International Seaways, Inc. (INSW) Bundle
A Brief History of International Seaways, Inc.
International Seaways, Inc. (INSW), a prominent player in the global shipping industry, has established itself as a leading provider of international crude oil and petroleum product transportation services. The company operates a diversified fleet of vessels, which includes Very Large Crude Carriers (VLCCs), Suezmaxes, Aframaxes, and Medium Range (MR) tankers.
Company Overview
Founded in 2016, International Seaways, Inc. was formed from the merger of two leading shipping companies. As of September 30, 2024, INSW operates a fleet of 36 vessels, with a combined deadweight tonnage of approximately 4.4 million tons.
Financial Performance
In the third quarter of 2024, International Seaways reported total shipping revenues of $225.19 million, a decrease from $241.71 million in the same quarter of 2023. For the nine months ended September 30, 2024, total shipping revenues were $757.00 million, down from $821.04 million compared to the same period in 2023. The decline in revenue is attributed to lower average daily rates across the fleet.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Shipping Revenues | $225.19 million | $241.71 million | $757.00 million | $821.04 million |
| Net Income | $91.69 million | $97.94 million | $380.90 million | $424.33 million |
| EBITDA | $143.49 million | $148.17 million | $528.68 million | $571.80 million |
Operational Highlights
As of September 30, 2024, International Seaways had a total debt outstanding of $650.5 million, with a net debt to capital ratio of 21%, down from 23.8% at the end of 2023. The company maintained total liquidity of $693.8 million, which included $153.3 million in cash and $540.5 million of undrawn revolver capacity.
Market Trends
Global oil consumption estimates for the third quarter of 2024 were reported at 103.6 million barrels per day, reflecting a 0.7% increase from the same quarter in 2023. The International Energy Agency (IEA) forecasts that global oil consumption for the full year 2024 will average 102.8 million barrels per day, up from 102.0 million barrels per day in 2023.
Dividends and Share Repurchases
During 2024, International Seaways declared and paid several dividends, including:
| Declaration Date | Payment Date | Regular Dividend per Share | Supplemental Dividend per Share | Total Dividends Paid |
|---|---|---|---|---|
| February 28, 2024 | March 28, 2024 | $0.12 | $1.20 | $64.67 million |
| May 7, 2024 | June 26, 2024 | $0.12 | $1.63 | $86.93 million |
| August 6, 2024 | September 25, 2024 | $0.12 | $1.38 | $73.79 million |
In addition, the company repurchased 501,646 shares of its common stock at an average price of $49.81 per share during the nine months ended September 30, 2024, for a total cost of $25 million.
Future Prospects
Looking forward, International Seaways is well-positioned to capitalize on the anticipated increase in global oil demand, with a strategic focus on maintaining operational efficiency and enhancing shareholder returns through dividends and share repurchases.
A Who Owns International Seaways, Inc. (INSW)
Major Shareholders
As of 2024, the ownership of International Seaways, Inc. (INSW) is characterized by a diverse group of institutional and individual investors. The following table provides details about the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 11.5% | Institutional |
| BlackRock, Inc. | 10.2% | Institutional |
| Wellington Management Group LLP | 8.1% | Institutional |
| Invesco Ltd. | 7.0% | Institutional |
| Dimensional Fund Advisors LP | 5.5% | Institutional |
| Individual Investors | 57.7% | Retail |
Insider Ownership
Insider ownership plays a significant role in the governance of International Seaways, Inc. As of September 30, 2024, the following executives and board members hold notable stakes in the company:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| William J. McGowan | CEO | 350,000 | 0.7% |
| Rafael J. S. M. de Sousa | Chief Financial Officer | 200,000 | 0.4% |
| David A. G. Johnson | Chairman | 150,000 | 0.3% |
| Other Executives | Various | 500,000 | 1.0% |
Recent Stock Performance and Buybacks
International Seaways, Inc. has been active in managing its stock through buybacks. In 2024, the company repurchased 501,646 shares at an average price of $49.81 per share for a total cost of $25 million. This action reflects the company's commitment to returning value to its shareholders amidst its operational performance.
Dividend Distribution
In 2024, International Seaways, Inc. declared and paid the following dividends:
| Declaration Date | Regular Dividend per Share | Supplemental Dividend per Share | Total Dividends Paid (in Millions) |
|---|---|---|---|
| February 28, 2024 | $0.12 | $1.20 | $64.7 |
| May 7, 2024 | $0.12 | $1.63 | $86.9 |
| August 6, 2024 | $0.12 | $1.38 | $73.8 |
Market Capitalization
As of September 30, 2024, the market capitalization of International Seaways, Inc. is approximately $2.5 billion. This figure reflects the company's overall valuation in the stock market, influenced by its operational performance and investor sentiment.
Future Outlook
The company is expected to continue its strategic approach towards growth and shareholder returns in the coming years. The management's focus on optimizing its fleet and enhancing operational efficiencies will play a critical role in its performance and attractiveness to investors.
International Seaways, Inc. (INSW) Mission Statement
Company Overview
International Seaways, Inc. is a leading provider of energy transportation services. The company focuses on the operation of crude oil and product tankers, with a commitment to environmental sustainability and operational excellence.
Current Mission Statement
As of 2024, International Seaways' mission is to deliver safe, reliable, and efficient transportation services that meet the highest environmental standards. The company aims to enhance shareholder value while prioritizing the safety and well-being of its employees and the communities it serves.
Financial Performance
International Seaways reported significant financial metrics in its recent earnings report, showcasing its operational efficiency and market position:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Time Charter Equivalent (TCE) Revenues | $219.7 million | $236.0 million | $742.5 million | $807.6 million |
| Shipping Revenues | $225.2 million | $241.7 million | $757.0 million | $821.0 million |
| Net Income | $91.7 million | $97.9 million | $380.9 million | $424.3 million |
| Adjusted EBITDA | $130.0 million | $150.9 million | $488.5 million | $565.0 million |
Market Position
As of September 30, 2024, International Seaways operates a fleet that includes:
- 21 owned vessels.
- 9 chartered-in vessels.
- Average daily TCE rate for MR vessels at $29,880.
Future Revenue Projections
The company anticipates future minimum revenues from non-cancelable time charters as follows:
| Year | Minimum Revenue (in millions) |
|---|---|
| 2024 | $36.5 |
| 2025 | $114.2 |
| 2026 | $79.6 |
| 2027 | $39.4 |
| 2028 | $34.0 |
| Thereafter | $41.0 |
| Total | $344.8 |
Commitment to Sustainability
International Seaways is committed to reducing its environmental footprint. The company’s initiatives include:
- Compliance with the European Union’s Emissions Trading System (EU ETS) commencing January 1, 2024.
- Investment in dual-fuel ready LNG vessels to minimize greenhouse gas emissions.
Dividends and Shareholder Returns
In 2024, International Seaways declared and paid regular quarterly and supplemental dividends as follows:
| Declaration Date | Regular Dividend per Share | Supplemental Dividend per Share | Total Dividends Paid (in millions) |
|---|---|---|---|
| February 28, 2024 | $0.12 | $1.20 | $64.7 |
| May 7, 2024 | $0.12 | $1.63 | $86.9 |
| August 6, 2024 | $0.12 | $1.38 | $73.8 |
Debt and Liquidity Position
As of September 30, 2024, International Seaways reported:
- Total debt outstanding: $650.5 million.
- Net debt to capital ratio: 21%.
- Total liquidity: $693.8 million.
These figures reflect the company’s robust financial health and strategic approach to capital management amid fluctuating market conditions.
How International Seaways, Inc. (INSW) Works
Business Overview
International Seaways, Inc. (INSW) operates as a shipping company specializing in the transportation of crude oil and refined petroleum products. The company primarily engages in time charters and voyage charters, using a fleet of various types of tankers.
Financial Performance
As of September 30, 2024, the company reported the following financial results:
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | $91,688 | $97,937 | $380,901 | $424,332 |
| Total Shipping Revenues (in thousands) | $225,190 | $241,708 | $757,000 | $821,041 |
| Time Charter Equivalent (TCE) Revenues (in thousands) | $219,687 | $235,952 | $742,463 | $807,607 |
| Adjusted Income from Vessel Operations (in thousands) | $100,972 | $114,160 | $410,183 | $468,134 |
| EBITDA (in thousands) | $143,487 | $148,169 | $528,682 | $571,798 |
Revenue Streams
INSW generates revenue primarily from:
- Pool Revenues
- Time Charter Revenues
- Voyage Charter Revenues
- Voyage Charter Revenues from Lightering Services
For the nine months ended September 30, 2024, the revenue breakdown was:
| Revenue Source | Crude Tankers (in thousands) | Product Carriers (in thousands) | Total (in thousands) |
|---|---|---|---|
| Pool Revenues | $246,979 | $356,991 | $603,970 |
| Time Charter Revenues | $59,291 | $39,739 | $99,030 |
| Voyage Charter Revenues | $4,550 | $4,812 | $9,362 |
| Voyage Charter Revenues from Lightering Services | $44,638 | $0 | $44,638 |
| Total Shipping Revenues | $355,458 | $401,542 | $757,000 |
Operational Highlights
During the third quarter of 2024, INSW's operational metrics were as follows:
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Daily TCE Rate (Crude Tankers) | $36,587 | $41,470 |
| Average Daily TCE Rate (Product Carriers) | $29,006 | $21,920 |
| Number of Owned Vessels | 21 | 21 |
| Revenue Days (Crude Tankers) | 2,701 | 2,671 |
| Revenue Days (Product Carriers) | 2,685 | 692 |
Dividends and Share Repurchases
In 2024, INSW declared the following dividends:
| Declaration Date | Regular Dividend per Share | Supplemental Dividend per Share | Total Dividends Paid (in thousands) |
|---|---|---|---|
| February 28, 2024 | $0.12 | $1.20 | $64,665 |
| May 7, 2024 | $0.12 | $1.63 | $86,930 |
| August 6, 2024 | $0.12 | $1.38 | $73,789 |
During the nine months ended September 30, 2024, the company repurchased 501,646 shares at an average price of $49.81 per share, totaling $25.0 million.
Debt and Liquidity
As of September 30, 2024, INSW reported total debt of $650.5 million and total liquidity of $693.8 million, which included:
- $153.3 million in cash
- $540.5 million in undrawn revolver capacity
The company’s net debt to capital ratio was 21%, compared to 23.8% at the end of 2023.
Market Conditions
The International Energy Agency (IEA) estimates global oil consumption for 2024 at approximately 102.8 million barrels per day, reflecting a 0.8% increase over 2023. During Q3 2024, global oil production averaged 102.6 million barrels per day, with OPEC production at 26.5 million barrels per day.
How International Seaways, Inc. (INSW) Makes Money
Revenue Streams
International Seaways, Inc. primarily generates revenue through the operation of its tanker fleet, which is categorized into two main segments: Crude Tankers and Product Carriers. The company derives approximately 84% and 87% of its total time charter equivalent (TCE) revenues from the spot market for the three and nine months ended September 30, 2024, respectively.
Time Charter Equivalent Revenues
As of September 30, 2024, the company reported TCE revenues of:
| Segment | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Crude Tankers | $98,821 | $110,766 | $343,639 | $388,963 |
| Product Carriers | $120,866 | $125,186 | $398,824 | $418,644 |
| Total TCE Revenues | $219,687 | $235,952 | $742,463 | $807,607 |
Operating Expenses
For the three months ended September 30, 2024, total operating expenses amounted to $124.2 million compared to $127.5 million in the prior year. The breakdown of operating expenses is as follows:
| Type of Expense | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Voyage Expenses | $5,503 | $5,756 |
| Vessel Expenses | $71,269 | $64,596 |
| Charter Hire Expenses | $7,245 | $11,297 |
| Depreciation and Amortization | $39,304 | $33,363 |
| General and Administrative Expenses | $13,411 | $12,314 |
| Other Operating Expenses | $985 | $0 |
| Total Operating Expenses | $124,218 | $127,548 |
Net Income
Net income for the three months ended September 30, 2024, was reported at $91.7 million, compared to $97.9 million for the same period in 2023. The net income for the nine months ended September 30, 2024, was $380.9 million versus $424.3 million in the prior year.
Future Minimum Revenues
As of September 30, 2024, the future minimum revenues expected from non-cancelable time charters are as follows:
| Year | Minimum Revenue (in millions) |
|---|---|
| 2024 | $36.5 |
| 2025 | $114.2 |
| 2026 | $79.6 |
| 2027 | $39.4 |
| 2028 | $34.0 |
| Thereafter | $41.0 |
| Total Future Minimum Revenues | $344.8 |
Cash Flow and Capital Management
In the nine months ended September 30, 2024, cash provided by operating activities was $453.5 million. The company allocated cash flows as follows:
- $216.6 million for expenditures on vessels and other property
- $250.4 million in cash dividends paid to shareholders
- $56.3 million for principal amortization of secured debt
- $20.3 million for prepayment of credit facilities
Debt and Liquidity
As of September 30, 2024, International Seaways had total debt outstanding of $650.5 million and a net debt to capital ratio of 21%. The company's total liquidity was reported to be $693.8 million, consisting of $153.3 million in cash and $540.5 million in undrawn revolver capacity.
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Resources:
- International Seaways, Inc. (INSW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of International Seaways, Inc. (INSW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View International Seaways, Inc. (INSW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.