International Seaways is looking to "walk the walk" on share buy-backs and dividends, hoping its track record will boost its share price as the tanker market rebounds.
On the New York-listed company's second quarter earnings call on Monday, finance chief Jeffrey Pribor said the company had a compelling story as the largest, publicly-traded diversified tanker owner following its merger with Diamond S Shipping.
"What we're going to do ... is just keep doing it," he said. "Quarter over quarter [we] have to be patient and execute."
For the three months ending 30 June, International Seaways reported an $18.8m net loss, versus a profit of $64.4m for the same period last year.
On a per share basis, the loss was deeper than the expected $0.48 per share, at $0.67.
The company said during its earnings presentation that it had returned $35m to shareholders so far this year, all in the form of dividends, and $71.7m since the first quarter of 2020 in a mixture of dividends and share buy-backs.
The company disclosed the figures as its fleet continues to earn rates below its cash break-even levels amid weak oil demand due to Covid-19.
Its VLCCs were said to be earning $16,000 per day in the third quarter with 65% of their days booked against a break-even of $17,100 per day. Its fleet of 47 MRs are earning $10,300 per day with 46% fixed against a break-even of $11,600 per day.
"It's a crummy market, to say the least," Prior said on the call.
"How do we do more [to return capital to shareholders]? Just continue to do it quarter by quarter. Over time, that capital allocation track record is what earns a better valuation."
Beyond that, he said, "we just need to tell the story".
"We've got around 100 ships. We've got $200m in assets," Pribor said. "Six quarters and growing in actively returning capital to shareholders.
"We'll keep walking the walk and we'll talk the talk about walking the walk. I hope that'll do it over time."
