International Seaways reports Q3 adjusted EPS $1.15, consensus 94c

Reports Q3 revenue $196.39M, consensus $186.25M. CEO Lois Zabrocky commented, “Seaways delivered another strong quarter of results, with solid contributions from all our asset classes in both crude and products. We continued to strengthen our platform through consistent shareholder returns, disciplined fleet renewal, and ongoing balance sheet optimization. We sold our oldest vessels, took delivery of two of six LR1 newbuildings, and completed a NOK bond transaction that will ultimately unencumber six vessels and enhance our financial flexibility. As we continue to pull all the levers of capital allocation, we are pleased to deliver a consistent payout ratio of at least 75% of adjusted net income. Market conditions strengthened late in the third quarter and have remained firm, with forward fixtures well above year-ago levels. Looking ahead, fundamentals point to continued strength in tanker rates in the near term. Tanker demand is supported by oil demand growth of about 1% and oil supply growth from the Americas and OPEC+. There may be some restocking of inventory that should continue to support trade flows following last year’s draws. Geopolitical factors continue to create inefficiencies in the global trade that absorb tonnage, while fleet growth is modest at around 2%. Tanker supply remains constrained and the gap between older ships and the orderbook exceeds three to one.”