International Seaways (INSW) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $92 million ($1.84 per diluted share), with adjusted net income of $78 million ($1.57 per share) and adjusted EBITDA of $130 million, reflecting continued profitability despite a sequential decline from prior quarters.

• Nearly $100 million was returned to shareholders in Q3 2024 via dividends and share repurchases, with a combined dividend of $1.20 per share declared for December 2024.

• Fleet renewal included the sale of three older MRs for $72 million and acquisition of six modern MR vessels for $232 million, partially funded by issuing shares.

• Maintained a balanced capital allocation approach, focusing on fleet renewal, shareholder returns, and a strong balance sheet.

• Operates 76 vessels with six LR1 newbuilds scheduled for delivery through Q3 2026, bringing the total fleet to 82.

Financial highlights

• Q3 2024 net income was $91.7 million; adjusted net income was $78 million; adjusted EBITDA was $130 million.

• Q3 2024 shipping revenues were $225 million, down from $242 million in Q3 2023; consolidated TCE revenues were $220 million.

• Free cash flow for Q3 2024 was approximately $115 million; total liquidity at September 30, 2024 was $694 million, including $153 million cash and $541 million undrawn revolver.

• Gross debt stood at $657 million, with net loan-to-value at 13.5% as of September 30, 2024.

• Regular and supplemental dividends paid in 2024 totaled $225.4 million; share repurchases totaled $25 million for 501,646 shares.

Outlook and guidance

• Q4 2024 spot fixtures are 46% booked at an average of $27,200 per day, with a forward spot break-even rate below $13,400 per day.

• Guidance for Q4 2024 includes contracted time charter-out revenue of $34–37 million, vessel expenses of $65–69 million, and cash G&A of $8–10 million.

• FY 2025 guidance includes vessel expenses of $270–280 million and capex (including drydock) of $49–51 million.

• Six LR1 newbuilds are expected to be delivered between H2 2025 and Q3 2026 for an aggregate cost of $359 million, funded by long-term financing and available liquidity.

• Oil demand growth projected at or above 30-year averages for the next two years, with nearly half the global tanker fleet expected to be over 20 years old by the time newbuilds deliver.