Home Stock Market International Seaways reports strong Q3 2023 earnings, plans to grow fleet.

International Seaways reports strong Q3 2023 earnings, plans to grow fleet.

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International Seaways reports strong Q3 2023 earnings, plans to grow fleet.

Slide 6 shows the supply side of the tanker market, with the order book breakdown by vessel class relative to the total fleet. This indicates potential candidates that may be removed from intensive commercial trading, leading to a potential tightening of supply in the market. The company emphasized the positive impact of reduced draft at the Panama Canal, creating temporary congestion and impacting the tanker trade. The CEO expressed optimism about time charter opportunities for their older MR vessels and plans to maintain exposure in the MR sector due to strong rates. Additionally, the company’s four new LR1 vessels will require additional capital expenditure to become LNG capable, with three VLCC vessels already running on LNG. The company highlighted its balanced capital allocation strategy and strong financial position, underlining the potential for higher payout ratios for supplemental dividends in strong upcoming quarters due to favorable cash flow and debt paydowns. The company cautioned that the tanker market’s future performance hinges on increasing oil demand and limited fleet replacement in the coming years, indicating that older ships may need to stay in service to meet growing demand. In conclusion, the company expressed appreciation for the participants and provided an update from the ongoing Bahri Dubai International Tanker Week.