International Seaways' Q3 Revenue Surge Highlights Tanker Industry's Resilience

International Seaways Inc INSW reported a Q3 FY23 shipping revenue of $241.7 million, up from $236.8 million a year ago, beating the consensus of $217.1 million.

Consolidated TCE revenues rose to $236.0 million from $234.5 million a year ago. 

Total operating expenses increased to $127.5 million from $108.4 million a year ago.

Adjusted EBITDA stood at $150.9 million, compared to $157.1 million a year ago.

Adjusted EPS of $2.04 beat the consensus of $1.68.

In Q3, INSW raised contracted revenues to $344 million by entering into a new time charter agreement.

As of Sept. 30, 2023, cash and short-term investments stood at $214 million and an undrawn revolver capacity of $367 million.

As of Nov. 1, 2023, the company has 30 unencumbered vessels.

International Seaways' operating cash flow year-to-date totaled $562.9 million.

Dividend: The company declared a quarterly dividend per share of 12 cents and a supplemental dividend per share of $1.31, both payable on Dec. 27, 2023, to shareholders of record as of Dec. 13, 2023.

Repurchase: The company bought back shares worth $14 million as of Q3-end, and it has $50 million worth of shares authorized under its share repurchase program. The company has extended the expiration of the current share repurchase program to the end of 2025.

Lois K. Zabrocky, president and CEO said, "We expect the tanker markets' attractive supply and demand dynamics to continue to drive strong tanker earnings for the foreseeable future. Supply side growth remains limited due to evolving regulations and limited newbuild capacity in the near term at shipyards while the world fleet continues to age." 

"Positive tanker demand fundamentals are supported by increasing oil demand and higher tanker utilization from the shifting global energy trade, with geopolitical tensions driving further focus on energy security," she added.

Price Action: INSW shares were trading flat at $49.11 at last check Tuesday.

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