A late rally in tanker rates helped International Seaways to end 2018 on a high note while besting analyst expectations.
On the back of a $30m year over year bump in crude tanker revenues, the New York-traded shipowner posted $9.4m in adjusted profit for the last three months of the year.
This was good for $0.32 per share — better than the $0.14 consensus estimate and excluding $2.5m for impairment charges and vessel sales.
"We are encouraged by the strength of the tanker market in the fourth quarter and how the market is developing thus far in 2019," said chief executive Lois Zabrocky.
"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 US Gulf and sustained growth in global oil demand."
The late bump in tanker revenues comes during a year where International Seaways posted a slight drop for the segment on an annual basis.
In 2018, the company brought in $175.5m in crude tanker revenues, down from $178.8m in 2017.
Day rates for the full year 2018 declined to $18,900, $12,800 and $13,000 per day respectively for VLCCs, Aframaxes and Panamaxes. But for the fourth quarter, those rates shot up to $31,700, $30,600 and $19,000 per day.
On an annual basis, the company reported an $88.9m loss.
The company also reported its board authorized last Tuesday a two-year, $24m share repurchasing program.
