International Seaways, Inc. (NYSE:INSW) Q4 2022 Earnings Call Transcript

Lois Zabrocky: We’d love having that spot market presence at the moment, obviously. We will opportunistically look to lay in some of these time charters. Remembering that the 3Ds that are coming into the fleet. Yes, they have a profit share, but they do have a base time charter rate. So we sort of put those in the time charter bucket, and then we look to add some other vessel classes into that, some MRs, potentially some Suezmaxes, that’s sort of our approach at the moment. And I was saying, probably 10% to 15% we would look to put on, one-year time charter doesn’t really do a lot at the moment, maybe multi-year time charter as provided we can get enough alpha in that to make that look very good on our balance sheet.

Liam Burke: Great, thank you. And Jeff, on the variable component of the dividend, I mean, you don’t have to share with us, but do you have any percentage of cash flow that you’d allocate to that variable dividend, or how do you think about that internally?

Jeff Pribor: Yes. Hi Liam. So we’ll stick with the terminology of a regular dividend with a supplemental dividend quarter by quarter as board sees fit for a combined total. And what I would point out from our presentation is that, we had free cash flow of about $130 million that’s in that cash bridge in the deck. And if you look at the combined dividend, it’s just right around 75% of that so substantial portion of free cash flow. And that’s very similar to what we did in Q €“ the prior quarter. Everyone’s net income is a little different relative to their cash flow based on their balancing and their depreciation. So, I also think we look at this as a percentage of the share price and we find it as very competitive that way as well. So, but I think mainly look at the free cash flow, Liam, that’s a good guide to what we’ve done in the last two quarters.

Liam Burke: Great. Thank you, Lois. Thank you, Jeff.

Lois Zabrocky: Thank you, Liam.

Operator: Thank you, Liam. We have no further questions on the line. I’ll now hand back to Lois for closing remarks.

Lois Zabrocky: Thank you very much, Glenn. Thank you everyone for your interest in International Seaways, the tanker company for today and tomorrow. Thank you very much.

Operator: Thank you. Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.