Nearmap Yesterday, International Seaways (NYSE:INSW) published its 2024-Q2 quarterly results. Despite the earnings per share missing analysts' expectations by $0.14/share, revenues met projections, leading to a 2.6% rise in the stock during pre-market trading. In this article, I will provide a comprehensive review of International Seaways earnings and I will explain why I believe the stock is worth a buy rating. If you are interested in oil tanker companies, you can have a look at some previous articles tha ...

International Seaways, Inc. Second Quarter 2024 Earnings Presentation August 7, 2024 INSW NYSE Disclaimer Forward-Looking Statements During the course of this presentation, the Company (International Seaways, Inc. (INSW)) may make forward-looking statements or provide forward-looking information. All statements other than statements of historical facts should be considered forward-looking statements. Some of these statements include words such as ''outlook,'' ''believe,'' ''expect,'' ''potential,'' ''contin ...

Financial Data and Key Metrics Changes - Net income for Q2 2024 was $145 million or $2.91 per share, with adjusted net income at $118 million or $2.37 per diluted share, and adjusted EBITDA at $167 million [5][11][12] - The company declared a combined dividend of $1.50 per share, representing 64% of adjusted net income, with a 12% yield over the last 12 months [7][19] Business Line Data and Key Metrics Changes - The Wyoming business generated nearly $14 million in revenue for the quarter, contributing about $6 million in EBITDA [12] - The fleet renewal involved taking delivery of six eco MR vessels while selling three aged vessels, reducing the average MR age by one year [6] Market Data and Key Metrics Changes - Oil demand is expected to grow at a rate above its 30-year average, particularly in Asia, while tanker demand is anticipated to remain strong due to geopolitical events and production growth outside OPEC+ [8][9][10] - The average age of the tanker fleet is over 13 years, with a significant portion of the fleet aging, necessitating more ships to meet increasing seaborne demand [10] Company Strategy and Development Direction - The company is focused on balanced capital allocation, fleet renewal, and enhancing its balance sheet while providing returns to shareholders [7][19] - The strategy includes opportunistic fleet renewal and maintaining a strong balance sheet to capitalize on favorable market conditions [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the tanker market's strength, anticipating continued demand growth and a favorable environment for the next few years [9][10] - The company expects to generate significant free cash flow in Q3 2024, with a spot breakeven rate under $13,400 per day [17] Other Important Information - The company has $682 million in total liquidity, including $506 million in undrawn revolver capacity, and a net loan-to-value ratio of around 14% [6][15][16] - The company has a strong financial position with $720 million in gross debt and a significant portion hedged to fixed rates [15][16] Q&A Session Summary Question: Dry-docking days and future guidance - Management acknowledged that off-hire days were higher than previously guided, with some timing differences affecting the full-year outlook [21][22] Question: Aframax market performance - Management confirmed that Aframax rates have been below market levels but expect them to align more closely with market rates as the fleet is repositioned [24][26] Question: Share repurchase versus dividends - Management emphasized the importance of maintaining a consistent dividend while also having a share repurchase program in place to take advantage of attractive share prices [30] Question: Cash breakeven expectations - Management indicated that while inflation may impact operating expenses, they expect to maintain current cash breakeven levels [31] Question: Impact of Dangote refinery on crude and product flows - Management noted that the Dangote refinery is expected to influence diesel exports and overall crude flows, but it is still early to assess the full impact [42][43]

International Seaways (INSW) came out with quarterly earnings of $2.37 per share, missing the Zacks Consensus Estimate of $2.50 per share. This compares to earnings of $3.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.20%. A quarter ago, it was expected that this company would post earnings of $2.38 per share when it actually produced earnings of $2.92, delivering a surprise of 22.69%. Over the last four quarters, the ...

Revenue and Market Performance - For the three and six months ended June 30, 2024, the Company derived 52% and 53% of TCE revenues from the Product Carriers segment, compared to 48% and 51% for the same periods in 2023[90] - Approximately 88% and 89% of total TCE revenues were derived from the spot market for the three and six months ended June 30, 2024, compared to 91% and 93% for the same periods in 2023[93] - TCE revenues decreased by $36.5 million, or 13%, to $251.8 million in Q2 2024 compared to $288.3 million in Q2 2023, primarily due to lower average daily rates[103] - Income from vessel operations fell by $13.9 million to $154.8 million in Q2 2024 from $168.7 million in Q2 2023, influenced by decreased TCE revenues and increased depreciation[102] - In Q2 2024, TCE revenues for the Crude Tankers segment decreased by $28.1 million, or 19%, to $120.9 million from $148.9 million in Q2 2023[110] - TCE revenues for the Product Carriers segment decreased by $8.4 million, or 6%, to $131.0 million in Q2 2024 from $139.4 million in Q2 2023[118] - TCE revenues for the Crude Tankers segment decreased by $33.4 million, or 12%, to $244.8 million in the first half of 2024 from $278.2 million in the first half of 2023[113] - TCE revenues for the Product Carriers segment decreased by $15.5 million, or 5%, to $278.0 million in the first half of 2024 from $293.5 million in the first half of 2023[121] Fleet and Operational Capacity - As of June 30, 2024, the Company's operating fleet consisted of 77 vessels aggregating 9.0 million deadweight tons, with six newbuilds scheduled for delivery between the second half of 2025 and the third quarter of 2026, bringing the total to 83 vessels[91] - The average number of owned vessels increased to 40.6 in Q2 2024 from 39.0 in Q2 2023[115] - The tanker fleet increased by 0.9 million dwt in Q2 2024, with a year-over-year increase of 6.8 million dwt across various tanker types[98] - The crude tanker orderbook rose by 8.4 million dwt in Q2 2024, with a year-over-year increase of 38.4 million dwt[99] - The Company operates predominantly in the International Flag market, providing ocean transportation services for crude oil and refined petroleum products[90] Financial Position and Liquidity - As of June 30, 2024, total liquidity was $682.5 million, consisting of $176.1 million in cash and $506.3 million in undrawn revolver capacity[131] - Cash and cash equivalents increased by $49.4 million during the six months ended June 30, 2024, primarily due to $324.4 million from operating activities[132] - The company declared and paid total dividends of $151.6 million during the six months ended June 30, 2024[132] - The company entered into agreements for the en bloc purchase of six vessels for an aggregate purchase price of $232 million, with 85% funded from available liquidity[137] - As of June 30, 2024, the company has a remaining term loan balance of $94.6 million and undrawn revolver capacity of $257.4 million under its $750 Million Credit Facility[141] Costs and Expenses - The Company anticipates that increasing operating costs and capital expenses will arise as its vessels age, impacting future profitability[85] - Vessel expenses increased by $0.9 million to $29.9 million in Q2 2024 from $29.0 million in Q2 2023, primarily due to VLCC newbuild deliveries[111] - Vessel expenses for the Product Carriers segment increased by $1.8 million to $37.9 million in Q2 2024 from $36.1 million in Q2 2023, mainly due to higher drydock deviation costs[120] - General and administrative expenses increased by $1.3 million to $24.1 million for the six months ended June 30, 2024, compared to $22.8 million for the same period in 2023[123] - Interest expense decreased to $25.3 million for the six months ended June 30, 2024, from $34.9 million for the same period in 2023[126] Market Trends and Economic Factors - Global oil consumption is estimated to reach 102.9 million b/d in Q2 2024, a 0.7% increase from Q2 2023, and 103.1 million b/d for the full year 2024, up 1.0% from 2023[95] - U.S. crude oil production increased by 5.5% to 13.3 million b/d in Q2 2024 compared to Q1 2024 and by 4.7% from Q2 2023[96] - Total OECD commercial inventories decreased by 1.9% or 27 million barrels of crude in Q2 2024 compared to Q2 2023[97] - Clean product tanker rates remained strong in Q2 2024, continuing into Q3 2024 despite weaker VLCC rates[100] Strategic Initiatives and Compliance - The company expects to deliver six new dual-fuel ready LNG LR1 Product Carriers between the second half of 2025 and the third quarter of 2026 for an aggregate cost of approximately $359 million[139] - The company has diversified financing sources with debt maturities spread out between 2030 and 2031, supporting its disciplined capital allocation strategy[145] - The company manages interest rate risk through derivative financial instruments, including interest rate swaps and caps[148] - The certifications from the Chief Executive Officer and Chief Financial Officer affirm compliance with the Sarbanes-Oxley Act, ensuring transparency and accountability in financial reporting[158] - The company is actively expanding its operational capabilities through partnerships and financial agreements, which may lead to increased market presence and operational efficiency[157]

Exhibit 99.1 HIGHLIGHTS & RECENT DEVELOPMENTS Balance Sheet Enhancements: New York, NY – August 7, 2024– International Seaways, Inc. (NYSE: INSW) (the "Company," "Seaways," or "INSW"), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, today reported results for the second quarter 2024. Strong Quarterly Earnings: · Net income for the second quarter of 2024 was $144.7 million, or $2.91 per diluted share. · Adjusted net income for the s ...

Investors might want to bet on International Seaways (INSW) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analys ...

The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for INSW has increased 2.2%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term. Moreover, INSW currently has a Zacks Rank #2 (Buy), which ...

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. International Seaways (INSW) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-todate performance to find out. International Seaways is a member of the Transportation sector. This group includes 135 individual stocks and currently holds a Zacks Sector Rank ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Valu ...