International Seaways, Inc. Q3 FY2024 earnings call

• Net income, adjusted net income, and EBITDA figures were provided. - Liquidity was nearly $700 million with over $540 million undrawn revolver capacity. Net debt was $500 million, net loan to vessel value under 14%. - Sold a vessel for $24 million in Q3, repurchased shares, and paid dividends. - Tanker demand drivers discussed, including oil demand growth, OPEC Plus production, and inventory trends. - Lightering business performance detailed, with revenue and EBITDA contribution. - Cash bridge detailed free cash flows and capital allocation, including dividend payments and share repurchases.

Net income for the third quarter was $92 million or $1.84 per diluted share. Excluding gains on vessel sales and one-off items, adjusted net income was $78 million or $1.57 per share. EBITDA was over $143 million with adjusted EBITDA at $130 million. Lightering business had nearly $13 million in revenue in Q3, contributing over $4 million in EBITDA, with year-to-date EBITDA contribution about $17 million. Fleet optimization included selling three 15-year old MRs for $72 million and acquiring six MRs under 10 years old for $232 million.

• Blended average spot TCE was about $27,200 per day fleet wide in Q3. Forward spot breakeven rate was about $13,300 per day. - Expected significant free cash flows in Q4. - Expense guidance for Q4 and estimates for 2025 provided, including off-hire and CapEx estimates.

Factors from filings like political, economic, and regulatory developments that could cause actual results to differ from forward-looking statements, including those in Form 10-K 2023, Form 10-Q first three quarters of 2024, and other SEC filings.

Q: About the tanker market, especially product tanker softness and what could reverse it?

A: Lois mentioned MR spot performance was strong, refinery margins under pressure in 2025 could support product side. Derek added term rates in clean markets haven't come off much, sale and purchase market had inventory but no big price decrease yet.

Q: Geopolitical question about potential energy sanctions on Russia and impact on tanker market?

A: Lois said uncertainties from elections could affect oil tankers with potential sanctions reducing flows, but specifics on Russian impact were unclear. Derek noted OPEC plus production cuts and non-OPEC growth affecting ton miles.

Q: On asset acquisition pipeline and financial flexibility?

A: Lois said Seaways is deploying free cash flow via shareholder returns, fleet renewal, and balance sheet enhancement, with optionality on non-amortizing facility paydown and looking for acquisition opportunities.

Q: What drives ship recycling and sale leaseback repurchase options?

A: Lois said tightened sanctions could force aged vessels out, leading to recycling. Jeff mentioned a sale leaseback purchase option in late 2025 to evaluate for deleveraging