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 ...

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]

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 ...

Group 1 - The stock of International Seaways (INSW) has experienced a significant decline of 6.4% over the past four weeks, indicating strong selling pressure, but it is now positioned for a potential trend reversal as it enters oversold territory [2] - Analysts have raised earnings estimates for INSW by 2.2% over the last 30 days, suggesting a consensus that the company will report better earnings than previously predicted [1][2] - The Relative Strength Index (RSI) for INSW is currently at 29.68, indicating that the stock is oversold and may be nearing a point of price reversal [3][5] Group 2 - INSW holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which is a strong indicator of its potential turnaround [1] - The heavy selling pressure on INSW shares appears to be exhausting, suggesting that investors may soon look for entry opportunities to benefit from a rebound [3][5]

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 ...

International Seaways has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A. Shares of International Seaways (INSW) have been strong performers lately, with the stock up 19% over the past month. The stock hit a new 52-week high of $62.95 in the previous session. International Seaways has gained 37.9% since the start of the year compared to the 0.3% move for the Zacks Transportation sector and the 19% return for the Zacks Transportation ...

Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited tr ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...