International Seaways (INSW) came out with quarterly earnings of $0.90 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $2.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this company would post earnings of $1.42 per share when it actually produced earnings of $1.57, delivering a surprise of 10.56%.Over the last four quarters, the co ...

PART I [Business](index=9&type=section&id=Item%201.%20Business) International Seaways, Inc. (INSW) provides global ocean transportation for crude oil and petroleum products, operating a fleet of 78 vessels and achieving strong financial results in 2024 [Our Business and 2024 in Review](index=9&type=section&id=Our%20Business%20and%202024%20in%20Review) INSW operates a fleet of 78 vessels for crude oil and petroleum products, achieving its second-best annual financial results in 2024 with $1.0 billion in shipping revenues and $583.3 million in Adjusted EBITDA - As of December 31, 2024, INSW operated a fleet of **78 vessels**, with **six additional dual-fuel ready LR1 newbuilds** on order for delivery through Q3 2026[56](index=56&type=chunk) 2024 Financial Highlights | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Shipping Revenues | $1.0 billion | - | | TCE Revenues | $0.9 billion | - | | Income from Vessel Operations | $455.2 million | $615.4 million | | Adjusted EBITDA | $583.3 million | $723.8 million | | Total Liquidity (Year-End) | $632.2 million | $601.2 million | | Capital Returned to Shareholders | $309.4 million | - | [Our Strategy](index=10&type=section&id=Our%20Strategy) The company's strategy focuses on safe and efficient fleet operations, active market management, disciplined capital allocation, and a strong commitment to sustainability and governance - Primary objectives include maintaining safe operations, actively managing the fleet, maximizing cash flows through a mix of spot and time charters, and executing a **disciplined capital allocation strategy**[65](index=65&type=chunk) - The company sold **three older MRs** for approximately **$72 million** and purchased **six modern MRs** for **$232 million**, also contracting for **six new dual-fuel ready LR1s** for approximately **$359 million**[68](index=68&type=chunk) - INSW is committed to sustainability, aligning with TCFD and SASB standards, implementing a Fleet Decarbonization Project, constructing dual-fuel vessels, and participating in industry groups to promote diversity[73](index=73&type=chunk)[77](index=77&type=chunk)[82](index=82&type=chunk) [Fleet Operations](index=13&type=section&id=Fleet%20Operations) As of December 31, 2024, INSW operated a fleet of 78 vessels across Crude Tankers and Product Carriers segments, utilizing a hybrid operating model with 86% of 2024 TCE revenues from the spot market Fleet Summary as of December 31, 2024 | Vessel Type | Vessels Owned | Vessels Chartered-in | Total Number | Total Dwt | | :--- | :--- | :--- | :--- | :--- | | **Crude Tankers** | **21** | **9** | **30** | **6,424,701** | | VLCC | 4 | 9 | 13 | 3,910,572 | | Suezmax | 13 | 0 | 13 | 2,061,754 | | Aframax | 4 | 0 | 4 | 452,375 | | **Product Carriers** | **42** | **6** | **48** | **2,660,299** | | LR2 | 1 | 0 | 1 | 112,691 | | LR1 | 6 | 2 | 8 | 596,092 | | MR | 35 | 4 | 39 | 1,951,516 | | **Total Operating Fleet** | **63** | **15** | **78** | **9,085,000** | | **Newbuild Fleet (LR1)** | **6** | **0** | **6** | **441,600** | - The company utilizes a **hybrid operating model**, employing third-party managed pools for spot market charters and in-house experts for commercial and technical oversight[90](index=90&type=chunk) - Voyage charters (spot market) constituted **86% of aggregate TCE revenues in 2024**, a decrease from 91% in 2023, with time charters accounting for the remaining 14%[96](index=96&type=chunk)[99](index=99&type=chunk) [Human Capital Management and Employees](index=17&type=section&id=Human%20Capital%20Management%20and%20Employees) As of December 31, 2024, INSW employed 2,824 people, focusing on talent development, diversity, and robust safety and health management systems Employee Composition as of December 31, 2024 | Category | Female | Male | Total | | :--- | :--- | :--- | :--- | | Shoreside Employees | 26 | 41 | 67 | | Seafarers | 3 | 2,754 | 2,757 | | **Total Employees** | **29** | **2,795** | **2,824** | - The company is a founding member of the Global Maritime Forum's **All Aboard Alliance**, an initiative fostering a diverse workforce and enhancing career opportunities for women in the maritime industry[111](index=111&type=chunk) [Environmental and Security Matters Relating to Bulk Shipping](index=19&type=section&id=Environmental%20and%20Security%20Matters%20Relating%20to%20Bulk%20Shipping) The company's operations are subject to extensive environmental and security regulations, including GHG emissions, ballast water, air emissions, oil pollution liability, and vessel security, requiring substantial compliance expenditures - The EU has included maritime shipping in its **Emissions Trading Scheme (ETS)**, requiring a phased surrender of allowances for verified emissions: **40% for 2024, 70% for 2025, and 100% for 2026**[126](index=126&type=chunk) - The company is subject to the **U.S. Oil Pollution Act of 1990 (OPA 90)**, imposing strict and potentially unlimited liability for oil spills in U.S. waters, requiring financial responsibility evidence[155](index=155&type=chunk)[156](index=156&type=chunk)[159](index=159&type=chunk) - Vessel security is governed by the **U.S. Maritime Transportation Security Act (MTSA)** and the **International Ship and Port Facilities Security Code (ISPS Code)**, requiring approved vessel security plans and certifications, which all INSW vessels comply with[180](index=180&type=chunk)[183](index=183&type=chunk) [Inspection by Classification Societies](index=28&type=section&id=Inspection%20by%20Classification%20Societies) Oceangoing vessels must be certified by Classification Societies, requiring regular surveys including Annual, Intermediate (2.5 years), and Class Renewal (5 years) to maintain compliance with established rules and international conventions - Vessels must undergo regular surveys to maintain class certification, including **Annual Surveys, Intermediate Surveys (every 2.5 years), and Class Renewal (Special) Surveys (every 5 years)**[185](index=185&type=chunk)[190](index=190&type=chunk) [Insurance](index=29&type=section&id=Insurance) The company maintains comprehensive fleet insurance, including Protection and Indemnity (P&I) for pollution liability up to $1.0 billion, marine hull and machinery, war risk, and loss of hire coverage - The company carries **Protection and Indemnity (P&I) insurance** coverage for pollution of **$1.0 billion per occurrence** on every vessel in its fleet[191](index=191&type=chunk) - Marine hull and machinery and war risk insurance covers each vessel up to at least its fair market value, with deductibles ranging from **$0.125 million to $0.250 million per incident**[192](index=192&type=chunk) [Income Taxation of the Company](index=29&type=section&id=Income%20Taxation%20of%20the%20Company) INSW, incorporated in the Marshall Islands, was exempt from U.S. income tax on U.S. source shipping income in 2024 under Section 883, though future qualification is not guaranteed and could result in a 4% gross tax - INSW, incorporated in the Marshall Islands, is not subject to income tax there and was exempt from U.S. federal tax on its U.S. source shipping income in 2024 under **Section 883 of the Code**, though future qualification is not assured[194](index=194&type=chunk)[197](index=197&type=chunk) - If the company fails to qualify for the Section 883 exemption, it will be subject to a **4% U.S. federal income tax** on its U.S. source shipping income on a gross basis, without deductions[198](index=198&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the cyclical shipping industry, including volatile charter rates, substantial indebtedness, reliance on third parties, geopolitical instability, complex environmental regulations, and common stock market volatility - **Industry Risks:** The highly cyclical tanker industry leads to volatile charter rates and vessel values, potentially affecting earnings, cash flow, and debt covenant compliance; in 2024, **86% of TCE revenues** were from the spot market[204](index=204&type=chunk)[209](index=209&type=chunk) - **Company Risks:** The company has significant indebtedness of **$688 million as of December 31, 2024**, potentially limiting financing and business opportunities, and relies on third-party providers for fleet management[207](index=207&type=chunk)[242](index=242&type=chunk)[254](index=254&type=chunk) - **Regulatory & Geopolitical Risks:** Operations are subject to complex environmental laws, such as GHG emissions and OPA 90, potentially requiring significant capital expenditures, while geopolitical events like the war in Ukraine and Red Sea attacks can disrupt trade and increase costs[206](index=206&type=chunk)[236](index=236&type=chunk)[292](index=292&type=chunk) [Unresolved Staff Comments](index=52&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments - None[326](index=326&type=chunk) [Cybersecurity](index=52&type=section&id=Item%201C.%20Cybersecurity) The company maintains a comprehensive cybersecurity program based on NIST and CIS frameworks, employing a defense-in-depth strategy, overseen by the CISO and Board committee, with no material incidents in the last three fiscal years - The company's cybersecurity program is based on the **National Institute of Standard and Technology (NIST) Cybersecurity Framework** and the **Center for Internet Security Critical Security Controls (CIS)**[332](index=332&type=chunk) - Oversight is provided by the **Corporate Governance and Risk Assessment Committee of the Board**, which receives regular updates from the Chief Information Security Officer (CISO)[344](index=344&type=chunk) - The company has not experienced any material information security breaches in the last three fiscal years, with related expenses remaining immaterial[338](index=338&type=chunk) [Properties](index=55&type=section&id=Item%202.%20Properties) The company leases approximately 13,100 square feet for its New York headquarters, with its primary operating properties being its fleet of 78 vessels - The company leases approximately **13,100 square feet** for its New York headquarters, and its primary properties consist of its **fleet of 78 vessels**[345](index=345&type=chunk) [Legal Proceedings](index=55&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a commercial dispute from July 2023 involving a vessel arrest and a $25 million security claim, with the outcome currently unpredictable - In July 2023, a vessel was arrested in a commercial dispute, with arresting parties seeking approximately **$25 million in security**, and the arbitration outcome remains uncertain[690](index=690&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Disclosures) This item is not applicable to the company - Not applicable[346](index=346&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=56&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with 2024 dividends totaling $5.77 per share and $25.0 million in stock repurchases, leaving $50.0 million authorized for future repurchases 2024 Dividend Payments | Declaration Date | Payment Date | Regular Dividend/Share | Supplemental Dividend/Share | Total Paid | | :--- | :--- | :--- | :--- | :--- | | Feb 28, 2024 | Mar 28, 2024 | $0.12 | $1.20 | $64.7 million | | May 7, 2024 | Jun 26, 2024 | $0.12 | $1.63 | $86.9 million | | Aug 6, 2024 | Sep 25, 2024 | $0.12 | $1.38 | $73.8 million | | Nov 6, 2024 | Dec 27, 2024 | $0.12 | $1.08 | $59.0 million | Stock Repurchase Summary | Year | Total Shares Repurchased | Average Price/Share | Total Cost | | :--- | :--- | :--- | :--- | | 2024 | 501,646 | $49.81 | $25.0 million | | 2023 | 366,483 | $38.03 | $13.9 million | | 2022 | 687,740 | $29.08 | $20.0 million | - As of December 31, 2024, the company had **$50.0 million remaining** under its stock repurchase program, expiring on December 31, 2025[352](index=352&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, income from vessel operations decreased to $455.2 million due to lower TCE revenues, despite geopolitical events supporting ton-mile demand, while the company maintained strong liquidity and executed strategic capital allocation [Operations and Oil Tanker Markets](index=61&type=section&id=Operations%20and%20Oil%20Tanker%20Markets) Global oil consumption in Q4 2024 was estimated at 104.0 million b/d, with geopolitical events increasing ton-mile demand and supporting tanker rates above breakeven levels despite fleet growth - The IEA estimates global oil consumption for Q4 2024 at **104.0 million barrels per day (b/d)**, a **1.5% increase** from Q4 2023, with the 2025 forecast also at 104.0 million b/d[377](index=377&type=chunk) - The tanker orderbook increased by **45.2 million dwt year-over-year**, with significant increases across VLCC, Suezmax, Aframax, and LR1/Panamax sectors[383](index=383&type=chunk) [Results from Vessel Operations](index=62&type=section&id=Results%20from%20Vessel%20Operations) Income from vessel operations decreased by $160.2 million to $455.2 million in 2024, primarily due to lower TCE revenues across both Crude Tankers and Product Carriers segments, alongside increased vessel expenses and depreciation Crude Tankers Segment Performance | (in thousands, except daily rates) | 2024 | 2023 | | :--- | :--- | :--- | | TCE revenues | $437,095 | $512,220 | | Vessel expenses | $130,107 | $115,708 | | Adjusted income from vessel operations | $211,678 | $307,764 | | Average daily TCE rate | $41,345 | $49,619 | Product Carriers Segment Performance | (in thousands, except daily rates) | 2024 | 2023 | | :--- | :--- | :--- | | TCE revenues | $496,008 | $543,299 | | Vessel expenses | $145,554 | $143,831 | | Adjusted income from vessel operations | $266,485 | $319,775 | | Average daily TCE rate | $31,846 | $33,518 | - General and administrative expenses increased by **$5.1 million to $52.6 million in 2024**, primarily due to higher compensation costs, legal fees, and IT spending[409](index=409&type=chunk) [EBITDA and Adjusted EBITDA](index=67&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) The company uses non-GAAP measures EBITDA and Adjusted EBITDA to monitor operating results, with 2024 figures of $614.8 million and $583.3 million respectively, primarily decreasing due to lower net income Reconciliation of Net Income to Adjusted EBITDA | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Net income** | **$416,724** | **$556,446** | | Income tax (benefit)/provision | (1,084) | 3,878 | | Interest expense | 49,703 | 65,759 | | Depreciation and amortization | 149,440 | 129,038 | | **EBITDA** | **$614,783** | **$755,121** | | Adjustments | (31,470) | (31,357) | | **Adjusted EBITDA** | **$583,313** | **$723,764** | [Liquidity and Sources of Capital](index=69&type=section&id=Liquidity%20and%20Sources%20of%20Capital) As of December 31, 2024, the company maintained strong liquidity of $632.2 million, driven by operating cash flow and strategic debt refinancing, resulting in a net debt-to-total capitalization ratio of 22.2% - Total liquidity was **$632.2 million as of December 31, 2024**, comprising **$157.5 million of cash** and **$474.7 million of undrawn revolver capacity**[422](index=422&type=chunk) - The company amended and extended its **$750 Million Credit Facility** into a new **$500 Million Revolving Credit Facility**, extending maturity to **2030**, eliminating **$19.5 million in mandatory quarterly repayments**, and reducing the interest margin by over **85 basis points**[434](index=434&type=chunk)[435](index=435&type=chunk) Aggregate Contractual Obligations as of December 31, 2024 | (in thousands) | 2025 | 2026 | 2027 | Beyond 2027 | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt & Lease Financing | $84,215 | $81,487 | $80,009 | $417,882 | $663,593 | | Operating Lease Obligations | $19,711 | $3,676 | $1,077 | $5,832 | $30,296 | | Vessel & Betterment Commitments | $138,483 | $188,480 | $0 | $0 | $326,963 | | **Total** | **$242,409** | **$273,643** | **$81,086** | **$423,714** | **$1,020,852** | [Critical Accounting Estimates and Policies](index=74&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) The company's critical accounting policies involve significant judgment, particularly in estimating vessel useful lives (25 years) and salvage values ($300 per lightweight ton) for depreciation, and in complex vessel impairment testing based on future cash flow assumptions - Vessels are depreciated over an estimated useful life of **25 years** to an estimated salvage value of **$300 per lightweight ton**[453](index=453&type=chunk)[455](index=455&type=chunk) - Vessel impairment is assessed when indicators are present, with the recoverability test comparing carrying amount to undiscounted future cash flows estimated using assumptions about future charter rates, operating expenses, and vessel utilization[458](index=458&type=chunk)[459](index=459&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=75&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from interest rates, currency, and fuel prices, utilizing interest rate swaps for variable debt and scrubbers on 12 vessels for fuel cost savings - The company manages interest rate risk on its variable-rate debt using interest rate swaps, which as of December 31, 2024, covered the entire **$144.6 million outstanding** on the **$500 Million Revolving Credit Facility** and **$83.6 million** of the Ocean Yield Lease Financing[445](index=445&type=chunk)[449](index=449&type=chunk) - Fuel price volatility is managed by scrubbers installed on **10 VLCCs and two Suezmaxes**, resulting in approximately **$6,500 per day** in lower bunker costs per VLCC during 2024[448](index=448&type=chunk) [Financial Statements and Supplementary Data](index=76&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2022-2024, including Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, and Changes in Equity, along with notes and the independent auditor's report Consolidated Statement of Operations Highlights | (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Shipping Revenues** | **$951,613** | **$1,071,775** | **$864,665** | | Total operating expenses | $496,388 | $456,344 | $422,011 | | **Income from vessel operations** | **$455,225** | **$615,431** | **$442,654** | | Interest expense | ($49,703) | ($65,759) | ($57,721) | | **Net income** | **$416,724** | **$556,446** | **$387,891** | | **Diluted net income per share** | **$8.38** | **$11.25** | **$7.77** | Consolidated Balance Sheet Highlights | (in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $157,506 | $126,760 | | Vessels and other property, net | $2,050,211 | $1,914,426 | | **Total Assets** | **$2,636,397** | **$2,521,819** | | Current installments of long-term debt | $50,054 | $127,447 | | Long-term debt, net | $638,353 | $595,229 | | **Total Liabilities** | **$780,349** | **$805,062** | | **Total Equity** | **$1,856,048** | **$1,716,757** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=126&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - None[713](index=713&type=chunk) [Controls and Procedures](index=126&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of December 31, 2024, management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective, with no material changes in Q4 2024 - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures** and its **internal control over financial reporting** were effective as of December 31, 2024[714](index=714&type=chunk)[716](index=716&type=chunk) [Other Information](index=127&type=section&id=Item%209B.%20Other%20Information) During the fourth quarter of 2024, no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted or terminated **Rule 10b5-1 trading plans** in the fourth quarter of 2024[719](index=719&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=127&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section details the company's executive officers and corporate governance policies, including the Code of Business Conduct and Ethics, with additional information incorporated by reference from the 2025 Proxy Statement Executive Officers | Name | Age | Position(s) Held | | :--- | :--- | :--- | | Lois K. Zabrocky | 55 | President and Chief Executive Officer and Director | | Jeffrey D. Pribor | 67 | Chief Financial Officer and Senior Vice President | | James D. Small III | 56 | Chief Administrative Officer, SVP, Secretary & General Counsel | | Derek Solon | 48 | Senior Vice President and Chief Commercial Officer | | William Nugent | 56 | SVP and Chief Technical and Sustainability Officer | | Adewale O. Oshodi | 45 | Vice President and Controller | | Debra Grillo | 57 | Treasurer | - The Company has adopted a **Code of Business Conduct and Ethics**, an **Insider Trading Policy**, an **Anti-Bribery and Corruption Policy**, and an **Incentive Compensation Recoupment Policy**, all available on its website[732](index=732&type=chunk)[733](index=733&type=chunk) [Executive Compensation](index=129&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information is incorporated by reference from the definitive Proxy Statement[735](index=735&type=chunk)[739](index=739&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=129&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section provides information on the company's equity compensation plans as of December 31, 2024, with other security ownership details incorporated by reference from the 2025 Proxy Statement Equity Compensation Plan Information as of December 31, 2024 | Plan Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 174,417 | $19.93 | 480,101 | [Certain Relationships and Related Transactions, and Director Independence](index=129&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information is incorporated by reference from the definitive Proxy Statement[738](index=738&type=chunk)[739](index=739&type=chunk) [Principal Accountant Fees and Services](index=129&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information is incorporated by reference from the definitive Proxy Statement[739](index=739&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=130&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed with the report, noting the omission of schedules as not applicable, and includes key corporate documents - The consolidated financial statements of the Company are filed in response to Item 8, with all schedules omitted as they are not applicable or required[742](index=742&type=chunk) [Form 10-K Summary](index=136&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[749](index=749&type=chunk)

Financial Performance - Net income for Q4 2024 was $36 million, or $0.72 per diluted share, down from $132 million, or $2.68 per diluted share in Q4 2023[6]. - Full year 2024 net income was $417 million, or $8.38 per diluted share, compared to $556 million, or $11.25 per diluted share in 2023[11]. - Total Shipping Revenues for Q4 2024 were $194,613, a decrease of 22.4% from $250,734 in Q4 2023[34]. - Net income for the fiscal year 2024 was $416,724, down 25.1% from $556,446 in 2023[37]. - Basic net income per share for Q4 2024 was $0.73, compared to $2.70 in Q4 2023, reflecting a decline of 72.9%[34]. - Adjusted net income for the three months ended December 31, 2024, was $44,568, compared to $107,562 in the same period of 2023, a decrease of approximately 58.6%[48]. - The company reported a net income of $35,823 for the three months ended December 31, 2024, compared to $132,114 in the same period of 2023, a decrease of approximately 72.9%[48]. - EBITDA for the fiscal year 2024 was $614,783,000, down 18.6% from $755,121,000 in fiscal year 2023[50]. - Free cash flow for Q4 2024 was $78,226,000, compared to $91,438,000 in Q4 2023, reflecting a decrease of 14.4%[52]. Revenue and Expenses - Shipping revenues for the year ended December 31, 2024, were $952 million, down from $1,072 million in 2023[12]. - Adjusted EBITDA for the full year 2024 was $583 million, compared to $724 million in 2023[13]. - Operating expenses for the fiscal year 2024 totaled $496,388, an increase of 8.8% from $456,344 in 2023[34]. - Cash flows from operating activities for fiscal year 2024 were $547,138, down 20.5% from $688,402 in 2023[37]. - Time charter equivalent revenues for Q4 2024 were $190,640,000, a decline of 23.1% from $247,912,000 in Q4 2023[56]. - Interest expense for the fiscal year 2024 was $49,703,000, a decrease of 24.4% from $65,759,000 in fiscal year 2023[50]. - Depreciation and amortization for Q4 2024 was $39,466,000, an increase of 17.5% from $33,682,000 in Q4 2023[50]. Shareholder Returns - The company returned over $300 million to shareholders in 2024, representing a 12% yield on average market capitalization[4]. - A combined dividend of $0.70 per share was declared for Q1 2025, representing 77% of adjusted net income for Q4 2024[5]. Liquidity and Capital Structure - Total liquidity was approximately $632 million as of December 31, 2024, including $157 million in cash and $475 million in undrawn revolving credit capacity[5]. - The net loan-to-value ratio remained low at approximately 15.5% as of December 31, 2024[5]. - Cash and cash equivalents at the end of fiscal year 2024 increased to $157,506 from $126,760 in 2023[37]. - Total cash as of December 31, 2024, was $157,506,000, an increase of 24.3% from $126,760,000 as of December 31, 2023[50]. - The company repurchased $25,000 in common stock during fiscal year 2024[37]. Fleet and Investments - The fleet optimization program included a vessel swap that involved exchanging two VLCCs and $3 million for three 2015-built MRs[3]. - The company has contracts to build six scrubber-fitted, dual-fuel LR1 vessels at a total price of approximately $359 million, with deliveries expected from Q3 2025 to Q3 2026[20]. - The company invested $278,794 in vessels and improvements during fiscal year 2024, up from $205,159 in 2023[37]. - The company's fleet totaled 84 vessels as of February 27, 2025, with 69 owned and 15 chartered in[44]. - Total operating fleet DWT (deadweight tonnage) was 9,033,866 as of February 28, 2025[45]. - The company announced the acquisition of six MRs for a total contract price of $232 million, with 10% paid as a deposit in Q1 2024[53]. Operational Metrics - Total revenue days for the quarter ended December 31, 2024, were 6,697, an increase from 6,471 in the prior year quarter, representing a growth of approximately 3.5%[39]. - Total revenue days for the fiscal year ended December 31, 2024, were 25,904, down from 26,292 in 2023, reflecting a decrease of about 1.5%[41]. - The average TCE rate for VLCC in the three months ended December 31, 2024, was $35,572, compared to $42,991 in the same period of 2023, indicating a decline of approximately 17.2%[40]. - The average TCE rate for MR product carriers in the fiscal year ended December 31, 2024, was $30,887, compared to $29,479 in 2023, showing an increase of about 4.8%[41]. - The average TCE rate for Suezmax in the three months ended December 31, 2024, was $29,700, down from $47,318 in the same period of 2023, a decline of approximately 37.2%[40].

Core Viewpoint - International Seaways (INSW) is expected to report a significant decline in earnings and revenues for the fourth quarter of 2024, reflecting challenges in the tanker market and overall economic conditions [2][4]. Earnings Estimates - The Zacks Consensus Estimate for INSW's earnings has been revised downward by 34% to 70 cents per share, which is a 67.9% decline from the fourth quarter of 2023 actuals [2]. - Revenue estimates for the upcoming quarter are pegged at $177.7 million, indicating a 29.1% decrease from the previous year's actuals [2]. Earnings Performance History - INSW has a strong earnings surprise record, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 8.2% [3]. Market Conditions - The tanker market is currently facing bearish conditions, with low tanker rates due to a slowdown in global economic growth, oversupply of vessels, and subdued demand impacting shipping rates [4]. Segment Performance - Shipping revenues are anticipated to decline in the December quarter, particularly in the Crude Tankers and Product Carriers segments. However, INSW's diverse fleet may help mitigate some of the negative impacts [5]. Cost Management - Efforts to control costs are expected to positively influence INSW's bottom-line performance in the upcoming quarter [5]. Earnings Prediction - The model predicts an earnings beat for INSW, supported by a positive Earnings ESP of +48.58% and a Zacks Rank of 3 (Hold) [6][7]. Stock Performance - INSW's shares have outperformed the Zacks Transportation—Shipping industry and competitors like Star Bulk Carriers (SBLK) and Seanergy Maritime Holdings (SHIP) over the past 30 days, driven by effective cost control measures [8].

Company Overview - International Seaways (INSW) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.70, reflecting a decrease of 67.9% compared to the previous year [3] - Revenues are anticipated to be $177.66 million, down 29.1% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on February 27, 2025, and the actual results will significantly influence the stock price depending on whether they meet or exceed expectations [2] - The consensus EPS estimate has been revised down by 40.71% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for International Seaways is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +16.19% [10][11] - The company holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, International Seaways exceeded the expected EPS of $1.42 by delivering $1.57, resulting in a surprise of +10.56% [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times [13] Industry Context - In the Zacks Transportation - Shipping industry, Golden Ocean Group (GOGL) is also expected to report earnings, with an EPS estimate of $0.20, reflecting a year-over-year decline of 37.5% [17] - Golden Ocean Group's revenue is projected to be $183.58 million, down 6.7% from the previous year [17] - The consensus EPS estimate for Golden Ocean Group has remained unchanged over the last 30 days, resulting in an Earnings ESP of 0.00% [18]

Core Viewpoint - The shipping industry presents unique investment opportunities due to its cyclical nature, geopolitical influences, and the potential for outsized returns, particularly in the tanker and dry bulk segments for 2025. Group 1: Industry Overview - The shipping sector is often overlooked by major institutional investors, providing an edge for smaller, specialized firms [6][7] - The industry is cyclical, requiring a deep understanding of macroeconomic trends and supply-demand dynamics [9][12] - Geopolitical events, such as the Russian invasion of Ukraine, have significant impacts on shipping trade flows and market conditions [12][40] Group 2: Tanker Market Insights - The tanker market is expected to benefit from a favorable supply setup and potential sanction-related disruptions in 2025 [38] - The supply side is characterized by the oldest fleet balance in modern history, with upcoming regulations likely to push older ships out of the market [42][59] - International Seaways (NYSE: INSW) is highlighted as a top pick due to its strong corporate governance and favorable market positioning [51][67] Group 3: Dry Bulk Market Insights - The dry bulk market is currently tight in terms of supply and demand, with stocks trading at low valuations not seen in years [69][80] - The upcoming iron ore mine in Guinea is expected to significantly impact shipping demand, particularly for China [75][79] - Star Bulk Carriers (NASDAQ: SBLK) is identified as a top dry bulk stock, noted for its low leverage and strong corporate governance [80][84] Group 4: Investment Strategies - Diversification across different shipping segments is a key strategy to hedge against risks associated with geopolitical events [101][102] - The importance of understanding seasonality and market cycles is emphasized for making informed investment decisions [34][36] - The focus on value fundamentals rather than traditional metrics like price-to-earnings is crucial in the shipping sector [28][31]

Group 1 - Capital Link is hosting a series of online Company Presentations featuring senior management teams from leading listed maritime companies to discuss business development, strategy, growth prospects, and sector outlook [1] - The Company Presentation Series will include sessions lasting no more than 45 minutes, consisting of a company slide presentation followed by a live Q&A [2] - Institutional investors can request one-on-one meetings with company management by contacting Capital Link [2] Group 2 - The first two presentations will feature Scorpio Tankers Inc. on January 7, 2025, at 11:00 AM ET and International Seaways, Inc. on January 9, 2025, at 10:00 AM ET [6]

Group 1 - International Seaways Inc. (NYSE: INSW) will be added to the S&P SmallCap 600 index effective prior to the opening of trading on December 30, 2024 [2] - Consolidated Communications Holdings (NASD: CNSL) will be removed from the S&P SmallCap 600 index as part of the same change [2] - The acquisition of Consolidated Communications by Searchlight Capital Partners and British Columbia Investment Management Corporation (BCI) is expected to be completed soon, pending final closing conditions [2] Group 2 - S&P Dow Jones Indices is recognized as the largest global resource for index-based concepts, data, and research, with a significant amount of assets invested in products based on its indices [3] - The S&P 500 and the Dow Jones Industrial Average are among the iconic financial market indicators provided by S&P Dow Jones Indices [3] - S&P DJI has a long history of innovation in index development since the first index was created in 1884 [3]

Core Insights - The article reflects on the author's personal journey from a conventional urban lifestyle to a self-sufficient existence in nature, emphasizing the spiritual aspect of this transformation [1] - It highlights the importance of timing in financial markets and personal life, suggesting that misalignment can lead to destructive outcomes [1] - The author expresses a desire to share insights gained from personal experiences rather than conventional financial metrics, indicating a shift in focus from comparative returns to personal growth [1] Group 1 - The transition from urban living to a self-sufficient lifestyle in the woods represents a significant change in the author's relationship with financial markets and personal well-being [1] - The author views life as a long-term investment, with a focus on maximizing value through experiences, even if they involve volatility [1] - The pandemic's volatility is perceived as a valuable experience that has contributed to personal growth and understanding of life's deeper meanings [1] Group 2 - The author emphasizes the importance of direct experience for learning, indicating that personal mistakes are more impactful than observing others' errors [1] - Writing is described as a crucial part of the research process, with a newfound intention to share insights with a broader audience [1] - The article concludes with a philosophical reflection on the nature of value and priorities, suggesting that true treasures are not material but spiritual [1]

Core Viewpoint - International Seaways (NYSE: INSW) is highlighted as a strong investment opportunity in the tanker market, known for impressive dividends and a solid balance sheet [1]. Group 1: Investment Characteristics - INSW is considered the closest way to invest in the broad tanker market, making it an attractive option for investors [1]. - The company distributes significant dividends, which are appealing to income-focused investors [1]. - The balance sheet of INSW is noted to be robust, indicating financial stability [1]. Group 2: Investment Strategy - The author emphasizes a preference for overlooked companies that offer asymmetric risk rewards and juicy dividend yields [1]. - A filtering process for new investment ideas includes looking for at least two of the three characteristics: being overlooked, offering asymmetric risk rewards, and paying dividends [1]. - The analytical approach is fundamentally driven, with a focus on numbers and technical analysis to optimize market timing [1].