International Seaways (INSW) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $144.7 million ($2.91/share), with adjusted net income ranging from $118 million to $154.4 million and adjusted EBITDA between $167 million and $191.5 million, reflecting robust profitability.

• Liquidity stood at $682 million as of June 30, 2024, including $176 million in cash and $506 million in undrawn revolver capacity.

• Strategic fleet renewal included delivery of six eco MRs and sale of three older vessels, reducing average MR age by one year.

• Declared a combined dividend of $1.50/share for Q2/September 2024, representing a 64% payout ratio and over 12% yield.

• Revenue for Q2 2024 was $257.4 million, down 12% year-over-year, with net income and TCE revenues also declining from prior year.

Financial highlights

• Q2 2024 net income: $144.7 million; adjusted net income: up to $154.4 million; adjusted EBITDA: up to $191.5 million.

• Q2 2024 TCE revenues were $251.8 million, with free cash flow for the quarter at $154 million and annualized free cash flow yield at 20%.

• Paid $87 million in dividends during Q2 and $151.6 million in H1 2024.

• Net loan-to-value at 14%, with vessels valued at $2 billion (cost) and over $3.7 billion (market value).

• Net debt to capital ratio improved to 22.1% at June 30, 2024.

Outlook and guidance

• Q3 2024 spot fixtures: 47% booked at an average of $37,300/day, with spot break-even rate below $13,400/day.

• Expense guidance for FY 2024: vessel expenses $130–132 million, charter hire $9–10 million, cash G&A $25–27 million, capex $46–48 million.

• Six LR1 newbuilds to be delivered by Q3 2026, with $347.1 million in remaining commitments.

• Management expects continued strong market conditions, with focus on fleet renewal, debt reduction, and shareholder returns.

• Oil demand expected to grow above the 30-year average, with Asia as a key driver.