International Seaways Reports Larger-Than-Expected Quarterly Loss; Shares Slide 3%

International Seaways Inc posted a wider-than-expected loss in the fourth quarter, impacted by a decline in time charter equivalent (TCE) revenues. Shares of the global tanker company fell 3.3% in Friday’s extended market session after closing 3% lower on the day.

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International Seaways (INSW) incurred an adjusted loss of $0.52 per share in 4Q, compared to the $0.19 loss per share estimated by analysts. Total shipping revenues generated during the quarter amounted to $56.7 million, missing consensus estimates of $62.02 million. Further, revenues decreased 54.3% year-over-year as TCE revenues plunged 54.9%.

Adjusted EBITDA was a loss of $5 million in the quarter, compared to income of $72.2 million in the same quarter last year. (See International Seaways stock analysis on TipRanks)

International Seaways CEO Lois K. Zabrocky commented, “Consistent with our focus on accretive capital allocation, we are excited to have agreed to build three LNG dual-fuel VLCCs for delivery in 2023, enabling us to achieve a number of critical strategic objectives.”

Following the 4Q results, Jefferies analyst Randy Giveans increased the stock’s price target to $26 (33% upside potential) from $24 and maintained a Buy rating.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 2 Buys. The average analyst price target of $25 implies 28% upside potential to current levels. Shares have increased 16% over the past six months.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in International Seaways is currently Positive as 2 hedge funds increased their cumulative holdings of the stock by 448,400 shares in the last quarter.