International Seaways Q1 2025 Earnings Report

International Seaways EPS Results

• Actual EPS: $0.80
• Consensus EPS: $0.59
• Beat/Miss: Beat by +$0.21
• One Year Ago EPS: $2.92

International Seaways Revenue Results

• Actual Revenue: $178.34 million
• Expected Revenue: $176.49 million
• Beat/Miss: Beat by +$1.85 million
• YoY Revenue Growth: -32.90%

International Seaways Announcement Details

• Quarter: Q1 2025
• Date: 5/8/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, May 8, 2025
• Conference Call Time: 9:00AM ET

International Seaways (NYSE:INSW) owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments: Crude Tankers and Product Carriers. As of December 31, 2023, the company owned a fleet of 73 vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.

International Seaways Q1 2025 Earnings Call Transcript

Key Takeaways

• Strong first-quarter results: Net income was $50 million ($1.00/share), adjusted net income was $40 million ($0.80/share) and adjusted EBITDA was $91 million, driven by average TCE rates above $30,000/day versus a cash breakeven of ~$13,500/day.
• Robust Q2 outlook: As of today, Q2 spot TCE is ~$31,200/day on 45% of expected revenue days against a breakeven of ~$13,500/day, indicating continued strong free cash flow and capacity to return capital to shareholders.
• Healthy balance sheet and liquidity: Ended Q1 with $673 million total liquidity (including $133 million cash and $540 million undrawn revolver), gross debt of ~$600 million and net loan-to-value of ~15%, with 34 unencumbered vessels.
• Active fleet renewal and capital allocation: Swapped two older VLCCs plus cash for three ECO MRs, secured a one-year Suezmax time charter worth ~$295 million, declared a $0.60/share dividend (75% of adjusted net income) and authorized a $50 million repurchase program.
• Favorable market fundamentals: Rising oil production, longer-haul trade flows, an aging tanker fleet with limited newbuild replacements, geopolitical rerouting and storage incentives point to a sustained upcycle in tanker markets.

Presentation

[Operator]

Hello, and welcome to the International CUA's First Quarter twenty twenty five Earnings Conference Call. My name is Carla, and I will be coordinating your call today. During the presentation, you will have the opportunity to ask questions by pressing star followed by one on your telephone keypad.

[Operator]

If you change your mind, please press star followed by 2. I would now like to hand you over to the General Counsel, James Small, to begin. James, please go ahead when you're ready.

[James Small, Chief Administrative Officer, SVP, General Counsel & Secretary at International Seaways]

Thank you, operator. Good morning, everyone, and welcome to International Seaway's earnings call for the first quarter of twenty twenty five. Before we begin, I would like to start off by advising everyone with us on the call today of the following. During this call and in the accompanying presentation, management may make forward looking statements regarding the company or the industry in which it operates, which may address, without limitation, the following topics: outlooks for the crude and product tanker markets changes in trading patterns forecasts of world and regional economic activity and of the demand for and production of oil and petroleum products the company's strategy and business prospects expectations about revenues and expenses, including vessel charter hire and G and A expenses estimated future bookings, TCE rates and capital expenditures projected drydock and off hire days vessel sales and purchases, new build vessel construction, the effects of ongoing and threatened conflicts around the globe, economic, regulatory, and political developments in The United States and globally, the company's ability to achieve its financing and other objectives and its consideration of strategic alternatives anticipated financing transactions and plans to issue dividends and the company's relationships with its stakeholders. Any such forward looking statements take into account various assumptions made by management based on a number of factors, including management's experience and perception of historical trends, current conditions, expected and future developments, and other factors that management believes are appropriate to consider in the circumstances.

[James Small, Chief Administrative Officer, SVP, General Counsel & Secretary at International Seaways]

Forward looking statements are subject to risks, uncertainties and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from those implied or expressed by the statements. Factors, risks and uncertainties that could cause the company's actual results to differ from expectations include those described in our annual report on Form 10 ks for 2024 and our quarterly report on Form 10 Q for the first quarter of twenty twenty five, as well as in other filings that we have made or in the future may make with the U. S. Securities and Exchange Commission. Now let me turn the call over to missus Lois Zumbrocki, our president and chief executive officer.

[James Small, Chief Administrative Officer, SVP, General Counsel & Secretary at International Seaways]

Lois?

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Thank you very much, Jane. Good morning, everyone. Thank you for joining International Seaways earnings call for the first quarter of twenty twenty five. On Slide four of the presentation, which you can find in the Investor Relations section of our website, net income for the first quarter was $50,000,000 or $1 per diluted share. Excluding gains on vessel sales, adjusted net income for the first quarter was $40,000,000 or $0.80 per diluted share and adjusted EBITDA was $91,000,000 essentially in line with our previous quarter.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

During the quarter, we saw month on month increases in the rate environment that continued into the second quarter with our weighted average rate at over $30,000 per day on 45% of our revenue days compared to our cash breakeven of about $13,500 per day as in the bottom left quadrant of the Slide four. It looks to us like we're in for another strong quarter. We ended the first quarter with $673,000,000 in total liquidity, which includes almost $550,000,000 of undrawn revolver capacity. We have just over $600,000,000 in gross debt at the end of the first quarter, which is about 15% net loan to value on our March vessel value. On the upper right hand side, we already mentioned the swap in our last quarter's earnings call.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

We swapped two older VLCCs plus $3,000,000 in cash for three ECO MRs. A majority of the swap was executed in the first quarter, but due to the timing of these transactions, we had net proceeds of $50,000,000 in the first quarter and net cash outflows for deposits and one MR in the prior quarter of $53,000,000 We also increased our time charter exposure to lock in fixed revenue. In April, we agreed on a one year time charter on one of our Suezmaxes to reach $295,000,000 in fixed revenue, most of which comes over the next two years. On the lower right, for the third consecutive quarter, we have announced another dividend representing 75% of our adjusted net income. The combined dividend will be paid in June, equating to $0.60 per share.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

We believe in following through on our intentions to return to shareholders as part of our balanced capital allocation strategy. After returning over $300,000,000 to shareholders in consecutive years, we continue to share in our upside, and we remain in position to do so today with our healthy balance sheet and strong tanker environment. Referencing the last bullet on slide four, we also have a repurchase program of up to $50,000,000 On slide five, we've updated our standard set of bullets on tanker demand drivers with the subtle green up arrows next to the bullet represented as good for tankers, the black dash representing a neutral impact, and a red down arrow, meaning the development is not positive for tanker demand. Without reading these bullets individually, we pull highlights. Oil production in 2025 and in 2026 is expected to increase by over a million barrels per day.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Non sanctioned OPEC plus continues to reinforce their output increases, which is supportive of VLCC trade. As a result, non OPEC production may continue to increase their output, and yet they are more sensitive to price fluctuations if the market becomes oversupplied and prices decline. Production from non OPEC is important for ton mile demand since much of the growth is expected in the Americas region, supportive of long haul trades. Oil demand should grow in line with its historical growth rates of 1% or about 1,000,000 barrels per day for the next few years. This takes into account forecasts, which have recently dropped by as much as a couple hundred thousand barrels per day due to the ongoing geopolitical environment.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

With much uncertainty about establishment and enforcement of regulations that affect global trade, there may be a lack of investment that slows the global economy. On the other side of that is the increase in changes to tanker routing that is less efficient and longer haul. This is supportive to our industry. In turn, we may see a forward curve in the crude price that incentivizes storage, which is needed, as you can see in the chart at the bottom left to Slide five. OECD inventories have drawn 100,000,000 barrels since August of twenty twenty four, which has muted the tanker markets in the short term.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

As the price curve flattened, as is the case today, we could see some restocking, which is positive for the tanker demand. On the lower right side, I don't think we had a page big enough or an update fast enough to cover the intensity of geopolitical environment. Canadian barrels on the West Coast are shifting a bit more toward a longer haul into Asia. The Red Sea remains on edge, and ships are still rerouting to avoid the area. The USTR legislation on Chinese vessels is still uncertain, but could create more division in the tanker space.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

It's too early to predict how these events and others not yet in the headlines can impact the tanker markets over the medium term. On slide six, the supply side continues to support a compelling case for tanker shipping. Tankers currently on order represent 14% of the fleet that deliver over the next four years. And by the time those ships deliver, 47% of the fleet will be over twenty years old, which we identified as the age where generally those ships trade in a different environment. Some charters or some ports may not accept vessels of this vintage.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

The simplest way to summarize this is that there are not enough ships to replace the current aging fleet. We also saw an increase of recycling in the first quarter, the highest volume of ships since the second quarter of twenty twenty two. If vessels continue to recycle, and it's hard to say at any pace since not all ship owners are alike, there may be a shortage of vessels on the water for commercial trading. We believe this should translate into a continued upcycle over the next few years, and Seaways remains well positioned to continue capitalizing on these market conditions. We'll continue to execute our balanced capital allocation approach to renew our fleet and to adapt to the ever changing industry conditions with a strong balance sheet while returning to our shareholders.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Now I'd like to turn it over to our CFO, Jeff Prebore, to provide the financial review. Jeff?

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Thanks, Lois, and good morning, everyone. On Slide eight, net income for the first quarter was $50,000,000 or $1 per diluted share. Excluding gains on vessel sales, our net income was $40,000,000 or $0.80 per diluted share. On the upper right chart, adjusted EBITDA for the first quarter of twenty twenty five was $91,000,000 In the appendix, we've provided a reconciliation from reported earnings to adjusted earnings. Our revenue and expenses were largely within expectations in the first quarter.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

We're pleased that our vessel expenses improved from last quarter and much of 2024 with reductions to repairs and maintenance. Our lightering business had over $8,000,000 in revenue in the quarter. Combining that with a bit under $3,000,000 in vessel expenses, less than $3,000,000 in charter hire and about $1,000,000 of G and A, the lightering business contributed about $2,000,000 in EBITDA in the first quarter. Turning to our cash bridge on Slide 9. We began the quarter with total liquidity of $632,000,000 composed of $157,000,000 in cash and $475,000,000 in undrawn revolving credit capacity.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Following along the chart from left to right on the cash bridge, we first added $91,000,000 in adjusted EBITDA for the quarter, plus $23,000,000 in debt service and another $19,000,000 in dry docket capital expenditures, offset by a working capital benefit of about $7,000,000 due to the timing of payables and receivables. We therefore achieved our definition of free cash flow of about $56,000,000 for the first quarter. This represents an annualized cash flow yield of over 12% on today's share price. We received $48,000,000 in connection with the now fully executed vessel swap, which began in the fourth quarter of twenty twenty four. Also in connection with that swap, we repaid $70,000,000 on the revolving credit facility that we drew on in the fourth quarter, which is included in the delever column.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

This column also includes a net $12,000,000 payment where we utilized and repaid amounts on the RCF for general cash management purposes. The total for the quarter is $82,000,000 To the right of this column, you will find our remaining capital allocation for the quarter, which was $10,000,000 in newbuilding installments and $34,000,000 in dividends representing $0.70 per share. The remaining $3,000,000 on the waterfall represents cash taxes paid for vesting or share exercises. Altogether, these components led to ending liquidity of $673,000,000 comprised of $133,000,000 in cash and $540,000,000 in undrawn revolving capacity. Moving to Slide 10.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

We have a strong financial position detailed by the balance sheet on the left hand side of the page. Cash and liquidity remained strong at $673,000,000 We have invested about $2,000,000 in vessels at cost, which are currently valued at about $3,000,000 And with $600,000,000 of gross debt at the end of the first quarter, our net loan to value is below 15%. Our debt at March 31 was nearly 80% hedged towards fixed rates, equating to an all in weighted average interest rate of about six seventeen basis points or just about 180 basis points above today's SOFR rate. On the lower right hand table, we have detailed our debt portfolio as of March 31. Since that time, I would note that we repaid $36,000,000 on the RCF, of which about $16,000,000 represents a reduction in RCF capacity that occurs at the end of every quarter.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

We like this practice of moderate payments to maintain our RCF capacity in order to support growth. And with $540,000,000 undrawn, we have ample liquidity for growth. Also, as we noted in our 10 Q that we filed this morning, our intention is to repay the Ocean Yield debt that carries interest at SOFR plus four zero five basis points. The outstanding principal amount of the loan is approximately $250,000,000 as of the fourth quarter when payment will be made, and we are reviewing our opportunities to maintain our maturity profile and reduce our interest expense. We continue to enhance our balance sheet to maintain the financial flexibility necessary to facilitate growth and returns to shareholders.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Our nearest maturity in the portfolio isn't until the next decade. We have 34 unencumbered vessels and we have ample undrawn RCF capacity. We continue to explore ways to lower our breakeven costs even more and share in the upside with double digit returns to shareholders. On the last slide that I'll cover, Slide 11 reflects our forward looking guidance and book to date TCE aligned with our spot cash breakeven rate. Starting with TCE's pictures for the second quarter of twenty twenty five, I'll remind you, as I always do, that actual TCE reported during our next earnings call may be different.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

As of today, we currently have a blended average spot TCE of about $31,200 per day fleet wide and 45% of our second quarter expected revenue days. On the right hand side of the slide, our forward spot breakeven rate is about $13,500 per day composed of a fleet wide breakeven of about $16,000 per day less nearly $2,600 per day of time charter revenues. Based on our spot TCE book to date and our spot breakeven, it looks like Seaways can continue to generate significant free cash flows during the second quarter and build on our track record of returning cash to shareholders. On the bottom left hand chart, we provide some updated guidance for our expenses in the second quarter and our estimates for 2025. We also include in the appendix our quarterly expected off hire and CapEx.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

I don't plan to read each item line by line, but encourage you to use these for modeling purposes. That concludes my remarks. I'd now like to turn the call back to Lois for closing comments.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Thank you very much, Jeff. On slide 12, we have provided you with Seaways investment highlights. Summarizing them briefly, over the last eight years, International Seaways has built a track record of returning cash to shareholders, maintaining a healthy balance sheet and growing the company. Our total shareholder return represents around 20% compounded annual return. We continue to renew our fleet so that our average age is about 10 years old in what we see as the sweet spot for tanker investments and returns.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

We've invested in a range of asset classes to cast a wider net for growth opportunities and to supplement our scale in each class by operating in larger pools. We aim to keep our balance sheet fortified for any down cycle. We have over $500,000,000 in undrawn credit capacity to support our growth. Our net debt is under 15% of the fleet's current value. And as Jeff mentioned, we have 34 vessels that are unencumbered.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Lastly, we only need our spot ships to collectively earn less than $13,500 per day to breakeven in the next twelve months. At this point in the cycle, we expect to continue generating cash that we will put to work to create value for the company and for our shareholders. We'd like to thank you very much. And operator, we'd like to open up the lines for questions.

[Operator]

Thank you, Louise. We will now begin the question and answer session. And our first question comes from Omar Nokta with Jefferies.

[Omar Nokta, Managing Director at Jefferies LLC]

You. Hi, Lois and Jeff. Good morning. I have just a couple of maybe finance questions. So maybe to you, Jeff, on six LR1s.

[Omar Nokta, Managing Director at Jefferies LLC]

You've got a little over $300,000,000 in payments to make on those. You've also got the $540,000,000 of undrawn capacity. Do you expect to use that for financing these remaining installments? Or do you intend to secure a separate financing package for those installments?

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

We're still evaluating.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Yep. We'll let Jeff answer that one.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Yes. Sorry. Yeah. Morning. Yes.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Lots of options. Still evaluating. It's a it's a great thing about the revolver is you always know you have that. So we kind of have the optionality to evaluate other other financing possibilities, and and we're doing that. So not too much more to say right now, but but lots of attractive, well priced and good terms options for us.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

So I look forward to telling you about it when we get closer.

[Omar Nokta, Managing Director at Jefferies LLC]

Okay. Alright. So it sounds like perhaps maybe you're still evaluating, but something may be in the works is what I'm inferring from that. Then, and I guess separately, Jeff, you mentioned the lease financing. Can't you mentioned a facility that you're looking to refinance in the amount of $250,000,000 Just thinking about the bar chart you show on Slide 11, where your combined breakeven is $16,100 With that refinancing, kind of what do you think that comes down to?

[Omar Nokta, Managing Director at Jefferies LLC]

Is that magnitude of 300 or $400? Or am I doing back of the envelope math wrong?

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Yep. Uh-huh. Thank you, Omar. Yeah. It can be the yeah.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Go ahead, Jeff.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Right. Following up yeah. Just back back to the first question for a second. Yes. I I I think you would expect us to evaluate lots of of options that we're fortunate to have on the financing side.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

So we we will do that knowing we always have to evolve. But back to the question you asked, yeah, I mentioned in my remarks that this was this facility now is at SOFR Plus 405, which was very attractive when it was done because it was virtually 100% financing. But now that the outstanding amount that I mentioned as of the payment date to approximately $250,000,000 is in the 50% of value special value area, we could expect to be refinancing that at a savings of at least a couple of hundred basis points on interest. If you look at our recent trend on financings with revolvers, there's likely to be significantly less amortization. So I would go with your estimate of several hundred dollars a day reduction in breakevens is the opportunity that we see in doing that refinancing.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Spot on.

[Omar Nokta, Managing Director at Jefferies LLC]

Okay. All right. Great. Jeff, thank you. Lois, thank you.

[Omar Nokta, Managing Director at Jefferies LLC]

I'll pass it back.

[Operator]

And the next question comes from Sheriff Almograwi with BTIG.

[Sherif Elmaghrabi, Equity Research Associate at BTIG]

Hey, good morning. Thanks for taking my question. Lois, you highlighted the 400,000 barrels a day OPEC plus bump this month and next. Has that shown up in conversations with charters? Or is it benefit tankers on a bit of a lag given some Middle Eastern overproduction there?

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Yes. Good morning, and thank you for the question. It seems that it's a little bit of a lag at the moment. From what we're sitting and seeing for the forward fixing markets, I mean, for sure, VLCCs have picked up in recent weeks, but they're a little bit sideways in the spot market at the moment. So we are anticipating increased listings as we head into the next quarter.

[Sherif Elmaghrabi, Equity Research Associate at BTIG]

Thanks. And then I've got one for Jeff. You guys completed some pretty substantial deleveraging over the last four months. So I guess on the other side of Omar's question, is there a leverage target you keep in mind? Or are we just being opportunistic, bearing in mind you've got some new bill payments to make?

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Go ahead, Jeff, and and share your your views on that.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Sure. Thanks, Sheree. As we've said before, we like the the leverage level we're at now, broadly sub 20%. We have to be sub 15% net loan to value. That's low leverage, not zero leverage.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

At this point in the cycle, that gives us the optionality to put some more leverage on when it's the right time to do it. So I don't think that refinancing the lease that we mentioned, that doesn't increase leverage. The LR1s will require a little leverage and definitely put some on one way or another. But that's not going to be a substantial increase in leverage. So we can easily absorb that and still have room for additional leverage when the time comes for more investment in assets.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Is that what you were asking, or can I fill in more?

[Sherif Elmaghrabi, Equity Research Associate at BTIG]

No. I think you've addressed it. Thanks very much for taking my question.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Sure.

[Operator]

The next question comes from Chris Robertson with Deutsche Bank.

[Christopher Robertson, Equity Research Analyst - Vice President at Deutsche Bank]

Hey, good morning, Louis and Jeff.

[Christopher Robertson, Equity Research Analyst - Vice President at Deutsche Bank]

Thanks for taking my questions.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Good morning.

[Christopher Robertson, Equity Research Analyst - Vice President at Deutsche Bank]

Just a market question for me. Since you operate in both the product and crude segments, you'll be in an advantaged position to answer this. Some of your product tanker peers have talked about the LR2 order book and their expectation around a pretty big percentage of those trading dirty. I guess, can you speak to your views on the LR2 market and where those new builds might trade?

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

You know, absolutely. I mean, we have one LR2. We do have it out at at a lucrative time charter around $40 a day at the moment. But we always think of APRs and LR2s as as one combined fleet of, you know, coming on 1,300 vessels with an aging profile on the upper side. And folks that are ordering l r two, you know, looks like, you know, it's kind of the size of vessel at this time where you just elect to coat due to the cost of the coating fee, you know, in relative to your overall asset investment to give yourself that optionality.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

You know, we tend to see the vessels dirty up when they become older. The more modern vessels tend to trade clean. And so when you look at that whole sector as a whole, even though there's a lot of LR2s on order, that entire fleet is aging fairly rapidly, and you have had, strong growth in your ton miles on both the APRAs and the LR2s.

[Christopher Robertson, Equity Research Analyst - Vice President at Deutsche Bank]

Got it. Yes, that makes sense.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

That's really it for me. I'll turn it over.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Thank you.

[Operator]

And

[Operator]

our next question comes from Liam Burke with B. Riley Securities.

[Liam Burke, Managing Director at B. Riley Securities]

Thank you. Good morning, Lois. Good morning, Jeff.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Good morning, Liam.

[Jeffrey Pribor, CFO, SVP & Treasurer at International Seaways]

Hi.

[Liam Burke, Managing Director at B. Riley Securities]

Well, let's see. The the step up

[Liam Burke, Managing Director at B. Riley Securities]

in

[Liam Burke, Managing Director at B. Riley Securities]

OPEC plus production has boosted VLCC rates, and but we've also got additional production coming out of no non OPEC plus countries as well. Where do you see does that benefit significantly your Suezmax vessels even though we're seeing nice nice lift in VLCC rates?

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Yeah. Thank you, Leen. Yeah. Absolutely. I mean, the now you've seen the VLCC take sort of their leadership position for the first time in probably three years, and the Suezmaxes have always had a strong correlation, you know, around 85% in tandem with the these, and you've seen them step up as well.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

I think I think another factor, you know, that's playing very well for, I'm gonna say, the legitimate trading fleet in the world is these low oil prices are creating a situation where the Russian barrels are going on legitimate tonnage, and that's creating more business for owners that have followed the right line all the way.

[Liam Burke, Managing Director at B. Riley Securities]

Great. Thank you. And, you've been pretty adept at lowering the age of your fleet in a very shareholder friendly manner. Are you seeing more opportunities to do that?

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

You know, we're always we're always out there looking, Liam, and you know, so we can never be idle. Right? You know? And indeed, we have our eyes open and are looking for those opportunities, you know, as we speak.

[Liam Burke, Managing Director at B. Riley Securities]

Fair enough. Thank you, Lois.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Thank you.

[Operator]

And as we currently have no further questions in the queue, I will hand back over to Lois Zebracki for any final comments.

[Lois Zabrocky, President and Chief Executive Officer at International Seaways]

Yeah. We just want to thank everybody, for tuning in with International Seaways, and we look forward to speaking with you in the coming months. Thank you very much.

[Operator]

Thank you, everyone. This concludes today's call. You may now disconnect. Have a good rest of your day.

Participants

Executives

• James Small, Chief Administrative Officer, SVP, General Counsel & Secretary
• Lois Zabrocky, President and Chief Executive Officer
• Jeffrey Pribor, CFO, SVP & Treasurer

Analysts

• Omar Nokta, Managing Director at Jefferies LLC
• Sherif Elmaghrabi, Equity Research Associate at BTIG
• Christopher Robertson, Equity Research Analyst - Vice President at Deutsche Bank
• Liam Burke, Managing Director at B. Riley Securities