Announce 11/07
International Seaways (INSW) announced their Q3 2024 results earlier today. Included in the results were
- Rev of $225.2M
- Net Income of $91.7M (adj Net Income of $78.2M)
- Sold 2008-build MR2 vessel for a gain (likely the reason for above diff)
- Acquisition of 6 MR2 vessels (2nd hand vessels, some of whoch have delivered)
- Repurchased about 500K of own shares for $25M (abt $50/sh)
- INSW have decent liquidity, plus 34 unencumbered vessels
- Declared Q3 div of $1.20/sh (lower than Q2 2024, but higher than my estimate)
https://s203.q4cdn.com/968379449/files/doc_financials/2024/q3/INSW-Q3-2024-Earnings-Presentation-FINAL.pdf
Looking at table on Slide 4 (or Slide 8) Vessel category avg’s - the stat I did not like was the Aframax/LR2 avg. Yes, profitable. But much lower than what I expected. Not sure the exact cause - but Q4-to-date is much improved. The worrisome category for Q4 appears to be MR2 (kinda like STNG reported for Q3 2024). With INSW’s low vessel break-even rate, a $21K daily MR2 avg still works for them.
INSW’s gearing is really low and fleet renewal execution has been very good. Plus, some newbuilds deliver in 2025. Already have a bloodied INSW position (prior to dividend offset). But, still tempted to lower my INSW cost basis further. Or buy lower-priced shares now, and dump the higher priced shares on a decent bounce.