International Seaways, one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, reported results for the fourth quarter and full year of 2024.
HIGHLIGHTS & RECENT DEVELOPMENTS
Annual and Quarterly Results:
- Net income for the fourth quarter was $36 million, or $0.72 per diluted share. Net income for the full year of 2024 was $417 million, or $8.38 per diluted share.
- Adjusted net income(1), defined as net income excluding special items, for the fourth quarter of 2024 was $45 million, which excludes a non-cash impairment charge in connection with the fleet optimization program described below.
- Adjusted EBITDA(1) for the fourth quarter was $95 million and for the full year of 2024 was $583 million.
Fleet Optimization Program:
- Executed vessel swap (the “swap”), exchanging two of the Company’s oldest VLCCs and $3 million in cash for three 2015-built MRs through a series of sales and purchase transactions. The transactions primarily closed during the first quarter of 2025 with one MR delivery in late December 2024.
Robust Balance Sheet:
- Total liquidity was approximately $632 million as of December 31, 2024, including total cash (1) of $157 million and $475 million undrawn revolving credit capacity.
- Utilized $70 million of revolving credit capacity in connection with the swap that the Company repaid in the first quarter of 2025.
- Net loan-to-value remained low at approximately 15.5% as of December 31, 2024.
Returns to Shareholders:
- Paid a combined $1.20 per share in regular and supplemental dividends in December 2024.
- Paid $5.77 per share in combined dividends during the full year of 2024, reflecting a 12% dividend yield on the average share price over the same period.
- Declared a combined dividend of $0.70 per share to be paid in March 2025, representing 77% of adjusted net income(1) for the fourth quarter.
“We delivered another strong year of financial results and took advantage of a solid rate environment to further advance Seaways’ balanced capital allocation strategy,” said Lois K. Zabrocky, International Seaways President and CEO. “For the second consecutive year, we returned over $300 million to shareholders, primarily through dividends, representing 12% yield on our average market capitalization over the year. Carrying this momentum forward, we’ve declared a combined dividend for the first quarter of $0.70 per share, which represents over 75% of adjusted net income for the second consecutive quarter.”
Ms. Zabrocky added, “Seaways continues to be opportunistic with fleet renewal across our variety of asset classes with acquisitions of modern, eco tonnage and divestitures of older vessels, exemplified by our most recent vessel swap. With a healthy balance sheet, we are committed to disciplined growth while returning significant value to shareholders. Looking ahead, we are optimistic about the market’s direction, supported by favorable supply-demand dynamics, higher ton-mile demand and continued disruptions due to geopolitical uncertainty.”
Jeff Pribor, the Company’s CFO stated, “We are pleased with our success enhancing our capital structure during the year by converting our term loans into revolving capacity, which saved more than $80 million per year in mandatory debt repayments and increased our free cash flow. With total liquidity of over $630 million and one of the lowest net-loan-to-value ratios in the industry at 15.5%, we believe we are ideally positioned to build on our track record of balanced and disciplined capital allocation, investing in the fleet opportunistically, maintaining a healthy balance sheet and continuing to return capital to shareholders.”
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