International Seaways (NYSE:INSW). We have a significant investment (almost 10% of the International Portfolio) in the oil ship-ping business, in which International Seaways is one of our favourite companies. The current situation, which is the lowest point of the last 30 years, encourages invest-ment in favour of the recovery of the cycle of maritime transport, in particular of crude oil. Several factors con-tribute to the current weakness, and we can gradually see how each and every one of them is returning to normal (inventories of crude oil, demolition of the fleet, and the drop in orders for new ships, among others). This means that supply and demand are being adjusted as is shown by the daily freight rates and the price of new ships. With International Seaways we moved into position for this recovery through a company with moderate levels of debt and with revaluation potential, even if the company should be liquidated today before the recovery of the cycle.
From Francisco Garcia Parames' Cobas Asset Management third-quarter 2018 shareholder letter.
