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Dec 31, 2019
International Seaways Q4 2019 Earnings Report
Reported a profitable quarter driven by strong market conditions and strategic capital allocation.
Key Takeaways
International Seaways reported a net income of $15.9 million for Q4 2019, driven by strong TCE revenues and strategic capital allocation, including the monetization of a non-core investment. The company's refinancing efforts are expected to reduce annual interest expense by approximately $15 million. They also initiated a program to return capital to shareholders through a quarterly dividend of $0.06 per share.
Net income for Q4 2019 was $15.9 million, or $0.54 per diluted share, compared to $7.0 million, or $0.24 per diluted share, in Q4 2018.
Consolidated TCE revenues for Q4 2019 were $117.6 million, compared to $93.0 million in Q4 2018.
Adjusted EBITDA was $72.2 million for the quarter, compared to $46.2 million in Q4 2018.
The company has declared a quarterly cash dividend of $0.06 per share of common stock.
Revenue by Segment
Forward Guidance
International Seaways expects overall tanker fundamentals to remain positive and supportive of a strengthening market once the coronavirus is contained. They anticipate the margin on these facilities will decrease to 2.40% by the third quarter of 2020.
Positive Outlook
- Tanker fundamentals expected to remain positive.
- Market expected to strengthen once the coronavirus is contained.
- New credit facilities expected to reduce annual interest expense by approximately $15 million.
- Margin on the Core Facilities may adjust by 0.20%, based on whether the Company meets certain leverage ratios.
- The company currently anticipates the margin on these facilities will decrease to 2.40% by the third quarter of 2020.
Challenges Ahead
- Rates in the first quarter have come off of recent highs, primarily due to concerns around the impact of the coronavirus (COVID-19).
- Coronavirus impact on demand
- Geopolitical factors including U.S. sanctions imposed on certain entities owned by China Ocean Shipping Company (“COSCO”) due to alleged trading with Iran and the drone attack on a Saudi Arabian crude oil processing plant at Abqaiq.
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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