NYSE$INSW
International Seaways Inc · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Reported a profitable quarter driven by strong market conditions and strategic capital allocation.
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.
Headline financials
Revenue & EPS history
International Seaways · Revenue · Quarterly
$124M
Revenue by segment
International Seaways · $124M total across 2 segments · Q4 2019
- Crude Tankers$98.6M+24.8%79.6%
- Product Carriers$25.3M+17.1%20.4%
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.
Tailwinds
- 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.
Headwinds
- 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.
- Decrease in equity in income of affiliated companies principally attributable to the Company’s sale of its 49.9% ownership interest in the LNG joint venture with Qatar Gas Transport Company Ltd. (Nakilat) (“Nakilat”) to Nakilat on October 7, 2019.
- Partially offsetting the TCE revenue increase was the impact of a 325-day decrease in VLCC and Aframax revenue days aggregating $8.5 million, and a $3.9 million decrease in revenue from our Crude Tankers Lightering business during the current period
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2019
+1.1%
Avg return
Earnings day
+1.8%
Avg return
5 days after
+0.3%
Avg return
30 days after
68%
26 / 38 earnings
Positive
+10.3%
Q1 2021
Best reaction
-15.5%
Q3 2018
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +5.1% | +3.0% | -5.5% | |
| Q4 2025 | +3.8% | +8.8% | +2.4% | |
| Q3 2025 | +4.6% | +6.0% | +2.0% | |
| Q1 2025 | +1.0% | +6.5% | +2.8% | |
| Q4 2024 | -7.5% | -5.8% | -9.1% | |
| Q3 2024 | -3.9% | -6.5% | -17.3% | |
| Q2 2024 | -3.6% | -2.8% | -2.6% | |
| Q1 2024 | +9.3% | +8.9% | +8.8% | |
| Q4 2023 | +3.3% | +1.0% | +1.8% | |
| Q3 2023 | -3.8% | -3.0% | -9.9% | |
| Q2 2023 | +1.8% | +1.8% | -2.2% | |
| Q1 2023 | +4.6% | +8.9% | +5.0% | |
| Q4 2022 | +5.4% | +8.7% | -15.6% | |
| Q3 2022 | +2.2% | -3.0% | -12.4% | |
| Q2 2022 | +6.1% | +12.1% | +25.4% | |
| Q1 2022 | +1.3% | -7.4% | +12.2% | |
| Q4 2021 | +0.3% | +3.2% | +4.5% | |
| Q3 2021 | -5.3% | -1.0% | -14.5% | |
| Q2 2021 | +0.7% | -0.3% | +7.5% | |
| Q1 2021 | +10.3% | +5.7% | +7.2% | |
| Q4 2020 | +6.4% | +7.1% | -4.9% | |
| Q3 2020 | +5.4% | +7.7% | +23.4% | |
| Q2 2020 | +0.5% | +7.2% | -8.6% | |
| Q1 2020 | +5.0% | +4.0% | +3.9% | |
| Q4 2019 | -5.9% | -7.0% | +4.8% | |
| Q3 2019 | +1.1% | +6.2% | +15.1% | |
| Q2 2019 | +1.7% | +3.8% | +15.0% | |
| Q1 2019 | +7.1% | +7.6% | -2.1% | |
| Q4 2018 | +7.5% | +7.1% | +10.6% | |
| Q3 2018 | -15.5% | -21.8% | -17.5% | |
| Q2 2018 | -4.2% | -5.4% | -13.1% | |
| Q1 2018 | -2.6% | -1.2% | +1.6% | |
| Q4 2017 | +10.1% | +12.7% | +9.3% | |
| Q3 2017 | -9.1% | -16.2% | -19.9% | |
| Q2 2017 | -3.1% | -6.1% | -18.3% | |
| Q1 2017 | +5.7% | +0.5% | -0.2% | |
| Q4 2016 | -5.9% | -6.1% | -5.3% | |
| Q3 2016 | +3.6% | +24.0% | +27.8% | |
| Q2 2016 | — | — | — | |
| Q1 2016 | — | — | — | |
| Q4 2015 | — | — | — | |
| Q3 2015 | — | — | — | |
| Q2 2015 | — | — | — | |
| Q1 2015 | — | — | — |
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