Intl Seaways (INSW) Q1 2024

Announced Q1 results, including

On my own board, reviewed INSW in mid April - glad I did.

Declaration of the 2 LR1 options support the company’s approach to renewing their fleet. One of the later slides (Slide 20) indicates INSW is paying > $34k daily for a charter-in vessels. With current LR1 avg > $60K daily, INSW is doing really well with the side bet. Some concern with the LR1 fleet offhire days in Q2. Otherwise, no concerns on how INSW mgmt are steering the company


Did you look at Star Bulk? I noticed it popped on the 5th. I do not now anything about the shipping industry.


@buynholdisdead - I have not looked at SBLK. I do know their acquisition of EGLE was formally approved (that should be completed) last month. For SBLK analysis, you will have to peruse the “Value Hounds” board for my last thoughts on them. I closed my SBLK shortly thereafter.

Q1 2024 results likely in a week or two.


Regarding INSW and its newbuild decision.
While charter rates for all tanker categories have been elevated, the rate for the LR1 has been particularly impressive. Just look at INSW’s numbers on Slide 4. For three of the last four quarters, the LR1 category has had the highest charter avg, and a close second in the remaining qtr. That’s for a vessel category that is the 2nd smallest out 5 categories.

Extend the thinking to the newbuild side.
The earlier four were ordered at $57.74M each. The latest two were $58M each. By comparison, a VLCC costs > $120M. Though that has not always been the case, I see the % margins (gross, net) strongly lean towards the LR1, Will that still be the case in 2025 and beyond? No idea. But, for now, that LR1 decision looks really good.