International Seaways Reports 1Q Profit on Lower TCE Revenues

International Seaways Driven by lower time charter equivalent (TCE) revenues, US-based tanker shipping firm International Seaways (INSW) recorded a net income of USD 18.1 million in the first quarter of this year, compared to a net income of USD 59.9 million posted in the same period last year. During the quarter, consolidated TCE revenues amounted to USD 84.1 million, against USD 124.7 million in 1Q 2016. TCE revenues for the crude tankers segment stood at 56 million for the quarter, compared to USD 87.4 million in the first quarter of 2016. The decrease was primarily due to lower average blended rates in the VLCC, Aframax and Panamax sectors and fewer revenue days in these sectors, according to the company. Furthermore, TCE revenues for the product carriers segment were USD 28.1 million for the quarter, against USD 37.3 million in the same period of 2016. The decline was mainly due to a drop in average daily blended rates earned by the MR, LR1 and LR2 fleets. On May 2, INSWs board of directors authorized a share repurchase plan of up to USD 30 million of the companys common stock. The company said that the amount and timing of any repurchases made under the program will depend on a variety of factors, including market conditions and available liquidity. In late-November 2016, INSW completed the separation from Overseas Shipholding Group (OSG). Following the spin-off, INSW continued operating as an independent public company. “We are pleased with International Seaways’ first full quarter as an independent public company and our progress implementing the company’s strategy,” Lois K. Zabrocky, International Seaways’ President and CEO, commented. “During the first quarter, our fleet of crude and product tankers performed well, enabling the company to generate solid cash flow in a volatile tanker market. With our contracted cash flows, low breakeven levels, and spot market upside, we remain well positioned to both successfully operate in the current tanker cycle and take advantage of a market recovery,” Zabrocky added. “We are guided by a disciplined capital allocation strategy and are pleased with the board’s authorization of a share repurchase program, which we intend to act on opportunistically. Complementing this approach, we believe there are compelling opportunities to grow and renew our fleet, Zabrocky concluded. As of March 31, 2017, INSWs fleet comprised a total of 55 vessels.