International Seaways Q4 adjusted EPS beats expectations on higher TCE revenue

Overview

• Tanker company's Q4 adjusted EPS beat analyst expectations

• Adjusted net income for Q4 beat analyst expectations

• Company completed strategic fleet optimizations and announced substantial shareholder returns

Outlook

• Company expects continued strength in tanker markets into 2026

• Seaways plans to leverage operating leverage for cash flow generation

• Company aims to focus on fleet renewal and shareholder returns

Result Drivers

• HIGHER SPOT EARNINGS - Co attributed increased Q4 net income to higher TCE revenues from spot earnings across the fleet, with significant gains in VLCC and Suezmax rates

• FLEET OPTIMIZATION - Co's fleet optimization through vessel sales and strategic acquisitions reduced expenses and contributed to Q4 gains

• MARKET FUNDAMENTALS - Strong market fundamentals and geopolitical factors supported tanker earnings, according to CEO Lois K. Zabrocky

Company press release: ID:nBw5JbF5ja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for International Seaways Inc is $64.00, about 7.9% below its February 25 closing price of $69.52

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

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