International Seaways (NYSE:INSW) Announces Quarterly Earnings Results

International Seaways (NYSE:INSW) released its quarterly earnings results on Monday. The transportation company reported $5.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.55 by $0.36, FiscalAI reports. International Seaways had a return on equity of 32.59% and a net margin of 61.98%.The business had revenue of $467.29 million during the quarter, compared to the consensus estimate of $406.38 million. During the same period in the previous year, the company posted $1.02 EPS. The business’s quarterly revenue was up 138.9% compared to the same quarter last year.

Here are the key takeaways from International Seaways’ conference call:

• Record quarterly results included adjusted net income of $295 million ($5.91 per share), EBITDA of $345 million, and free cash flow of $261 million. The company declared a record $5.05-per-share dividend, consistent with its policy of returning at least 85% of adjusted net income.
• Tanker market fundamentals remain constructive, with conflicts affecting the Strait of Hormuz and Bab el-Mandeb creating rerouting, trade inefficiencies, and higher ton-mile demand. Management also cited resilient oil consumption, growing Western Hemisphere crude production, and potential future demand from rebuilding strategic petroleum reserves.
• International Seaways ordered four additional LR1 newbuildings for delivery in the second half of 2028 at pricing roughly comparable to orders placed three years ago. The 10-vessel LR1 series will support the Panamax International pool and eventually replace older vessels in the fleet.
• The balance sheet remains highly flexible, with approximately $935 million of liquidity, about $250 million of net debt, a net loan-to-value ratio near 6%, and 25 unencumbered vessels. However, management cautioned that prolonged disruption in key waterways could eventually weaken the global economy and oil demand, creating downside risk for tanker rates.
• Third-quarter bookings covered approximately 48% of expected revenue days at a blended spot TCE of about $61,000 per day, well above the fleet-wide spot cash breakeven of less than $14,500 per day. Product tanker demand also remains supported by strong U.S. diesel and gasoline exports and renewed Chinese product exports.

International Seaways Price Performance

Shares of International Seaways stock opened at $89.08 on Wednesday. The company has a market capitalization of $4.41 billion, a price-to-earnings ratio of 5.70 and a beta of -0.13. The company has a quick ratio of 7.28, a current ratio of 7.34 and a debt-to-equity ratio of 0.26. The stock’s 50-day simple moving average is $86.36 and its 200-day simple moving average is $77.76. International Seaways has a 52 week low of $41.21 and a 52 week high of $98.23.

International Seaways Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be issued a dividend of $5.05 per share. This is a boost from International Seaways’s previous quarterly dividend of $0.12. This represents a $20.20 dividend on an annualized basis and a yield of 22.7%. The ex-dividend date of this dividend is Thursday, September 10th. International Seaways’s payout ratio is 3.07%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on INSW. Jefferies Financial Group restated a “buy” rating and set a $100.00 target price on shares of International Seaways in a research report on Friday, May 8th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of International Seaways in a report on Friday. Pareto Securities cut International Seaways from a “buy” rating to a “hold” rating in a report on Monday, May 18th. Zacks Research upgraded International Seaways from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 24th. Finally, BTIG Research boosted their price target on International Seaways from $90.00 to $100.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $86.00.

Insider Activity at International Seaways

In related news, SVP William F. Nugent sold 6,830 shares of International Seaways stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $85.23, for a total transaction of $582,120.90. Following the sale, the senior vice president owned 49,169 shares of the company’s stock, valued at approximately $4,190,673.87. This trade represents a 12.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Lois K. Zabrocky sold 2,000 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $81.34, for a total transaction of $162,680.00. Following the completion of the transaction, the chief executive officer directly owned 177,745 shares in the company, valued at $14,457,778.30. This trade represents a 1.11% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 12,830 shares of company stock valued at $1,078,661. 1.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in INSW. Amundi purchased a new position in shares of International Seaways in the fourth quarter worth about $13,663,000. Tudor Investment Corp ET AL acquired a new stake in shares of International Seaways during the fourth quarter worth about $7,087,000. Frontier Capital Management Co. LLC boosted its position in International Seaways by 105.2% in the second quarter. Frontier Capital Management Co. LLC now owns 270,386 shares of the transportation company’s stock valued at $9,864,000 after buying an additional 138,625 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in International Seaways by 226.0% in the third quarter. Arrowstreet Capital Limited Partnership now owns 145,280 shares of the transportation company’s stock valued at $6,695,000 after buying an additional 100,715 shares during the last quarter. Finally, AQR Capital Management LLC increased its holdings in International Seaways by 46.4% in the 2nd quarter. AQR Capital Management LLC now owns 306,160 shares of the transportation company’s stock worth $11,169,000 after buying an additional 97,081 shares during the period. Hedge funds and other institutional investors own 67.29% of the company’s stock.

International Seaways Company Profile

International Seaways, Inc (NYSE: INSW) is an independent tanker company that provides seaborne transportation services to oil companies, commodity traders and national oil companies. The firm’s operations focus on the carriage of crude oil and refined petroleum products, offering both time­ charter and voyage­ charter arrangements. With a modern fleet of very large crude carriers (VLCCs), Suezmax and Aframax tankers, as well as medium range (MR) and Handy product tankers, International Seaways supports global energy supply chains across major trade routes.

Founded in 1997 as Diamond S Shipping, the company completed its initial public offering in the late 1990s and rebranded to International Seaways in September 2018.