Q4 2024 International Seaways Inc Earnings Call Transcript
Key Points
- International Seaways Inc (INSW) reported a net income of $36 million for the fourth quarter, with an adjusted net income of $45 million, excluding losses on vessel sales.
- The company successfully modernized its fleet by swapping older VLCCs for newer eco MRs, enhancing fleet efficiency and reducing vessel age.
- INSW maintained a strong balance sheet with $632 million in total liquidity and a net loan to value ratio below 16%.
- The company returned over $300 million to shareholders in 2024, with a dividend yield of 12% and a payout ratio of about 77%.
- INSW's strategic fleet renewal and capital allocation approach position the company well for future growth and shareholder returns.
- Vessel expenses were higher than expected in the fourth quarter due to timing of stores, spares, and additional repairs and maintenance.
- General and administrative expenses increased due to one-off legal matters.
- The geopolitical tensions, such as the Israel-Hamas conflict and Russia-Ukraine situation, pose risks to tanker market stability.
- The MR rates showed some dislocation, with the US Gulf rates declining, although Asia rates are rising.
- The tanker order book increased in 2024, which could impact future market dynamics despite the current low relative size of the fleet.
Hello, and welcome to the International Seaways Inc., fourth-quarter 2024 earnings conference call. My name is Carla, and I will be coordinating your call today. (Operator Instructions) I would now like to hand you over to James Small, General Counsel, to begin. James, please go ahead when you're ready.
Thank you, operator. Good morning, everyone and welcome to International Seaway's earnings call for the fourth 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, which may address without limitation, the following topics: outlooks for the crude and product taker markets; changes in trading patterns; forecasts of world and regional economic activity and of the demand for and production of oil and
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