International Seaways Reports Fourth Quarter and Full Year 2023 Results
HIGHLIGHTS & RECENT DEVELOPMENTS
Record Annual Earnings:
-
Net income for the full year of 2023 was
$556.4 million , or$11.25 per diluted share, representing an increase of$168.6 million compared to the full year of 2022, which was$387.9 million , or$7.77 per share. Net income for the fourth quarter was$132.1 million , or$2.68 per diluted share, compared to net income of$218.4 million , or$4.40 per diluted share, in the fourth quarter of 2022. -
Adjusted net income(A), defined as net income excluding special items, for the fourth quarter of 2023 was
$107.6 million , which excludes gains on vessel sales and write-off of deferred financing costs. -
Adjusted EBITDA(B) for the fourth quarter was
$158.8 million and for the full year of 2023 was$723.8 million .
Balance Sheet Enhancements:
-
Total liquidity was approximately
$601 million as ofDecember 31, 2023 , including cash and short-term investments(C) of$187 million and$414 million of undrawn revolving credit capacity. -
Prepaid nearly
$300 million in debt during 2023 in addition to mandatory debt repayments of approximately$150 million and$27 million in debt prepayments related to vessel sales. -
Net loan-to-value of 17% as of
December 31, 2023 , is the lowest in Company history. - Doubled revolver capacity over the last 12 months with two refinancings that also released vessels from the collateral package, reduced interest costs and extended the maturity profile. During 2023, 30 vessels were unencumbered.
Returns to Shareholders:
-
Paid a combined
$1.25 per share in regular and supplemental dividends inDecember 2023 . -
Returned over
$320 million to shareholders during 2023. The Company paid over$308 million in dividends, representing$6.29 per share and repurchased shares for$14 million at an average price of$38 . -
Declared a combined dividend of
$1.32 per share composed of a supplemental dividend of$1.20 per share and$0.12 per share of a regular quarterly cash dividend to be paid inMarch 2024 . The combined dividend represents 60% of adjusted net income for the fourth quarter.
Fleet Optimization Program:
-
Agreed to purchase six MRs, built between 2014 and 2015, for
$232 million ; 15% funded through shares with the remainder from available liquidity. -
Sold two, 2008-built MRs for net proceeds of
$28 million after debt repayment during the fourth quarter of 2023. -
Increased contracted revenues to
$354 million by entering into two new time charter agreements during the fourth quarter of 2023.
“2023 marked another record year for Seaways and our portfolio of tanker assets,” said
FOURTH QUARTER 2023 RESULTS
Net income for the fourth quarter of 2023 was
Shipping revenues for the fourth quarter were
Adjusted EBITDA for the fourth quarter was
Crude Tankers
Shipping revenues for the Crude Tankers segment were
Product Carriers
Shipping revenues for the Product Carriers segment were
FULL YEAR 2023 RESULTS
Net income for the year ended
Shipping revenues for the year ended
Adjusted EBITDA for the year ended
Crude Tankers
TCE revenues for the Crude Tankers segment were
Product Carriers
TCE revenues for the Product Carriers segment were
BALANCE SHEET ENHANCEMENTS
During 2023, the Company extinguished approximately
The Company also paid approximately
RETURNING CASH TO SHAREHOLDERS
In
On
For the year ended
The Company currently has
FLEET OPTIMIZATION PROGRAM
On
In the fourth quarter, the Company entered into two new time charter agreements for over two years on two 2009-built
During 2023, the Company sold three 2008-built MRs, which generated approximately
The Company entered into contracts and declared options to build a total of four scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels in
During 2023, the Company took delivery of three dual-fuel VLCC newbuildings. The vessels were ordered for an aggregate contract price of
In
CONFERENCE CALL
The Company will host a conference call to discuss its fourth quarter and full year 2023 results at
An audio replay of the conference call will be available until
ABOUT
Forward-Looking Statements
This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the
Category: Earnings
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Consolidated Statements of Operations |
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($ in thousands, except per share amounts) |
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Three Months Ended |
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Fiscal Year Ended |
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||||||
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2023 |
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2022 |
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2023 |
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2022 |
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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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$ |
204,174 |
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$ |
311,193 |
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$ |
905,808 |
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$ |
774,922 |
Time and bareboat charter revenues |
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29,695 |
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10,239 |
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96,544 |
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33,034 |
Voyage charter revenues |
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16,865 |
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16,725 |
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69,423 |
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56,709 |
Total Shipping Revenues |
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250,734 |
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338,157 |
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1,071,775 |
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864,665 |
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Operating Expenses: |
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Voyage expenses |
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2,822 |
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2,507 |
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16,256 |
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10,955 |
Vessel expenses |
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71,023 |
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62,229 |
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259,539 |
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240,674 |
Charter hire expenses |
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8,805 |
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9,333 |
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39,404 |
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32,132 |
Depreciation and amortization |
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33,682 |
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28,404 |
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129,038 |
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110,388 |
General and administrative |
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12,391 |
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13,499 |
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47,473 |
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46,351 |
Third-party debt modification fees |
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- |
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- |
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568 |
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1,158 |
Gain on disposal of vessels and other assets, net of impairments |
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(25,286) |
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(10,308) |
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(35,934) |
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(19,647) |
Total operating expenses |
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103,437 |
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105,664 |
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456,344 |
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422,011 |
Income from vessel operations |
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147,297 |
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232,493 |
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615,431 |
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442,654 |
Equity in income of affiliated companies |
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- |
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280 |
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- |
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|
714 |
Operating income |
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147,297 |
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232,773 |
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615,431 |
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443,368 |
Other income |
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2,344 |
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2,772 |
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10,652 |
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|
2,332 |
Income before interest expense and income taxes |
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149,641 |
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235,545 |
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626,083 |
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445,700 |
Interest expense |
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(14,081) |
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(17,091) |
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(65,759) |
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(57,721) |
Income before income taxes |
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135,560 |
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218,454 |
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560,324 |
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387,979 |
Income tax provision |
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(3,446) |
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(25) |
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(3,878) |
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(88) |
Net income |
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$ |
132,114 |
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$ |
218,429 |
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$ |
556,446 |
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$ |
387,891 |
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Weighted Average Number of Common Shares Outstanding: |
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Basic |
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48,888,084 |
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49,049,539 |
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48,978,452 |
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49,381,459 |
Diluted |
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49,343,856 |
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49,619,307 |
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49,428,967 |
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49,844,904 |
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Per Share Amounts: |
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Basic net income per share |
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$ |
2.70 |
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$ |
4.45 |
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$ |
11.35 |
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$ |
7.85 |
Diluted net income per share |
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$ |
2.68 |
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$ |
4.40 |
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$ |
11.25 |
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$ |
7.77 |
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Consolidated Balance Sheets |
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($ in thousands) |
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2023 |
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2022 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
126,760 |
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$ |
243,744 |
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Short-term investments |
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60,000 |
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80,000 |
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Voyage receivables |
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247,165 |
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289,775 |
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Other receivables |
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14,303 |
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12,583 |
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Inventories |
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1,329 |
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531 |
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Prepaid expenses and other current assets |
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10,342 |
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8,995 |
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Current portion of derivative asset |
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5,081 |
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6,987 |
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Total Current Assets |
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464,980 |
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642,615 |
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Vessels and other property, less accumulated depreciation |
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1,914,426 |
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1,680,010 |
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Vessels construction in progress |
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11,670 |
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123,940 |
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Deferred drydock expenditures, net |
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70,880 |
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65,611 |
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Operating lease right-of-use assets |
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20,391 |
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8,471 |
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Finance lease right-of-use assets |
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- |
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44,391 |
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Pool working capital deposits |
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31,748 |
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35,593 |
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Long-term derivative asset |
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1,153 |
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4,662 |
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Other assets |
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6,571 |
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10,041 |
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Total Assets |
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$ |
2,521,819 |
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$ |
2,615,334 |
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Accounts payable, accrued expenses and other current liabilities |
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$ |
57,904 |
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$ |
51,069 |
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Current portion of operating lease liabilities |
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10,223 |
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1,596 |
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Current portion of finance lease liabilities |
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- |
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41,870 |
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Current installments of long-term debt |
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127,447 |
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|
162,854 |
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Total Current Liabilities |
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195,574 |
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257,389 |
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Long-term operating lease liabilities |
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11,631 |
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7,740 |
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Long-term debt |
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595,229 |
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860,578 |
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Other liabilities |
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2,628 |
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|
1,875 |
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Total Liabilities |
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805,062 |
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1,127,582 |
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Equity: |
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Total Equity |
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1,716,757 |
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1,487,752 |
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Total Liabilities and Equity |
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$ |
2,521,819 |
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$ |
2,615,334 |
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Consolidated Statements of Cash Flows |
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($ in thousands) |
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Fiscal Year Ended |
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2023 |
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2022 |
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Cash Flows from Operating Activities: |
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Net income |
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$ |
556,446 |
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$ |
387,891 |
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Items included in net income not affecting cash flows: |
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Depreciation and amortization |
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129,038 |
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110,388 |
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Loss on write-down of vessels and other assets |
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— |
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1,697 |
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Amortization of debt discount and other deferred financing costs |
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5,623 |
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5,224 |
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Amortization of time charter hire contracts acquired |
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— |
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|
842 |
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Deferred financing costs write-off |
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|
2,686 |
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|
1,266 |
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Stock compensation |
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|
8,518 |
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|
6,746 |
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Earnings of affiliated companies |
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20 |
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(10,297) |
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Other – net |
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(2,562) |
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(2,242) |
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Items included in net income related to investing and financing activities: |
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Gain on disposal of vessels and other assets, net |
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(35,934) |
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(21,344) |
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Loss on extinguishment of debt |
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|
1,323 |
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— |
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Loss on sale of investment in affiliated companies |
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— |
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|
9,513 |
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Cash distributions from affiliated companies |
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— |
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|
3,111 |
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Payments for drydocking |
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|
(34,539) |
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|
(43,327) |
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Insurance claims proceeds related to vessel operations |
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|
3,156 |
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|
5,301 |
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Changes in operating assets and liabilities |
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|
54,627 |
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(166,968) |
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Net cash provided by operating activities |
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|
688,402 |
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|
287,801 |
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Cash Flows from Investing Activities: |
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Expenditures for vessels, vessel improvements and vessels under construction |
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|
(205,159) |
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|
(115,976) |
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Proceeds from disposal of vessels and other assets |
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|
66,002 |
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|
99,157 |
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Expenditures for other property |
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|
(1,471) |
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|
(710) |
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Pool working capital deposits |
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|
(3,639) |
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|
1,362 |
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Proceeds from sale of investments in affiliated companies |
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|
— |
|
|
138,966 |
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Investments in short-term time deposits |
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|
(235,000) |
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|
(105,000) |
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Proceeds from maturities of short-term time deposits |
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|
255,000 |
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|
25,000 |
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Net cash (used in)/provided by investing activities |
|
|
(124,267) |
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|
42,799 |
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Cash Flows from Financing Activities: |
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|
|
|
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|
|
Borrowings on long term debt, net of lenders' fees |
|
|
— |
|
|
641,050 |
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Borrowings on revolving credit facilities |
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|
50,000 |
|
|
— |
|
Repayments on revolving credit facilities |
|
|
(50,000) |
|
|
— |
|
Repayments of debt |
|
|
(382,050) |
|
|
(798,740) |
|
Premium and fees on extinguishment of debt |
|
|
(1,323) |
|
|
— |
|
Proceeds from sale and leaseback financing, net of issuance and deferred financing costs |
|
|
169,717 |
|
|
108,005 |
|
Payments on sale and leaseback financing and finance lease |
|
|
(135,965) |
|
|
(39,240) |
|
Payments of deferred financing costs |
|
|
(3,577) |
|
|
(909) |
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Cash dividends paid |
|
|
(308,154) |
|
|
(69,841) |
|
Repurchase of common stock |
|
|
(13,948) |
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|
(20,017) |
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Cash paid to tax authority upon vesting or exercise of stock-based compensation |
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|
(5,819) |
|
|
(6,097) |
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Net cash used in financing activities |
|
|
(681,119) |
|
|
(185,789) |
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Net (decrease)/increase in cash, cash equivalents and restricted cash |
|
|
(116,984) |
|
|
144,811 |
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Cash, cash equivalents and restricted cash at beginning of year |
|
|
243,744 |
|
|
98,933 |
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Cash, cash equivalents and restricted cash at end of period |
|
$ |
126,760 |
|
$ |
243,744 |
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months and year ended
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Three Months Ended |
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Three Months Ended |
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Spot |
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Fixed |
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Total |
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Spot |
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Fixed |
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Total |
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Crude Tankers |
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VLCC |
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Average TCE Rate |
|
$ |
42,991 |
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$ |
38,826 |
|
|
|
|
$ |
64,596 |
|
$ |
43,883 |
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Number of Revenue Days |
|
|
837 |
|
|
276 |
|
|
1,113 |
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|
799 |
|
|
92 |
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|
891 |
|
Suezmax |
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Average TCE Rate |
|
$ |
47,318 |
|
$ |
30,989 |
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|
|
|
$ |
59,064 |
|
$ |
32,095 |
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Number of Revenue Days |
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|
1,006 |
|
|
184 |
|
|
1,190 |
|
|
1,029 |
|
|
92 |
|
|
1,121 |
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Aframax |
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Average TCE Rate |
|
$ |
43,952 |
|
$ |
38,499 |
|
|
|
|
$ |
62,030 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
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|
256 |
|
|
92 |
|
|
348 |
|
|
284 |
|
|
- |
|
|
284 |
|
Total Crude Tankers Revenue Days |
|
|
2,099 |
|
|
552 |
|
|
2,651 |
|
|
2,112 |
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|
184 |
|
|
2,296 |
|
Product Carriers |
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Aframax (LR2) |
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|
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|
|
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|
|
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|
|
|
|
|
Average TCE Rate |
|
$ |
43,666 |
|
$ |
- |
|
|
|
|
$ |
- |
|
$ |
18,994 |
|
|
|
|
Number of Revenue Days |
|
|
92 |
|
|
- |
|
|
92 |
|
|
- |
|
|
92 |
|
|
92 |
|
Panamax (LR1) |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
46,199 |
|
$ |
- |
|
|
|
|
$ |
63,950 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
561 |
|
|
- |
|
|
561 |
|
|
818 |
|
|
- |
|
|
818 |
|
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
31,493 |
|
$ |
21,599 |
|
|
|
|
$ |
39,678 |
|
$ |
20,816 |
|
|
|
|
Number of Revenue Days |
|
|
2,738 |
|
|
429 |
|
|
3,167 |
|
|
3,350 |
|
|
64 |
|
|
3,414 |
|
Total Product Carriers Revenue Days |
|
|
3,391 |
|
|
429 |
|
|
3,820 |
|
|
4,168 |
|
|
156 |
|
|
4,324 |
|
Total Revenue Days |
|
|
5,490 |
|
|
981 |
|
|
6,471 |
|
|
6,280 |
|
|
340 |
|
|
6,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
Fiscal Year Ended |
|||||||||||||
|
|
|
Spot |
|
|
Fixed |
|
|
Total |
|
|
Spot |
|
|
Fixed |
|
|
Total |
|
Crude Tankers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
45,483 |
|
$ |
40,098 |
|
|
|
|
$ |
29,361 |
|
$ |
44,043 |
|
|
|
|
Number of Revenue Days |
|
|
3,269 |
|
|
979 |
|
|
4,248 |
|
|
3,220 |
|
|
310 |
|
|
3,530 |
|
Suezmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
51,293 |
|
$ |
31,065 |
|
|
|
|
$ |
32,579 |
|
$ |
28,287 |
|
|
|
|
Number of Revenue Days |
|
|
4,002 |
|
|
680 |
|
|
4,682 |
|
|
3,901 |
|
|
365 |
|
|
4,266 |
|
Aframax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
46,841 |
|
$ |
38,566 |
|
|
|
|
$ |
36,488 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
1,182 |
|
|
164 |
|
|
1,346 |
|
|
1,283 |
|
|
- |
|
|
1,283 |
|
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
- |
|
$ |
- |
|
|
|
|
$ |
19,851 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
- |
|
|
- |
|
|
- |
|
|
70 |
|
|
- |
|
|
70 |
|
Total Crude Tankers Revenue Days |
|
|
8,453 |
|
|
1,823 |
|
|
10,276 |
|
|
8,474 |
|
|
675 |
|
|
9,149 |
|
Product Carriers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
35,842 |
|
$ |
18,588 |
|
|
|
|
$ |
- |
|
$ |
17,613 |
|
|
|
|
Number of Revenue Days |
|
|
225 |
|
|
140 |
|
|
365 |
|
|
- |
|
|
362 |
|
|
362 |
|
LR1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
60,428 |
|
$ |
- |
|
|
|
|
$ |
38,706 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
2,826 |
|
|
- |
|
|
2,826 |
|
|
3,113 |
|
|
- |
|
|
3,113 |
|
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
29,479 |
|
$ |
21,040 |
|
|
|
|
$ |
30,345 |
|
$ |
20,927 |
|
|
|
|
Number of Revenue Days |
|
|
11,615 |
|
|
1,210 |
|
|
12,825 |
|
|
13,262 |
|
|
140 |
|
|
13,402 |
|
Handy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
- |
|
$ |
- |
|
|
|
|
$ |
13,861 |
|
$ |
- |
|
|
|
|
Number of Revenue Days |
|
|
- |
|
|
- |
|
|
- |
|
|
469 |
|
|
- |
|
|
469 |
|
Total Product Carriers Revenue Days |
|
|
14,666 |
|
|
1,350 |
|
|
16,016 |
|
|
16,844 |
|
|
502 |
|
|
17,346 |
|
Total Revenue Days |
|
|
23,119 |
|
|
3,173 |
|
|
26,292 |
|
|
25,318 |
|
|
1,177 |
|
|
26,495 |
Revenue days in the above tables exclude days related to full service lighterings and days for which recoveries were recorded under the Company’s loss of hire insurance policies. In addition, during 2023 and 2022, certain of the Company’s vessels were employed on transitional voyages in the spot market prior to delivering to pools. These transitional voyages are excluded from the tables above.
During the 2023 and 2022 periods, each of the Company’s LR1s participated in the
Fleet Information
As of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at |
|||
|
|
Vessels Owned |
|
|
Vessels Chartered-in |
|
|
Total Vessels |
|
|
Total Dwt |
Operating Fleet |
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
4 |
|
|
9 |
|
|
13 |
|
|
3,910,572 |
Suezmax |
|
13 |
|
|
- |
|
|
13 |
|
|
2,061,754 |
Aframax |
|
4 |
|
|
- |
|
|
4 |
|
|
452,375 |
Crude Tankers |
|
21 |
|
|
9 |
|
|
30 |
|
|
6,424,701 |
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
1 |
|
|
- |
|
|
1 |
|
|
112,691 |
LR1 |
|
6 |
|
|
1 |
|
|
7 |
|
|
522,698 |
MR |
|
31 |
|
|
4 |
|
|
35 |
|
|
1,750,854 |
Product Carriers |
|
38 |
|
|
5 |
|
|
43 |
|
|
2,386,243 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Fleet |
|
59 |
|
|
14 |
|
|
73 |
|
|
8,810,944 |
|
|
|
|
|
|
|
|
|
|
|
|
Newbuild Fleet |
|
|
|
|
|
|
|
|
|
|
|
LR1 |
|
4 |
|
|
- |
|
|
4 |
|
|
294,400 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Newbuild Fleet |
|
4 |
|
|
- |
|
|
4 |
|
|
294,400 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating and Newbuild Fleet |
|
63 |
|
|
14 |
|
|
77 |
|
|
9,105,344 |
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) Adjusted Net Income
Adjusted Net Income consists of Net Income adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. This measure does not represent or substitute net income or any other financial item that is determined in accordance with GAAP. While Adjusted Net Income is frequently used as a measure of operating results and performance, it may not be necessarily comparable with other similarly titled captions of other companies due to differences in methods of calculation. The following table reconciles net income, as reflected in the consolidated statement of operations, to Adjusted Net Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
||||||
($ in thousands) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net income |
|
$ |
132,114 |
|
$ |
218,429 |
|
$ |
556,446 |
|
$ |
387,891 |
Third-party debt modification fees |
|
|
- |
|
|
- |
|
|
568 |
|
|
1,158 |
Loss on sale of investments in affiliated companies |
|
|
- |
|
|
- |
|
|
- |
|
|
9,513 |
Gain on disposal of vessels and other assets, net of impairments |
|
|
(25,286) |
|
|
(10,308) |
|
|
(35,934) |
|
|
(19,647) |
Gain on sale of interest in DASM |
|
|
- |
|
|
- |
|
|
- |
|
|
(135) |
Write-off of deferred financing costs |
|
|
734 |
|
|
656 |
|
|
2,686 |
|
|
1,266 |
Loss on extinguishment of debt |
|
|
- |
|
|
- |
|
|
1,323 |
|
|
- |
Adjusted Net Income |
|
$ |
107,562 |
|
$ |
208,777 |
|
$ |
525,089 |
|
$ |
380,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (diluted) |
|
|
49,343,856 |
|
|
49,619,307 |
|
|
49,428,967 |
|
|
49,844,904 |
Adjusted Net Income per diluted share |
|
|
|
|
|
|
|
|
|
|
|
|
(B) EBITDA and Adjusted EBITDA
EBITDA represents net 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 income as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
||||||
($ in thousands) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net income |
|
$ |
132,114 |
|
$ |
218,429 |
|
$ |
556,446 |
|
$ |
387,891 |
Income tax provision |
|
|
3,446 |
|
|
25 |
|
|
3,878 |
|
|
88 |
Interest expense |
|
|
14,081 |
|
|
17,091 |
|
|
65,759 |
|
|
57,721 |
Depreciation and amortization |
|
|
33,682 |
|
|
28,404 |
|
|
129,038 |
|
|
110,388 |
EBITDA |
|
|
183,323 |
|
|
263,949 |
|
|
755,121 |
|
|
556,088 |
Amortization of time charter contracts acquired |
|
|
- |
|
|
- |
|
|
- |
|
|
842 |
Third-party debt modification fees |
|
|
- |
|
|
- |
|
|
568 |
|
|
1,158 |
Loss on sale of investments in affiliated companies |
|
|
- |
|
|
- |
|
|
- |
|
|
9,513 |
Gain on disposal of vessels and other assets, net of impairments |
|
|
(25,286) |
|
|
(10,308) |
|
|
(35,934) |
|
|
(19,647) |
Gain on sale of interest in DASM |
|
|
- |
|
|
- |
|
|
- |
|
|
(135) |
Write-off of deferred financing costs |
|
|
734 |
|
|
656 |
|
|
2,686 |
|
|
1,266 |
Loss on extinguishment of debt |
|
|
- |
|
|
- |
|
|
1,323 |
|
|
- |
Adjusted EBITDA |
|
$ |
158,771 |
|
$ |
254,297 |
|
$ |
723,764 |
|
$ |
549,085 |
(C) Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
2023 |
|
|
2022 |
Cash and cash equivalents |
$ |
126,760 |
|
$ |
243,744 |
Short-term investments |
|
60,000 |
|
|
80,000 |
Total Cash |
$ |
186,760 |
|
$ |
323,744 |
(D) 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 |
|
Fiscal Year Ended |
||||||||
($ in thousands) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Time charter equivalent revenues |
|
$ |
247,912 |
|
$ |
335,650 |
|
$ |
1,055,519 |
|
$ |
853,710 |
Add: Voyage expenses |
|
|
2,822 |
|
|
2,507 |
|
|
16,256 |
|
|
10,955 |
Shipping revenues |
|
$ |
250,734 |
|
$ |
338,157 |
|
$ |
1,071,775 |
|
$ |
864,665 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228516089/en/
Investor Relations & Media Contact:
(212) 578-1602
ttrovato@intlseas.com
Source: