International Seaways (NYSE:INSW) Issues Earnings Results

International Seaways (NYSE:INSW) announced its quarterly earnings results on Thursday. The transportation company reported $3.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.87 by $1.03, FiscalAI reports. The company had revenue of $325.48 million during the quarter, compared to the consensus estimate of $279.34 million. International Seaways had a net margin of 55.39% and a return on equity of 21.04%. The company’s revenue for the quarter was up 77.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.80 earnings per share.

Here are the key takeaways from International Seaways’ conference call:

• Record first-quarter results with $286 million net income (GAAP) and $194 million adjusted net income, and management declared a record combined dividend of $4.55 per share while formalizing an 85% payout ratio going forward.
• Very strong balance sheet and liquidity position with $918 million total liquidity (?$377M cash + ?$541M undrawn revolver), net debt of ?$225M, net loan-to-value below 7% and cost of debt under 6%, providing flexibility for returns and reinvestment.
• Robust cash generation and forward book—adjusted EBITDA of $244 million, free cash flow of about $133 million in Q1, and a Q2 blended spot TCE booked at over $100,000/day on ~45% of expected revenue days with a fleet breakeven near $14,900/day.
• Management sees durable market tailwinds from the Strait of Hormuz disruption and an aging global fleet (orderbook ?16% of fleet with removal candidates materially outnumbering newbuilds), and continued fleet optimization—selling seven older vessels for $216 million, taking LR1 deliveries, and consolidating ownership of Tankers International to capture pool scale.

International Seaways Price Performance

Shares of INSW stock traded up $1.29 during midday trading on Friday, reaching $91.47. 717,272 shares of the company were exchanged, compared to its average volume of 551,740. The company’s 50 day moving average price is $74.69 and its two-hundred day moving average price is $61.28. The company has a market cap of $4.53 billion, a P/E ratio of 8.33 and a beta of -0.09. International Seaways has a 12 month low of $35.60 and a 12 month high of $92.66. The company has a debt-to-equity ratio of 0.26, a quick ratio of 3.71 and a current ratio of 7.34.

International Seaways Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 12th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $0.48 annualized dividend and a yield of 0.5%. International Seaways’s dividend payout ratio (DPR) is presently 7.70%.

Insiders Place Their Bets

In related news, Director Randee E. Day sold 4,090 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $74.93, for a total transaction of $306,463.70. Following the transaction, the director owned 18,435 shares in the company, valued at $1,381,334.55. This trade represents a 18.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Derek G. Solon sold 6,000 shares of the company’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $75.41, for a total value of $452,460.00. Following the completion of the sale, the senior vice president owned 50,989 shares of the company’s stock, valued at $3,845,080.49. This trade represents a 10.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 60,697 shares of company stock valued at $4,517,070. 2.00% of the stock is currently owned by insiders.

Institutional Trading of International Seaways

A number of large investors have recently added to or reduced their stakes in INSW. Invesco Ltd. grew its holdings in shares of International Seaways by 27.9% in the 4th quarter. Invesco Ltd. now owns 341,939 shares of the transportation company’s stock worth $16,601,000 after acquiring an additional 74,635 shares during the last quarter. Mackenzie Financial Corp lifted its holdings in shares of International Seaways by 41.4% during the fourth quarter. Mackenzie Financial Corp now owns 19,760 shares of the transportation company’s stock valued at $954,000 after purchasing an additional 5,783 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of International Seaways by 416.1% in the 4th quarter. NewEdge Advisors LLC now owns 10,807 shares of the transportation company’s stock valued at $525,000 after purchasing an additional 8,713 shares during the period. Garton & Associates Financial Advisors LLC purchased a new position in International Seaways in the 4th quarter worth about $46,000. Finally, Tudor Investment Corp ET AL acquired a new stake in International Seaways during the 4th quarter worth about $7,087,000. 67.29% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages recently weighed in on INSW. Benchmark reiterated a “buy” rating on shares of International Seaways in a research report on Thursday, February 26th. Wall Street Zen upgraded shares of International Seaways from a “buy” rating to a “strong-buy” rating in a research note on Monday, April 13th. Zacks Research cut International Seaways from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 28th. BTIG Research increased their price objective on International Seaways from $80.00 to $90.00 and gave the stock a “buy” rating in a report on Wednesday, April 22nd. Finally, Weiss Ratings cut International Seaways from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, April 7th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $83.50.

About International Seaways

International Seaways, Inc (NYSE: INSW) is an independent tanker company that provides seaborne transportation services to oil companies, commodity traders and national oil companies. The firm’s operations focus on the carriage of crude oil and refined petroleum products, offering both time­ charter and voyage­ charter arrangements. With a modern fleet of very large crude carriers (VLCCs), Suezmax and Aframax tankers, as well as medium range (MR) and Handy product tankers, International Seaways supports global energy supply chains across major trade routes.

Founded in 1997 as Diamond S Shipping, the company completed its initial public offering in the late 1990s and rebranded to International Seaways in September 2018.