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Mar 31, 2021
International Seaways Q1 2021 Earnings Report
International Seaways reported a net loss due to lower TCE revenues, which was partially offset by lower vessel expenses, charter hire expenses and interest expense.
Key Takeaways
International Seaways reported a net loss of $13.4 million for Q1 2021, a significant decrease compared to the net income of $33.0 million in Q1 2020. This decline is primarily attributed to lower TCE revenues, influenced by decreased global oil production, inventory drawdowns, and the ongoing impact of COVID-19 on oil demand. The company progressed with a merger with Diamond S Shipping and contracted to build three dual fuel LNG VLCCs.
Net loss for the first quarter of 2021 was $13.4 million, or $0.48 per diluted share.
Consolidated TCE revenues for the first quarter were $45.2 million.
Entered into an accretive merger agreement with Diamond S Shipping.
Contracted to build three dual fuel LNG VLCCs for delivery in 2023.
Revenue by Segment
Forward Guidance
International Seaways anticipates benefits from its merger with Diamond S Shipping and the addition of new dual-fuel VLCCs, expecting enhanced scale, cost synergies, and a strong position to capitalize on positive long-term tanker fundamentals.
Positive Outlook
- Merger with Diamond S expected to enhance capabilities in crude and product markets.
- New dual-fuel VLCCs will add state-of-the-art vessels to the fleet.
- Time charters to Shell will provide strong, stable cash flows with added upside.
- Highly efficient vessels offer significant environmental benefits.
- Strengthened commercial scale will allow the company to take advantage of positive long-term tanker fundamentals.
Challenges Ahead
- Decreased global oil production is placing downward pressure on tanker day rates.
- Drawdowns of sea- and shore-based inventories are placing downward pressure on tanker day rates.
- COVID-19’s continued negative impact on oil demand is placing downward pressure on tanker day rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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