Presentation

International Seaways is an owner and operator of crude and product tankers, with a joint venture in the FSO segment as well. The company was formed in late 2016 after Overseas Shipholding Group (OSG) split its business segments into two companies. While the Jones Act fleet lives on under the OSG name, its international fleet was spun off into International Seaways. Headquartered in New York, the company was listed on NYSE immediately after the split in December 2016. International Seaways currently has a market capitalization of USD 460m and had net debt of USD 500m as of Q2’20.

The company’s fleet consists of 39 operation vessels, including two FSOs owned through a joint venture. The wholly owned fleet comprises 24 crude tankers (13 VLCCs, two suezmaxes, two aframax vessels and seven panamaxes) and ten product tankers (one LR2, five LR1s and four MRs). In addition, the company has chartered in three vessels; two aframaxes and one panamax. International Seaways employs a strategy of a balanced mix between fixed contracts and spot market exposure.

The company has taken advantage of the recent spot market highs to secure attractive TCs for its VLCCs and delivered a solid Q2. INSW continues to repay debt and buy back stock – a sensible strategy given its substantial discount to NAV. We expect further enhancement of the VLCC-fleet and panama-niche (the two segments that generate the highest returns) and further debt reductions despite a relatively low leverage.