International Seaways(INSW)

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International Seaways, Inc. Announces Successful Placement of 5-Year Senior Unsecured Bonds
Businesswire· 2025-09-09 20:30
Core Viewpoint - International Seaways, Inc. has successfully placed $250 million of new senior unsecured bonds in the Nordic bond market, maturing in September 2030 with a fixed coupon of 7.125% per annum [1][2]. Group 1: Bond Issuance Details - The net proceeds from the bond issue will be used for refinancing the Ocean Yield sale-and-leaseback agreement and for general corporate purposes [2]. - The bonds are intended for qualified institutional buyers in the United States under Rule 144A of the Securities Act of 1933 and have not been registered under the U.S. Securities Act [3]. Group 2: Company Overview - International Seaways, Inc. is one of the largest tanker companies globally, providing energy transportation services for crude oil and petroleum products [4]. - The company operates a fleet of 77 vessels, including 12 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 11 LR1s, and 36 MR tankers [4].
International Seaways Q2 2025: Solid Balance Sheet And Resilient Outlook Despite Mixed Results
Seeking Alpha· 2025-08-15 07:06
Group 1 - International Seaways reported mixed results for Q2 2025, showing better performance quarter on quarter but slightly worse figures compared to Q2 2024 [1]
International Seaways(INSW) - 2025 Q2 - Earnings Call Transcript
2025-08-06 14:00
Financial Data and Key Metrics Changes - Net income for Q2 2025 was $62 million or $1.25 per diluted share, with adjusted net income at $50 million or $1.02 per diluted share, and adjusted EBITDA at $102 million [4][17] - The company announced a combined dividend of $0.77 per share, maintaining a payout ratio of at least 75% for four consecutive quarters [5][4] - Total liquidity at the end of Q2 was over $700 million, with $149 million in cash and $560 million in undrawn revolver capacity [9][10] Business Line Data and Key Metrics Changes - The lightering business generated over $9 million in revenue with EBITDA contribution of about $2 million in Q2 [18] - The company sold two vessels for proceeds of $28 million and has four more expected to deliver in Q3 for around $57 million [6][20] Market Data and Key Metrics Changes - Demand fundamentals for seaborne transportation remain solid, with upward revisions to GDP forecasts potentially increasing oil demand [11] - Crude storage levels are historically low, and product inventories are also at low levels, particularly for middle distillates [11][12] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold six older vessels and planning to purchase a modern scrubber-fitted VLCC [6][8] - The strategy includes maintaining a balanced capital allocation approach while returning cash to shareholders [27][24] Management's Comments on Operating Environment and Future Outlook - The geopolitical environment remains fluid, impacting trade routes and tanker demand, with potential for increased rates due to tensions in regions like the Strait of Hormuz [12][13] - The company expects to continue generating significant free cash flows and building on its track record of returning cash to shareholders [25][29] Other Important Information - The company has secured financing commitments for up to $240 million for newbuild vessels, with a twenty-year amortization profile [8][23] - The net loan to value ratio is comfortably under 15%, indicating a strong balance sheet [9][10] Q&A Session Summary Question: Clarification on vessel sales proceeds - The $57 million expected from the four vessels should be considered as debt proceeds [32] Question: Impact of recent sanctions on trade patterns - India is taking compliant tonnage for export and has increased imports of US Gulf crude, indicating a tactical trading approach [34] Question: Benefits of OPEC+ production cuts unwinding - Increased crude flow will benefit smaller tankers as VLCCs will be more engaged in moving crude, reducing competition in smaller segments [39] Question: Future vessel refinancing - The company is evaluating various options for refinancing older vessels, with sufficient revolver capacity to fund repayments [48][49] Question: Expected financing terms for older vessels - Financing for older vessels is expected to be shorter than the twelve-year term secured for newbuilds, likely around five to seven years [52]
International Seaways(INSW) - 2025 Q2 - Earnings Call Presentation
2025-08-06 13:00
Financial Performance - International Seaways Inc reported a net income of $62 million, or $1.25 per share, and an adjusted net income of $50 million, or $1.02 per share for Q2 2025[10] - The company's Q2 2025 Adjusted EBITDA was $1015 million[30] - The company's Q2 2025 TCE revenues were $188822 million[62] Fleet Optimization and Capital Allocation - The company agreed to purchase a 2020-built scrubber-fitted VLCC for $119 million[12] - The company sold 6 older vessels with an average age of 175 years[12, 16] - The company has a share repurchase program of $50 million[12] - The company declared a dividend of $077 per share, representing a 75% payout ratio of Q2 2025 adjusted net income[17] Balance Sheet and Liquidity - The company has a total liquidity of $709 million[13] - The company's gross debt is $553 million, with the earliest maturity in 2030[13] - The company's net loan to value is 14% as of June 30, 2025[13]
International Seaways (INSW) Beats Q2 Earnings and Revenue Estimates
ZACKS· 2025-08-06 12:55
Core Insights - International Seaways reported quarterly earnings of $1.02 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, but down from $2.37 per share a year ago, indicating an earnings surprise of +12.09% [1] - The company achieved revenues of $195.64 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.36%, but down from $257.41 million year-over-year [2] - International Seaways has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The company has shown a strong earnings surprise history, with a +35.59% surprise in the previous quarter where actual earnings were $0.80 compared to an expected $0.59 [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.94, with expected revenues of $186.61 million, and for the current fiscal year, the EPS estimate is $4.24 on revenues of $765.69 million [7] Stock Performance - International Seaways shares have increased approximately 20.4% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Transportation - Shipping industry, to which International Seaways belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of stocks in this industry can be significantly influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]
International Seaways(INSW) - 2025 Q2 - Quarterly Report
2025-08-06 12:05
Part I - Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q2 2025 financial statements reflect decreased net income and revenues, with reduced assets and liabilities, and lower operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a decrease in total assets and liabilities, while total equity slightly increased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $332,394 | $376,323 | | **Total Assets** | **$2,523,215** | **$2,636,397** | | **Total Current Liabilities** | $350,333 | $130,935 | | **Total Liabilities** | **$623,436** | **$780,349** | | **Total Equity** | **$1,899,779** | **$1,856,048** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income for Q2 2025 significantly decreased from the prior year, primarily driven by a substantial drop in shipping revenues Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Shipping Revenues** | $195,641 | $257,409 | $379,035 | $531,810 | | **Income from vessel operations** | $69,367 | $154,788 | $128,540 | $309,211 | | **Net income** | $61,646 | $144,723 | $111,211 | $289,213 | | **Diluted net income per share** | $1.25 | $2.91 | $2.25 | $5.83 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow decreased, investing activities provided cash, and financing activities used more cash for debt and dividends Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $155,726 | $324,381 | | **Net cash provided by/(used in) investing activities** | $46,486 | $(96,415) | | **Net cash used in financing activities** | $(210,911) | $(178,585) | | **Net (decrease)/increase in cash** | $(8,699) | $49,381 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance declines, active fleet management, debt reduction, and significant capital returns to shareholders - The company operates a fleet of **75 vessels** and has **six LR1 newbuilds** scheduled for delivery between Q3 2025 and Q3 2026[12](index=12&type=chunk) Segment Adjusted Income from Vessel Operations (in thousands) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Crude Tankers** | $46,474 | $67,147 | $81,146 | $137,040 | | **Product Carriers** | $23,951 | $73,396 | $51,743 | $170,249 | - The company has commitments for **six new LR1 Product Carriers** for an aggregate cost of approximately **$359 million**, with **$300 million** remaining as of June 30, 2025[32](index=32&type=chunk) - During the first six months of 2025, the company sold **four vessels** (two VLCCs and two MRs) and recognized an aggregate gain of **$21.3 million**[36](index=36&type=chunk) - Total debt decreased from **$688.4 million** at year-end 2024 to **$547.3 million** at June 30, 2025, primarily due to repayments on the **$500 Million Revolving Credit Facility**[49](index=49&type=chunk)[52](index=52&type=chunk) Dividends Paid in 2025 (in thousands) | Payment Date | Regular per Share | Supplemental per Share | Total Paid | | :--- | :--- | :--- | :--- | | March 28, 2025 | $0.12 | $0.58 | $34,495 | | June 26, 2025 | $0.12 | $0.48 | $29,620 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes decreased income from vessel operations to lower TCE revenues, while maintaining strong liquidity and focusing on fleet renewal, debt reduction, and shareholder returns [Operations & Oil Tanker Markets](index=40&type=section&id=Operations%20%26%20Oil%20Tanker%20Markets) The company operates a 75-vessel fleet primarily in the spot market, with global oil consumption and tanker fleet size increasing, and Q2 2025 tanker rates remaining above breakeven levels - The company's operating fleet consists of **75 vessels**, with **six additional LR1 newbuilds** scheduled for delivery, bringing the total to **81 vessels**[107](index=107&type=chunk) - Approximately **82%** of total TCE revenues were derived from the spot market in Q2 2025, compared to **88%** in Q2 2024[111](index=111&type=chunk) - The global tanker fleet (over 10,000 dwt) increased by a net **3.7 million dwt** during Q2 2025, with the crude fleet growing by **2.9 million dwt** and the product carrier fleet by **0.8 million dwt**[120](index=120&type=chunk) [Results from Vessel Operations](index=43&type=section&id=Results%20from%20Vessel%20Operations) Income from vessel operations significantly decreased in Q2 2025 due to a 25% drop in TCE revenues, driven by lower average daily rates and reduced revenue days TCE Revenue and Income from Vessel Operations (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **TCE Revenues** | $188.8 | $251.8 | $(63.0) | | **Income from Vessel Operations** | $69.4 | $154.8 | $(85.4) | Crude Tankers Segment - Average Daily TCE Rate | Period | 2025 ($/day) | 2024 ($/day) | | :--- | :--- | :--- | | **Q2** | $39,627 | $46,698 | | **H1** | $37,093 | $46,846 | Product Carriers Segment - Average Daily TCE Rate | Period | 2025 ($/day) | 2024 ($/day) | | :--- | :--- | :--- | | **Q2** | $21,500 | $34,857 | | **H1** | $21,780 | $37,310 | Adjusted EBITDA Reconciliation (in thousands) | Period | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $61,646 | $144,723 | $111,211 | $289,213 | | **EBITDA** | $112,756 | $193,665 | $213,478 | $385,195 | | **Adjusted EBITDA** | $101,527 | $166,956 | $192,228 | $358,435 | [Liquidity and Sources of Capital](index=50&type=section&id=Liquidity%20and%20Sources%20of%20Capital) The company maintained strong liquidity of **$709.2 million** as of June 30, 2025, with improved net debt to capital, and actively managed capital through dividends, debt repayment, and fleet renewal - Total liquidity as of June 30, 2025, was **$709.2 million**, consisting of **$148.8 million** in cash and **$560.4 million** in undrawn revolver capacity[171](index=171&type=chunk) - Net debt to capital was **17.3%** as of June 30, 2025, compared to **22.2%** at December 31, 2024[175](index=175&type=chunk) - The company plans to exercise purchase options in November 2025 on six VLCCs for an estimated aggregate price of **$257.7 million**, which can be funded by its revolving credit facilities[180](index=180&type=chunk) - As of June 30, 2025, the company has **32 unencumbered vessels** (excluding newbuilds), providing significant financial flexibility[183](index=183&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during Q2 2025 - Management concluded that disclosure controls and procedures were effective as of **June 30, 2025**[194](index=194&type=chunk) - No material changes to internal control over financial reporting occurred during the three months ended **June 30, 2025**[195](index=195&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits, with a favorable arbitration ruling in March 2025 for a commercial dispute, though the ruling is subject to appeal - In a commercial dispute from 2023, an arbitration tribunal ruled in the company's favor in **March 2025**, dismissing the opposing party's claims and awarding monetary damages to the company. The ruling is currently subject to an appeal filed in **April 2025**[97](index=97&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors are disclosed in this report, with the company referring to previously filed risk factors in its 2024 Form 10-K and Q1 2025 Form 10-Q - The report directs readers to previously filed risk factors in the 2024 Form 10-K and the Q1 2025 Form 10-Q, indicating no material updates in the current period[198](index=198&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No stock repurchases occurred under the formal program during Q2 2025, though shares were withheld to cover tax liabilities from vested restricted stock units - No shares were acquired under the stock repurchase program during **Q2 2025**. Shares were withheld from employees to cover withholding taxes related to vested equity awards[199](index=199&type=chunk)[61](index=61&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) The CEO and CFO entered Rule 10b5-1 trading plans in March and May 2025, respectively, for potential stock sales beginning in August 2025 - CEO Lois K. Zabrocky entered a Rule 10b5-1 trading plan on **March 14, 2025**, for the sale of up to **24,000 shares**[203](index=203&type=chunk) - CFO Jeffrey D. Pribor entered a Rule 10b5-1 trading plan on **May 23, 2025**, for the sale of up to **12,000 shares**[204](index=204&type=chunk)
International Seaways(INSW) - 2025 Q2 - Quarterly Results
2025-08-06 11:15
Part I [Highlights & Recent Developments](index=1&type=section&id=HIGHLIGHTS%20%26%20RECENT%20DEVELOPMENTS) International Seaways reported a net income of **$62 million** (**$1.25/share**) and an adjusted net income of **$50 million** (**$1.02/share**) for Q2 2025, actively optimizing its fleet and maintaining a strong balance sheet with **$709 million** in liquidity and a low **14%** net loan-to-value ratio, while declaring a combined dividend of **$0.77 per share** for September 2025 Q2 2025 Key Financial Metrics | Metric | Value | Per Diluted Share | | :--- | :--- | :--- | | Net Income | $62 million | $1.25 | | Adjusted Net Income | $50 million | $1.02 | | Adjusted EBITDA | $102 million | N/A | - Fleet optimization involves selling six older vessels (average age 17.5 years) and agreeing to purchase a 2020-built scrubber-fitted VLCC for **$119 million**[5](index=5&type=chunk) - The company maintains a healthy balance sheet with total liquidity of approximately **$709 million** as of June 30, 2025, and a low net loan-to-value of about **14%**[5](index=5&type=chunk) - A combined dividend of **$0.77 per share** was declared for September 2025, representing **75%** of adjusted net income, marking the 23rd consecutive quarterly dividend[5](index=5&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management emphasized the successful execution of their disciplined capital allocation strategy, which includes fleet renewal, balance sheet strengthening, and significant cash returns to shareholders, expressing a positive outlook on tanker demand despite geopolitical uncertainty and highlighting the company's financial flexibility - CEO Lois K. Zabrocky highlighted the strategy of selling older vessels, purchasing modern ones, and returning cash to shareholders, noting that dividends since Q4 2022 aggregate to **$15.25 per share**[6](index=6&type=chunk) - The company expects oil demand to grow, supported by production from the Americas and OPEC+, while tanker supply may decline, creating favorable market dynamics[6](index=6&type=chunk) - CFO Jeff Pribor stated the company maintains financial strength with over **$560 million** of undrawn revolving capacity and over **$700 million** in total liquidity to support growth and navigate the tanker cycle[6](index=6&type=chunk) [Second Quarter 2025 Results](index=3&type=section&id=SECOND%20QUARTER%202025%20RESULTS) In Q2 2025, net income significantly decreased to **$62 million** from **$145 million** in Q2 2024, primarily due to lower Time Charter Equivalent (TCE) revenues, with spot earnings down approximately **$13,000 per day** across the fleet, and shipping revenues falling to **$196 million** from **$257 million** year-over-year, impacting both Crude Tankers and Product Carriers segments Q2 2025 vs Q2 2024 Consolidated Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $62 million | $145 million | | Diluted EPS | $1.25 | $2.91 | | Shipping Revenues | $196 million | $257 million | | TCE Revenues | $189 million | $252 million | | Adjusted EBITDA | $102 million | $167 million | [Crude Tankers Segment](index=3&type=section&id=Crude%20Tankers) The Crude Tankers segment's TCE revenues decreased to **$99 million** in Q2 2025 from **$121 million** in the prior-year quarter, driven by lower average spot earnings across all vessel classes, with VLCCs at **$39,300/day**, Suezmaxes at **$36,800/day**, and Aframaxes at **$30,700/day** Crude Tankers Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Shipping Revenues | $104 million | $125 million | | TCE Revenues | $99 million | $121 million | | VLCC Spot Earnings | ~$39,300/day | ~$46,400/day | | Suezmax Spot Earnings | ~$36,800/day | ~$45,000/day | | Aframax Spot Earnings | ~$30,700/day | ~$31,500/day | [Product Carriers Segment](index=3&type=section&id=Product%20Carriers) The Product Carriers segment saw its TCE revenues fall to **$90 million** in Q2 2025 from **$131 million** in Q2 2024, primarily due to significantly lower average spot earnings for LR1s at **$32,800/day** (down from **$53,000/day**) and MRs at **$18,900/day** (down from **$35,000/day**) Product Carriers Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Shipping Revenues | $92 million | $132 million | | TCE Revenues | $90 million | $131 million | | LR1 Spot Earnings | ~$32,800/day | ~$53,000/day | | MR Spot Earnings | ~$18,900/day | ~$35,000/day | [Strategic & Financial Initiatives](index=3&type=section&id=Strategic%20%26%20Financial%20Initiatives) The company is actively managing its fleet and finances through a multi-faceted strategy, including a fleet optimization program involving the sale of older vessels and acquisition of modern ones, alongside constructing six new dual-fuel ready LR1s, while repaying debt and securing financing for newbuilds, demonstrating a strong commitment to shareholder returns through consistent dividends [Fleet Optimization Program](index=3&type=section&id=FLEET%20OPTIMIZATION%20PROGRAM) The company is executing a fleet renewal strategy by selling older vessels and acquiring modern tonnage, having sold two 2007-built vessels for **$28 million** in Q2, with four more expected to be sold in Q3 for **$57 million**, while agreeing to purchase a 2020-built VLCC for **$119 million** and having six new dual-fuel ready LR1 vessels under construction for delivery starting in Q3 2025 - Sold two 2007-built vessels in Q2 for net proceeds of ~**$28 million** and expects to sell four more vessels in Q3 for gross proceeds of ~**$57 million**[13](index=13&type=chunk) - Agreed to purchase a 2020-built, scrubber-fitted VLCC for **$119 million**, with delivery expected in Q4 2025[14](index=14&type=chunk) - Has contracts to build six dual-fuel (LNG) ready LR1 vessels for a total price of ~**$359 million**, with deliveries scheduled from Q3 2025 through Q3 2026[17](index=17&type=chunk) [Balance Sheet Enhancements](index=3&type=section&id=BALANCE%20SHEET%20ENHANCEMENTS) The company strengthened its balance sheet by repaying a total of **$144 million** on its revolving credit facilities in the first half of 2025 and July, plans to exercise purchase options on six VLCCs for **$258 million** in November 2025 using its **$560 million** in available revolving credit capacity, and has secured a new **$240 million** financing commitment for its LR1 newbuildings - In the first half of 2025, the company repaid **$117 million** on its revolving credit facilities, with an additional **$27 million** repaid in July 2025[18](index=18&type=chunk) - Intends to exercise purchase options on six VLCCs for an aggregate of **$258 million** in November 2025, with funding available from its revolving credit facilities[19](index=19&type=chunk) - Secured a **$240 million** financing commitment for its LR1 newbuildings with a blended margin of **125 basis points** over a **12-year maturity**[5](index=5&type=chunk) [Returning Cash to Shareholders](index=4&type=section&id=RETURNING%20CASH%20TO%20SHAREHOLDERS) International Seaways continues its commitment to shareholder returns, having paid a combined dividend of **$0.60 per share** in June 2025, and declaring another combined dividend of **$0.77 per share** (consisting of a **$0.12 regular** and a **$0.65 supplemental** dividend) payable in September 2025, while maintaining a **$50 million** share repurchase program authorized through the end of 2025 - Paid a combined dividend of **$0.60 per share** in June 2025[20](index=20&type=chunk) - Declared a combined dividend of **$0.77 per share** (**$0.12 regular**, **$0.65 supplemental**) to be paid in September 2025[21](index=21&type=chunk) - A **$50 million** share repurchase program remains authorized until the end of 2025[22](index=22&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's performance, showing a year-over-year decline in revenues and net income for both the second quarter and first half of 2025, a slight decrease in total assets and a reduction in total liabilities compared to year-end 2024, and lower cash from operations with significant cash usage in financing activities [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total shipping revenues were **$195.6 million**, down from **$257.4 million** in 2024, with net income for the quarter at **$61.6 million** (**$1.25/share**), a significant decrease from **$144.7 million** (**$2.91/share**) in the prior-year period, and six-month net income at **$111.2 million** compared to **$289.2 million** in 2024 Statement of Operations Highlights (Three Months Ended June 30) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Shipping Revenues | $195,641 | $257,409 | | Income from vessel operations | $69,367 | $154,788 | | Net income | $61,646 | $144,723 | | Diluted net income per share | $1.25 | $2.91 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company reported total assets of **$2.52 billion**, down from **$2.64 billion** at year-end 2024, with cash and cash equivalents at **$148.8 million**, total liabilities decreased to **$623.4 million** from **$780.3 million** primarily due to a reduction in long-term debt, and total equity increased to **$1.90 billion** Balance Sheet Summary | ($ in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $148,807 | $157,506 | | Total Assets | $2,523,215 | $2,636,397 | | Total Liabilities | $623,436 | $780,349 | | Total Equity | $1,899,779 | $1,856,048 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was **$155.7 million**, a decrease from **$324.4 million** in the same period of 2024, net cash from investing activities was **$46.5 million** driven by proceeds from vessel sales, and net cash used in financing activities was **$210.9 million**, primarily for debt repayments (**$137.2 million**) and dividend payments (**$64.1 million**) Cash Flow Summary (Six Months Ended June 30) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $155,726 | $324,381 | | Net cash provided by/(used in) investing activities | $46,486 | $(96,415) | | Net cash used in financing activities | $(210,911) | $(178,585) | | Net (decrease)/increase in cash | $(8,699) | $49,381 | [Operational Data & Fleet Information](index=8&type=section&id=Operational%20Data%20%26%20Fleet%20Information) Operational data for Q2 2025 shows a general decline in spot TCE rates across most vessel classes compared to Q2 2024, with LR1 and MR product carriers experiencing significant drops in spot earnings, while the company's total fleet consisted of **81 vessels** as of June 30, 2025, including **75 operating vessels** and **6 newbuilds** on order [Spot and Fixed TCE Rates](index=8&type=section&id=Spot%20and%20Fixed%20TCE%20Rates%20Achieved%20and%20Revenue%20Days) In Q2 2025, average spot TCE rates for VLCCs were **$39,303/day** and Suezmaxes were **$36,830/day**, both down from the prior year, with the Product Carriers segment seeing more significant declines, as LR1 spot rates were **$32,802/day** (vs. **$53,066 in Q2 2024**) and MR spot rates were **$18,941/day** (vs. **$35,007 in Q2 2024**) Q2 2025 Average Spot TCE Rates | Vessel Class | Average Spot TCE Rate ($/day) | | :--- | :--- | | VLCC | $39,303 | | Suezmax | $36,830 | | Aframax | $30,747 | | Panamax (LR1) | $32,802 | | MR | $18,941 | [Fleet Information](index=9&type=section&id=Fleet%20Information) As of June 30, 2025, International Seaways' fleet comprised **81 vessels**, including a total operating fleet of **75 vessels** (**61 owned**, **14 chartered-in**) and a newbuild fleet of **6 LR1 vessels**, with the operating fleet divided into **28 crude tankers** and **47 product carriers** Fleet Composition as of June 30, 2025 | Fleet Category | Vessels Owned | Vessels Chartered-in | Total Vessels | | :--- | :--- | :--- | :--- | | Operating Fleet | 61 | 14 | 75 | | Newbuild Fleet | 6 | - | 6 | | **Total Fleet** | **67** | **14** | **81** | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Reconciliation%20to%20Non-GAAP%20Financial%20Information) This section provides reconciliations for key non-GAAP measures, where GAAP net income of **$61.6 million** for Q2 2025 was adjusted (primarily for an **$11.2 million** gain on vessel disposal) to arrive at an Adjusted Net Income of **$50.4 million**, and similarly reconciled to an EBITDA of **$112.8 million** and an Adjusted EBITDA of **$101.5 million**, while shipping revenues of **$195.6 million** were reconciled to TCE revenues of **$188.8 million** [Adjusted Net Income Reconciliation](index=9&type=section&id=Adjusted%20Net%20Income) For the second quarter of 2025, the company's GAAP net income of **$61.6 million** was adjusted for a **$11.2 million** gain on the disposal of vessels, resulting in an adjusted net income of **$50.4 million**, or **$1.02 per diluted share** Q2 2025 Adjusted Net Income Reconciliation | ($ in thousands) | Amount | | :--- | :--- | | Net income | $61,646 | | Gain on disposal of vessels and other assets, net | $(11,229) | | **Adjusted net income** | **$50,417** | [EBITDA and Adjusted EBITDA Reconciliation](index=10&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) In Q2 2025, GAAP net income of **$61.6 million** was reconciled to EBITDA of **$112.8 million** by adding back interest and depreciation/amortization, and after further adjusting for an **$11.2 million** gain on vessel disposal, Adjusted EBITDA for the quarter was **$101.5 million** Q2 2025 Adjusted EBITDA Reconciliation | ($ in thousands) | Amount | | :--- | :--- | | Net income | $61,646 | | Interest expense | $9,761 | | Depreciation and amortization | $41,349 | | **EBITDA** | **$112,756** | | Gain on disposal of vessels and other assets, net | $(11,229) | | **Adjusted EBITDA** | **$101,527** | [Time Charter Equivalent (TCE) Revenues Reconciliation](index=10&type=section&id=Time%20Charter%20Equivalent%20(TCE)%20Revenues) For the second quarter of 2025, the company's GAAP shipping revenues of **$195.6 million** were reconciled to Time Charter Equivalent (TCE) revenues of **$188.8 million** by subtracting voyage expenses of **$6.8 million** Q2 2025 TCE Revenues Reconciliation | ($ in thousands) | Amount | | :--- | :--- | | Shipping revenues | $195,641 | | Less: Voyage expenses | $(6,819) | | **Time charter equivalent revenues** | **$188,822** |
Wall Street Analysts Think International Seaways (INSW) Could Surge 51.69%: Read This Before Placing a Bet
ZACKS· 2025-06-26 14:56
Core Viewpoint - International Seaways (INSW) shares have increased by 6.1% recently, with analysts suggesting a potential upside of 51.7% based on a mean price target of $58.4 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $9.94, indicating variability among analysts [2] - The lowest estimate of $48.00 suggests a 24.7% increase, while the highest estimate of $70.00 indicates an 81.8% potential surge [2] - Analysts' price targets can often mislead investors, as empirical research shows they rarely indicate actual stock price movements [7][10] Earnings Estimates and Analyst Agreement - There is strong agreement among analysts regarding INSW's ability to report better earnings, which supports the potential for stock upside [4][11] - Over the past 30 days, one earnings estimate has increased, leading to a 3.6% rise in the Zacks Consensus Estimate [12] - INSW holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors [13] Conclusion on Price Movement - While consensus price targets may not be reliable for predicting the extent of gains, they can provide a directional guide for potential price movements [14]
Are Transportation Stocks Lagging International Seaways (INSW) This Year?
ZACKS· 2025-06-25 14:41
Company Performance - International Seaways (INSW) has shown a year-to-date performance increase of approximately 4.1%, outperforming the Transportation sector, which has returned an average of -6% [4] - The Zacks Consensus Estimate for INSW's full-year earnings has increased by 13.5% over the past three months, indicating improved analyst sentiment and earnings outlook [4] - International Seaways currently holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable investment outlook [3] Industry Comparison - International Seaways is part of the Transportation - Shipping industry, which consists of 36 individual stocks and is currently ranked 68 in the Zacks Industry Rank [6] - The average performance of stocks in the Transportation - Shipping industry has declined by 4.1% this year, highlighting that INSW is performing better than its peers [6] - In contrast, the Transportation - Airline industry, which includes SkyWest (SKYW), has seen a year-to-date decline of 7% and is ranked 48 [6][5]
Are Investors Undervaluing Ardmore Shipping (ASC) Right Now?
ZACKS· 2025-06-24 14:41
Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies as a key strategy for investors [2] - Ardmore Shipping (ASC) and International Seaways (INSW) are presented as strong value stocks, both holding a Zacks Rank of 1 (Strong Buy) and a Value grade of A [3][7] Valuation Metrics for Ardmore Shipping (ASC) - ASC has a Price-to-Book (P/B) ratio of 0.67, significantly lower than the industry average of 1.32, indicating potential undervaluation [4] - The Price-to-Sales (P/S) ratio for ASC is 1.07, compared to the industry's average of 1.31, suggesting a favorable valuation [5] - ASC's Price-to-Cash Flow (P/CF) ratio stands at 3.03, which is attractive relative to the industry average of 4.71, further supporting its undervalued status [6] Valuation Metrics for International Seaways (INSW) - INSW has a P/B ratio of 1.06, which is also below the industry average of 1.32, indicating it may be undervalued [7] - The valuation metrics for both ASC and INSW suggest that they are likely being undervalued in the current market [8]