International Seaways, Inc., one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, reported results for the fourth quarter and full year of 2024.

HIGHLIGHTS & RECENT DEVELOPMENTS

Annual and Quarterly Results:

•Net income for the fourth quarter was $36 million, or $0.72 per diluted share. Net income for the full year of 2024 was $417 million, or $8.38 per diluted share.

•Adjusted net income, defined as net income excluding special items, for the fourth quarter of 2024 was $45 million, which excludes a non-cash impairment charge in connection with the fleet optimization program described below.

•Adjusted EBITDA for the fourth quarter was $95 million and for the full year of 2024 was $583 million.

Fleet Optimization Program:

Executed vessel swap (the “swap”), exchanging two of the Company’s oldest VLCCs and $3 million in cash for three 2015-built MRs through a series of sales and purchase transactions. The transactions primarily closed during the first quarter of 2025 with one MR delivery in late December 2024.

Robust Balance Sheet:

•Total liquidity was approximately $632 million as of December 31, 2024, including total cash of $157 million and $475 million undrawn revolving credit capacity.

•Utilized $70 million of revolving credit capacity in connection with the swap that the Company repaid in the first quarter of 2025.

•Net loan-to-value remained low at approximately 15.5% as of December 31, 2024.

Returns to Shareholders:

•Paid a combined $1.20 per share in regular and supplemental dividends in December 2024.

•Paid $5.77 per share in combined dividends during the full year of 2024, reflecting a 12% dividend yield on the average share price over the same period.

• Declared a combined dividend of $0.70 per share to be paid in March 2025, representing 77% of adjusted net income for the fourth quarter.

“We delivered another strong year of financial results and took advantage of a solid rate environment to further advance Seaways’ balanced capital allocation strategy,” said Lois K. Zabrocky, International Seaways President and CEO. “For the second consecutive year, we returned over $300 million to shareholders, primarily through dividends, representing 12% yield on our average market capitalization over the year. Carrying this momentum forward, we’ve declared a combined dividend for the first quarter of $0.70 per share, which represents over 75% of adjusted net income for the second consecutive quarter.”

Ms. Zabrocky added, “Seaways continues to be opportunistic with fleet renewal across our variety of asset classes with acquisitions of modern, eco tonnage and divestitures of older vessels, exemplified by our most recent vessel swap. With a healthy balance sheet, we are committed to disciplined growth while returning significant value to shareholders. Looking ahead, we are optimistic about the market’s direction, supported by favorable supply-demand dynamics, higher ton-mile demand and continued disruptions due to geopolitical uncertainty.”

Jeff Pribor, the Company’s CFO stated, “We are pleased with our success enhancing our capital structure during the year by converting our term loans into revolving capacity, which saved more than $80 million per year in mandatory debt repayments and increased our free cash flow. With total liquidity of over $630 million and one of the lowest net-loan-to-value ratios in the industry at 15.5%, we believe we are ideally positioned to build on our track record of balanced and disciplined capital allocation, investing in the fleet opportunistically, maintaining a healthy balance sheet and continuing to return capital to shareholders.”

FOURTH QUARTER 2024 RESULTS

Net income for the fourth quarter of 2024 was approximately $36 million, or $0.72 per diluted share, compared to net income of $132 million, or $2.68 per diluted share, for the fourth quarter of 2023. The decrease was primarily driven by a decrease in TCE revenues higher depreciation and amortization as a result of changes in the fleet, and a non-cash impairment charge of $9 million in connection with the swap compared to $25 million in gains on vessel sales in the fourth quarter of 2023.

Shipping revenues for the fourth quarter were $195 million, compared to $251 million for the fourth quarter of 2023. Consolidated TCE revenues for the fourth quarter were $191 million, compared to $248 million for the fourth quarter of 2023.

Adjusted EBITDA for the fourth quarter was $95 million, compared to $159 million for the fourth quarter of 2023.

Crude Tankers

Shipping revenues for the Crude Tankers segment were $96 million for the fourth quarter of 2024, compared to $125 million for the fourth quarter of 2023. TCE revenues were $93 million for the fourth quarter, compared to $123 million for the fourth quarter of 2023. This decrease was attributable to lower spot rates as the average spot earnings of the VLCC, Suezmax and Aframax sectors were approximately $35,600, $29,700 and $31,200 per day, respectively, compared with approximately $43,000, $47,300 and $44,000 per day, respectively, during the fourth quarter of 2023.

Product Carriers

Shipping revenues for the Product Carriers segment were $99 million for the fourth quarter of 2024, compared to $126 million for the fourth quarter of 2023. TCE revenues were $97 million for the fourth quarter, compared to $125 million for the fourth quarter of 2023. This decrease is primarily attributable to a decline in LR1 and MR spot earnings to approximately $37,100 and $21,500 per day, respectively, from approximately $46,200, and $31,500 per day, respectively in the fourth quarter of 2023.

FULL YEAR 2024 RESULTS

Net income for the year ended December 31, 2024, was $417 million, or $8.38 per diluted share, compared to net income of $556 million, or $11.25 per diluted share, for the year ended December 31, 2023. Adjusted net income(1) for the year ended December 31, 2024, was $385 million, or $7.75 per diluted share, compared to $525 million, or $10.62 per diluted share for the year ended December 31, 2023.

Shipping revenues for the year ended December 31, 2024, were $952 million, compared to $1,072 million for the year ended December 31, 2023. Consolidated TCE revenues for the year ended December 31, 2024, were $933 million, compared to $1,056 million for the year ended December 31, 2023.

Adjusted EBITDA for the year ended December 31, 2024 was $583 million, compared to $724 million for the year ended December 31, 2023.

Crude Tankers

Shipping revenues for the Crude Tankers segment were $451 million for the year ended December 31, 2024, compared to $524 million for the year ended December 31, 2023. TCE revenues for the Crude Tankers segment were $437 million for the year ended December 31, 2024, compared to $512 million for the year ended December 31, 2023.

Product Carriers

Shipping revenues for the Product Carriers segment were $500 million for the year ended December 31, 2024, compared to $548 million for the year ended December 31, 2023. TCE revenues for the Product Carriers segment were $496 million for the year ended December 31, 2024, compared to $543 million for the year ended December 31, 2023.

International Seaways, Inc. press release