Q2 2024 International Seaways Inc Earnings Call Transcript
Key Points
- International Seaways Inc (INSW) reported its eighth consecutive quarter of adjusted net income over $100 million, with a net income of $145 million for Q2 2024.
- The company declared a combined dividend of $1.50 per share, representing 64% of adjusted net income, maintaining a strong dividend yield of 12% over the last 12 months.
- INSW successfully executed fleet renewals by acquiring six eco MR vessels and selling three older vessels, reducing the average age of its MR fleet.
- The company has a strong liquidity position with $682 million in total liquidity, including $506 million of undrawn revolver capacity.
- INSW has a low spot breakeven rate of under $13,400 per day, enhancing its free cash flow generation and financial flexibility.
- The company experienced 559 days of off-hire time in Q2 2024, which was higher than the previously guided 359 days, impacting operational efficiency.
- There is uncertainty regarding the impact of geopolitical events and potential changes in global oil demand and supply, which could affect tanker demand.
- The tanker market is experiencing seasonality, with softer rates in the summer months, which could impact earnings in the short term.
- The aging global tanker fleet poses a challenge, as older vessels have lower efficiency and utilization, potentially affecting market dynamics.
- INSW faces inflationary pressures in operational expenses, particularly in transportation and crew costs, which could impact future cash breakeven levels.
Good morning, everyone, and welcome to the International Seaways second quarter 2024 results conference call. My name is Carla, and I will be coordinating your call today. (Operator Instructions)
I will now hand you over to your host, James Small, CAO and General Counsel to begin. James, please go ahead.
Thank you. Good morning, everyone, and welcome to International Seaways earnings call for the second quarter of 2024. Before we begin, I would like to start off by advising everyone with us on the call today of the following. During this call and in the accompanying presentation, management may make forward-looking statements regarding the company or the industry in which it operates.
Those statements may address, without limitation, the following topics. Outlooks for the crude and product tanker markets and changes in trading patterns, forecasts of world and regional economic activity and of the demand for and production
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
