International Seaways Inc (INSW, Financial), a leading global tanker company, released its Q3 2023 earnings report on November 7, 2023. The company reported a net income of $97.9 million, down from $113.4 million in Q3 2022. Despite the decrease in net income, the company continued to generate significant cash and earnings from its diversified portfolio of crude and product tankers.
Financial Highlights
Shipping revenues for Q3 2023 were $241.7 million, up from $236.8 million in Q3 2022. Consolidated TCE revenues for Q3 2023 were $236.0 million, slightly up from $234.5 million in Q3 2022. Adjusted EBITDA for Q3 2023 was $150.9 million, down from $157.1 million in Q3 2022.
Net income for the first nine months of 2023 was $424.3 million, a significant increase from $169.5 million for the first nine months of 2022. Shipping revenues for the first nine months of 2023 were $821.0 million, up from $526.5 million for the first nine months of 2022.
Company's Commentary
We continued to generate significant cash and earnings from our diversified portfolio of crude and product tankers during the third quarter," said Lois K. Zabrocky, International Seaways’ President and CEO. "Seaways remains committed to returning cash to shareholders by declaring a combined dividend of $1.25 per share for the fourth quarter. Including this declaration, aggregate dividends during 2023 will be $6.29 per share increasing our cumulative returns to shareholders to over $320 million. Moving forward, we remain dedicated to a balanced capital allocation approach, which enables us to pay substantial dividends, execute opportunistic share buybacks, and reinvest in our fleet to maximize long-term shareholder value."
Future Outlook
Jeff Pribor, the Company’s CFO, stated that maintaining a strong and diverse capital structure remains a top priority for Seaways. The company is ideally positioned to optimize returns to shareholders with its ample liquidity of $581 million and a net loan-to-value ratio of 19%. The company expects the tanker markets’ attractive supply and demand dynamics to continue to drive strong tanker earnings for the foreseeable future.
Dividends and Share Repurchases
In Q3 2023, the company paid a combined dividend of $1.42 per share of common stock. For the nine months ended September 30, 2023, the company has paid combined dividends of approximately $5.04 per share. The company also repurchased and retired 366,483 shares of its common stock in open market purchases, at an average price of $38.03 at an aggregate cost of approximately $14 million.
Explore the complete 8-K earnings release (here) from International Seaways Inc for further details.
