International Seaways(INSW) - 2024 Q2 - Quarterly Report

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$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$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$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$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$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]