Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

International Seaways Reports Second Quarter 2022 Results


International Seaways, Inc. (NYSE: INSW) (the "Company" or "INSW"), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, today reported results for the second quarter of 2022.

HIGHLIGHTS & RECENT DEVELOPMENTS

"During the second quarter, we demonstrated Seaways' significant operating leverage and earnings power," said Lois K. Zabrocky, International Seaways' President and CEO. "We capitalized on oil markets that were the strongest we've seen since before the pandemic based on strong demand, supply constraints and depleted inventories as the world grapples with energy security. Refined product oil demand, particularly gasoline and middle distillates has outpaced supply even as refinery utilization is well above pre-pandemic levels."

Ms. Zabrocky added, "After a little more than a year since our transformational merger that tripled our fleet size and diversified our tanker portfolio with the addition of over 40 product carriers, Seaways is well positioned for the strong underlying fundamentals that we expect to firm the tanker markets over the next few years. We expect continued growing demand, limited fleet growth and higher utilization from the longer distances between oil supply sources and demand destinations. Amidst the strengthening market, we took decisive steps in the second quarter to further advance Seaways' industry position, while unlocking value for shareholders, enhancing our financial strength, and capitalizing on our increased scale. Doubling our quarterly dividend to $0.12 per share is an important milestone and reflects our prioritization of enhancing returns to shareholders, which have totaled over $100 million since the beginning of 2020."

Jeff Pribor, the Company's CFO stated, "During the quarter we successfully unlocked the value of the FSO joint venture, receiving approximately $140 million in cash, closed on a new credit facility that extended our maturities and repaid our revolver to be fully undrawn at $220 million of capacity. As a result of these initiatives and our cash flow generation, we grew our total liquidity at quarter's end to over $450 million and improved our net loan to value to 37%. With our substantial liquidity and $60 million outstanding on our share repurchase authorization, we remain focused on building upon our track record of returning capital to shareholders while taking advantage of accretive opportunities to create enduring value."

SECOND QUARTER 2022 RESULTS

Net income for the second quarter of 2022 was $69.0 million, or $1.38 per diluted share, compared to a net loss of $18.8 million, or $0.67 per diluted share, for the second quarter of 2021. The reported net income for the second quarter of 2022 includes the impact of one-time items, consisting of the gain on disposal of vessels, net of impairments, loss on sale of investments in affiliated companies, debt modification expenses and write-off of deferred financing costs, which aggregated to $2.4 million. Excluding these items, net income for the second quarter of 2022 was $71.5 million, or $1.43 per diluted share. The increase in the second quarter of 2022 reflects substantially higher TCE revenues and a significant increase in revenue days as a result of the merger that were partially offset by higher operating expenses (vessel expenses, depreciation and amortization, general and administrative expenses) and interest expense, reflecting the merger that closed in the third quarter of 2021.

Consolidated TCE revenues(C) for the second quarter were $185.5 million, compared to $44.7 million for the second quarter of 2021. This increase in TCE revenue reflects an increase of over 3,800 revenue days of the significantly larger post-merger fleet. Shipping revenues for the second quarter were $188.2 million, compared to $46.3 million for the second quarter of 2021.

Adjusted EBITDA(A) for the second quarter was $111.7 million, compared to $9.8 million for the second quarter of 2021.

Crude Tankers

TCE revenues for the Crude Tankers segment were $59.5 million for the second quarter, compared to $31.1 million for the second quarter of 2021. This increase was primarily attributable to an increase in spot rates as the average spot earnings of the VLCC, Suezmax and Aframax sectors were $16,400, $23,700 and $34,100 per day, respectively, compared with $13,700, $18,500 and $8,600 per day, respectively, during the second quarter of 2021. Additionally, there was an increase of approximately 475 revenue days as a result of changes in fleet composition resulting from the merger and our fleet optimization program. Shipping revenues for the Crude Tankers segment were $62.1 million for the second quarter of 2022, compared to $32.5 million for the second quarter of 2021.

Product Carriers

TCE revenues for the Product Carriers segment were $126.1 million for the second quarter, compared to $13.6 million for the second quarter of 2021. This significant increase is attributable substantially higher spot rates with average spot earnings for the LR1 and MR sectors of $25,900 and $30,400 per day, respectively, in the second quarter of 2022 compared with $15,300 and $10,600 per day, respectively, in the second quarter of 2021. Additionally, an increase of about 3,400 revenue days as a result of the merger contributed to higher revenues. Shipping revenues for the Product Carriers segment were $126.1 million for the second quarter, compared to $13.8 million for the second quarter of 2021.

FIRST HALF 2022 RESULTS

Net income for the first half of 2022 was $56.0 million, or $1.12 per diluted share, compared to a net loss of $32.1 million, or $1.15 per diluted share, for the first half of 2021.

Consolidated TCE revenues for the first half of 2022 were $283.5 million, compared to $89.9 million for the first half of 2021. Shipping revenues for the first half of 2022 were $289.7 million, compared to $93.1 million for the first half of 2021.

Adjusted EBITDA for the first half of 2022 was $137.7 million, compared to $20.5 million for the first half of 2021.

Crude Tankers

TCE revenues for the Crude Tankers segment were $95.9 million for the first half of 2022, compared to $67.0 million for the first half of 2021. Shipping revenues for the Crude Tankers segment were $101.7 million for the first half of 2022, compared to $70.1 million for the first half of 2021.

Product Carriers

TCE revenues for the Product Carriers segment were $187.6 million for the first half of 2022 compared to $22.8 million for the first half of 2021. Shipping revenues for the Product Carriers segment were $188.0 million for the first half of 2022, compared to $23.0 million for the first half of 2021.

SALE OF FSO JOINT VENTURE

In June 2022, the Company sold its 50% stake in two floating storage and offshore ("FSO") vessels to its joint venture partner. The Company received proceeds, net of adjustments for working capital and expenses, of $140 million.

SENIOR SECURED DEBT REFINANCING

In May 2022, the Company executed a new five-year senior secured credit facility (the "$750m Facility") with an aggregate capacity of $750 million, composed of a term loan of $530 million and a revolving credit facility of $220 million. The proceeds from the $750m Facility, which included a draw on the revolving credit facility of $70 million, were used to repay three existing facilities aggregating approximately $575 million at the time of closing. The $750m Facility, which was nearly two times oversubscribed, achieved the Company's goals to extend debt maturities, reduce the average margin and lower scheduled quarterly principal amortization.

Under the terms of the $750m Facility, interest bears at a rate of SOFR plus a margin of 240 basis points ("bps"), representing a savings of approximately 15 bps from the average of the prior facilities. Scheduled quarterly principal payments are $30.6 million, which saves the Company approximately $4 million per annum and the first repayment is due in November 2022, corresponding to additional cash savings of approximately $60 million in 2022.

The covenant structure of the $750m Facility is similar to the prior facilities with enhanced sustainability-linked features, which may impact the margin by five bps. The sustainability targets are measured in three categories: reductions in carbon emissions outlined in the Poseidon Principles, a target of $3 million for annual spending on energy efficiency improvements, decarbonization and other environmental related initiatives, and a safety target measured in Lost Time Incident Frequency performance against an average published by Intertanko.

SALE AND LEASEBACK TRANSACTIONS

During the second quarter of 2022, the Company entered eight-year lease financing arrangements for the sale and leaseback of two 2010-built MRs. The transactions generated net proceeds of $15.4 million net of debt repayment.

REDEMPTION OF 8.5% SENIOR NOTES

On August 5, 2022, the Company redeemed the $25 million aggregate principal outstanding of the 8.5% senior notes due June 2023.

VESSEL SALES AND RECYCLING

During the first half of 2022, the Company sold two Panamaxes, built between 2002 and 2004, which delivered to the buyers in April 2022 for recycling compliant with the Hong Kong Convention. The Company received proceeds of approximately $13.9 million of which $10.2 million was received prior to the end of the first quarter.

During the second quarter of 2022, the Company sold all four of its remaining Handysize vessels, generating proceeds, net of debt repayment, of approximately $30.0 million. The Company also sold a 2008-built MR in the second quarter, receiving proceeds, net of debt repayment, of approximately $10.0 million.

RETURNING CASH TO SHAREHOLDERS

During the second quarter, the Company increased its dividend from $0.06 per share to $0.12 per share. On June 29, 2022, the Company paid approximately $6.0 million in dividends.

The Company's Board of Directors declared a regular quarterly dividend of $0.12 per share of common stock on August 4, 2022. The dividend will be paid on September 28, 2022 to shareholders with a record date at the close of business on September 14, 2022.

The Company's Board of Directors authorized an upsize of the share repurchase program to $60 million from $33 million and extended the expiration of the program to the end of 2023.

CONFERENCE CALL

The Company will host a conference call to discuss its second quarter 2022 results at 9:00 a.m. Eastern Time ("ET") on Tuesday, August 9, 2022. To access the call, participants should dial (844) 200-6205 for domestic callers and (929) 526-1599 for international callers and entering 772255. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company's website at https://www.intlseas.com.

An audio replay of the conference call will be available until August 16, 2022 by dialing (866) 813-9403 for domestic callers and +44 204 525 0658 for international callers, and entering Access Code 031625.

ABOUT INTERNATIONAL SEAWAYS, INC.

International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 78 vessels, including 13 VLCCs (including three newbuildings), 13 Suezmaxes, five Aframaxes/LR2s, eight LR1s and 39 MR tankers. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at https://www.intlseas.com.

Forward-Looking Statements

This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the U.S. Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the consequences of the Company's merger with Diamond S and plans to issue dividends, its prospects, including statements regarding vessel acquisitions, expected synergies, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on the Company's current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for 2021 for the Company, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.

Category: Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

Shipping Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Pool revenues

 

$

164,727

 

 

$

26,455

 

 

$

248,489

 

 

$

51,114

 

Time and bareboat charter revenues

 

 

8,133

 

 

 

11,714

 

 

 

14,308

 

 

 

26,412

 

Voyage charter revenues

 

 

15,337

 

 

 

8,135

 

 

 

26,882

 

 

 

15,534

 

Total Shipping Revenues

 

 

188,197

 

 

 

46,304

 

 

 

289,679

 

 

 

93,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Voyage expenses

 

 

2,658

 

 

 

1,586

 

 

 

6,165

 

 

 

3,173

 

Vessel expenses

 

 

59,563

 

 

 

27,877

 

 

 

119,880

 

 

 

54,204

 

Charter hire expenses

 

 

7,693

 

 

 

5,863

 

 

 

15,002

 

 

 

11,604

 

Depreciation and amortization

 

 

27,256

 

 

 

17,079

 

 

 

54,256

 

 

 

33,833

 

General and administrative

 

 

10,847

 

 

 

6,831

 

 

 

21,013

 

 

 

15,012

 

Third-party debt modification fees

 

 

900

 

 

 

?

 

 

 

1,087

 

 

 

-

 

Merger and integration related costs

 

 

?

 

 

 

481

 

 

 

?

 

 

 

481

 

(Gain)/loss on disposal of vessels and other property, net of impairments

 

 

(8,102

)

 

 

4,005

 

 

 

(9,478

)

 

 

4,016

 

Total operating expenses

 

 

100,815

 

 

 

63,722

 

 

 

207,925

 

 

 

122,323

 

Income/(loss) from vessel operations

 

 

87,382

 

 

 

(17,418

)

 

 

81,754

 

 

 

(29,263

)

Equity in (loss)/income of affiliated companies

 

 

(5,162

)

 

 

5,375

 

 

 

435

 

 

 

10,843

 

Operating income/(loss)

 

 

82,220

 

 

 

(12,043

)

 

 

82,189

 

 

 

(18,420

)

Other (expense)/income

 

 

(574

)

 

 

267

 

 

 

(800

)

 

 

559

 

Income/(loss) before interest expense and income taxes

 

 

81,646

 

 

 

(11,776

)

 

 

81,389

 

 

 

(17,861

)

Interest expense

 

 

(12,558

)

 

 

(7,006

)

 

 

(25,298

)

 

 

(14,286

)

Income/(loss) before income taxes

 

 

69,088

 

 

 

(18,782

)

 

 

56,091

 

 

 

(32,147

)

Income tax provision

 

 

(52

)

 

 

(1

)

 

 

(56

)

 

 

(1

)

Net income/(loss) attributable to the Company

 

$

69,036

 

 

$

(18,783

)

 

$

56,035

 

 

$

(32,148

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

49,602,181

 

 

 

28,051,946

 

 

 

49,586,847

 

 

 

28,037,957

 

Diluted

 

 

49,878,645

 

 

 

28,051,946

 

 

 

49,754,876

 

 

 

28,037,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net earnings/(loss) per share

 

$

1.39

 

 

$

(0.67

)

 

$

1.13

 

 

$

(1.15

)

Diluted net earnings/(loss) per share

 

$

1.38

 

 

$

(0.67

)

 

$

1.12

 

 

$

(1.15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Unaudited)

 

 

(Unaudited)

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

230,666

 

$

97,883

Voyage receivables

 

 

181,905

 

 

107,096

Other receivables

 

 

6,779

 

 

5,651

Inventories

 

 

804

 

 

2,110

Prepaid expenses and other current assets

 

 

14,086

 

 

11,759

Current portion of derivative asset

 

 

763

 

 

-

Total Current Assets

 

 

435,003

 

 

224,499

 

 

 

 

 

 

 

Restricted cash

 

 

1,054

 

 

1,050

Vessels and other property, less accumulated depreciation

 

 

1,723,742

 

 

1,802,850

Vessels construction in progress

 

 

71,036

 

 

49,291

Deferred drydock expenditures, net

 

 

57,592

 

 

55,753

Operating lease right-of-use assets

 

 

20,917

 

 

23,168

Investments in and advances to affiliated companies

 

 

39,832

 

 

180,331

Long-term derivative asset

 

 

-

 

 

1,296

Time charter contracts acquired, net

 

 

159

 

 

842

Other assets

 

 

14,906

 

 

7,700

Total Assets

 

$

2,364,241

 

$

2,346,780

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable, accrued expenses and other current liabilities

 

$

38,237

 

$

44,964

Current portion of operating lease liabilities

 

 

9,875

 

 

8,393

Current installments of long-term debt

 

 

160,790

 

 

178,715

Current portion of derivative liability

 

 

-

 

 

2,539

Total Current Liabilities

 

 

208,902

 

 

234,611

Long-term operating lease liabilities

 

 

9,172

 

 

12,522

Long-term debt

 

 

912,900

 

 

926,270

Long-term derivative liability

 

 

529

 

 

757

Other liabilities

 

 

1,590

 

 

2,288

Total Liabilities

 

 

1,133,093

 

 

1,176,448

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Total Equity

 

 

1,231,148

 

 

1,170,332

Total Liabilities and Equity

 

$

2,364,241

 

$

2,346,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

 

2021

 

 

 

 

(Unaudited)

 

 

(Unaudited)

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income/(loss)

 

$

56,035

 

 

$

(32,148

)

Items included in net loss not affecting cash flows:

 

 

 

 

 

 

Depreciation and amortization

 

 

54,256

 

 

 

33,833

 

Loss on write-down of vessels and other assets

 

 

1,697

 

 

 

3,497

 

Amortization of debt discount and other deferred financing costs

 

 

1,955

 

 

 

1,077

 

Amortization of time charter hire contracts acquired

 

 

684

 

 

 

?

 

Deferred financing costs write-off

 

 

261

 

 

 

?

 

Stock compensation

 

 

2,728

 

 

 

2,263

 

Earnings of affiliated companies

 

 

(10,017

)

 

 

(10,843

)

Write-off of registration statement costs

 

 

?

 

 

 

694

 

Other ? net

 

 

(327

)

 

 

831

 

Items included in net income/(loss) related to investing and financing activities:

 

 

 

 

 

 

(Gain)/loss on disposal of vessels and other assets, net

 

 

(11,175

)

 

 

519

 

Loss on sale of investments in affiliated companies

 

 

9,512

 

 

 

?

 

Cash distributions from affiliated companies

 

 

2,250

 

 

 

3,625

 

Payments for drydocking

 

 

(25,789

)

 

 

(14,720

)

Insurance claims proceeds related to vessel operations

 

 

2,035

 

 

 

710

 

Changes in operating assets and liabilities

 

 

(69,260

)

 

 

(11,856

)

Net cash provided by/(used in) operating activities

 

 

14,845

 

 

 

(22,518

)

Cash Flows from Investing Activities:

 

 

 

 

 

 

Expenditures for vessels and vessel improvements

 

 

(53,801

)

 

 

(24,130

)

Proceeds from disposal of vessels and other property, net

 

 

79,614

 

 

 

3,431

 

Expenditures for other property

 

 

(509

)

 

 

(271

)

Investments in and advances to affiliated companies, net

 

 

(838

)

 

 

(95

)

Proceeds from sale of investments in affiliated companies

 

 

140,069

 

 

 

?

 

Net cash provided by investing activities

 

 

164,535

 

 

 

(21,065

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Borrowings on long term debt, net of lenders' fees

 

 

641,050

 

 

 

?

 

Repayments of debt

 

 

(717,913

)

 

 

(30,742

)

Proceeds from sale and leaseback financing, net of issuance and deferred financing costs

 

 

60,076

 

 

 

?

 

Payments on sale and leaseback financing

 

 

(18,816

)

 

 

?

 

Cash payments on derivatives containing other-than-insignificant financing elements

 

 

?

 

 

 

(2,623

)

Common stock issuance costs

 

 

?

 

 

 

(717

)

Payments of deferred financing costs

 

 

(556

)

 

 

(49

)

Cash dividends paid

 

 

(8,941

)

 

 

(3,369

)

Cash paid to tax authority upon vesting of stock-based compensation

 

 

(1,493

)

 

 

(1,030

)

Net cash provided used in financing activities

 

 

(46,593

)

 

 

(38,530

)

Net increase/(decrease) in cash, cash equivalents and restricted cash

 

 

132,787

 

 

 

(82,113

)

Cash, cash equivalents and restricted cash at beginning of year

 

 

98,933

 

 

 

215,677

 

Cash, cash equivalents and restricted cash at end of period

 

$

231,720

 

 

$

133,564

 

Spot and Fixed TCE Rates Achieved and Revenue Days

The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months ended June 30, 2022 and the comparable period of 2021. Revenue days in the quarter ended June 30, 2022 totaled 6,688 compared with 2,846 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately $643 and $641 per day for the three months ended June 30, 2022 and 2021, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

 

Spot

 

 

Fixed

 

 

Total

 

 

Spot

 

 

Fixed

 

 

Total

Crude Tankers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VLCC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

16,441

 

$

43,903

 

 

 

 

$

13,684

 

$

43,877

 

 

 

Number of Revenue Days

 

 

808

 

 

91

 

 

899

 

 

651

 

 

91

 

 

742

Suezmax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

23,684

 

$

26,698

 

 

 

 

$

18,485

 

$

-

 

 

 

Number of Revenue Days

 

 

963

 

 

91

 

 

1,054

 

 

182

 

 

-

 

 

182

Aframax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

34,116

 

$

-

 

 

 

 

$

8,589

 

$

-

 

 

 

Number of Revenue Days

 

 

326

 

 

-

 

 

326

 

 

266

 

 

-

 

 

266

Panamax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

-

 

$

-

 

 

 

 

$

16,535

 

$

11,396

 

 

 

Number of Revenue Days

 

 

-

 

 

-

 

 

-

 

 

91

 

 

523

 

 

614

Total Crude Tankers Revenue Days

 

 

2,097

 

 

182

 

 

2,279

 

 

1,190

 

 

614

 

 

1,804

Product Carriers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aframax (LR2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

-

 

$

17,143

 

 

 

 

$

-

 

$

17,784

 

 

 

Number of Revenue Days

 

 

-

 

 

91

 

 

91

 

 

-

 

 

91

 

 

91

Panamax (LR1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

25,910

 

$

-

 

 

 

 

$

15,291

 

$

-

 

 

 

Number of Revenue Days

 

 

787

 

 

-

 

 

787

 

 

541

 

 

-

 

 

541

MR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

30,436

 

$

19,175

 

 

 

 

$

10,627

 

$

-

 

 

 

Number of Revenue Days

 

 

3,386

 

 

19

 

 

3,405

 

 

410

 

 

-

 

 

410

Handy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

19,521

 

$

-

 

 

 

 

$

-

 

$

-

 

 

 

Number of Revenue Days

 

 

126

 

 

-

 

 

126

 

 

-

 

 

-

 

 

-

Total Product Carriers Revenue Days

 

 

4,299

 

 

110

 

 

4,409

 

 

951

 

 

91

 

 

1,042

Total Revenue Days

 

 

6,396

 

 

292

 

 

6,688

 

 

2,141

 

 

705

 

 

2,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue days in the above tables exclude days related to full service lighterings and days for which recoveries were recorded under the Company's loss of hire insurance policies.

During the 2022 and 2021 periods, each of the Company's LR1s participated in the Panamax International Pool and transported crude oil cargoes exclusively.

Fleet Information

As of June 30, 2022, INSW's fleet totaled 78 vessels, including three newbuilds and 75 operating vessels, of which 62 were owned and 16 were chartered in.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vessels Owned

 

Vessels Chartered-in(1)

 

Total at July 1, 2022

Vessel Fleet and Type

 

Number

 

Weighted by

Ownership

 

Number

 

Weighted by

Ownership

 

Total

Vessels

 

Vessels Weighted

by Ownership

 

Total Dwt

Operating Fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VLCC

 

4

 

4

 

6

 

6

 

10

 

10

 

3,012,171

Suezmax

 

13

 

13

 

-

 

-

 

13

 

13

 

2,061,971

Aframax

 

1

 

1

 

3

 

3

 

4

 

4

 

452,375

Crude Tankers

 

18

 

18

 

9

 

9

 

27

 

27

 

5,526,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LR2

 

-

 

-

 

1

 

1

 

1

 

1

 

112,691

LR1

 

6

 

6

 

2

 

2

 

8

 

8

 

595,134

MR

 

35

 

35

 

4

 

4

 

39

 

39

 

1,956,718

Product Carriers

 

41

 

41

 

7

 

7

 

48

 

48

 

2,664,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Fleet

 

59

 

59

 

16

 

16

 

75

 

75

 

8,191,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newbuild Fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VLCC

 

3

 

3

 

-

 

-

 

3

 

3

 

900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Newbuild Fleet

 

3

 

3

 

-

 

-

 

3

 

3

 

900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating and Newbuild Fleet

 

62

 

62

 

16

 

16

 

78

 

78

 

9,091,060

(1) Includes both bareboat charters and time charters, but excludes vessels chartered in where the duration of the charter was one year or less at inception.

Reconciliation to Non-GAAP Financial Information

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures may provide certain investors with additional information that will better enable them to evaluate the Company's performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.

(A) EBITDA and Adjusted EBITDA

EBITDA represents net income/(loss) before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net income or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income/(loss) as reflected in the condensed consolidated statements of operations, to EBITDA and Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

($ in thousands)

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income/(loss)

 

$

69,036

 

 

$

(18,783

)

 

$

56,035

 

 

$

(32,148

)

Income tax provision

 

 

52

 

 

 

1

 

 

 

56

 

 

 

1

 

Interest expense

 

 

12,558

 

 

 

7,006

 

 

 

25,298

 

 

 

14,286

 

Depreciation and amortization

 

 

27,256

 

 

 

17,079

 

 

 

54,256

 

 

 

33,833

 

EBITDA

 

 

108,902

 

 

 

5,303

 

 

 

135,645

 

 

 

15,972

 

Amortization of time charter contracts acquired

 

 

344

 

 

 

-

 

 

 

684

 

 

 

-

 

Third-party debt modification fees

 

 

900

 

 

 

-

 

 

 

1,087

 

 

 

-

 

Loss on sale of investments in affiliated companies

 

 

9,512

 

 

 

-

 

 

 

9,512

 

 

 

-

 

Merger and integration related costs

 

 

-

 

 

 

481

 

 

 

-

 

 

 

481

 

(Gain)/loss on disposal of vessels and other property, including impairments

 

 

(8,102

)

 

 

4,005

 

 

 

(9,478

)

 

 

4,016

 

Write-off of deferred financing costs

 

 

128

 

 

 

-

 

 

 

261

 

 

 

-

 

Adjusted EBITDA

 

$

111,684

 

 

$

9,789

 

 

$

137,711

 

 

$

20,469

 

(B) Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

($ in thousands)

 

2022

 

 

2021

Cash and cash equivalents

$

230,666

 

$

97,883

Restricted cash

 

1,054

 

 

1,050

Total Cash

$

231,720

 

$

98,933

(C) Time Charter Equivalent (TCE) Revenues

Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliations of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands)

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Time charter equivalent revenues

 

$

185,539

 

$

44,718

 

$

283,514

 

$

89,887

Add: Voyage expenses

 

 

2,658

 

 

1,586

 

 

6,165

 

 

3,173

Shipping revenues

 

$

188,197

 

$

46,304

 

$

289,679

 

$

93,060

 


These press releases may also interest you

at 13:23
Global law firm Dechert has today announced that, effective July 1, 2023, partners David W. Forti and Mark E. Thierfelder will become Co-Chairs and that partners Sabina Comis and Vincent H. Cohen, Jr. will become the firm's first Global Managing...

at 13:17
Everyone deserves a path. That's SkillsetGroup Founder and CEO Clint Armstrong's vision, and the vision for the fast-growing staffing...

at 13:15
Top executives at leading fintech firms Aiera and Helios have been tapped to deliver a key panel presentation at the 2022 Benzinga Fintech Deal Day Conference, where they will discuss the...

at 13:09
The National Association for Business Resources (NABR) has released its Summer 2022 Best and Brightest Companies To Work For® in the Nation. ChenMed, a leading medical practice serving Medicare-eligible seniors, is among the honorees, and is the only...

at 13:06
Crye*Leike Gulf Coast Real Estate and Vacation Rentals has recently acquired the assets of Orange Beach, Alabama-based vacation rental management company Romar House Sales and Rentals LLC. Crye*Leike Gulf Coast President David Stidham related, "We...

at 13:05
Ampio Ventures today launched a venture studio for entrepreneurs, offering a new approach for growth companies that fosters better opportunities for success from concept and growth to exit. The Ampio leadership team approach provides emerging...



News published on 9 august 2022 at 06:50 and distributed by: