International Seaways Tops Q2 Estimates On Strong TCE Revenues

International Seaways Inc INSW reported a Q2 FY23 shipping revenue of $292.2 million, up from $188.2 million a year ago, beating the consensus of $253.4 million.

Adjusted EPS of $3.12 beat the consensus of $2.64.

Adjusted EBITDA stood at $205.1 million, compared to $111.7 a year ago.

Consolidated TCE revenues rose to $288.3 million from $185.5 million a year ago, reflecting sanctions on Russian oil that led to longer voyages and higher tanker utilization, and increased oil demand of about three million barrels per day. 

Total operating expenses increased to $123.5 million from $100.8 million a year ago.

International Seaways' operating cash flow year-to-date totaled $414.5 million, compared to $14.8 million a year ago.

As of June 30, 2023, cash and short-term investments stood at $236 million, and an undrawn revolver capacity of $257 million.

In Q2, the company prepaid around $75 million of debt. As of July 3, 2023, the company has 30 unencumbered vessels.

Repurchase: The company bought back shares worth $14 million in Q2, and the Board of Directors boosted the authorized share repurchase program to $50 million from the remaining $26 million. The company's current share repurchase program expires in 2023.

Dividend: The company declared a quarterly dividend per share of $0.12 and a supplemental dividend per share of $1.30, both payable on September 27, 2023, to shareholders of record as on September 13, 2023.

"With our diverse fleet of crude and product tankers, expanded scale, and substantial operating leverage, we continue to take advantage of the strong market, as evidenced by healthy third quarter bookings to-date. Our optimism is fueled by attractive supply and demand fundamentals, underpinned by trends in the global energy trade, as Russian oil displacement has resulted in increases in ton-mile demand and tanker utilization. Economic activity has remained strong, and oil demand forecasts signal a pickup in the second half of the year. These factors, combined with an historically low orderbook and an ageing global fleet, drive our expectation for strong tanker earnings for the foreseeable future," said Lois K. Zabrocky, President and CEO.

Price Action: INSW shares are trading higher by 7.88% at $47.97 on the last check Wednesday.