International Seaways (INSW) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 net income of $36 million ($0.72 per diluted share) and adjusted net income of $45 million ($0.90 per share); adjusted EBITDA was $95 million.

• Over $300 million returned to shareholders in 2024, including $5.77 per share in dividends and $25 million in share repurchases.

• Fleet modernization included a vessel swap: sold two older VLCCs and acquired three Eco MRs, reducing average fleet age to about 10 years.

• Liquidity at year-end was $632 million, with $157 million in cash and $475 million in undrawn revolving credit.

• Declared a $0.70 per share dividend for March 2025, representing a 77% payout ratio on Q4 adjusted net income.

Financial highlights

• Q4 adjusted EBITDA was $95 million; free cash flow for the quarter reached $78 million.

• Q4 2024 shipping revenues were $195 million, down from $251 million in Q4 2023; full-year revenues were $952 million.

• Gross debt stood at $695 million, with the earliest maturity in 2030 and over 70% of the debt portfolio fixed or hedged.

• Spot break-even rates are about $13,700 per day; blended average spot TCE for Q1 2025 is $26,500 per day on 70% of expected revenue.

• Q4 2024 gross margin: $45 million income from vessel operations on $195 million shipping revenues.

Outlook and guidance

• Oil demand expected to grow at 1–1.5 million barrels per day in 2025, mainly driven by Asia.

• Limited tanker supply, aging fleet, and low orderbook support a continued upcycle for tanker earnings.

• Six new dual-fuel LR1 vessels under construction, with deliveries from Q3 2025 to Q3 2026.

• Minimum 75% payout ratio for dividends expected to continue, with flexibility to adjust based on earnings.

• FY 2025 revenue guidance: $270–280 million; expenses and capex guidance provided.