UPDATE: International Seaways Inc. (INSW) Tops Q4 EPS by 18c, Revenues Beat
International Seaways Inc. (NYSE: INSW) reported Q4 EPS of $0.32, $0.18 better than the analyst estimate of $0.14. Revenue for the quarter came in at $100.55 million versus the consensus estimate of $85.66 million.
- Net income for the fourth quarter was $7.0 million, or $0.24 per share, compared to net loss of $90.7 million, or $3.12 per share, in the fourth quarter of 2017. Net income for the quarter reflects the impact of a loss on vessel sales, including held for use impairment charges, of $2.5 million. Net income excluding these items was $9.4 million, or $0.32 per share.
- Time charter equivalent (TCE) revenues(A) for the fourth quarter were $93.0 million, compared to $65.1 million in the fourth quarter of 2017.
- Adjusted EBITDA(B) for the fourth quarter was $46.2 million, compared to $23.1 million in the same period of 2017.
- Cash(C) was $117.6 million as of December 31, 2018; total liquidity was $167.6 million, including $50.0 million undrawn revolver.
- Sold and delivered four older vessels (a 2001-built VLCC, a 2001-built Aframax, a 1998-built MR, and a 2004-built MR) to buyers during the quarter.
- Announces reauthorization of $30 million share repurchase program for a 24-month period.
“2018 was an important year for us, as we executed on our stated strategy of disciplined capital allocation,” said Lois K. Zabrocky, International Seaways’ president and CEO. “We capitalized on attractive asset values at the bottom of the cycle, increasing the size and reducing the age profile of our fleet and enhancing our earnings power ahead of a market recovery without issuing equity. Our significant operating leverage to a market recovery was evident in the fourth quarter, as our cash flow and earnings immediately reflected the stronger rate environment and we returned to profitability. During the year, we also maintained our strong balance sheet, increasing total liquidity to $167.6 million and ending the year once again with one of the lowest net loan to value profiles in the sector.”
Ms. Zabrocky continued, “We are encouraged by the strength of the tanker market in the fourth quarter and how the market is developing thus far in 2019. While the exact timing for a sustained recovery is not yet clear, we see optimistic signs to support a balanced market in the near term led by increasing exports out of the U.S. Gulf and sustained growth in global oil demand. In addition, we continue to expect the upcoming IMO 2020 regulations will boost demand for both crude and product tankers as overall crude volumes are set to increase and new trading patterns for petroleum products develop. Going forward, our priorities remain to provide safe, reliable service to energy customers, maintain strong corporate governance standards, and continue to effectively allocate capital for the benefit of shareholders.”
For earnings history and earnings-related data on Insweb Corp (INSW) click here.