Intl Seaways report Q2 2024

Industry Discussions Shipping News
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Announced 08/07

  • Shipping rev of $257.4M
  • Net Income of $144.7M (adjusted NI $118M)
  • Six 2nd hand ECO MR2 tankers have delivered
  • Three older MR2 tankers have been sold

https://www.intlseas.com/newsroom/news/news-details/2024/International-Seaways-Reports-Second-Quarter-2024-Results/default.aspx

Some additional thoughts

  • "…VLCC, Suezmax and Aframax sectors were approximately $46,400, $45,000 and $31,500 per day "
    INSW spot rates seem to be following size. In a typical year, that’s normal or par. But Q2 2024 has not been normal. The Aframax rate in particular seems low
  • Q2 div of $1.50/sh (Reg of 12c, supplemental div of $1.38) Quite acceptable to me - I’ve modeled 75c/sh quarterly to account for a typical weaker Q3. Getting a $1.50 total in one payout, means Q3 is all gravy
  • Shipping is a very capital intensive sector. Having access to $500M on a revolving credit facility illustrates INSW’s financial flexibility.

May dig in a little more. But was comfortable enough with the initial take to add to my INSW stake

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The INSW earnings call transcript–
https://seekingalpha.com/article/4711652-international-seaways-inc-insw-q2-2024-earnings-call-transcript

Two main takeaways

  1. At least one analyst noted the lower Aframax average. INSW mgmt explained that they have a plan (involving partners) to participate in the West Coast TMX trade. One or more vessel needed a dry-dock, and that caused a lower avg. INSW only have 5 (4 Afra, 1 LR2) vessels in that category, so one impacted vessel can have a big impact to the avg
  2. Their debt consolidation has a two fold effect. Longer debt punt and cost savings.
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