2024-01-24 01:32:57 ET
Summary
- International Seaways is the largest US-listed, US-headquartered tanker company with a diverse fleet of crude and product tankers.
- INSW has strong financials, with ample liquidity and a solid balance sheet, and commands solid margins and returns compared to other large tanker owners.
- Crude oil production grows in the West while declines in the East. On the other hand, the refining capacity declines in the West and increases in the East.
- The market values the Company at 94% P/NAV and 2.77 EV/Sales, 4.09 EV/EBITDA, and 1.56 P/BV. INSW is a buy at that price, considering its fleet quality, geopolitical tailwinds, and market fundamentals.
Introduction
International Seaways ( INSW ) is the largest US-listed and US-headquartered tanker company. It owns a fleet of 30 crude oil tankers and 47 product tankers. The composite average of the fleet is 9.8 years. INSW follows a hybrid model of operating its fleet; a significant portion of its vessels are part of commercial pools attractive to large charterers. Being a part of a commercial pool benefits the shipowner due to better pricing for bunkering, agency fees, and administrative costs.
Financially, INSW is sound, with ample liquidity and a strong balance sheet. The company has $138.9 million cash, $706 million long-term debt, and $721 million Total debt (including leases). INSW also commands solid margins and returns compared to other large tanker owners. INSW had distributed dividends with 0.91% TTM yield and repurchased 366,483 shares at an average price of $38.03 for 9M23....
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International Seaways: Betting On Crude Oil And Product Tankers At Once