International Seaways Reports Third Quarter 2017 Results NEW YORK
International Seaways, Inc. (NYSE:INSW) (the “Company” or “INSW”), one
of the largest tanker companies worldwide providing energy
transportation services for crude oil and petroleum products in
International Flag markets, today reported results for the third quarter
2017.
Highlights
-
Net loss for the third quarter was $21.8 million, or $(0.75) per
share, compared to net loss of $50.9 million, or $(1.74) per share, in
the third quarter of 2016.
-
Time charter equivalent (TCE) revenues(A) for the third
quarter were $56.5 million, compared to $77.2 million in the third
quarter of 2016.
-
Adjusted EBITDA(B) for the third quarter was $15.8 million,
compared to $37.1 million in the same period of 2016.
-
Cash was $73.4 million as of September 30, 2017; total liquidity was
$123.4 million including $50 million undrawn revolver.
-
Repurchased 160,000 shares at an average price of $19.86 per share,
for a total cost of $3.2 million.
-
Took delivery of two 2017-built Suezmax tanker newbuildings, the
Seaways Hatteras and the Seaways Montauk, which commenced trading in a
leading Suezmax pool.
-
Acquired a 2010-built VLCC, which delivered to the Company in November.
-
Sold a 2001-built MR, Overseas Petromar, which delivered to buyers in
August 2017.
-
Entered into agreements to sell a 2004-built MR and a 2002-built MR,
expected to close during November 2017 and the first quarter of 2018,
respectively.
-
Commenced two five-year contracts for our FSO joint ventures, which
are expected to generate in excess of $180 million of EBITDA for the
Company over the five-year contract period.
“We have continued to benefit from our lean and scalable model with low
breakevens in a challenging tanker market, while taking steps to further
implement the Company’s disciplined capital allocation strategy and
maintain its solid contracted cashflows,” said Lois K. Zabrocky,
International Seaways’ president and CEO. “During the quarter, we have
capitalized on attractive asset values with the acquisition of two
Suezmax tankers and a recent acquisition of a 2010-built VLCC. In
addition to growing our diverse fleet, we took advantage of our strong
balance sheet to return capital to shareholders during the quarter, as
we opportunistically executed on our share repurchase program.
Consistent with our focus on fleet growth and renewal, we also sold a
2001-built MR, which delivered to buyers during the quarter, and
recently agreed to sell two additional MR tankers. We also commenced two
five-year contracts for our FSO joint ventures during the quarter, which
are expected to generate in excess of $180 million of EBITDA for the
Company over the contract period.”
A, B Reconciliations of these non-GAAP financial measures
are included in the financial tables attached to this press release.
Ms. Zabrocky continued, “We are pleased with our initial progress
growing and modernizing our fleet, which has enabled International
Seaways to reduce the average age of its fleet and increase our size on
a DWT basis. We remain in a strong financial position with the
flexibility to pursue additional compelling growth opportunities as
asset prices continue to be historically low. With our balanced fleet
deployment and contracted cash flow from our joint ventures and
fixed-rate charters, we also continue to maintain the ability to both
optimize revenue through the current tanker cycle and benefit from a
market recovery in both the product and crude tanker sectors.”
Third Quarter 2017 Results
Net loss for the third quarter of 2017 was $21.8 million, or $(0.75) per
diluted share, compared with net loss of $50.9 million, or $(1.74) per
diluted share, in the third quarter of 2016. The net loss in the third
quarter of 2017 reflects $7.3 million in vessel impairment charges and
$1.2 million in debt modification fees, and a decline in TCE revenues
compared with the third quarter of 2016. Net loss for the nine months
ended September 30, 2017 was $15.4 million, or $(0.53) per diluted
share, compared with net income of $39.5 million, or $1.36 per diluted
share, for the nine months ended September 30, 2016.
Consolidated TCE revenues for the third quarter of 2017 were $56.5
million, compared to $77.2 million in the third quarter of 2016.
Shipping revenues for the third quarter of 2017 were $60.0 million,
compared to $80.8 million in the third quarter of 2016. Consolidated TCE
revenues for the nine months ended September 30, 2017 were $209.9
million, compared to $302.8 million for last year’s nine-month period.
Shipping revenues for the nine months ended September 30, 2017 were
$220.7 million, compared to $312.5 million in the prior year nine-month
period.
Operating loss for the quarter was $11.0 million, compared to operating
loss of $35.3 million for the third quarter of 2016. Operating income
for the nine months ended September 30, 2017 was $20.2 million, compared
to operating income of $70.5 million for the 2016 nine-month period.
Adjusted EBITDA was $15.8 million for the quarter, compared to $37.1
million in the third quarter of 2016, principally driven by lower daily
rates. Adjusted EBITDA was $94.0 million for the 2017 nine-month period,
compared to $184.5 million for the 2016 period.
Crude Tankers
TCE revenues for the Crude Tankers segment were $34.9 million for the
quarter, compared to $50.2 million in the third quarter of 2016. This
decrease resulted primarily from the impact of significantly lower
average blended rates in the VLCC, Aframax and Panamax sectors, with
spot rates declining to $16,200, $10,800 and $11,100 per day,
respectively, aggregating approximately $14.1 million. The decline also
reflects decreased revenue in the Crude Tankers Lightering business due
to hurricane-related disruptions and lower full-service lightering
margins and fewer revenue days in the Panamax and Aframax sectors,
resulting from an increase in drydock days. The addition of the two
2017-built Suezmaxes, each of which delivered to the Company in July,
partially offset the declines in revenue. Shipping revenues for the
Crude Tankers segment were $38.3 million for the quarter, compared to
$53.5 million in the third quarter of 2016. TCE revenues for the Crude
Tankers segment were $136.7 million for the nine months ended September
30, 2017, compared to $204.1 million for the 2016 nine-month period.
Shipping revenues for the Crude Tankers segment were $146.1 million for
the nine months ended September 30, 2017, compared to $212.9 million in
the 2016 nine-month period.
Product Carriers
TCE revenues for the Product Carriers segment were $21.6 million for the
quarter, compared to $27.0 million in the third quarter of 2016. This
decrease was primarily due to a decline in average daily blended rates
earned by the MR, LR1 and LR2 fleets, with spot rates declining to
$10,100, $11,100 and $12,000 per day, respectively. The decline in
blended MR, LR1 and LR2 rates accounted for $5.0 million of the decline
in TCE revenues. Shipping revenues for the Product Carriers segment were
$21.7 million for the quarter, compared to $27.2 million in the third
quarter of 2016. TCE revenues for the Product Carriers segment were
$73.2 million for the nine months ended September 30, 2017, compared to
$98.8 million for the 2016 nine-month period. Shipping revenues for the
Product Carriers segment were $74.6 million for the 2017 nine-month
period, compared to $99.6 million for the same period in 2016.
Share Repurchases
During the quarter, the Company repurchased and retired 160,000 shares
of its common stock in open-market purchases at an average price of
$19.86 per share, for a total cost of $3.2 million. The Company has
$26.8 million remaining under its existing $30.0 million share
repurchase plan, which was initiated in May 2017.
Suezmax Newbuilding Deliveries and VLCC Acquisition
During the quarter, the Company took delivery of the Seaways Hatteras
and the Seaways Montauk, 159,000 DWT 2017-built Suezmax tanker
newbuildings constructed at Hyundai Samho Heavy Industries shipyard.
Both commenced trading in the Blue Fin Suezmax pool.
Subsequent to quarter’s end, the Company entered into an agreement to
acquire a 2010-built VLCC for $53 million. The vessel delivered to the
Company in November and will commence trading in the Tankers
International pool. International Seaways funded the vessel acquisition
from available liquidity.
MR Vessel Sales
During the quarter, the Company sold a 2001-built MR, which was
delivered to buyers in August 2017, and recognized a gain of $1.9
million. Subsequent to quarter’s end, the Company entered into
agreements for the sale of a 2004-built MR and a 2002-built MR, which
are scheduled to be delivered to buyers during November 2017 and the
first quarter of 2018, respectively.
Five-Year Contracts for FSO Joint Venture Commence
During the quarter, the previously announced five-year contracts for the
Company’s FSO joint ventures with Euronav NV commenced with North Oil
Company (NOC), the new operator of the Al Shaheen oil field, off the
coast of Qatar, whose shareholders are Qatar Petroleum Oil & Gas Limited
and Total E&P Golfe Limited.
The new contracts, which are for the FSO Africa and FSO Asia, are
expected to generate in excess of $360 million of EBITDA for the joint
venture over their five-year terms. Based on International Seaways’ 50%
ownership in the joint venture, the five-year contracts are expected to
generate in excess of $180 million of EBITDA for the Company.
Conference Call
The Company will host a conference call to discuss its third quarter
2017 results at 10:00 a.m. Eastern Time (“ET”) on Thursday, November 9,
2017.
To access the call, participants should dial (855) 940-9471 for domestic
callers and (412) 317-5211 for international callers. Please dial in ten
minutes prior to the start of the call.
A live webcast of the conference call will be available from the
Investor Relations section of the Company’s website at http://www.intlseas.com/
An audio replay of the conference call will be available starting at
12:00 p.m. ET on Thursday, November 9, 2017 through 11:59 p.m. ET on
Thursday, November 16, 2017 by dialing (877) 344-7529 for domestic
callers and (412) 317-0088 for international callers, and entering
Access Code 10113875.
About International Seaways, Inc.
International Seaways, Inc. (NYSE:INSW) is one of the largest tanker
companies worldwide providing energy transportation services for crude
oil and petroleum products in International Flag markets. International
Seaways owns and operates a fleet of 57 vessels, including one ULCC,
nine VLCCs, two Suezmaxes, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and
19 MR tankers. Through joint ventures, it has ownership interests in
four liquefied natural gas carriers and two floating storage and
offloading service vessels. International Seaways has an experienced
team committed to the very best operating practices and the highest
levels of customer service and operational efficiency. International
Seaways is headquartered in New York City, NY. Additional information is
available at www.intlseas.com.
Forward-Looking Statements
This release contains forward-looking statements. In addition, the
Company may make or approve certain statements in future filings with
the Securities and Exchange Commission (SEC), in press releases, or in
oral or written presentations by representatives of the Company. All
statements other than statements of historical facts should be
considered forward-looking statements. These matters or statements may
relate to the Company’s plans to issue dividends, its prospects,
including statements regarding trends in the tanker markets, and
possibilities of strategic alliances and investments. Forward-looking
statements are based on the Company’s current plans, estimates and
projections, and are subject to change based on a number of factors.
Investors should carefully consider the risk factors outlined in more
detail in the Annual Report on Form 10-K for the Company and in similar
sections of other filings made by the Company with the SEC from time to
time. The Company assumes no obligation to update or revise any
forward-looking statements. Forward-looking statements and written and
oral forward-looking statements attributable to the Company or its
representatives after the date of this release are qualified in their
entirety by the cautionary statements contained in this paragraph and in
other reports previously or hereafter filed by the Company with the SEC.
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Consolidated Statements of Operations
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($ in thousands, except per share amounts)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2017
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2016
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2017
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2016
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(Unaudited)
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|
(Unaudited)
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(Unaudited)
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(Unaudited)
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Shipping Revenues:
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Pool revenues
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$
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37,798
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$
|
42,854
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$
|
129,910
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$
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200,088
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Time and bareboat charter revenues
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|
12,024
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|
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|
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24,012
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|
|
|
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43,816
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|
|
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74,355
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Voyage charter revenues
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10,146
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|
|
|
13,905
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|
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|
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46,949
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|
|
|
|
38,066
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Total Shipping Revenues
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59,968
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|
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|
|
80,771
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|
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|
|
220,675
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312,509
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Operating Expenses:
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Voyage expenses
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3,479
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|
|
|
|
3,605
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|
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|
|
10,774
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|
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|
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9,679
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Vessel expenses
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37,095
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|
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35,401
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106,196
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|
|
|
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104,939
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Charter hire expenses
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|
|
9,958
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|
|
|
|
9,613
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|
|
|
|
32,345
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|
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|
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26,422
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Depreciation and amortization
|
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20,528
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|
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20,376
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58,243
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|
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|
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60,482
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General and administrative
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6,603
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|
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7,732
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|
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|
18,143
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|
|
|
|
23,643
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Third-party debt modification fees
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|
|
1,191
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-
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|
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9,130
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-
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Separation and transition costs
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(543
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)
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2,162
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|
|
|
|
488
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|
|
|
|
3,425
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Loss on disposal of vessels and other property, including impairments
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|
|
|
|
5,406
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|
|
|
|
49,640
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|
|
|
|
5,406
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|
|
|
|
49,469
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Total operating expenses
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|
|
83,717
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|
|
|
|
128,529
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|
|
|
|
240,725
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|
|
|
|
278,059
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(Loss)/income from vessel operations
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|
|
|
|
(23,749
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)
|
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|
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(47,758
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)
|
|
|
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(20,050
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)
|
|
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|
34,450
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Equity in income of affiliated companies
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|
|
|
12,796
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|
|
|
|
12,488
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|
|
|
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40,268
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|
|
|
|
36,093
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Operating (loss)/income
|
|
|
|
|
(10,953
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)
|
|
|
|
(35,270
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)
|
|
|
|
20,218
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|
|
|
|
70,543
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Other income/(expense)
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|
|
|
|
190
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|
|
|
|
(2,244
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)
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|
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|
(6,484
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)
|
|
|
|
(1,003
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)
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(Loss)/income before interest expense, reorganization items and
income taxes
|
|
|
|
|
(10,763
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)
|
|
|
|
(37,514
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)
|
|
|
|
13,734
|
|
|
|
|
69,540
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Interest expense
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|
|
|
(11,030
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)
|
|
|
|
(9,519
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)
|
|
|
|
(29,071
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)
|
|
|
|
(29,951
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)
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(Loss)/income before reorganization items and income taxes
|
|
|
|
|
(21,793
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)
|
|
|
|
(47,033
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)
|
|
|
|
(15,337
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)
|
|
|
|
39,589
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Reorganization items, net
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|
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-
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|
(3,849
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)
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|
-
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|
|
102
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(Loss)/income before income taxes
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|
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|
(21,793
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)
|
|
|
|
(50,882
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)
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|
|
(15,337
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)
|
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|
|
39,691
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Income tax (provision)/benefit
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(23
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)
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20
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|
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(31
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)
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|
(157
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)
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Net (loss)/income
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$
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(21,816
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)
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$
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(50,862
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)
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$
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(15,368
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)
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$
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39,534
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Weighted Average Number of Common Shares Outstanding:
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Basic
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29,202,437
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29,157,387
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29,192,392
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29,157,387
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Diluted
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29,202,437
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29,157,387
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29,192,392
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|
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29,157,387
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Per Share Amounts:
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Basic and diluted net (loss)/income per share
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$
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(0.75
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)
|
|
|
$
|
(1.74
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)
|
|
|
$
|
(0.53
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)
|
|
|
$
|
1.36
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Consolidated Balance Sheets ($ in thousands)
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|
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|
|
|
September 30,
|
|
|
December 31,
|
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|
|
2017
|
|
|
2016
|
|
|
|
|
(Unaudited)
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|
|
(Unaudited)
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ASSETS
|
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Current Assets:
|
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Cash and cash equivalents
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$73,390
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$92,001
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Voyage receivables
|
|
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58,764
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|
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66,918
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Other receivables
|
|
|
|
4,608
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|
|
5,302
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Inventories
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|
|
|
1,659
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|
|
1,338
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Prepaid expenses and other current assets
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|
|
|
6,155
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|
|
5,350
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Total Current Assets
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|
|
144,576
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|
|
170,909
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|
|
|
|
|
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Vessels and other property, less accumulated depreciation
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|
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1,161,767
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1,100,050
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Deferred drydock expenditures, net
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|
|
35,330
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|
|
30,557
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Total Vessels, Deferred Drydock and Other Property
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|
|
|
1,197,097
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|
|
1,130,607
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Investments in and advances to affiliated companies
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|
|
|
380,718
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|
|
358,681
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Other assets
|
|
|
|
1,934
|
|
|
2,324
|
Total Assets
|
|
|
|
$1,724,325
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|
|
$1,662,521
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LIABILITIES AND EQUITY
|
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Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other current liabilities
|
|
|
|
$24,210
|
|
|
$38,237
|
Payable to OSG
|
|
|
|
285
|
|
|
683
|
Current installments of long-term debt
|
|
|
|
13,750
|
|
|
6,183
|
Total Current Liabilities
|
|
|
|
38,245
|
|
|
45,103
|
Long-term debt
|
|
|
|
511,948
|
|
|
433,468
|
Other liabilities
|
|
|
|
5,046
|
|
|
4,438
|
Total Liabilities
|
|
|
|
555,239
|
|
|
483,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Equity:
|
|
|
|
|
|
|
|
Total Equity
|
|
|
|
1,169,086
|
|
|
1,179,512
|
Total Liabilities and Equity
|
|
|
|
$1,724,325
|
|
|
$1,662,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
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($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
Net (loss)/income
|
|
|
|
$
|
(15,368
|
)
|
|
|
|
$
|
39,534
|
|
Items included in net income not affecting cash flows:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
58,243
|
|
|
|
|
|
60,482
|
|
Loss on write-down of vessels
|
|
|
|
|
7,346
|
|
|
|
|
|
49,640
|
|
Amortization of debt discount and other deferred financing costs
|
|
|
|
|
5,159
|
|
|
|
|
|
4,652
|
|
Deferred financing costs write-off
|
|
|
|
|
7,020
|
|
|
|
|
|
5,097
|
|
Direct and allocated stock compensation, non-cash
|
|
|
|
|
2,733
|
|
|
|
|
|
2,157
|
|
Undistributed earnings of affiliated companies
|
|
|
|
|
(40,388
|
)
|
|
|
|
|
(36,743
|
)
|
Allocated reorganization items, non-cash
|
|
|
|
|
-
|
|
|
|
|
|
(102
|
)
|
Other – net
|
|
|
|
|
132
|
|
|
|
|
|
-
|
|
Items included in net income related to investing and financing
activities:
|
|
|
|
|
|
|
|
|
Gain on disposal of vessels and other property
|
|
|
|
|
(1,940
|
)
|
|
|
|
|
(171
|
)
|
Allocated general and administrative expenses recorded as capital
contributions
|
|
|
|
|
-
|
|
|
|
|
|
1,220
|
|
Discount on repurchase of debt
|
|
|
|
|
-
|
|
|
|
|
|
(3,755
|
)
|
Payments for drydocking
|
|
|
|
|
(19,787
|
)
|
|
|
|
|
(4,933
|
)
|
Deferred financing costs paid for loan modification
|
|
|
|
|
-
|
|
|
|
|
|
(8,273
|
)
|
Changes in operating assets and liabilities
|
|
|
|
|
(6,831
|
)
|
|
|
|
|
22,369
|
|
Net cash (used in)/provided by operating activities
|
|
|
|
|
(3,681
|
)
|
|
|
|
|
131,174
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
Decrease in restricted cash
|
|
|
|
|
-
|
|
|
|
|
|
8,989
|
|
Expenditures for vessels and vessel improvements
|
|
|
|
|
(118,369
|
)
|
|
|
|
|
(591
|
)
|
Proceeds from disposal of vessels and other property
|
|
|
|
|
7,662
|
|
|
|
|
|
-
|
|
Expenditures for other property
|
|
|
|
|
(406
|
)
|
|
|
|
|
(72
|
)
|
Investments in and advances to affiliated companies
|
|
|
|
|
(1,880
|
)
|
|
|
|
|
(987
|
)
|
Repayments of advances from affiliated companies
|
|
|
|
|
26,500
|
|
|
|
|
|
18,500
|
|
Net cash (used in)/provided by investing activities
|
|
|
|
|
(86,493
|
)
|
|
|
|
|
25,839
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
Issuance of debt, net of issuance and deferred financing costs
|
|
|
|
|
584,963
|
|
|
|
|
|
-
|
|
Extinguishment of debt
|
|
|
|
|
(458,416
|
)
|
|
|
|
|
(65,167
|
)
|
Payments on debt
|
|
|
|
|
(51,546
|
)
|
|
|
|
|
(88,520
|
)
|
Dividend payments to OSG
|
|
|
|
|
-
|
|
|
|
|
|
(202,000
|
)
|
Repurchases of common stock
|
|
|
|
|
(3,177
|
)
|
|
|
|
|
-
|
|
Cash paid to tax authority upon vesting of stock-based compensation
|
|
|
|
|
(261
|
)
|
|
|
|
|
(26
|
)
|
Net cash provided by/(used in) financing activities
|
|
|
|
|
71,563
|
|
|
|
|
|
(355,713
|
)
|
Net decrease in cash and cash equivalents
|
|
|
|
|
(18,611
|
)
|
|
|
|
|
(198,700
|
)
|
Cash and cash equivalents at beginning of year
|
|
|
|
|
92,001
|
|
|
|
|
|
308,858
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
73,390
|
|
|
|
|
$
|
110,158
|
|
|
|
|
|
|
|
|
|
|
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provides a breakdown of TCE rates achieved for spot
and fixed charters and the related revenue days for the three months
ended September 30, 2017 and the comparable period of 2016. Revenue days
in the quarter ended September 30, 2017 totaled 4,345 compared with
4,350 in the prior year quarter. A summary fleet list by vessel class
can be found later in this press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2017
|
|
|
|
Three Months Ended September 30, 2016
|
|
|
|
|
|
Spot
|
|
Fixed
|
|
Total
|
|
|
|
Spot
|
|
Fixed
|
|
Total
|
|
Crude Tankers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ULCC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$ —
|
|
$32,175
|
|
|
|
|
|
$ —
|
|
$44,850
|
|
|
|
Number of Revenue Days
|
|
|
|
—
|
|
92
|
|
92
|
|
|
|
—
|
|
92
|
|
92
|
|
VLCC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$16,171
|
|
$27,760
|
|
|
|
|
|
$25,797
|
|
$40,034
|
|
|
|
Number of Revenue Days
|
|
|
|
635
|
|
90
|
|
725
|
|
|
|
569
|
|
145
|
|
714
|
|
Suezmax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$14,464
|
|
$ —
|
|
|
|
|
|
$ —
|
|
$ —
|
|
|
|
Number of Revenue Days
|
|
|
|
133
|
|
—
|
|
133
|
|
|
|
—
|
|
—
|
|
—
|
|
Aframax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$10,762
|
|
$ —
|
|
|
|
|
|
$15,370
|
|
$ —
|
|
|
|
Number of Revenue Days
|
|
|
|
588
|
|
—
|
|
588
|
|
|
|
643
|
|
—
|
|
643
|
|
Panamax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$11,118
|
|
$12,014
|
|
|
|
|
|
$13,837
|
|
$21,140
|
|
|
|
Number of Revenue Days
|
|
|
|
267
|
|
376
|
|
643
|
|
|
|
415
|
|
271
|
|
686
|
|
Total Crude Tankers Revenue Days
|
|
|
|
1,623
|
|
558
|
|
2,181
|
|
|
|
1,627
|
|
508
|
|
2,135
|
|
Product Carriers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$11,964
|
|
$ —
|
|
|
|
|
|
$17,992
|
|
$ —
|
|
|
|
Number of Revenue Days
|
|
|
|
91
|
|
—
|
|
91
|
|
|
|
92
|
|
—
|
|
92
|
|
LR1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$11,078
|
|
$13,685
|
|
|
|
|
|
$15,312
|
|
$21,613
|
|
|
|
Number of Revenue Days
|
|
|
|
251
|
|
100
|
|
351
|
|
|
|
92
|
|
270
|
|
362
|
|
MR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate
|
|
|
|
$10,063
|
|
$5,294
|
|
|
|
|
|
$10,690
|
|
$11,543
|
|
|
|
Number of Revenue Days
|
|
|
|
1,630
|
|
92
|
|
1,722
|
|
|
|
1,577
|
|
184
|
|
1,761
|
|
Total Product Carriers Revenue Days
|
|
|
|
1,972
|
|
192
|
|
2,164
|
|
|
|
1,761
|
|
454
|
|
2,215
|
|
TOTAL REVENUE DAYS
|
|
|
|
3,595
|
|
750
|
|
4,345
|
|
|
|
3,388
|
|
962
|
|
4,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue days in the above table exclude days related to full service
lighterings and days for which recoveries were recorded under the
Company’s loss of hire insurance policies.
Fleet Information
As of September 30, 2017, INSW’s owned and operated 56 vessels, 43 of
which were owned, 7 of which were chartered in, and 6 were held through
joint venture partnerships (2 FSO and 4 LNG vessels)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels Owned
|
|
|
Vessels Chartered-in
|
|
|
Total at September 30, 2017
|
|
Vessel Type
|
|
|
|
Number
|
|
|
Weighted by Ownership
|
|
|
Number
|
|
|
Weighted by Ownership
|
|
|
Total Vessels
|
|
|
Vessels Weighted by Ownership
|
|
|
Total Dwt
|
|
Operating Fleet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FSO
|
|
|
|
2
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1.0
|
|
|
873,916
|
|
VLCC and ULCC
|
|
|
|
9
|
|
|
9.0
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9.0
|
|
|
2,875,775
|
|
Suezmax
|
|
|
|
2
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2.0
|
|
|
316,864
|
|
Aframax
|
|
|
|
7
|
|
|
7.0
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7.0
|
|
|
787,859
|
|
Panamax
|
|
|
|
8
|
|
|
8.0
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8.0
|
|
|
555,504
|
|
Crude Tankers
|
|
|
|
28
|
|
|
27.0
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
27.0
|
|
|
5,409,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2
|
|
|
|
1
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1.0
|
|
|
109,999
|
|
LR1
|
|
|
|
4
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4.0
|
|
|
297,710
|
|
MR
|
|
|
|
12
|
|
|
12.0
|
|
|
7
|
|
|
7.0
|
|
|
19
|
|
|
19.0
|
|
|
920,200
|
|
Product Carriers
|
|
|
|
17
|
|
|
17.0
|
|
|
7
|
|
|
7.0
|
|
|
24
|
|
|
24.0
|
|
|
1,327,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Crude Tanker & Product Carrier Operating Fleet
|
|
|
|
45
|
|
|
44.0
|
|
|
7
|
|
|
7.0
|
|
|
52
|
|
|
51.0
|
|
|
6,737,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LNG Fleet
|
|
|
|
4
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
2.0
|
|
|
864,800 cbm
|
|
Total Operating Fleet
|
|
|
|
49
|
|
|
46.0
|
|
|
7
|
|
|
7.0
|
|
|
56
|
|
|
53.0
|
|
|
6,737,827 and 864,800 cbm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Non-GAAP Financial Information
The Company believes that, in addition to conventional measures prepared
in accordance with GAAP, the following non-GAAP measures may provide
certain investors with additional information that will better enable
them to evaluate the Company’s performance. Accordingly, these non-GAAP
measures are intended to provide supplemental information, and should
not be considered in isolation or as a substitute for measures of
performance prepared with GAAP.
(A) Time Charter Equivalent (TCE) Revenues
Consistent with general practice in the shipping industry, the Company
uses TCE revenues, which represents shipping revenues less voyage
expenses, as a measure to compare revenue generated from a voyage
charter to revenue generated from a time charter. Time charter
equivalent revenues, a non-GAAP measure, provides additional meaningful
information in conjunction with shipping revenues, the most directly
comparable GAAP measure, because it assists Company management in making
decisions regarding the deployment and use of its vessels and in
evaluating their financial performance. Reconciliation of TCE revenues
of the segments to shipping revenues as reported in the consolidated
statements of operations follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
($ in thousands)
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
TCE revenues
|
|
|
|
$56,489
|
|
$77,166
|
|
|
$209,901
|
|
$302,830
|
|
Add: Voyage Expenses
|
|
|
|
3,479
|
|
3,605
|
|
|
10,774
|
|
9,679
|
|
Shipping revenues
|
|
|
|
$59,968
|
|
$80,771
|
|
|
$220,675
|
|
$312,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) EBITDA and Adjusted EBITDA
EBITDA represents net(loss)/income before interest expense, income taxes
and depreciation and amortization expense. Adjusted EBITDA consists of
EBITDA adjusted for the impact of certain items that we do not consider
indicative of our ongoing operating performance. EBITDA and Adjusted
EBITDA do not represent, and should not be a substitute for, net income
or cash flows from operations as determined in accordance with GAAP.
Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not
reflect our cash expenditures, or future requirements for capital
expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA
do not reflect changes in, or cash requirements for, our working capital
needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the
significant interest expense, or the cash requirements necessary to
service interest or principal payments, on our debt. While EBITDA and
Adjusted EBITDA are frequently used as a measure of operating results
and performance, neither of them is necessarily comparable to other
similarly titled captions of other companies due to differences in
methods of calculation. The following table reconciles net (loss)/income
as reflected in the consolidated statements of operations, to EBITDA and
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
($ in thousands)
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
Net (loss)/Income
|
|
|
$(21,816)
|
|
$(50,862)
|
|
|
$(15,368)
|
|
$39,534
|
|
Income tax provision
|
|
|
23
|
|
(20)
|
|
|
31
|
|
157
|
|
Interest expense
|
|
|
11,030
|
|
9,519
|
|
|
29,071
|
|
29,951
|
|
Depreciation and amortization
|
|
|
20,528
|
|
20,376
|
|
|
58,243
|
|
60,482
|
|
EBITDA
|
|
|
9,765
|
|
(20,987)
|
|
|
71,977
|
|
130,124
|
|
Third-party debt modification fees and costs associated with
repurchase of debt
|
|
|
1,191
|
|
85
|
|
|
9,130
|
|
225
|
|
Separation and transition costs
|
|
|
(543)
|
|
2,162
|
|
|
488
|
|
3,425
|
|
Loss on disposal of vessels and other property, including vessel
impairments
|
|
|
5,406
|
|
49,640
|
|
|
5,406
|
|
49,469
|
|
Write-off of deferred financing costs
|
|
|
-
|
|
2,368
|
|
|
7,020
|
|
5,097
|
|
Discount on repurchase of debt
|
|
|
-
|
|
-
|
|
|
-
|
|
(3,755)
|
|
Reorganization items, net
|
|
|
-
|
|
3,849
|
|
|
-
|
|
(102)
|
|
Adjusted EBITDA
|
|
|
$15,819
|
|
$37,117
|
|
|
$94,021
|
|
$184,483
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171109005168/en/ Copyright Business Wire 2017
Source: Business Wire
(November 9, 2017 - 6:58 AM EST)
News by QuoteMedia
www.quotemedia.com
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