International Seaways(US:INSW)2022-05-04 15:56Financial Data and Key Metrics Changes - The first quarter net loss was $13 million or $0.26 per share, compared to a net loss of $13.4 million or $0.48 per share in the first quarter of 2021 [32] - Adjusted EBITDA for the first quarter was $26 million, an increase from $11 million in the first quarter of last year [34] Business Segment Data and Key Metrics Changes - TCE revenues for the Crude Tankers segment were $36 million for the quarter, unchanged from the same period last year [33] - TCE revenues for the Product Carrier segment increased to $62 million from $9.2 million in the first quarter of 2021, attributed to an increase of over 3,400 revenue days due to the merger with Diamond S and higher average rates [33] Market Data and Key Metrics Changes - 2022 oil demand is projected to grow by around 3 million barrels per day to about 100 million barrels per day, with much of the growth expected in the second half of the year [20] - Inventories have been reduced to their lowest levels in a decade, providing less than 60 days of forward demand cover [22] - Crude oil exports from key Atlantic basin producers increased by 17% to Europe, contributing to strong rates in the crude sector [25] Company Strategy and Development Direction - The company has focused on fleet renewal and optimization, selling or recycling 24 older tankers with an average age of 15 years [14] - The merger with Diamond S has nearly doubled the company's net asset value and tripled its fleet size, enhancing earnings power [10] - The company aims to maintain a strong balance sheet while returning capital to shareholders, having returned nearly $100 million since the start of 2020 [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the tanker market is experiencing positive fundamentals due to historically low oil inventories and growing oil demand [8] - The ongoing conflict between Russia and Ukraine has created volatility in energy markets, but the company is positioned to capitalize on strengthening market conditions [19] - Management emphasized the importance of monitoring geopolitical developments and their impact on trading patterns and tanker demand [75] Other Important Information - The company has maintained a strong balance sheet with total liquidity of $166 million, including $90 million in revolver capacity [18] - The overall breakeven rate for the company is estimated to be $17,400 per day for the next 12 months [37] Q&A Session Summary Question: Capital allocation strategy and cash flow - Management confirmed that returning cash to shareholders remains a high priority, especially with improving market conditions [60] Question: Fleet renewal and special surveys - Management stated that they are selectively balancing fleet renewal and cash flow generation, having exited older non-core vessels [66] Question: Russian oil dynamics and trading patterns - Management indicated that the situation is still evolving, with ongoing adjustments in trading patterns due to geopolitical factors [75] Question: LNG fuel economics - Management noted that LNG prices have fluctuated but are expected to narrow in the long term, making it a viable option for future vessels [40] Question: Future sales candidates for fleet - Management is continuously monitoring the fleet and implementing efficiency improvements to prepare for regulatory changes [90]