we build our in fundamentals. charters for of MRs. an composition X took last niche today's our years purchase venture. We X an agreement long-term modern

has cycle that balance shareholders evenly through positions return the International and And built We a record been the matched grow capital with during to capitalize build to sheet us. incremental allocation shareholders the earnings, over maximize last in the better. transformational fortress months. our for substantial year. balance on opportunities. We our a the was XX balanced sheet, to of to Our returns deleveraging track XXXX generated company XX% Seaways with on growth portion deleveraging cash of never

we prioritize vigilantly and our my geopolitical forward, it vessels crews I to times. I want remarks. seafarers, safety our of you continue we'll much, very to Going very and questions. thank open in will the to our conclude up challenging

Operator

Chris Bank. question comes Our first Instructions] the of of Deutsche Robertson from line [Operator

Christopher Robertson

quarter here. strong very Congratulations the on

detailed One one. a have Just market then oriented couple more and is of questions. a

further to Good there? Red the Or the as Is could So so? occur? switch minds, is Hope that were dislocations for the Or divert and already around going moment? peak just there at have on, at your done all the the tankers Cape tankers going of Sea market disruption that in more it is relates room to disruptions there

Lois Zabrocky

Chris, Lois, there I and are peak that disruption levels. in would it's jump at say think we and I

around of variety that the a on deviate I the think that tankers area bottom. tanker assets, of with really traveling number indiscriminately large sort of through the amount we're attacks, seeing

Christopher Robertson

should about? When vessels, like MRs. the to be associated going there to guys of some CapEx saving relates delivery with that energy anything just incremental upgrades we take question think Next that, any is or you those

Lois Zabrocky

would strong our a have that vessels we Chris, I We fleet that predecessor at at is SPP. what they're ECO design, built, are SPP. already in There's vessels. X built say company these

them of then on fleet. will factors, due that. as paint course, and naturally, going the required at, We maybe bring one course, to drydock when time, in with put our any we look efficiency spend. natural ships there cycle, we will do will, we And of But the immediate just CapEx we don't have we should into every water, look over are do to -- on okay, is

Operator

Burke question next Liam comes from Our of Riley. B. the line of

Liam Burke

any MRs? tendency to sell or is older in Lois, your interest some there of

Lois Zabrocky

Yes.

been you We and know, So following the years. sold us I X.X XX know MRs along. last you've over

younger when So especially in you was, the continue and strong fundamentals and These just vessels that just in prune continued time to we company. in regeneration. it to are coming vessels of see organic brings thought and that X that and to some natural years just renewal natural sector MR very is is think older a the in some we we do it a bring this

Jeffrey Pribor

contributed would vessels And at mentioned I then the add, them Diamond the in to looking XX% sale remarks, price, the these an price, when it Lois purchase out to we're vessels that S Liam, our we've merger, held as acquired we in selling profits, and the comes just IRR. while cash

ones profits continue but the acquiring generating good So taking that. the we we and to cash we have like flow, we're like ones like

Liam Burke

of spot interest -- with terms have adding time and you or current fixtures time your any balance the you charter on of do charters? to And the in happy are

Derek Solon

to their for like covered the and coverage our Solon, Liam, Seaways. look Jeff in for Commercial more fourth through the But in travel putting Liam. away remarks, TCE quarter. Thanks Lois this add time to opportunities, question. to Derek continued we X for Officer ships We've is continue XXXX,

or I look multiyear look out, continue for charters, continue availability stay right? could attractive or So X or in then that. X if the years think we rates the coverage for year for rates for the spot to stuff, now. shorter-term that's are to of X market to But see develop right we'll us, us, that that we less, we'd we the at if rather

Operator

next Our McGarry comes Jae of from the of question line Jefferies.

Jaeyoung McGarry

year. solid a on Congrats

withstanding market you to capital, the Just you just now? more deleverage turning amortization are year? shareholder build Or to last same your profile or of to allocating have less position. in terms you at with XXXX, or to looking look on rate are May contend be cash the returns

you're trying where see, is towards Just to cash with priority free any respect flow. to leaning there

Jeffrey Pribor

a Yes. Thanks, we able Yes, welcome. XX% and delever to XX% heard for talked itself. level second level below the cap. speaks in debt if net to the your just that priorities net of what in lot to received, at current about Jae, home we in we of with dividend, Jeff. regular our fleet at we mentioned we like This debt that the dividends we've mortgage, renewing debt value shareholders, average to that's for returned still market rates call recycle and to shareholders, quarter that of the which reached contend, but a lot we continuing are MRs kind a as of returning were combined are that we But today, low like while a combined to where of XX% in forward XXXX, level and don't so your left both quality is loan-to-value we having we're cash what and purchase satisfied of you've share it's achieved XXXX, to question, the row, that where that's interest well on think look you know income I X below form return I where debt

So that's forward. I think the for picture going

Jaeyoung McGarry

a older just follow-up And question with maybe the MRs. on Liam's

expand MRs you the MR looking Or build the within renewal? just coming in, of and just and you're this is You the purely size fleet to maybe space? MR but fleet that capitalize, X do said like you now will just

Lois Zabrocky

is the market. I have put you when the earnings Well, they at MR the that sector throughout been, the sector, and best-performing fundamentals I tanker guess say look what would they by the up, had far,

into Now, we're well into market strong. very continues and year going X the

days why see are you at where and book in So in. look these can we're QX, you our bringing ships

Operator

the comes Sherif question final BTIG. Our of line of Elmaghrabi from

Sherif Elmaghrabi

way the the probably fleet on any to dark think about of but of side? there of composition is about it's different what in types Lois, the On the terms vessels? side, clean kind of dirty Afras,

Lois Zabrocky

Thank both I'm think going about we in a I'm the Derek, for product more there's the that fleet. if is question. moving But crude amount it's and be crude. -- healthy looking you of it, to you as at dark thinking...

Derek Solon

if side, So I fleet of some the gray my get be on to has think right? that XXX clean we view. the be dark would whole around ships,

question, -- both trades have it's your sanction to some So -- I Iran. it's you doing guess your so both of crude the out to and of the and fleet dark Venezuela clean specific question,

are an you if It element it are have, more dark fleet, price is estimation, trade you doing half And of fleet. then which under authorities the it's under the aren't So than bit did But if gray little cap, cap, cap. requirements you price be price violating that is the X/X that's a of you Sherif it what just the probably the little one a would it you to of pay composition and helps. said, when Russian a gray attention showing the or bit less be the or fleet, if as isn't is whole that clean. that of would that

Sherif Elmaghrabi

all of fleet not growing type X, And is year. then are evenly interesting by parts the next split order Class on the back out vessel which on because

more LRXs leading product fleet tanker example, muted. think growth, are fleet for MRs, I tanker -- are So while

with and the guess I trade you between refinery see kind more is, my is Or do to shifting of do LRXs capacity? so of And that question balance MRs? it shifting

Derek Solon

pretty numbers agree trades XX mean, LRXs could is I the the We've fleet obviously, the this you Derek, been Sherif, rapidly. about that the the with is book years. are to for cannibalizing if talking order take that. growing MR growing, is LRX numbers I past

MRs to I right helping events will workhorse now some the of we be go. that LRX continue fleet. that fleet think the the are of But really So geopolitical see that

think the that's over conflict the Red ], having Israel-Hamas I to so a Good around what think Cape clearly, the to and of much bringing not [ the you're the situation, see more, go Sea. but ton-miles. lot LRXs to Russian-Ukraine And I the bear starting Hope

So the just side does is market on that because really, they'll the going just a really as so switch patterns. really then what's bit depending running. Afra to Is to LRX think trade better. dirty that vulnerable larger And don't well leave I replace MRs? that upon little fleet

Operator

you. Thank

As conference over Zabrocky the no at to hand back there additional call time, closing remarks. this are like I'd Lois questions to for

Lois Zabrocky

Thank much, forward very for soon. and share very as appreciate joining look we you record International you with talking Thank everyone much. to XXXX Seaways We you really we our earnings.

Operator

call. a would thank today's I gentlemen, and Have you Ladies to us rest of like day. great joining for on your

disconnect may lines. You your now

International Seaways (INSW) 29 Feb 242023 Q4 Earnings call transcript