Intl. Seaways Q4 2022

Industry Discussions Shipping News
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At first, I was going to challenge their first bullet. Then I remembered, the name of the precursor entity was NOT International Seaways, but Overseas Shipping Group (OSG). Indeed, circa 2007-2008, OSG was indeed a large tanker company which included a subsidiary that focused on US Jones Act trade (and eventually became the current OSG).

INSW merged with Diamond S Shipping a few years ago, and that resulted in a fleet of a lot more clean tanker vessels. That was a huge plus for Q4 2022 results with $184.9M (out of $335.7M) from the Product tanker segment. On a full year 2022 basis, the results are even more skewed towards the Product tanker side ($531.9M of $864.7M)

INSW will pay a combined dividend of $2/sh - $0.12 regular dividend and $1.88/sh supplemental dividend. INSW has also repurchased some shares,

International Seaways Reports Fourth Quarter and Full Year 2022 Results (intlseas.com)

Lots of other positive developments

  • 3 VLCC newbuilds deliver in the first half of 2023.
  • Company has sold a couple of MR vessels at a nice price
  • INSW has exercised a couple of Aframax leases - acquiring each vessel at a huge discount to current value.
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03/24 - 25
Was digging a little deeper into INSW.

  • I do recall the decision on the Sale & Leaseback of 6 VLCCs (vessels acquired from EURN a couple of years earlier). What I am struggling with is, how is the transaction accounted for on the Balance Sheet?
  • The three newbuild VLCCs will also be a Sale & Leaseback type transaction.
  • The product tanker fleet is, on average, a lot older than I expected. By the middle of 2024, over half the product tanker fleet will be > 15 years. Given the current market, good opportunity to sell at higher levels.
  • INSW seem to have transitioned away from the crude Panamax tankers. But now have a bunch of LR1s (similar vessel category/size). Do any of the LR1s trade dirty?
  • INSW sold its interest in FSO JV. Focus is solely on the tanker business. Will the company keep the special div for year-end surprises?
  • Unencumbered vessels at 22. But, if INSW have as many vessels crossing the 15 year mark in 2024, maybe not too surprising.