International Seaways returned to the back in the fourth quarter of 2018, reporting a net income of USD 7 million for the period.
In the same three-month period of 2017, the company posted a net loss of USD 90.7 million. The increased net income reflects a rise in time charter equivalent (TCE) revenues of USD 27.9 million and a decrease in vessel impairment charges of USD 79 million compared with the fourth quarter of 2017.
International Seaways said the net income for the quarter reflects the impact of a loss on vessel sales, including held for use impairment charges, of USD 2.5 million. Net income excluding these items was USD 9.4 million.
Time charter equivalent (TCE) revenues for the quarter increased to USD 93 million from USD 65.1 million seen a year earlier.
“2018 was an important year for us, as we executed on our stated strategy of disciplined capital allocation,” Lois K. Zabrocky, International Seaways’ president and CEO, said.
“We capitalized on attractive asset values at the bottom of the cycle, increasing the size and reducing the age profile of our fleet and enhancing our earnings power ahead of a market recovery without issuing equity. Our significant operating leverage to a market recovery was evident in the fourth quarter, as our cash flow and earnings immediately reflected the stronger rate environment and we returned to profitability.”
Zabrocky noted that the company is encouraged by the strength of the tanker market in the fourth quarter and how the market is developing thus far in 2019.
“While the exact timing for a sustained recovery is not yet clear, we see optimistic signs to support a balanced market in the near term led by increasing exports out of the U.S. Gulf and sustained growth in global oil demand.”
The company’s net loss for the full year was USD 88.9 million, compared with net loss of USD 106.1 million for the full year 2017. During 2018, the loss from vessel operations decreased to USD 54.5 million from USD 107.9 million in 2017.