INSW Earnings Prediction
The chart below shows how INSW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INSW sees a -3.04% change in stock price 10 days leading up to the earnings, and a +0.87% change 10 days following the report. On the earnings day itself, the stock moves by +1.92%. This data can give you a slight idea of what to expect for the next quarter's release.
INSW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
194.61M
-22.38%
-13.58%
Gross Margin
35.46%
-33.84%
-21.62%
Operating Margin
27.64%
-43.20%
-28.84%
Net Margin
18.41%
-65.06%
-54.79%
EPS
0.72
-73.03%
-60.87%
No Data Available
INSW Earnings Analysis
International Seaways Inc Corporation (INSW.N) Earnings Conference Call
Positive
Strong Q4 Profitability: Net income for Q4 was $36 million, or $0.72 per diluted share, with adjusted net income of $45 million, or $0.90 per diluted share, showcasing strong profitability.
Strong Q4 Operational Performance: Adjusted EBITDA for Q4 was $95 million, indicating robust operational performance.
Fleet Modernization and Efficiency: The company successfully modernized its fleet by swapping older vessels for more efficient eco MRs, enhancing fleet efficiency and reducing vessel ages.
Strong Financial Liquidity: Total liquidity at the end of Q4 was $632 million, composed of $157 million in cash and $475 million in undrawn revolving credit, reflecting a strong financial position.
Shareholder Return Commitment: The company returned over $300 million to shareholders in 2024, with a dividend yield of 12% on average share price, demonstrating commitment to shareholder returns.
Record Dividend Payout Ratio: A dividend of $0.70 is set to be paid in March, with a payout ratio of about 77%, the highest since the introduction of the regular dividend.
Low Loan-to-Value Ratio: The company has a low net loan-to-value ratio of below 16%, indicating a healthy balance sheet and financial stability.
Tanker Market Demand Growth: The tanker market is expected to see continued demand growth, with oil demand projected to grow at about 1% per year, supporting future earnings.
Tanker Market Positioning: The company has a strong position in the tanker market with limited supply, as 45% of the fleet is approaching 20 years of age, which is expected to drive up tanker earnings.
Strong Revenue Potential: The company has a blended average spot TCE of about $26,500 per day for Q1 2025, significantly above the breakeven rate of $13,700 per day, indicating strong revenue potential.
Negative
Q4 Net Income Analysis: Net income for Q4 was $36 million, which included a loss on vessel sales, indicating potential volatility in earnings.
Cost Management Challenges: Expenses were higher than guidance due to increased federal expenses and one-off legal matters, suggesting potential cost management issues.
Cash Flow Management Challenges: The company borrowed $70 million on its revolving credit facility due to timing differences related to vessel swaps, indicating cash flow management challenges.
Geopolitical Risks to Tanker Operations: The geopolitical tensions, particularly in the Red Sea and Russia-Ukraine, could negatively impact tanker operations and safety, posing risks to future earnings.
Fleet Replacement Challenges: The aging fleet, with 45% of vessels approaching 20 years, may require significant capital for replacements, impacting future cash flow and operational efficiency.
INSW FAQs
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INSW Earning Call Sentiment
International Seaways, Inc. (INSW) Q4 2024 Earnings Call Transcript
INSW.N
-2.48%Positive
The earnings call summary presents a mixed outlook: strong financials and shareholder returns are offset by geopolitical risks and cautious market demand forecasts. The Q&A reveals management's reluctance to provide specifics, which could unsettle investors. While the company shows resilience with a solid dividend and share repurchase plan, uncertainties in market strategy and geopolitical impacts temper the positive sentiment, resulting in a neutral prediction.
