International Seaways Inc (INSW) 2023 Q4 法說會逐字稿

Yes, morning all and welcome to the International Seaways Fourth Quarter and Full Year 2020 free results call. All lines have been placed on mute during the presentation portion of the call with an opportunity for question and answer at the end. If you'd like to ask a question, please press star one by one on your telephone. I would now like to hand this conference call over to Ari Danes for International Seaways General Counsel. Got it.

是的，大家早安，歡迎參加國際航道 2020 年第四季和全年免費結果電話會議。在通話的演示部分，所有線路均處於靜音狀態，最後有機會進行問答。如果您想提問，請在電話上一一按星號。我現在想將這次電話會議交給國際航道總法律顧問阿里·丹尼斯 (Ari Danes)。知道了。

Thank you, Kate, and good morning, everyone, and welcome to International Seaways earnings call for the fourth quarter and full year 2023.

謝謝凱特，大家早上好，歡迎參加 International Seaways 2023 年第四季和全年財報電話會議。

Before we begin, I would like to start off by advising everyone on the call today of the following. During this call, management may make forward-looking statements regarding the Company or the industry of which it operates. Those statements may address without limitation the following comments outlooks for the crude and product tanker markets, changes in trading patterns forecasts of world and regional economic activity that have the demand for and production of oil and other petroleum products. The effects of ongoing have threatened conflicts around the globe. The company's strategy, our business prospects, expectations regarding revenues and expenses, including vessel charter hire and G&A expenses, estimated bookings, TCE rates and or capital expenditures during 2020 or in any other group projected scheduled drydock and off-hire days purchases and sales of vessels, construction of newbuild vessels and other investments. The company's consideration of strategic alternatives anticipated and recent financing transactions has any plans to issue dividends, the Company's relationships with its stakeholders, the Company's ability to achieve its financing and other objectives and other economic, political and regulatory developments globally. 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 future developments and other factors that management believes are appropriate to consider in the circumstances. Forward-looking statements are subject to risks, uncertainties and assumptions, many of which are beyond the company's control, which could cause actual results to differ materially from those implied or expressed by the same factors, risks and uncertainties that could cause International Seaways. Actual results to differ from expectations include those described in our annual report on Form 10 K for 2023 and in other filings that we have made or in the future may make with the U.S. Securities Exchange.

在我們開始之前，我想先向今天參加電話會議的所有人提出以下建議。在這次電話會議中，管理階層可能會就公司或其經營的行業做出前瞻性陳述。這些聲明可能涉及但不限於以下評論：原油和成品油輪市場的前景、貿易模式的變化、對石油和其他石油產品有需求和生產的世界和區域經濟活動的預測。持續的影響已經威脅到全球各地的衝突。本公司的策略、我們的業務前景、有關收入和支出的預期，包括船舶租賃和一般管理費用、預計預訂量、TCE 費率和/或2020 年或任何其他集團預計的預定乾船塢和停租日採購和銷售的資本支出船舶、新船建造和其他投資。公司考慮預期的策略選擇和最近的融資交易、是否有發放股息的計劃、公司與利益相關者的關係、公司實現融資和其他目標的能力以及全球其他經濟、政治和監管發展。任何此類前瞻性陳述都會考慮管理層基於多種因素做出的各種假設，包括管理層的經驗和對歷史趨勢的看法、當前狀況、預期未來發展以及管理層認為在這種情況下適當考慮的其他因素。前瞻性陳述受到風險、不確定性和假設的影響，其中許多因素超出了公司的控制範圍，這可能導致實際結果與可能導致國際海運的相同因素、風險和不確定性所暗示或表達的結果存在重大差異。與預期不同的實際結果包括我們 2023 年 10 K 表格年度報告以及我們已經或將來可能向美國證券交易所提交的其他文件中描述的結果。

Now let me turn the call over to our President and Chief Executive Officer with low drug load.

現在讓我將電話轉給我們藥物負荷低的總裁兼執行長。

Thank you very much, Jane. Good morning, everyone, and thank you for joining International Seaways earnings call for the fourth quarter and for the full year of 2023, you can find our presentation on the Investor Relations section of our website.

非常感謝你，簡。大家早安，感謝您參加 International Seaways 第四季和 2023 年全年的收益電話會議，您可以在我們網站的投資者關係部分找到我們的演示。

2023 was a record year for International Seaways our net income was $556 million, $11.25 per share. This eclipsed 2022 net income of $388 million, $7.77 per share. Net income for the fourth quarter of 2023 was $132 million or $2.68 per share. Included in these figures are gains on vessel sales and a write-off of deferred financing costs. Excluding the special items, adjusted net income was $525 million for the year and $108 million for the quarter.

2023 年對 International Seaways 來說是創紀錄的一年，我們的淨利潤為 5.56 億美元，每股收益 11.25 美元。這超過了 2022 年淨利潤 3.88 億美元，每股收益 7.77 美元。2023 年第四季淨利為 1.32 億美元，即每股 2.68 美元。這些數字包括船舶銷售收益和遞延融資成本沖銷。不計特殊項目，調整後的當年淨利為 5.25 億美元，本季調整後淨利為 1.08 億美元。

Seaways closed 2023 with just over $600 million in total liquidity, $187 million in cash and $414 million in undrawn revolver. Jeff will highlight our balance sheet in just a few moments, but feeling a little bit of a center. Our $547 million in net debt is well below our fleet recycle market value. In 2023, we repaid $475 million in debt of which $300 million was incremental to our natural debt amortization schedule. With this sizable prepayment during the year, we reduced our breakeven levels to an impressive sub $14,500 per day level across the fleet. We unencumbered 13 vessels and we doubled the size of our revolving credit capacity to $414 million. Today, we announced that we signed an MOA to purchase six Eagle MR vessels for $232 million. We expect to fund this through shares of common stock for 15% of the price and the remainder will be financed from our available liquidity. We anticipate closing this series of transactions prior to the end of the second quarter. These MRs are high-quality vessels that reduce the age of our overall MR fleet by one year. During 2023, we sold three MRs for $39 million in net proceeds after debt repayment the sale of the ownership crystallize value generated since our merger with Diamond up in 2021 at the bottom of the tanker market, these shifts return nearly 80% always from purchase price due to both strong earnings and the strong price realized in their sale.

截至 2023 年，Seaways 的流動資金總額略高於 6 億美元，現金為 1.87 億美元，未提取的左輪手槍為 4.14 億美元。傑夫將在短短幾分鐘內強調我們的資產負債表，但感覺有點中心。我們 5.47 億美元的淨債務遠低於我們的車隊回收市場價值。2023 年，我們償還了 4.75 億美元的債務，其中 3 億美元是我們自然債務攤銷計畫的增量債務。透過這一年的巨額預付款，我們將整個機隊的損益平衡水平降低至每天 14,500 美元以下，令人印象深刻。我們解除了 13 艘船舶的負擔，並將循環信貸能力增加了一倍，達到 4.14 億美元。今天，我們宣布簽署諒解備忘錄，以 2.32 億美元的價格購買六艘 Eagle MR 船舶。我們預計透過普通股以價格的 15% 提供資金，其餘部分將透過我們的可用流動性提供資金。我們預計在第二季末之前完成這一系列交易。這些 MR 船都是高品質船舶，可將我們整個 MR 船隊的船齡縮短一年。2023 年，我們以3,900 萬美元的淨收益出售了三艘MR，在償還債務後，出售所有權結晶了自2021 年與Diamond 合併以來產生的價值，油輪市場處於底部，這些轉變始終比購買價格回報近80%由於強勁的收入和銷售中實現的強勁價格。

Finally, we added two vessels to our turnaround portfolio. We now have over $354 million in contracted revenue with an average term of nearly three years.

最後，我們在周轉產品組合中增加了兩艘船舶。我們現在的合約收入超過 3.54 億美元，平均期限近三年。

On the lower right-hand of the slide, you can see the chart where we continue to share our strong earnings returning a substantial portion to shareholders. During 2023, we paid $308 million. Dividends was $14 million of repurchases. Combined, we returned over $320 million to shareholders, a 16% return on our average market cap over the year. Today, we build upon the Seaways record declaring a combined dividend of $1.32 per share to be paid at the end of this quarter. This is 60% of adjusted net income. And the way we're committed to our balanced capital allocation strategy, we pull all the levers to secure future and to provide value to shareholders.

在幻燈片的右下角，您可以看到圖表，其中我們繼續分享我們強勁的收益，並將很大一部分回報給股東。2023 年，我們支付了 3.08 億美元。回購股利為 1400 萬美元。我們總共向股東返還了超過 3.2 億美元，相當於我們全年平均市值的 16%。今天，我們以 Seaways 的記錄為基礎，宣布將在本季末支付每股 1.32 美元的合併股息。這是調整後淨利的 60%。我們致力於平衡資本配置策略，利用所有槓桿來確保未來並為股東提供價值。

In 2023, we continue to high-grade the fleet, investing in our profitable LR one joint venture where renewing the MR fleet. And we have time chartered out selected vessels with strong customers to secure revenues.

2023 年，我們將繼續對船隊進行升級，投資於我們盈利的 LR one 合資企業，更新 MR 船隊。我們也定期租用擁有強大客戶的精選船舶，以確保收入。

Beyond today, our balance sheet is strong with net loan to value of 17%. We have liquidity over $600 million and breakeven so low. You would expect, though, for our company with only smaller vessels, not for a tanker company where half the fleet is large crude. We continue to share success with the shareholders with double digit yields on our share value.

如今，我們的資產負債表依然強勁，淨貸款佔價值的 17%。我們的流動資金超過 6 億美元，而損益平衡點卻很低。不過，您可能會期望我們公司只有較小的船隻，而不是一家一半船隊都是大型原油的油輪公司。我們繼續以兩位數的股價收益率與股東分享成功。

Turning to slide 5, we've updated our bullets on tanker demand drivers with green arrows.

轉向投影片 5，我們用綠色箭頭更新了油輪需求驅動因素的項目符號。

Next two bullets representing positive developments for tankers, West dashes for neutral impact and read down, you are indicating tanker negative, pulling some highlights. The forecast for oil demand in 2024 remains robust, with demand growth estimated to be about 1.5 million barrels per day in 2024, representing a percentage point growth year over year. It is an above average demand growth forecast, particularly for seaborne transportation demand. Oil demand growth is largely concentrated in Asia, where countries are structurally short oil for the incremental new supply coming from the West, quite a long haul trade for tankers. Non OPEC production growth of around 1 million barrels per day is mostly coming from the Americas in 2024 a supportive tanker trend in the chart at the bottom of the page, we highlight oil supply and oil demand projected trends for the next few years. Europe and Asia structurally short and therefore focused on imports from the Americas, the Middle East and Russia with sanctions on Russian oil, further tonne-mile support underlying demand and is very supportive for the tanker market going forward, much of this hinges upon the global macro environment. With recent data suggesting and leaning toward a softer landing, it is constructive that commercial inventories are low. Any trade disruptions within the market increases the call for seaborne transportation.

接下來的兩顆子彈代表油輪的積極發展，西破折號代表中性影響，向下讀，你表明油輪的負面發展，拉出一些亮點。2024年石油需求的預測仍然強勁，預計2024年需求成長約150萬桶/日，較去年同期成長一個百分點。這是高於平均的需求成長預測，特別是對於海運需求。石油需求成長主要集中在亞洲，由於來自西方的增量新供應，這些國家在結構上短缺石油，這對油輪來說是相當長的運輸貿易。2024 年，非歐佩克產量增加約 100 萬桶/日，主要來自美洲，這是頁面底部圖表中的支持性油輪趨勢，我們重點介紹了未來幾年的石油供應和石油需求預測趨勢。歐洲和亞洲結構性短缺，因此專注於從美洲、中東和俄羅斯進口，並對俄羅斯石油實施制裁，進一步支持潛在需求，對油輪市場的未來發展非常有利，這在很大程度上取決於全球宏觀環境。最近的數據顯示並傾向於軟著陸，商業庫存較低是有建設性的。市場內的任何貿易中斷都會增加對海運的需求。

Slide 6. The supply side continues to be a compelling part of the strong tanker market story. On the lower left-hand chart, we break down the order book on each vessel class relative to the operating fleet and more specifically potential candidates in the next few years. That would be at the very least removed from broad commercial trading at around 20 years of age. Since the order book is largely fixed through 2026, we are showing double that will be 20 years old by this inflection point. They are 18 years old today in aligning the dark bars on the graph, you can see that the vessels on order do not even need to need to replace the existing fleet on the water on the lower right-hand chart, which we show expected deliveries in the near term. In most categories, they are largely lower than they have been over the last 30 years, the number of ships reaching over 20 years of age as a percentage of the total fleet continues to rise exponentially. Essentially when the cycle turn the fleet size will rationalize rationalize laying the foundation for the future health of the tanker industry. We do not expect a meteoric rise in new orders either as tanker owners face pending environmental regulations. Shipyards are full of other shipping sectors and prices remain very robust. We expect a great run for tankers over the next few years.

幻燈片 6。供應方面仍然是強勁的油輪市場故事中引人注目的一部分。在左下角的圖表中，我們細分了與營運船隊相關的每個船舶類別的訂單簿，更具體地說是未來幾年的潛在候選船舶。至少在 20 歲左右時，這種情況就會從廣泛的商業交易中消失。由於到 2026 年訂單簿基本上是固定的，因此我們顯示的訂單量在這個拐點時將是 20 歲的兩倍。他們今天已經 18 歲了，對齊圖表上的黑條，您可以看到訂購的船隻甚至不需要更換右下圖表中水面上的現有船隊，我們顯示了預期交付量在短期內。在大多數類別中，它們大大低於過去 30 年的水平，船齡超過 20 年的船舶數量佔船隊總數的百分比繼續呈指數級增長。本質上，當週期轉變時，船隊規模將合理化，為油輪產業未來的健康發展奠定基礎。由於油輪船東面臨懸而未決的環境法規，我們預計新訂單不會急劇增加。造船廠充滿了其他航運部門，價格仍然非常強勁。我們預計油輪在未來幾年將會有良好的運作。

As mentioned, regional imbalances of oil should continue to increase the need for tankers as growth in oil production is coming from the West and the oil demand is driven by non OYCE. and EFCUA., we will continue capturing the strength of the tanker market. We will utilize every possible to build upon our track record of returning to shareholders, maintaining a healthy balance sheet and growing the value of Seaway.

如前所述，由於石油產量的成長來自西方，而石油需求則由非 OYCE 推動，因此區域石油不平衡將繼續增加對油輪的需求。和 EFCUA.，我們將繼續抓住油輪市場的力量。我們將利用一切可能的方式來鞏固我們向股東回報、維持健康的資產負債表和增加 Seaway 價值的記錄。

I'll now turn it over to Jeff Pribor, our CFO, to provide the financial review. Jeff Simmons.

現在我將把它交給我們的財務長 Jeff Pribor 來提供財務審查。傑夫·西蒙斯。

Thanks, Lois, and good morning, everyone. On Slide 8. Net income for the fourth quarter was $132 million, or $2.68 per diluted share. This includes gains on vessel sales and the write-off of deferred financing costs. When you exclude the impact of these special items, adjusted net income was $108 million on the upper right chart, adjusted EBITDA for the fourth quarter of 2023 was $159 million, which also excludes the same special items in the appendix. We provided a reconciliation from reported earnings to adjusted OR, while our expense guidance for the third quarter fourth quarter felt mostly in line with the range of expectations.

謝謝，路易斯，大家早安。在投影片 8 上。第四季淨利為 1.32 億美元，或攤薄後每股收益 2.68 美元。這包括船舶銷售收益和遞延融資成本沖銷。當排除這些特殊項目的影響時，右上圖表中調整後的淨利潤為1.08億美元，2023年第四季度調整後的EBITDA為1.59億美元，這也排除了附錄中相同的特殊項目。我們提供了報告收益與調整後 OR 的調節表，而我們對第三季第四季的費用指引感覺基本上符合預期範圍。

I'd like to point out a few items of note with Eric and state vessel expenses were higher than expected with the largest variance due to some opportunity, storing repairs and maintenance costs as well as increased spend for crew changes during drydocks and training on the new dual-fuel VLCCs. G&a expenses were in line with guidance on the revenue side, our lightering business had another strong quarter, earning about $11 million with $2 million invested in vessel expenses, $3 million in charter hire $1 million of P&A. Fiery business contributed about $4 million of EBITDA in the fourth quarter and a record of nearly $20 million for the year.

我想向埃里克指出一些值得注意的事項，國家船舶費用高於預期，差異最大，原因是一些機會、存儲維修和維護成本以及乾船塢期間船員換班和培訓的支出增加。新型雙燃料 VLCC。G&A 費用與收入方面的指導一致，我們的駁運業務又一個強勁的季度，收入約為1100 萬美元，其中200 萬美元投資於船舶費用，300 萬美元用於租船租金，100 萬美元用於P&A 。火熱的業務在第四季度貢獻了約400萬美元的EBITDA，全年貢獻了近2000萬美元的創紀錄水平。

Turning now to our cash bridge on Slide 9. We began the quarter with a total liquidity of $581 million, composed of $214 million of cash and $360 million undrawn revolving debt capacity.

現在轉向幻燈片 9 上的現金橋。本季初，我們的流動性總額為 5.81 億美元，其中包括 2.14 億美元現金和 3.6 億美元未動用循環負債能力。

Follow along the chart from left to right on the cash bridge, we first data $159 million in adjusted EBITDA for Q4 was $44 million and debt service composed of scheduled debt repayments to cash, then less our drydock and capital expenditures of about $5 million a quarter and draw working capital due to timing of about $14 million. We therefore achieved our definition of free cash flow of about $91 million for the fourth quarter. When you combine our free cash flow for the year, we generated over $500 million during 2023 or over $10 a share, representing a 20% free cash flow yield at today's share price. The remaining bars are the cash reflect our capital allocation. For the quarter, we received about $28 million of proceeds after debt repayments for two vessels sold during the quarter. We also spent $12 million of progress payments for the first two out of one orders. As we announced last quarter, we've repaid about $71 million of debt, of which $50 million to be drawn again, since it decreased our revolving credit capacity and we paid $1.25 per share or about $61 million in dividends during the quarter. These components then lead us to an ending liquidity of $601 million e with $187 million in cash and short-term process at $440 million in undrawn revolving debt.

沿著現金橋上從左到右的圖表，我們首先數據為1.59 億美元，第四季度調整後EBITDA 為4400 萬美元，債務清償包括定期債務償還現金，然後減去我們每季約500 萬美元的幹船塢和資本支出並根據時間安排提取約 1400 萬美元的營運資金。因此，我們對第四季自由現金流的定義為約 9,100 萬美元。如果將我們今年的自由現金流合併起來，我們在 2023 年產生了超過 5 億美元的收入，即每股超過 10 美元，以今天的股價計算，自由現金流收益率為 20%。其餘的長條則是反映我們資本配置的現金。本季度，在償還本季度出售的兩艘船的債務後，我們收到了約 2800 萬美元的收益。我們還為前兩個訂單支付了 1200 萬美元的進度付款。正如我們上季度宣布的那樣，我們已經償還了約7100 萬美元的債務，其中5000 萬美元需要再次提取，因為它降低了我們的循環信貸能力，並且我們在本季度支付了每股1.25 美元或約6100 萬美元的股息。這些組成部分導致我們的期末流動性為 6.01 億美元，其中包括 1.87 億美元的現金和 4.4 億美元的未提取循環債務的短期流程。

Now moving to Slide 10. We have a strong financial position detailed by the balance sheet so on the left hand side of the page, cash and liquidity remains strong at over $600 million vessels on the books at cost or approximately $2 billion versus current market values over $3 billion with about $784 million of gross debt at the end of the year.

現在轉到投影片 10。我們的資產負債表顯示，我們擁有強大的財務狀況，因此在頁面左側，現金和流動性仍然強勁，帳面上的船舶價值超過6 億美元，按成本計算約為20 億美元，而當前市場價值超過30 億美元，約784 美元年末債務總額達 100 萬元。

Detailed on the bottom right of the page from this equates to a net loan to value just 17%. Our debt today is 85% hedged or fixed rates, which equates to an all in weighted average interest cost interest rate of about 6% for less than 100 basis points of silver.

頁面右下角詳細說明，這相當於淨貸款價值僅 17%。我們今天的債務是 85% 的對沖利率或固定利率，這相當於不到 100 個基點的白銀的加權平均利息成本利率約為 6%。

As Howard mentioned earlier, we continue to execute a balanced capital allocation strategy. We are returning $1.32 per share to shareholders in a combined dividend. This represents 60% of adjusted net income for the prior quarter for the second straight quarter. At the same time, we have positioned our balance sheet to support growth. We are purchasing six MRs with our available liquidity and a portion of shares, yes, with cash breakevens below $14,500 per day and net debt below 20% in 2024. We will continue to look for opportunities to enable fleet renewal and growth as well as to share in our successful results by continuing to prioritize returning cash to share.

正如霍華德之前提到的，我們繼續執行平衡的資本配置策略。我們將向股東返還每股 1.32 美元的合併股息。這相當於連續第二季上一季調整後淨利的 60%。同時，我們調整了資產負債表以支持成長。是的，我們正在用我們的可用流動性和部分股票購買 6 個 MR，到 2024 年，每天的現金盈虧平衡點將低於 14,500 美元，淨債務將低於 20%。我們將繼續尋找機會實現機隊更新和成長，並透過繼續優先考慮返還現金來分享我們的成功成果。

Yes. And last slide that I'll cover, please turn to Slide 11 reflects our forward-looking guidance and booked a GC. line with our cash breakeven.

是的。我將介紹的最後一張投影片（請參閱投影片 11）反映了我們的前瞻性指導並預訂了 GC。符合我們的現金收支平衡。

Starting with GCI fixtures for the first quarter of 2024. I'll remind you that actual TCE to our next earnings call may not be quite the same. But as of today, we have a blended average spot TCE of about $43,500 per day fleet-wide for the quarter.

從 2024 年第一季的 GCI 賽程開始。我要提醒您的是，我們下一次財報電話會議的實際 TCE 可能並不完全相同。但截至今天，本季整個船隊的混合平均現貨 TCE 約為每天 43,500 美元。

On the right-hand side of the slide, you can see our cash breakevens, which we have displayed for the next 12 months, reflective our daily cash costs and CapEx plus principal and interest as well as the new fixed revenues before profit share on our long-term charters at this time last year, a cash breakeven even for $3,000 per day higher than they are today.

在投影片的右側，您可以看到我們展示的未來12 個月的現金收支平衡，反映了我們的每日現金成本和資本支出加上本金和利息，以及我們的利潤分成前的新固定收入去年這個時候的長期包機，每天的現金收支平衡比現在高出 3,000 美元。

Just to repeat that $3,000 amount per day that we produced in our cash breakevens year over year. And we've returned over $320 million to shareholders representing 16% yield on our average share price 2023, while also taking considerable steps to renew the fleet.

只是重複一下我們逐年實現現金收支平衡的每天 3,000 美元的金額。我們已向股東返還超過 3.2 億美元，相當於 2023 年平均股價的 16%，同時也採取了大量措施更新機隊。

Looking forward, if you were to compare our breakeven has our spot earnings, you can see the first quarter of 2024 looks like another very strong quarter, Steve, looking at the bottom left-hand chart for the modelers out there, we provide updated guidance for expenses in the first quarter. And as for 2024, we also include in the appendix our core quarterly expected off-hire and tap CapEx schedules for 2023 into 2024. I don't plan to read this slide by line, but encourage you to use that for modeling purposes.

展望未來，如果您將我們的盈虧平衡點與現貨收益進行比較，您可以看到2024 年第一季看起來又是一個非常強勁的季度，史蒂夫，看看左下角的建模師圖表，我們提供了更新的指導用於第一季的支出。至於 2024 年，我們也在附錄中納入了我們的核心季度預期停租和 2023 年至 2024 年的資本支出時間表。我不打算逐行閱讀這張投影片，但鼓勵您將其用於建模目的。

That concludes my remarks.

我的發言到此結束。

So I'd now like to turn the call back to Lois for closing comments.

因此，我現在想將電話轉回給路易斯，以徵求結束意見。

Thank you very much, Jeff. In 2023 key ways executed our strategy. We had significant operating leverage, low cash breakeven. We achieved record earnings in 2023 with a fleet nearly evenly split between crude and product teams. We continue to develop a fleet composition that enables us to build upon our operating leverage and capitalize on today's strong market. Last year, we took delivery of three dual-fuel VLCCs with long-term charters and profit-sharing that are running extremely well in our fleet. We ordered four LR ones or niche Panamax International joint venture. We trimmed some older MRs that returned an 80% IRR for us in the last two years and entered an agreement to purchase six modern MRs our balance sheet has never been better. 2023 was transformational for International Seaways and de-leveraging us and to capitalize on growth opportunities. We easily matched our incremental deleveraging with returns to shareholders with a substantial portion of the cash generated during the year. We built on our track record of balanced capital allocation, have positioned the Company to maximize earnings and build a fortress balance sheet grow through the cycle and return 16% to shareholders over the last 12 months. Going forward, we will continue to digital village vigilantly, prioritize the safety of our crews and our seafarers, our vessels in very challenging geopolitical times.

非常感謝你，傑夫。2023 年執行我們策略的關鍵方式。我們的經營槓桿很大，現金損益平衡點很低。2023 年，我們實現了創紀錄的獲利，原油船隊和成品油船隊幾乎各佔一半。我們繼續開發機隊結構，使我們能夠利用我們的營運槓桿並利用當今強勁的市場。去年，我們接收了三艘雙燃料超大型油輪，它們是長期包租和利潤分享的，在我們的船隊中運行得非常好。我們訂購了四艘 LR 型船或小型巴拿馬型國際合資公司。我們削減了一些過去兩年為我們帶來 80% IRR 的舊 MR，並達成協議購買六台現代 MR，我們的資產負債表從未如此好過。 2023 年對國際海運來說是一次變革，我們去槓桿化並利用成長機會。我們輕鬆地將增量去槓桿化與股東回報與年內產生的大部分現金相匹配。我們建立在平衡資本配置的基礎上，使公司能夠實現收益最大化，並建立一個在整個週期中增長的堡壘資產負債表，並在過去 12 個月內向股東回報 16%。展望未來，我們將繼續保持警惕，在充滿挑戰的地緣政治時期，優先考慮我們的船員、海員和船隻的安全。

I want to conclude my remarks. I thank you very much, and we'll open it up to questions.

我想結束我的發言。非常感謝您，我們將開放提問。

Thank you. And if you'd like to ask a question, please press star on your telephone keypad, ensuring that you are unmuted locally. If you'd like to withdraw your question at any time you can do so by pressing.

謝謝。如果您想提問，請按下電話鍵盤上的星號，確保您在本地取消靜音。如果您想隨時撤回您的問題，可以按 。

Well, I'll call it my two on your telephone. As a reminder, star followed by one to ask your question. Our first question comes from the line of Chris Robertson of Deutsche Bank. Your line is now open. Please go ahead.

好吧，我會在你的電話上稱呼它為我的兩個。提醒一下，請先加星號，然後再加一個星號來提出您的問題。我們的第一個問題來自德意志銀行的克里斯·羅伯遜。您的線路現已開通。請繼續。

Hey, good morning, Lois and Jeff. Congratulations on the very strong quarter here on just a couple of questions, one more market orientated and then a detailed one. So just as it relates to the Red Sea disruptions going on in your minds is the market for tankers at peak disruption at the moment, is there further dislocations that could occur or have all the tankers that were going to switch and divert around the Cape of Good Hope are already done so or is there more room there?

嘿，早上好，路易斯和傑夫。恭喜本季表現非常強勁，只有幾個問題，一個是市場導向的問題，然後是一個詳細的問題。因此，正如您所想到的紅海中斷一樣，油輪市場目前正處於中斷高峰期，是否可能會發生進一步的混亂，或者所有原本要在好望角附近切換和轉移的油輪是否會出現混亂？ Good Hope 已經這樣做了，還是還有更多空間？

As Chris said, slower Good morning, and I'll jump in here and say that I think we are at peak disruption levels and take that with the number variety of attacks in your sort of indiscriminately on paper assets traveling through the area that we're really seeing a large amount of tankers on PTA around the bottom of course.

正如克里斯所說，慢一點，早上好，我會跳到這裡說，我認為我們正處於破壞水平的峰值，並考慮到您對經過我們區域的紙質資產進行的各種攻擊。當然，我們確實在PTA 上看到大量油輪在底部。

Okay. Just next question just relates to the MRs on when you guys take delivery of those vessels, is there going to be any incremental CapEx associated with? I'm sorry, is it energy saving upgrades or anything like that that we should think about?

好的。下一個問題與你們收到這些船隻時的MR有關，是否會有與之相關的增量資本支出？抱歉，我們應該考慮節能升級還是類似的問題？

You know, Chris, what I would say is that these vessels are built at SPP. We already have in our fleet that we built a predecessor company at SPP. There is strong, the design or eco vessels. We will, of course, bring them into the fleet and then over time, just as we do with every one of our ships on the water look at, okay, are we going to in due course, you know, maybe when they're at their natural drydock cycle. We look to put on flip page and I'm sure efficiency factors. You know, naturally, we will do that, but we don't have any immediate required CapEx spend.

克里斯，我想說的是，這些船隻是在 SPP 建造的。我們的船隊中已經有我們在 SPP 建立的前身公司。有強大的設計或生態船。當然，我們會將它們帶入艦隊，然後隨著時間的推移，就像我們對水面上的每艘船所做的那樣，好吧，我們是否會在適當的時候，你知道，也許當它們在他們的自然幹船塢循環中。我們希望放上翻頁，我確信效率因素。您知道，我們自然會這樣做，但我們沒有任何立即所需的資本支出。

Okay. Okay. Great. Thanks. So I'll turn it over.

好的。好的。偉大的。謝謝。所以我會把它翻過來。

Thank you.

謝謝。

And thank you. Our next question comes from the line of Liam Burke of B. Riley. Your line is now open. Please go ahead

謝謝你。我們的下一個問題來自 B. Riley 的 Liam Burke。您的線路現已開通。請繼續

Good morning, Louis. Good morning, Jeff.

早安，路易斯。早安，傑夫。

Good morning.

早安.

On Lowe's, is there any interest in or it does seem to sell some of your older MRs Yes.

Lowe's 是否對您的一些舊 MR 感興趣，或者似乎確實出售它們？ 是的。

So you know, I know you you've been following us long enough and sold 18 MRU. over the last 2.5 years. So we thought it was a especially when you just see that continued strong fundamentals in the MR sector times, you have to bring something in. And we do continue to prune out some of the older vessels and this is just a natural regeneration. You know, these vessels coming in on a seven years, younger ITO, and it just brings in a renewal that we think is very natural and organic to the company.

所以你知道，我知道你已經關注我們足夠長的時間並賣出了 18 MRU。過去 2.5 年。因此，我們認為，尤其是當你看到 MR 行業基本面持續強勁的時候，你必須引入一些東西。我們確實繼續修剪一些舊血管，這只是自然再生。你知道，這些船隻是在七年較年輕的 ITO 上投入使用的，它只是帶來了更新，我們認為這對公司來說是非常自然和有機的。

Can they leverage those data as well as that? Liam, is that both mentioned in our remarks, you know, these vessels were selling vessels that we acquired the Dime s merger. Looking at the purchase price, the cash contributed profits, while we call them the sale price, it comes down to an 80% IRR. So we like the ones we have and the ones we're acquiring to continue generating good cash flow, but we like taking profits.

他們可以利用這些數據嗎？Liam，就是我們演講中提到的，你知道，這些船隻是我們收購的 Dime 合併後出售的船隻。從購買價格來看，現金貢獻了利潤，而我們稱之為銷售價格，它的 IRR 為 80%。因此，我們喜歡我們擁有的和我們正在收購的那些，以繼續產生良好的現金流，但我們喜歡獲利了結。

Okay. Thanks, Jeff. And on the do you have any interest in terms of adding to your current time charter fixtures or are you happy with the balance of spot and time charters?

好的。謝謝，傑夫。您是否有興趣增加當前的定期租船合同，或者您對現貨租船和定期租船的平衡感到滿意嗎？

Highly? And this is Derek Solon, no commercial officer for Seaways, Eric, thanks for the question queue, and thanks for the question. We continue to add to our DC covers the 2023 like Lowe's and Jeff cover in their remarks and putting away two more ships in the fourth quarter. We continue to look for potential opportunities. Liam, I think for us we continue to look for the multiyear charters for the shorter term stuff one year or less. We'd rather stay in the spot market right now. But you know, for the availability of coverage, that's two or three years out, if we see rates that are we could develop rates that are attractive to us, then we'll continue to look at that.

高度？這是德里克·索倫 (Derek Solon)，他不是 Seaways 的商務官員，埃里克 (Eric)，感謝您提出問題，也感謝您提出問題。我們繼續在 2023 年的 DC 封面上添加像 Lowe's 和 Jeff 在他們的言論中的封面一樣，並在第四季度再添置兩艘船。我們繼續尋找潛在的機會。利亞姆，我認為對我們來說，我們將繼續尋找一年或更短期限的多年包機。我們現在寧願留在現貨市場。但你知道，對於保險的可用性，那是兩三年後的事，如果我們看到我們可以製定對我們有吸引力的費率，那麼我們將繼續關注這一點。

Great. Thank you, Dirk. Thank you, Lois. Thank you, Jeff.

偉大的。謝謝你，德克。謝謝你，路易斯。謝謝你，傑夫。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Jack McGarry. Please, your line is now open.

謝謝。我們的下一個問題來自傑克·麥加里。請，您的線路現已開通。

Okay. Hey, guys. Thanks for taking our question and congrats on a solid year. Just turning to 2024 and no market with standing. Just in terms of allocating capital, are you looking to deleveraging at the same rate to last year? Or are you more or less content with the amortization profile you have now maybe look to build on no shareholder returns or your cash position. I'm just trying to see, I know is there any priority where you're leaning towards with respect free cash flow?

好的。大家好。感謝您提出我們的問題，並祝賀您度過了充實的一年。轉眼到了 2024 年，市場還沒有立足之地。就資本配置而言，您是否希望以與去年相同的速度去槓桿？或者，您對現在的攤銷狀況或多或少感到滿意，也許您希望建立在沒有股東回報或現金狀況的基礎上。我只是想看看，我知道您在尊重自由現金流方面有什麼優先事項嗎？

Thanks, Jay, and welcome, Jeff. But yes, in 2023, we were able to both delever to that level that we Mexico were that 70% loan to value at well below recycle value while still returning a lot. So say to shareholders that combined 16% to dividends or share purchases on average market cap. But to your question, as we look forward to 2024, having achieved that low level of debt and with a lot of the debt that's left there and what we kind of call quality debt like your home mortgage that's below current interest rates that you receive where?

謝謝傑伊，歡迎傑夫。但是，是的，到 2023 年，我們能夠將槓桿率降低到墨西哥的 70% 貸款價值比遠低於回收價值的水平，同時仍能獲得大量回報。對於平均市值合計 16% 的股息或股票購買的股東來說就是這樣說的。但對於你的問題，我們展望2024 年，債務水平已經達到了較低水平，而且還有大量債務，我們稱之為優質債務，例如你的房屋抵押貸款，其利率低於你在哪裡獲得的當前利率。 ？

Yes, I don't know if content-aware, but we are satisfied that we reach a level of debt where our priorities are what you've heard today, it's renewing the fleet like the six MRs we just talked about and continuing to return cash to shareholders where for the second quarter in a row, we've returned 60% of net income in the form of regular combined dividend, which I think speaks for itself. So I think I think that's of the picture for going forward.

是的，我不知道是否有內容意識，但我們很滿意我們達到了一定的債務水平，我們的首要任務就是你今天聽到的，它正在更新機隊，就像我們剛才談到的六艘MR一樣，並繼續返回連續第二個季度，我們以定期合併股息的形式返還了 60% 的淨利潤，我認為這不言而喻。所以我認為這就是未來的前景。

Great. Thanks for the color on that. And maybe just a follow-up on Liam's question would be are with the older MRs. You just said that you're well capitalized, but you have six MRs coming in. Is this purely just fleet renewal or, you know, do you like the size of the MR fleet now in your maybe just looking at build and expand within our space?

偉大的。謝謝你的顏色。也許利亞姆問題的後續行動就是與老先生討論。你剛才說你資本雄厚，但你有六個MR進來。這純粹只是機隊更新，還是您知道，您是否喜歡 MR 機隊現在的規模，也許您只是想在我們的空間內進行建設和擴展？

Well, I guess what I would say is when you look at the MR sector, the fundamentals and the earnings that they have put up. They have been by far the best performing sector throughout the tanker market. Now we're going into well into year three and the market continues very strong. So you look at where our book days are in Q one, and you can see why we're bringing the ships in.

好吧，我想我想說的是，當你看看 MR 行業、基本面和他們所提供的收益。它們是迄今為止整個油輪市場表現最好的板塊。現在我們即將進入第三年，市場仍然非常強勁。所以你看看我們的讀書日在第一個問題中的位置，你就會明白為什麼我們要引進船隻。

Great. Thanks, guys. I'll turn it over.

偉大的。多謝你們。我會把它翻過來。

Thank you.

謝謝。

Yes, final question comes from the line of Sharif Omnicom BTIK. Your line is open, please.

是的，最後一個問題來自 Sharif Omnicom BTIK。您的線路已開通，請。

Yes, good morning, everyone, and thanks for taking my questions. Lois, is there any way to kind of think about the composition of the dark fleet in terms of different types of vessels, the maturity size, probably average, but what about on the clean side?

是的，大家早安，感謝您提出我的問題。路易斯，有沒有辦法從不同類型的船隻、成熟度大小（可能是平均水平）考慮黑暗艦隊的組成，但清潔方面呢？

Okay. Thank you for the question and I'm looking at, Derek, you know, as we know, there's a healthy amount of both crude and product that is moving in the directly. But you but if you think about it, it's going to be more crude on baking I'm thinking

好的。謝謝你提出的問題，我正在看，德里克，你知道，正如我們所知，有大量的原油和產品直接流動。但如果你仔細想想，我想烘焙會更粗糙

I think if we use the whole darker Grizzly around 700 ships, it's just some of that has to be on the clean side would be my would be my view should so it's both to your question is both crude and clean due to, I guess your specific question, you have the dark fleet doing some of the sanction trades out of Venezuela and Iran. So that's that's one element of that fleet. And then you have as you said the great fleet, which is doing a little more Russian trade you have, is it or isn't it under the price cap? What are the requirements showing under the price cap when the authorities pay attention to if you are or if you are filing rate cap on that composition is probably half of that whole dark gray fleet and a little bit less than a quarter of it would be clean would be just an estimation period, if that helps.

我認為，如果我們使用整個較暗的灰熊大約700艘船，那麼其中一些必須是乾淨的一面，我的觀點應該是這樣，所以這對你來說既粗魯又乾淨，因為，我猜你的具體問題是，黑暗艦隊在委內瑞拉和伊朗進行一些制裁交易。這就是該艦隊的一個組成部分。然後，正如您所說，偉大的艦隊正在進行更多的俄羅斯貿易，是否在價格上限之下？當局關注您是否正在或是否正在申請該成分的費率上限時，價格上限下顯示的要求是什麼，該成分可能是整個深灰色機隊的一半，其中不到四分之一將是乾淨的如果有幫助的話，這只是一個估計期。

That is helpful. Thanks, Derek. And then on the order book split out by vessel type and classics, excuse me, which is interesting because not all parts of the fleet are growing evenly next year. So I think LR. twos are leading tanker fleet product tanker fleet growth, while MRs, for example, are more muted. And so I guess my question is, do you see that shifting the balance of trade between LR2s and MRs? Or is it more to do with kind of shifting refinery capacity?

這很有幫助。謝謝，德里克。然後在訂單簿上按船舶類型和經典劃分，請原諒，這很有趣，因為明年並非船隊的所有部分都會均勻增長。所以我認為LR。兩艘油輪引領成品油輪船隊成長，而 MR 等則表現較為平淡。所以我想我的問題是，您是否認為 LR2 和 MR 之間的貿易平衡發生了變化？或者這與煉油廠產能的轉移有關？

I'm sorry, Derek, if I could take that. I mean, obviously, the numbers are the numbers. So I agree with you that our team fleet is growing of the order book is growing pretty rapidly on. We've been talking about LR two cannibalizing the MR trade for the past 20 years. So I think the MRs will continue to be the workhorse of our fleet, but some of the geopolitical events that we see right now are really helping that LR. to go. I think on not so much the Russia, Ukraine situation, but clearly the pound Israel amassed conflict and what that's bringing over the Red Sea and today, are you starting to see BLR. twos having to go around the Cape of Good Hope a lot more, I think the ton-mile. So that market's really, really running that larger LR to start going to replace MRs. I don't really think so just on trade patterns and then that does leave the fleet a little bit vulnerable as well because of the switch to dirty, depending upon what what's better.

對不起，德瑞克，如果我可以接受的話。我的意思是，顯然，數字就是數字。所以我同意你的觀點，我們的團隊隊伍正在成長，訂單成長得相當迅速。在過去的 20 年裡，我們一直在談論 LR 2 蠶食 MR 產業的問題。因此，我認為 MR 將繼續成為我們艦隊的主力，但我們現在看到的一些地緣政治事件確實對 LR 有幫助。去。我認為，與其說是俄羅斯、烏克蘭的局勢，不如說是以色列累積的衝突，以及這對紅海帶來的影響，今天，你是否開始看到 BLR 了。兩人必須繞好望角繞行更多次，我想是一噸英里。因此，這個市場確實正在運行更大的 LR，以開始取代 MR。我真的不這麼認為，只是在交易模式上，這確實會讓船隊變得有點脆弱，因為轉向骯髒，取決於什麼是更好的。

That's helpful. Thanks, everyone.

這很有幫助。感謝大家。

Thank you.

謝謝。

Thank you. As there are no additional questions at this time, I'd like to hand the conference call back over to Lois Zabrocky. Thanks, everyone.

謝謝。由於目前沒有其他問題，我想將電話會議交還給 Lois Zabrocky。感謝大家。

Thank you very much, everyone, for joining International Seaways. As we shared with you our 2023 record earnings, we really appreciate it, and we look forward to talking soon Thank you very much.

非常感謝大家加入國際海運。當我們與您分享我們的 2023 年創紀錄收益時，我們非常感激，並期待盡快與您交談，非常感謝。

Ladies and gentlemen, I would like to thank you for joining us on today's call and have a great rest of your day, and you may now disconnect. Your line?

女士們先生們，我要感謝你們參加今天的電話會議，祝你們今天休息愉快，現在你們可以斷開連線了。你的線？