2024-04-13 05:29:17 ET
Summary
- INSW is a bet on the continuation of the tanker cycle's upward move. The company offers exposure to the broad tanker universe, having crude and product tankers.
- In 2023, INSW scored remarkable results: a triple-digit cash flow growth and 15% FCF yield.
- The INSW LTM dividend yield is 12.02%. In FY23, it paid $308 million in dividends, or $6.29/share. The company keeps the payout ratio below 60%.
- INSW trades at 81% PNAV, owns a quality fleet and has a 21% gross LTV. I update its rating to a Strong Buy.
Note: I previously covered International Seaways ( INSW ) in January 2024. In my note on INSW, I discussed the company's diverse fleet of crude and product tankers, its superior finances, and valuations. I pointed out that the tanker (crude and product) market will remain robust due to the dislocation between crude oil supply and demand, plus tanker supply constraints. Consumption will grow East while production will grow West, resulting in higher tonne-mile demand for crude oil transportation. In conclusion, I rated INSW as a Buy. In today’s article, I reviewed the 2023 figures and update the company's valuation.
Fleet review
INSW is not a crude oil pure play. The company also owns a large fleet of product tankers, which represent approximately 30% of the company’s dwt. INSW owns 13 VLCC, 13 Suezmax, and 4 Aframax tankers. Its product tankers division includes 1 LR2, 11 LR1, and 35 MRs. INSW's average fleet age is ten years....
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For further details see:
International Seaways: One Of The Best-Diversified Tanker Companies; Rating Upgrade