International Seaways, Inc. (NYSE:INSW) Q3 2023 Earnings Call Transcript

Lois Zabrocky: Yes. So, what I would say is that, you’ve seen the whole crude space pick up, consistent with the last 18 months the middle part of the space, the Panamaxes, Aframaxes, and the Suezmaxes, that are kind of focused on delivering into Europe shorter-haul crudes, have really been superstars, and that continues. So, we’ve seen the Suezmaxes pick up, they are still very strong, and the whole crude space moved up after really the first cyclicality we saw this summer, in a long time.

Liam Burke: And, Jeff, you highlighted the $3,000 per day per vessel decline in cash cost per vessel. How much of that is operating savings, and how much of that is financial-related in terms of lower principal payments, interest, et cetera?

Jeff Pribor: Hi, Liam. It’s mainly the latter. I think we gave guys that were working hard to keep expenses in a good place, but the achievements in terms of lower, break-evens are primarily from reducing interest costs in debt and also reducing amortization on debt when you lower the principal, and if it’s due, the amortization goes down as well, and the new revolving credit facility shifting more to that from term it also does that. So, it’s primarily the balance sheet.

Liam Burke: Great.

Jeff Pribor: But also the time charters, as you can tell from the chart – we were talking about break-evens on spot vessels, so it’s also benefited from the commercial department putting on incrementally more time charters. So, it’s those two factors.

Liam Burke: Okay, great. Thank you, Lois. Thank you, Jeff.

Derek Solon: Thank you.

Jeff Pribor: Thank you.

Operator: Thank you. As there are no additional questions waiting at this time, I would like to turn the conference call back over to Lois Zabrocky for closing remarks.

Lois Zabrocky: Thank you, Candice. I just want to thank everyone for joining International Seaways. And we are broadcasting here from Bahri Dubai International Tanker Week, where we’re seeing customers. And we really appreciate your interest in International Seaways and wish everyone to stay well. Thank you very much.

Operator: Ladies and gentlemen, this concludes today’s International Seaways’ third quarter 2023 results call. Have a great rest of your day. You may now disconnect your lines.