International Seaways Reports Third Quarter 2020 Results

Nachrichtenquelle: Business Wire (engl.)
06.11.2020, 12:50  |  118   |   |   

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 in International Flag markets, today reported results for the third quarter of 2020.

Highlights

  • Net income for the third quarter was $14.0 million, or $0.50 per diluted share, compared to a net loss of $11.1 million, or $0.38 per diluted share, in the third quarter of 2019. Net income for the quarter reflects the impact of a $12.8 million impairment charge and loss on sale of vessels and a $0.7 million write-off of deferred finance costs and fees associated with the extinguishment of debt. Net income excluding these items was $27.6 million, or $0.98 per diluted share.
  • Time charter equivalent (TCE) revenues(A) for the third quarter were $94.0 million, compared to $65.8 million for the third quarter of 2019.
  • Adjusted EBITDA(B) for the third quarter was $54.6 million, compared to $23.8 million for the same period of 2019.
  • Cash(C) was $153.7 million as of September 30, 2020; total liquidity was $193.7 million, including $40.0 million of undrawn revolver.
  • Renewed share buyback program and increased authorization to a further $50 million.
  • Paid a regular quarterly cash dividend of $0.06 per share in September 2020 and announced a quarterly cash dividend of $0.06 per share payable in December 2020.
  • Prepaid the full $40.0 million outstanding under the Transition Term Loan Facility
  • Subsequent to the end of the quarter, agreed to sell a 2002-built VLCC, Seaways Mulan, a 2003-built VLCC, Seaways Rosalyn, and a 2001-built Aframax, Seaways Fran.
  • Signed 10-year extensions to our contracts for our two FSO joint ventures, which are expected to generate in excess of $322 million of contract revenues for the Company over the additional 10-year extension periods.

“During the third quarter, we generated solid results and increased our cash position despite current pressure on rates,” said Lois K. Zabrocky, International Seaways’ President and CEO. “Our sizeable fleet of crude and product tankers performed well during the quarter, and the four favorable time charters we executed earlier this year at very strong rates were instrumental in enabling us to optimize revenue during the current period of oil inventory destocking. Importantly, taking into consideration these time charters, two of which extend well into 2021, the contributions from our FSO JV, and our ongoing strategy of paying down debt, we have reduced our cash breakeven rate to approximately $17,500 per day.”

Ms. Zabrocky continued, “Moving forward, we remain positive on the long-term outlook of the tanker market. Our strategic focus continues to be on executing our disciplined and balanced approach to capital allocation, while continuing to advance initiatives that unlock significant value for shareholders. With this important goal in mind, we have finalized 10-year extensions for our FSO joint venture contracts, which are expected to generate in excess of $322 million of contract revenues for the Company, bolstering our contracted cash flows for another decade. In addition, and as we continue to operate in a COVID-19 environment, our priorities remain the safety of our onshore and at-sea professionals and providing best-in-class service to our leading energy customers.”

Jeff Pribor, the Company’s CFO, added, “We have succeeded in generating strong cash flows year-to-date for shareholders and deploying capital to further pay down debt and significantly enhance our financial strength. Notably, our total liquidity at quarter’s end was $194 million, and our net loan to value was 39%, one of the lowest among our tanker peers. We also paid our regular quarterly cash dividend of $0.06, complementing the approximate 5% of stock we have purchased in 2020 thus far. With our ample liquidity, we remain in a strong position to continue to return capital to shareholders and take advantage of strategic opportunities as they arise.”

Third Quarter 2020 Results

Net income for the third quarter was $14.0 million, or $0.50 per diluted share, compared to a net loss of $11.1 million, or $0.38 per diluted share, in the third quarter of 2019. The increase in the third quarter of 2020 primarily reflects higher TCE revenues and substantially lower charter hire expenses and interest expense. An increase of $14.3 million in losses on disposals of vessels, and other property, including impairments served to partially offset such increases. Net income for the nine months ended September 30, 2020 was $111.4 million, or $3.88 per diluted share, compared to a net loss of $16.7 million, or $0.57 per share, for the nine months ended September 30, 2019.

Consolidated TCE revenues for the third quarter of 2020 were $94.0 million, compared to $65.8 million for the third quarter of 2019. Shipping revenues for the third quarter of 2020 were $99.9 million, compared to $71.3 million for the third quarter of 2019. Consolidated TCE revenues for the nine months ended September 30,2020 were $349.1 million, compared to $222.3 million in the prior year period. Shipping revenues for the nine months ended September 30, 2020 were $364.9 million compared to $242.2 million for the prior year period.

The third quarter began with some strength in the crude tanker market, carried over from the strong environment of the second quarter. The large inventory build-up seen in the second quarter as a result of overproduction and oil contango put pressure on tanker rates during the third quarter.

In the third quarter of 2020, the Company recorded an impairment charge of $11.7 million for a 2002-built and 2003-built VLCC, both of which have been contracted for sale, to write-down their carrying values to their estimated fair values at September 30, 2020. Interest expense decreased by $9.0 million for the third quarter of 2020 compared to the third quarter of 2019 as a result of lower average outstanding debt balances in the current year periods compared to the 2019 periods. This was principally attributable to $110 million in principal prepayments on the 2017 Term Loan Facility during the second half of 2019, the $40 million repayment of the Transition Loan Facility in August 2020 and the use of cash in the January 2020 refinancing. In addition, lower average margins and interest rates on the refinanced portion of debt entered into by the Company during the first quarter of 2020, and lower average LIBOR rates during the third quarter of 2020 contributed to the decline in interest expense.

Adjusted EBITDA was $54.6 million for the quarter, compared to $23.8 million for the third quarter of 2019. Adjusted EBITDA was $225.1 million for the nine months ended September 30, 2020, compared to $92.5 million for the nine months ended September 30, 2019.

Crude Tankers

TCE revenues for the Crude Tankers segment were $79.8 million for the quarter compared to $49.4 million for the third quarter of 2019. This increase primarily resulted from the impact of higher average rates in the VLCC, Suezmax, and Panamax sectors, with average spot earnings climbing to approximately $35,800, $28,200, and $15,500 per day, respectively, aggregating approximately $33.9 million. Also contributing was a 214-day increase in VLCC revenue days, which includes 110 days covered under the Company’s loss of hire insurance policy related to an off-hire period for the Seaways Mulan, as it was held by Indonesian authorities from February 8, 2020 through June 8, 2020 and was not redelivered back to the Tankers International Pool until June 28, 2020. The Company received $4.1 million from its insurance provider as a result of this recovery. Shipping revenues for the Crude Tankers segment were $83.6 million for the third quarter of 2020 compared to $54.9 million for the third quarter of 2019. TCE revenues for the Crude Tankers segment were $274.5 million for the nine months ended September 30, 2020, compared to $167.0 million for the same period last year. Shipping revenues for the Crude Tankers segment were $287.7 million for the nine months ended September 30, 2020, compared to $186.7 million for the same period last year.

Product Carriers

TCE revenues for the Product Carriers segment were $14.2 million for the quarter, compared to $16.4 million for the third quarter of 2019. Higher period-over-period average daily blended rates earned by the LR2 and MR fleets, with average spot rates rising to approximately $21,500 and $14,400 per day, respectively, accounted for an increase in TCE revenues of approximately $0.8 million. This was offset by a $2.6 million days-based decline arising primarily from a 283-day decrease in MR revenue days in the third quarter, which resulted principally from the redelivery of four time chartered-in MRs to their owners between the third quarter of 2019 and July 2020. Shipping revenues for the Product Carriers segment were $16.2 million for the third quarter of 2020, compared to $16.4 million for the third quarter of 2019. TCE revenues for the Product Carriers segment were $74.5 million for the nine months ended September 30,2020, compared to $55.3 million in the 2019 nine-month period. Shipping revenues for the Product Carriers segment were $77.2 million for the nine months ended September 30, 2020, compared to $55.4 million for the same period last year.

Share Repurchases

During the quarter, the Company’s Board of Directors authorized a renewal of the share repurchase program in the amount of $30 million. On October 28, 2020, the Board of Directors increased the share repurchase program authorization to $50 million. No shares were acquired under the repurchase program in the third quarter.

Debt Prepayment

During the third quarter of 2020, the Company prepaid the $40.0 million outstanding principal balance under the Transition Term Loan Facility using available cash on hand, increasing the number of unencumbered ships in our fleet to 14.

Payment of Regular Cash Dividend

The Company’s Board of Directors declared a regular quarterly cash dividend of $0.06 per share of common stock on October 28, 2020. The dividend will be paid on December 23, 2020 to shareholders of record at the close of business on December 8, 2020.

Vessel Sales

Subsequent to quarter end, the Company agreed to sell a 2002-built VLCC, Seaways Mulan, a 2003-built VLCC, Seaways Rosalyn, and a 2001-built Aframax, Seaways Fran, for delivery to buyers between November 2020 and January 2021.

10-Year Contract Extensions for FSO Joint Venture

In October 2020, the FSO Joint Venture signed a 10-year extension on each of the existing service contracts with North Oil Company (“NOC”), relating to the two FSO service vessels. The extensions will commence in direct continuation of the existing contracts, which were originally scheduled to expire during the third quarter of 2022.

Conference Call

The Company will host a conference call to discuss its third quarter 2020 results at 9:00 a.m. Eastern Time (“ET”) on Friday, November 6, 2020. To access the call, participants should dial (855) 940-9471 for domestic callers and (412) 317-5211 for international callers. 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 www.intlseas.com.

An audio replay of the conference call will be available starting at 12:00 p.m. ET on Friday, November 6, 2020 through 11:59 p.m. ET on Friday, November 13, 2020 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10149198.

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 39 vessels, including 13 VLCCs, two Suezmaxes, five Aframaxes/LR2s, 13 Panamaxes/LR1s and 4 MR tankers. Through joint ventures, it has ownership interests in two floating storage and offloading service vessels. 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 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 Company’s plans to issue dividends, its prospects, including statements regarding vessel acquisitions, 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 2019 for the Company, the Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

September 30,

 

 

September 30,

 

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Shipping Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Pool revenues

 

$

49,217

 

$

46,278

 

$

250,485

 

$

158,628

 

Time and bareboat charter revenues

 

 

31,294

 

 

7,638

 

 

66,553

 

 

19,699

 

Voyage charter revenues

 

 

19,372

 

 

17,362

 

 

47,907

 

 

63,835

 

Total Shipping Revenues

 

 

99,883

 

 

71,278

 

 

364,945

 

 

242,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Voyage expenses

 

 

5,851

 

 

5,470

 

 

15,893

 

 

19,838

 

Vessel expenses

 

 

31,501

 

 

30,350

 

 

94,739

 

 

91,634

 

Charter hire expenses

 

 

6,442

 

 

14,381

 

 

24,213

 

 

44,599

 

Depreciation and amortization

 

 

19,014

 

 

18,961

 

 

56,161

 

 

56,708

 

General and administrative

 

 

7,422

 

 

6,449

 

 

21,550

 

 

19,519

 

Provision for credit losses, net

 

 

(13)

 

 

(18)

 

 

(80)

 

 

1,259

 

Third-party debt modification fees

 

 

-

 

 

-

 

 

232

 

 

30

 

Loss/(gain) on disposal of vessels and other property,

 

 

 

 

 

 

 

 

 

 

 

 

 

including impairments

 

 

12,834

 

 

(1,472)

 

 

14,164

 

 

28

 

Total operating expenses

 

 

83,051

 

 

74,121

 

 

226,872

 

 

233,615

 

Income/(loss) from vessel operations

 

 

16,832

 

 

(2,843)

 

 

138,073

 

 

8,547

 

Equity in income of affiliated companies

 

 

5,356

 

 

8,474

 

 

15,672

 

 

24,559

 

Operating income

 

 

22,188

 

 

5,631

 

 

153,745

 

 

33,106

 

Other (expense)/income

 

 

(208)

 

 

284

 

 

(13,497)

 

 

2,159

 

Income before interest expense and income taxes

 

 

21,980

 

 

5,915

 

 

140,248

 

 

35,265

 

Interest expense

 

 

(7,999)

 

 

(17,010)

 

 

(28,889)

 

 

(51,986)

 

Income/(loss) before income taxes

 

 

13,981

 

 

(11,095)

 

 

111,359

 

 

(16,721)

 

Income tax provision

 

 

-

 

 

-

 

 

(1)

 

 

-

 

Net Income/(loss)

 

$

13,981

 

$

(11,095)

 

$

111,358

 

$

(16,721)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,932,928

 

 

29,249,233

 

 

28,517,037

 

 

29,217,188

 

Diluted

 

 

28,026,005

 

 

29,249,233

 

 

28,665,961

 

 

29,217,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income/(loss) per share

 

$

0.50

 

$

(0.38)

 

$

3.90

 

$

(0.57)

 

Diluted net income/(loss) per share

 

$

0.50

 

$

(0.38)

 

$

3.88

 

$

(0.57)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

(Unaudited)

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

137,340

 

$

89,671

Voyage receivables

 

 

71,431

 

 

83,845

Other receivables

 

 

4,702

 

 

3,938

Inventories

 

 

1,400

 

 

3,896

Prepaid expenses and other current assets

 

 

5,372

 

 

5,994

Total Current Assets

 

 

220,245

 

 

187,344

 

 

 

 

 

 

 

Restricted Cash

 

 

16,314

 

 

60,572

Vessels and other property, less accumulated depreciation

 

 

1,262,469

 

 

1,292,516

Deferred drydock expenditures, net

 

 

28,785

 

 

23,125

Total Vessels, Deferred Drydock and Other Property

 

 

1,291,254

 

 

1,315,641

Operating lease right-of-use assets

 

 

24,013

 

 

33,718

Investments in and advances to affiliated companies

 

 

156,589

 

 

153,292

Long-term derivative asset

 

 

973

 

 

-

Other assets

 

 

2,925

 

 

2,934

Total Assets

 

$

1,712,313

 

$

1,753,501

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable, accrued expenses and other current liabilities

 

$

27,355

 

$

27,554

Current portion of operating lease liabilities

 

 

9,949

 

 

12,958

Current installments of long-term debt

 

 

61,483

 

 

70,350

Current portion of derivative liability

 

 

4,035

 

 

3,614

Total Current Liabilities

 

 

102,822

 

 

114,476

Long-term operating lease liabilities

 

 

11,593

 

 

17,953

Long-term debt

 

 

489,194

 

 

590,745

Long-term derivative liability

 

 

6,200

 

 

6,545

Other liabilities

 

 

15,986

 

 

1,489

Total Liabilities

 

 

625,795

 

 

731,208

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Total Equity

 

 

1,086,518

 

 

1,022,293

Total Liabilities and Equity

 

$

1,712,313

 

$

1,753,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

(Unaudited)

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income/(loss)

 

$

111,358

 

$

(16,721)

Items included in net income/(loss) not affecting cash flows:

 

 

 

 

 

 

Depreciation and amortization

 

 

56,161

 

 

56,708

Loss on write-down of vessels and other assets

 

 

17,136

 

 

-

Amortization of debt discount and other deferred financing costs

 

 

2,338

 

 

5,373

Deferred financing costs write-off

 

 

13,073

 

 

343

Stock compensation, non-cash

 

 

3,993

 

 

2,912

Earnings of affiliated companies

 

 

(15,566)

 

 

(24,945)

Change in fair value of interest rate collar recorded through earnings

 

 

1,271

 

 

-

Other – net

 

 

904

 

 

538

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

 

 

 

 

 

 

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

 

 

(2,972)

 

 

28

Loss on extinguishment of debt

 

 

1,195

 

 

100

Cash distributions from affiliated companies

 

 

8,500

 

 

10,214

Payments for drydocking

 

 

(15,825)

 

 

(13,539)

Insurance claims proceeds related to vessel operations

 

 

4,706

 

 

967

Changes in operating assets and liabilities

 

 

12,519

 

 

21,378

Net cash provided by operating activities

 

 

198,791

 

 

43,356

Cash Flows from Investing Activities:

 

 

 

 

 

 

Expenditures for vessels and vessel improvements

 

 

(46,449)

 

 

(9,797)

Proceeds from disposal of vessels and other property

 

 

13,564

 

 

15,762

Expenditures for other property

 

 

(493)

 

 

(406)

Investments in and advances to affiliated companies, net

 

 

2,347

 

 

2,104

Repayments of advances from affiliated companies

 

 

-

 

 

4,836

Net cash (used in)/provided by investing activities

 

 

(31,031)

 

 

12,499

Cash Flows from Financing Activities:

 

 

 

 

 

 

Issuance of debt, net of issuance and deferred financing costs

 

 

362,989

 

 

-

Extinguishment of debt

 

 

(422,699)

 

 

(10,000)

Premium and fees on extinguishment of debt

 

 

(163)

 

 

(100)

Payments on debt

 

 

(66,636)

 

 

(38,531)

Payments on derivatives containing other-than-insignificant financing element

 

 

(1,331)

 

 

-

Cash dividends paid

 

 

(5,091)

 

 

-

Repurchases of common stock

 

 

(29,997)

 

 

-

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

 

 

(1,272)

 

 

(369)

Other – net

 

 

(149)

 

 

(277)

Net cash used in financing activities

 

 

(164,349)

 

 

(49,277)

Net increase in cash, cash equivalents and restricted cash

 

 

3,411

 

 

6,578

Cash, cash equivalents and restricted cash at beginning of year

 

 

150,243

 

 

117,644

Cash, cash equivalents and restricted cash at end of period

 

$

153,654

 

$

124,222

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 September 30, 2020 and the comparable periods of 2019. Revenue days in the quarter ended September 30, 2020 totaled 3,123 compared with 3,529 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 $654 and $689 per day for the three months ended September 30, 2020 and 2019, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2020

 

 

Three Months Ended September 30, 2019

 

 

 

Spot

 

 

Fixed

 

 

Total

 

 

Spot

 

 

Fixed

 

 

Total

Crude Tankers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VLCC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

35,740

 

$

73,399

 

 

 

 

$

22,434

 

$

-

 

 

 

Number of Revenue Days

 

 

810

 

 

362

 

 

1,172

 

 

1,068

 

 

-

 

 

1,068

Suezmax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

28,246

 

$

-

 

 

 

 

$

18,470

 

$

-

 

 

 

Number of Revenue Days

 

 

180

 

 

-

 

 

180

 

 

184

 

 

-

 

 

184

Aframax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

10,860

 

$

-

 

 

 

 

$

15,342

 

$

-

 

 

 

Number of Revenue Days

 

 

368

 

 

-

 

 

368

 

 

368

 

 

-

 

 

368

Panamax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

15,508

 

$

15,790

 

 

 

 

$

7,846

 

$

13,772

 

 

 

Number of Revenue Days

 

 

118

 

 

269

 

 

387

 

 

92

 

 

551

 

 

643

Total Crude Tankers Revenue Days

 

 

1,476

 

 

631

 

 

2,107

 

 

1,712

 

 

551

 

 

2,263

Product Carriers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LR2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

21,505

 

$

-

 

 

 

 

$

17,253

 

$

-

 

 

 

Number of Revenue Days

 

 

92

 

 

-

 

 

92

 

 

87

 

 

-

 

 

87

LR1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

14,900

 

$

-

 

 

 

 

$

15,475

 

$

-

 

 

 

Number of Revenue Days

 

 

534

 

 

-

 

 

534

 

 

506

 

 

-

 

 

506

MR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average TCE Rate

 

$

14,368

 

$

-

 

 

 

 

$

11,430

 

$

-

 

 

 

Number of Revenue Days

 

 

390

 

 

-

 

 

390

 

 

673

 

 

-

 

 

673

Total Product Carriers Revenue Days

 

 

1,016

 

 

-

 

 

1,016

 

 

1,266

 

 

-

 

 

1,266

Total Revenue Days

 

 

2,492

 

 

631

 

 

3,123

 

 

2,978

 

 

551

 

 

3,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Fleet Information

As of September 30, 2020, INSW’s owned and operated 39 vessels, 34 of which were owned, 3 of which were chartered in, and 2 FSOs were held through joint venture partnerships.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vessels Owned

 

Vessels Chartered-in

 

Total at September 30, 2020

Vessel Type

 

Number

 

Weighted by Ownership

 

Number

 

Weighted by Ownership

 

Total Vessels

 

Vessels Weighted by Ownership

 

Total Dwt

Operating Fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FSO

 

2

 

1.0

 

-

 

-

 

2

 

1.0

 

864,046

VLCC

 

13

 

13.0

 

-

 

-

 

13

 

13.0

 

3,947,222

Suezmax

 

2

 

2.0

 

-

 

-

 

2

 

2.0

 

316,864

Aframax

 

2

 

2.0

 

2

 

2.0

 

4

 

4.0

 

450,804

Panamax

 

7

 

7.0

 

-

 

-

 

7

 

7.0

 

487,365

Crude Tankers

 

26

 

25.0

 

2

 

2.0

 

28

 

27.0

 

6,066,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LR2

 

1

 

1.00

 

-

 

-

 

1

 

1.0

 

112,691

LR1

 

5

 

5.00

 

1

 

1.0

 

6

 

6.0

 

443,077

MR

 

4

 

4.00

 

0

 

0.0

 

4

 

4.0

 

201,225

Product Carriers

 

10

 

10.00

 

1

 

1.0

 

11

 

11.0

 

756,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Fleet

 

36

 

35.0

 

3

 

3.0

 

39

 

38.0

 

6,823,294

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) 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. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

($ in thousands)

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Time charter equivalent revenues

 

$

94,032

 

$

65,808

 

$

349,052

 

$

222,324

 

Add: Voyage expenses

 

 

5,851

 

 

5,470

 

 

15,893

 

 

19,838

 

Shipping revenues

 

$

99,883

 

$

71,278

 

$

364,945

 

$

242,162

 

(B) 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 September 30,

 

 

Nine Months Ended September 30,

($ in thousands)

 

 

2020

 

 

2019

 

 

2020

 

 

2019

Net income/(loss)

 

$

13,981

 

$

(11,095)

 

$

111,358

 

$

(16,721)

Income tax provision

 

 

-

 

 

-

 

 

1

 

 

-

Interest expense

 

 

7,999

 

 

17,010

 

 

28,889

 

 

51,986

Depreciation and amortization

 

 

19,014

 

 

18,961

 

 

56,161

 

 

56,708

EBITDA

 

 

40,994

 

 

24,876

 

 

196,409

 

 

91,973

Third-party debt modification fees

 

 

-

 

 

-

 

 

232

 

 

30

Loss/(gain) on disposal of vessels and other property,

 

 

 

 

 

 

 

 

 

 

 

 

including impairments

 

 

12,834

 

 

(1,472)

 

 

14,164

 

 

28

Write-off of deferred financing costs

 

 

572

 

 

343

 

 

13,073

 

 

343

Loss on extinguishment of debt

 

 

181

 

 

100

 

 

1,195

 

 

100

Adjusted EBITDA

 

$

54,581

 

$

23,847

 

$

225,073

 

$

92,474

(C) Total Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

($ in thousands)

 

2020

 

 

2019

Cash and cash equivalents

$

137,340

 

$

89,671

Restricted cash

 

16,314

 

 

60,572

Total Cash

$

153,654

 

$

150,243

Category: Earnings

International Seaways Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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Disclaimer

International Seaways Reports Third Quarter 2020 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 in International Flag markets, today reported results for …

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