Intl Seaways (INSW) Q1 2023 results

Announced on 05/05

  • Rev of $287.1M
  • Net income of $172.6M
  • Took delivery of a Dual-fueled VLCC in March 2023. Subsequent to Q1 2023, a second newbuild VLCC delivered.
  • For Q1 2023, declared both a regular dividend and a supplemental dividend of $1.50/sh. Ex-div is mid June 2023, payment date - late June 2023.

International Seaways Reports First Quarter 2023 Results | Seeking Alpha

  • Almost half of the INSW product tanker fleet (22 of 46 vessels) is over 15 years old, or will turn 15 sometime in 2023. INSW mgmt have a balancing act regarding sell or keep. Tight tanker market means even old vessels can be sold at a premium (to value) vs spot earning with 60-70% operating margins.
  • Smart strategy with the dividend - lower regular div (12c/sh), that can likely be maintained. Add, a supplemental dividend, for when the market is hot.
  • Each VLCC newbuilds was fixed on a time charter with an oil major. Unless there is some type of profit-share, the vessels can’t avail of the improved VLCC market.

During the last hour of trading before the earnings report came out, INSW volume popped and there was a buying flurry looking at the chart. It looks like it went from $35.85 to $39.50 the next day for a nice profit and the buying continued the next day before it started trending back down to where it is now. Interesting that there was that buying volume the day before the report came out. Thanks for keeping us abreast of the shipping industry…doc

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@physician - For the last comments, – you’re welcome. I follow the sector because I like the sector. Have a token INSW position. While it does have some nice “characteristics”, I have bigger tanker bets on NAT & FRO. One characteristic is the mixed (crude and refined tankers) fleet, and at the moment, FRO have managed to have a vast majority of their fleet (it was all but 2 in Q4 2022) in the spot market. Going back to INSW, the second supplemental payout was a positive surprise. When the company paid the Q4 2022 supplemental payout, I thought it was just as a year wrap-up event.