Loading...
•
Mar 31, 2020
International Seaways Q1 2020 Earnings Report
International Seaways posted its highest quarterly EPS as a public company.
Key Takeaways
International Seaways reported a net income of $33.0 million, or $1.12 per diluted share, for the first quarter of 2020, compared to a net income of $10.9 million, or $0.37 per diluted share, in the first quarter of 2019. Consolidated TCE revenues for the first quarter of 2020 were $119.7 million, compared to $94.0 million in the first quarter of 2019.
First quarter EPS was the highest as a public company.
Rate environment strengthened in the second quarter due to low oil prices and excess oil supply.
Company locked in four time charters with major oil producing and trading companies.
Company initiated a regular quarterly cash dividend and repurchased shares in the first quarter.
Revenue by Segment
Forward Guidance
The second and third quarters of 2020 will likely be a stronger rate environment for tankers, due to excess crude supply and the resulting need for seaborne storage of crude oil and products, than 2021.
Positive Outlook
- Excess crude supply and the resulting need for seaborne storage of crude oil and products will lead to a stronger rate environment for tankers in Q2 and Q3 2020.
- Total oil being produced is still substantially greater than global demand, continuing the need for tankers to be used as floating storage.
- Increased delays offloading cargoes as shore-based storage fills up has supported a robust tanker rate environment.
- Significant cash generation in the near term is expected.
- Four VLCCs have been put on time charters for periods ranging from seven months to 36 months at current high rates.
Challenges Ahead
- When supply and demand eventually come back into balance, this could have negative repercussions for tankers as the oil held in inventory will supplant oil tanker transportation demand.
- Tanker rates in the second quarter thus far have been highly volatile.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...