Executive Summary

Q4 2024 revenue and earnings stepped down sequentially on softer spot rates: Shipping revenues $194.6M, diluted EPS $0.72, adjusted EBITDA $95.0M; adjusted net income $45.0M ($0.90/diluted share) after excluding a $9M impairment tied to a fleet swap .
Management declared a combined $0.70/share dividend for March 2025 and set a minimum 75% payout ratio going forward; liquidity remained strong at ~$632M and net loan-to-value at ~15.5% .
Operational tone positive into Q1 2025: blended spot TCE booked-to-date ~$26,500/day on ~70% of expected revenue base; spot cash breakeven ~ $13,700/day, supporting continued free cash flow .
Strategic fleet optimization continues (swap of two older VLCCs + $3M cash for three 2015-built MRs) to lower fleet age and enhance efficiency; pro forma undrawn revolver capacity ~$560M post repayments .

What Went Well and What Went Wrong

What Went Well

Capital returns and payout policy clarity: “Shareholders should expect 75% or minimum of 75% payout ratio” with a practical cadence around ~$0.70/share; buybacks remain available under a $50M authorization .
Balance sheet flexibility enhanced: term loans converted to revolving capacity, lowering mandatory repayments and interest margin; liquidity ~$632M, undrawn revolving capacity $475M at year-end, pro forma ~$560M after early 2025 repayments .
Fleet renewal strategy executed: “We sold 2 of our oldest VLCCs and paid $3 million in cash for 3 eco MRs built in 2015,” reducing average fleet age around 10 years and positioning for upside .

What Went Wrong

Rates-driven revenue compression: consolidated TCE revenues fell to $190.6M in Q4 (from $247.9M in Q4’23) and shipping revenues to $194.6M (from $250.7M) on weaker VLCC/Suezmax/Aframax and LR1/MR spot markets .
Expenses higher than internal guidance: vessel expenses and G&A ran hot due to timing of stores/spares, repairs/maintenance, and one-off legal matters, tempering EBITDA conversion in Q4 .
Non-cash impairment and lack of Q4’23 sale gains: $9M impairment tied to the swap vs ~$25M gains on vessel sales in Q4’23; diluted EPS down to $0.72 (vs $2.68 YoY) .

Financial Results

Quarterly Trend (older → newer)

Metric	Q2 2024	Q3 2024	Q4 2024
Shipping Revenues ($USD Millions)	$257.409	$225.190	$194.613
Consolidated TCE Revenues ($USD Millions)	$251.848	$219.687	$190.640
Adjusted EBITDA ($USD Millions)	$166.956	$130.032	$94.846
Diluted EPS ($USD)	$2.91	$1.84	$0.72

Year-over-Year (Q4 2023 vs Q4 2024)

Metric	Q4 2023	Q4 2024
Shipping Revenues ($USD Millions)	$250.734	$194.613
Consolidated TCE Revenues ($USD Millions)	$247.912	$190.640
Net Income ($USD Millions)	$132.114	$35.823
Adjusted EBITDA ($USD Millions)	$158.771	$94.846
Diluted EPS ($USD)	$2.68	$0.72

Margins (computed from reported figures)

Margin	Q2 2024	Q3 2024	Q4 2024
Adjusted EBITDA Margin (%)	64.9% (,)	57.7% (,)	48.7% (,)
Net Income Margin (%)	56.2% (,)	40.7% (,)	18.4% (,)

Note: Margins are calculated using Adjusted EBITDA or Net Income divided by Shipping Revenues, with sources cited for the underlying components.

Segment Breakdown

Segment	Q2 2024 Shipping Rev ($M)	Q3 2024 Shipping Rev ($M)	Q4 2024 Shipping Rev ($M)
Crude Tankers	$125.4	$103.0	$96.0
Product Carriers	$132.0	$122.0	$99.0

Segment	Q2 2024 TCE Rev ($M)	Q3 2024 TCE Rev ($M)	Q4 2024 TCE Rev ($M)
Crude Tankers	$120.9	$99.0	$93.0
Product Carriers	$131.0	$121.0	$97.0

KPIs

KPI	Q4 2023	Q4 2024
Avg VLCC Spot Earnings ($/day)	~$43,000	~$35,600
Avg Suezmax Spot Earnings ($/day)	~$47,300	~$29,700
Avg Aframax Spot Earnings ($/day)	~$44,000	~$31,200
Avg LR1 Spot Earnings ($/day)	~$46,200	~$37,100
Avg MR Spot Earnings ($/day)	~$31,500	~$21,500
Total Revenue Days	6,471	6,697

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Payout Ratio	Ongoing	~75% (Q3 cadence)	Minimum 75% going forward	Maintained/clarified
Combined Dividend per Share	Q4 2024 (paid Dec 2024) vs Q4 2024 results distribution	$1.20 declared for Dec 2024	$0.70 declared for Mar 28, 2025 (record Mar 14)	Lowered sequentially
Blended Spot TCE (Booked-to-date)	Q1 2025	N/A	~$26,500/day on ~70% of expected revenue base	New disclosure
Spot Cash Breakeven	Forward	~$14,000/day next 12 months	~$13,700/day	Lowered
Undrawn Revolving Capacity (Pro Forma)	Early 2025	~$540M at 9/30/24	~$560M after prepayments	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Capital returns and payout policy	Dividends $1.50 in Sept; ~$5.77/share in 2024; authorization to $50M buybacks	Minimum 75% payout; $0.70/share declared; buybacks remain in mix	Policy clarified; steady returns
Market fundamentals (ton-mile, orderbook, supply)	Positive oil demand, elevated ton-miles; ~13% orderbook vs aging fleet	45% fleet heading >20 years vs ~14% on order; supportive of cycle	Supportive; durability emphasized
Rates and segment dynamics	Q3 spot VLCC ~$29.7k; MR ~$29k/day; LR1 strong niche	Q4 softness across VLCC/Suez/Afra; LR1/MR down; Q1 MR strength shifting to Asia	Mixed; geographic rotation
Balance sheet optimization	RCF amended; lower mandatory repayments and margin	Pro forma undrawn revolver ~$560M; fixed-rate hedges rising toward ~80%	Flexibility up
Fleet renewal	Took delivery of six modern MRs; sold older MRs	VLCC→MR swap; aim to drive down fleet age to ~10 years; add back big crude later	Continued renewal
Geopolitics and safety (Red Sea, sanctions)	Ton-mile support from disruptions	No push from charterers to resume Red Sea transit; market waiting for sustained stability	Risk managed, cautious ops

Management Commentary

“We sold 2 of our oldest VLCCs and paid $3 million in cash for 3 eco MRs built in 2015…showcases our ability to opportunistically reduce our vessel ages…enhance our fleet efficiency” — Lois Zabrocky .
“Shareholders should expect 75% or minimum of 75% payout ratio…helpful to have a round number like $0.70 per share” — Jeff Pribor .
“Currently, we have a blended average spot TCE of about $26,500 per day fleet-wide on 70% of our first quarter expected revenue base…forward spot breakeven rate is about $13,700 per day” — Jeff Pribor .
“We have 14 time charters…nearly 20% of our tonnage on time charter at present” — Lois Zabrocky .
“Our lightering business continues to prosper…contributed nearly $3 million in EBITDA in the fourth quarter as well as an annual EBITDA contribution of nearly $20 million in 2024” — Jeff Pribor .

Q&A Highlights

Payout policy: Minimum 75% payout ratio reiterated; dividend level will flex with earnings; buybacks remain opportunistic under a $50M program .
Chartering mix: ~20% of fleet on time charter; management continuously evaluates locking in charters at “right partners, right term, right rate” .
MR rates and geography: U.S. Gulf moderating; Asia strengthening; pool scale provides exposure to capture Eastern upside .
LR1 niche: Continued outperformance; Ecuador barrels shifting to China affects trade patterns, expected to normalize with West Coast flows .
Suezmax correlation: Historically tight linkage to VLCC; expectation for Suezmax to follow if VLCC strength builds with geopolitical and regulatory factors .
Red Sea transit: Charterers not pushing for transits; market waiting for de-escalation and sustained stability .

Estimates Context

Wall Street consensus estimates from S&P Global for Q4 2024 (EPS and revenue) were unavailable at the time of analysis due to provider request limits. As a result, we cannot quantify beats/misses vs consensus for Q4 2024, Q3 2024, or Q2 2024 at this time. If/when estimates become available, compare diluted EPS ($0.72) and shipping revenues ($194.6M) to consensus to adjust near-term models .
Note: Consensus data intended to be sourced from S&P Global (Capital IQ); unavailable during retrieval.

Key Takeaways for Investors

Sequential normalization: Q4 revenues/EBITDA/EPS declined vs Q3 on softer spot markets across crude and product classes; the rate backdrop explains most of the compression .
Dividend visibility and policy anchor: Minimum 75% payout ratio and declared $0.70/share for March 2025 provide clarity; expect returns to flex with rate-driven earnings .
Q1 setup constructive: Booked ~$26.5k/day blended spot TCE on ~70% of revenue days, with spot breakevens ~$13.7k/day supporting continued free cash generation and potential supplemental dividends .
Balance sheet as a strategic asset: Revolvers, hedge mix, and low net LTV (~15.5%) enable opportunistic fleet actions and shareholder returns through the cycle .
Fleet age reduction boosts cycle capture: VLCC→MR swap and prior MR acquisitions keep average age ~10 years, improving efficiency and positioning for multi-year tanker upcycle .
Watch regional rate rotation: MR strength moving toward Asia while Atlantic moderates; LR1 niche remains favorable with potential uplift if Ecuador flows normalize .
Catalysts: Sustained rate strength, confirmation of Q1 realized TCE above breakeven, further payout declarations/buybacks, and any accretive crude-side fleet additions are likely stock drivers .

International Seaways, Inc. (INSW)·Q4 2024 Earnings Summary