International Seaways (INSW) CEO Lois Zabrocky and CFO Jeff Pribot joined Value Investor's Edge Live on Jan. 12, 2022, to discuss the crude tanker and product tanker markets and company prospects for 2022. INSW has survived the horrible COVID-19 related downturn in the sector and has completed a major merger along with strengthening the balance sheet and improving liquidity. INSW is prepared for almost any market and they should benefit from a significant catalyst by mid-2022 as they plan to either sell or refinance a joint venture, which should unlock $150M+ in free cash flow.
Topics Covered
(2:00) What is the current state of the tanker markets?
(4:15) Updates on the product tanker side of the business?
(6:45) Concerns about the heavy delivery schedule in 2022?
(9:30) Impact of EEXI to INSW and the overall market?
(11:30) Any concern about middle-aged tonnage, 2006-2008 types?
(14:15) Updates on the niche Panamax business?
(15:15) Any interest in secondhand purchases or newbuilds?
(17:15) Capital allocation balance: potential for more repurchases?
(21:00) Leverage and liquidity targets?
(22:30) FSO JV discussion: potential for cash-out refinance or sale?
(25:15) Valuation targets for FSOs and refinancing potential?
(27:15) Why does INSW still trade at a massive discount? Any actions?
(30:45) Any interest in conducting a tender offer later this year?
(33:45) Why invest with INSW as opposed to other tanker plays?