2024-01-24 06:49:44 ET
Summary
- International Seaways is a US-listed small-cap company involved in international shipments of crude oil and oil products.
- INSW operates a large fleet, which is slightly younger than the average market age, and has recently acquired new tankers.
- Revenue is expected to increase in 2023 but decline in 2024 due to a decrease in spot rates while operating costs are projected to increase.
Investment thesis
International Seaways ( INSW ), Inc. is a US-listed small-cap company doing business in international shipments of crude oil and oil products.
Over the past couple of years, 85% of revenue came from contracts that were concluded at spot rates, which has allowed the company to benefit when maritime shipping went through periods of turbulence. For example, as shipping companies have responded to the increased risks associated with Houthi attacks in the Red Sea by diverting ships to alternative routes, International Seaways shares have risen more than 15%.
The company operates a large fleet, which is slightly younger than the average market age. In 2023 it took delivery of three new dual-fuel VLCC tankers, which are much sought after in the market. Plans are to take delivery of two LR1 tankers at the end of 2025....
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International Seaways: A Bet On Tanker Shipping