Earnings call transcript: International Seaways misses Q2 2025 EPS forecast

International Seaways (INSW), a shipping company with a market capitalization of $2.19 billion, reported its Q2 2025 earnings, revealing an adjusted earnings per share (EPS) of $1.02, slightly below analysts’ expectations of $1.04. The revenue reached $195.64 million, narrowly beating the forecast of $195.61 million. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations, with analysts setting price targets ranging from $44 to $70. Despite the mixed results, the company’s stock showed resilience, with a pre-market dip of 0.55% to $43.03, following a previous close at $43.27.

Key Takeaways

• International Seaways’ Q2 EPS fell short of forecasts by 1.92%.
• Revenue slightly exceeded expectations, with a minor surprise of 0.02%.
• The company announced a dividend of $0.77 per share, maintaining a high payout ratio.
• Fleet renewal and expansion plans are underway, with significant investments in new vessels.
• Market conditions remain favorable, with strong demand for tankers.

Company Performance

International Seaways demonstrated solid operational performance in Q2 2025, achieving a net income of $62 million, or $1.25 per diluted share. The adjusted net income stood at $50 million, aligning with the adjusted EPS of $1.02. InvestingPro data shows the company maintains strong profitability metrics, with a gross profit margin of 61.45% and an impressive return on equity of 18%. The company continues to benefit from robust tanker demand, supported by low OECD crude storage levels and increasing middle distillate demand.

Financial Highlights

• Revenue: $195.64 million, slightly above the forecast.
• Adjusted Net Income: $50 million.
• Adjusted EBITDA: $102 million.
• Dividend: $0.77 per share, maintaining a 75%+ payout ratio.
• Total liquidity: Over $700 million, including $149 million in cash.

Earnings vs. Forecast

International Seaways’ Q2 2025 EPS came in at $1.02, missing the forecasted $1.04 by 1.92%. This minor miss contrasts with a slight revenue beat, as actual revenue of $195.64 million exceeded the forecast by 0.02%. Historically, the company has shown mixed results in meeting earnings expectations, and this quarter’s slight miss is consistent with past performance variability.

Market Reaction

Following the earnings release, International Seaways’ stock experienced a pre-market decline of 0.55%, trading at $43.03. This movement reflects investor sentiment towards the EPS miss, although the stock remains within its 52-week range of $27.20 to $54.84. InvestingPro highlights two key factors: the company’s attractive P/E ratio of 6.65 and its substantial 9.24% dividend yield. The broader market and sector trends indicate a stable environment for tanker companies, with International Seaways’ stock performance aligning with industry norms. InvestingPro subscribers have access to 8 additional exclusive insights about INSW’s financial health and market position.

Outlook & Guidance

Looking ahead, International Seaways remains optimistic about its strategic initiatives. The company expects continued free cash flow generation, supported by its strong current ratio of 2.76 and moderate debt levels, as reported by InvestingPro. The company is actively renewing its fleet, with plans to acquire a scrubber-fitted VLCC and take delivery of new LR1 newbuildings. The spot TCE rate is currently around $28,000 per day, and the company is exploring financing alternatives to support growth. For detailed analysis of INSW’s growth potential and comprehensive financial metrics, investors can access the exclusive Pro Research Report, available to InvestingPro subscribers.

Executive Commentary

CEO Lois Zabrai emphasized the company’s focus on fleet renewal, stating, "We continue to renew our fleet so that our average age is close to ten years old." She also highlighted market dynamics, noting, "We’re starting to see a synchronized uptick in the spot market on both crude and products." Additionally, Zabrai underscored the company’s financial strength, saying, "We have nearly $600 million in undrawn credit capacity to support our growth."

Risks and Challenges

• Geopolitical uncertainties could impact trade routes and tanker demand.
• Potential sanctions on crude imports may affect market dynamics.
• OPEC+ production cuts could influence tanker market conditions.
• Fleet aging poses a challenge, with nearly 50% expected to be over 20 years old by 2029.
• Financing for newbuildings and existing vessels requires strategic management.

Q&A

During the earnings call, analysts inquired about the potential impacts of sanctions on India’s crude imports and the implications of OPEC+ production cuts on the tanker market. Executives also addressed questions regarding fleet composition and financing strategies for newbuildings, providing insights into the company’s approach to these challenges.

Full transcript - International Seaways Inc (INSW) Q2 2025:

Operator: Good morning, everyone, and welcome to the International Seaways Inc. Second Quarter twenty twenty five Earnings Conference Call. My name is Carla, and I will be coordinating your call today.

I would now like to hand over to your host, James Small, General Counsel, to begin. Please go ahead when you’re ready.

James Small, General Counsel, International Seaways: Thank you, operator. Good morning, everyone, and welcome to International Seaway’s earnings call for the 2025. Before we begin, I would like to start off by advising everyone with us on the call today of the following. During this call and in the accompanying presentation, management may make forward looking statements regarding the company or the industry in which it operates, which may address, without limitation, the following topics: outlooks for the crude and product tanker markets changes in trading patterns forecasts of world and regional economic activity forecasts of the demand for and production of oil and petroleum products the company’s strategy and business prospects expectations about revenues and expenses, including vessel, charter hire and G and A expenses estimated future bookings, TCE rates and capital expenditures projected drydock and off hire days newbuild vessel construction vessel purchases and sales anticipated financing transactions and plans to issue dividends, the effects of ongoing and threatened conflicts around the globe, economic, regulatory and political developments in The United States and globally, the company’s ability to achieve its financing and other objectives and its consideration of strategic alternatives and the company’s relationships with its stakeholders. Any such forward looking statements take into account various assumptions made by management based on a number of factors, including management’s experience and perception of historical trends, current conditions, expected and future developments and other factors that management believes are appropriate to consider in the circumstances.

Forward looking statements are subject to risks, uncertainties and assumptions, many of which are beyond the company’s control, that could cause actual results to differ materially from those implied or expressed by the statements. Factors, risks and uncertainties that could cause the company’s actual results to differ from expectations include those described in our annual report on Form 10 ks for 2024 and our quarterly reports on Form 10 Q for the 2025 as well as in other filings that we have made or in the future may make with the U. S. Securities and Exchange Commission. Now let me turn the call over to our President and Chief Executive Officer, Lois Zabrai.

Lois?

Lois Zabrai, President and Chief Executive Officer, International Seaways: Thank you, Jane. Good morning, everyone. Thank you all for joining International Seaways earnings call for the 2025. On slide four of the presentation found in the Investor Relations section of our website, net income for the second quarter was $62,000,000 or $1.25 per diluted share. Excluding gains on vessel sales, adjusted net income for the second quarter was $50,000,000 or $1.02 per diluted share, and adjusted EBITDA was $102,000,000 Today, we also announced a combined dividend of $0.77 per share to be paid in September, as you can see in the lower left section of the slide.

This is our fourth consecutive quarter of a payout ratio of at least 75%. We continue to believe in building on our track record of returning to shareholders as part of our consistent and balanced capital allocation strategy. Since we started supplementing a regular $0.12 per share dividend in the 2022, we have paid combined dividends of $15.25 per share, which equates to a dividend yield of about 14% per year on our average market cap. Share repurchases remain an option for Seaway, and this would be additive to our payout ratio. On the upper right hand side, we have sold or agreed to sell six of our oldest vessels with an average age of 17 years.

Two were sold within the second quarter for proceeds of $28,000,000, with the other four delivering during the third quarter for proceeds of around $57,000,000. We have also taken steps to utilize those proceeds with our agreement to purchase a 2020 built scrubber fitted VLCC delivering in the fourth quarter. The impact of these sales and purchase reduced our age by half a year. Fleet renewal is always part of our strategy, and we expect to execute sales and purchases throughout the tanker cycle. We continue to work through our time charter book as well.

We still have over $260,000,000 in future contracted revenues on 12 vessels with an average duration of around two years. The first of our $6.01 new billing is set to be delivered in September. We are very pleased to share our expected financing for up to 240,000,000 of the 300,000,000 in outstanding payments. We have received secured commitments for export agency financing with K Sure and D and B across two tranches. On a blended basis, the agreement carries a twenty year amortization profile bearing interest of SOFR plus 125 basis points over the twelve year maturity.

Funds will be drawn upon delivery of each vessel starting in the third quarter through September 2026. All of this is subject to final documentation and closing expected later this month, with the remaining funding for these vessels to be sourced through cash on hand. We ended q two with over $700,000,000 in total liquidity, with a $149,000,000 in cash and 560,000,000 in undrawn revolver capacity. Our gross debt was $553,000,000 on over 3,000,000,000 in fleet value. Our net loan to value is comfortably under 15%.

We are proud of the strength of our balance sheet. With ample liquidity, debt below our recycle value, and low cash breakeven, we are able to grow the company and create further enhancements like our most recent financing. With breakeven levels where our spot ships only need to make $13,000 per day, we expect to continue executing our balanced strategy. Turning to slide five. We’ve updated our standard set of bullets on tanker demand drivers with the green up arrows next to the bullets representing good for tankers, the blank dash representing neutral impact, and a red down arrow, meaning the topic is not positive for tanker demand.

Without reading these bullets individually, we do believe demand fundamentals are solid and continue to support a constructive outlook for seaborne transportation. Recent upward revisions to forecasted GDP may increase oil demand forecast. The OECD has maintained crude storage at historically low levels that are slowly rising in 2025, as you can see in the chart on the lower left hand side. Product inventories are also at historically low levels. Specifically, we are short on middle distillate whose growing demand worldwide has increased the refinery margin and is currently pushing up refinery utilization.

We’ve noted in the bottom right chart that over the next five years, refining capacity is growing East Of Suez and largely for export purposes, while we have seen more capacity shutting down in the West. This is very supportive of the refined product ton mile demand. The release of these barrels may impact non OPEC production as these areas may be more sensitive to price fluctuations if prices decline significantly. The geopolitical environment remains fluid, making sustained trends in new trade routes more difficult to identify. This quarter alone saw an escalation within the Strait Of Hormuz that grabbed headlines and was short lived in the escalation of VLCC rates.

Many vessels on subjects in late June were failed within the week. There are scenarios for an uptick in rates if there is sustained escalation of tension. And there are scenarios for full de escalation and peace, which could also rationalize the aging tanker fleet. This brings us to the supply side of slide six in the presentation. It remains one of the most compelling cases for tanker shipping.

Tankers are currently on order representing 15% of the existing fleet with this 15% delivering over the next four to five years. Over a twenty five year life of a vessel, we would expect as much with a 4% increase per year of removal candidates multiplied by the four years it takes to deliver the new vessels. In practicality, based on actual ship deliveries, there is a significant number of removal candidates that were built in the golden age 02/2010. In the graph on the lower left of the page, we note the relationship of older vessels to the order book. Since 2021, the fleet over twenty years, which our removal candidate exceeds the ships on order.

By the time the order book delivers in 2029, nearly 50% of this fleet will be over twenty years old and likely excluded from the commercial trade. There is simply not enough ships on order to replace the current aging fleet. We show this in the graph in the lower right. 800 plus ships shall deliver over the next four years, representing only one third of the likely tonnage to face trading challenges during the same period. Not to mention ever tightening regulations and either further environmental pressures.

We believe this should translate into a combined up cycle over the next few years, and Seaways is capitalizing on these market conditions. We will continue to execute our balanced capital allocation approach to renew our fleet and to adapt to industry conditions with a strong balance sheet while returning shareholders. Now I’m gonna turn it over to our CFO, Jeff Prevore, to share the financial review. Jeff? Thanks, Lois,

Jeff Prevore, CFO, International Seaways: and good morning, everyone. On slide eight, net income for the second quarter was $62,000,000 or $1.25 per diluted share. Excluding gains on vessel sales, our net income was $50,000,000 or $1.02 per diluted share. On the upper right chart, adjusted EBITDA for the second quarter was $102,000,000 In the appendix, we provided a reconciliation from reported earnings to adjusted earnings. Our revenue and expenses were largely within expectations in the second quarter, and we are pleased with our cost management this quarter.

Our VLCC rates were impacted by a long haul strategy that didn’t allow us to fully capture short spikes during the quarter. MRs were more heavily weighted to the weaker Western market and positioning for a significant number of drydockings for ships in the CPTA pool operating in The Americas. We’re seeing the benefits of those already as our third quarter bookings, which I’ll talk about later, have strengthened. Our lightering business had over $9,000,000 in revenue in the quarter. Combined with less than $3,000,000 in vessel expenses, just under $4,000,000 in charter hire and $1,000,000 of G and A, the winery business contributed about $2,000,000 in EBITDA in the second quarter.

Turning to our cash bridge on Slide nine. We began the quarter with total liquidity of $673,000,000 composed of $133,000,000 in cash and five forty million dollars in undrawn revolving capacity. Following along the chart on the left and right on the cash bridge, we had $102,000,000 in adjusted EBITDA for the second quarter, plus $22,000,000 of debt service and another $29,000,000 of dry docket capital expenditures, offset by working capital benefit of $20,000,000 due to the timing of payables and receivables. We therefore achieved our definition of free cash flows of just about $71,000,000 for the second quarter. This represents an annualized cash flow yield of nearly 15% on today’s share price.

We received $28,000,000 in proceeds from the two vessel sales at the end of the quarter. We paid about $16,000,000 LR1 newbuilding installments. As previously announced on the last call, we repaid $36,000,000 down on our revolver during the second quarter, of which $16,000,000 offsets our capacity reduction. The remaining $30,000,000 represents our $0.60 per share dividend that we paid in June. The latter few bars on the chart reflect our balanced capital allocation approach where we utilize all the pillars, fleet renewal, deleveraging and returns to shareholders.

In summary, dollars 71,000,000 of free cash flow plus $28,000,000 of vessel sales plus $82,000,000

Derek Stallone, Chief Commercial Officer, International Seaways: in capital

Jeff Prevore, CFO, International Seaways: allocation gives us a net positive change in cash of $15,000,000 and an increase in undrawn RCF of $20,000,000 This equates to ending cash of $149,000,000 with $560,000,000 in undrawn revolvers for total liquidity of over $700,000,000 Moving to slide 10, We have a strong financial position detailed by the balance sheet on the left hand side of the page. Cash and liquidity remain strong at $7.00 $9,000,000 We have invested about $2,000,000 in vessels at cost, which are currently valued at about $3,000,000 And with $553,000,000 of gross debt at the end of the second quarter, our net loan to value was below 14%. An important highlight to also mention, as we previously announced, is our intention to repay the Ocean Yield loans in November. Under the accounting guidelines, we are required to classify the outstanding debt of $268,000,000 as current debt, which impacts our current ratio. I want to be clear that this does not affect our financial covenants or our ability to fund our current liabilities.

While we continue to evaluate numerous financing alternatives for this refinancing, we can simply draw on the RCF to fully fund the repayment. We expect that this refinancing should lower our breakeven costs. On the lower right hand table, we have detailed our debt portfolio as of June 30. Since then, we repaid the remaining $27,000,000 outstanding under RCF during the third quarter. By the time of our next earnings call, we will expect to have completed documentation and drawn down on a new export agency backed facility that Lois described.

We’d like to thank our partners at K Sure and DMV for their efforts in financing up to $240,000,000 on our LR1 newbuilding that effectively achieves a twenty year amortization profile in a margin of 125 basis points over the next twelve years. We’ve been excited about our dual fuel ready LR1D building today. We’re very proud to be in the final stages of financing before our scheduled deliveries. We continue to enhance our balance sheet to maintain the financial flexibility necessary to facilitate growth as well as return to shareholders. Our nearest maturity in the portfolio isn’t until the next decade.

We have 32 uncovered vessels and we have ample undrawn revolving credit facility capacity. We continue to explore ways to lower our breakeven cost even more and share the upside with continued double digit returns to shareholders.

Sherif Almagrabi, Analyst, BTIG: And the last slide

Jeff Prevore, CFO, International Seaways: that I’ll cover, Slide 11, reflects our forward looking guidance and book to date TCE aligned with our spot cash breakeven rate. Starting with TCE pictures for the 2005, I’ll remind you, as I always do, that actual TCE during our next earnings call may be different. But as of today, we currently have a blended average spot TCE of about 28,000 per day lead line, 40% of our third quarter expected revenue days. On the right hand side, our forward spot breakeven rate is about $13,000 per day composed of a fleet wide breakeven of about $15,700 per day plus around $2,600 per day in profit from time charter revenues. Based on our spot TCE book to date and our spot breakeven, it looks like Seaways can continue to generate significant free cash flows during the third quarter and build on our track record of returning cash to shareholders.

On the bottom left hand chart, we provide some updated guidance for our expenses in the third quarter and our estimates for 2025. We also included in the appendix our quarterly expected off hire and CapEx. I don’t plan to read each item line by line, but encourage you to use these for modeling purposes. That concludes my remarks, and I’d like to now turn the call back to Lois for her closing comments.

Lois Zabrai, President and Chief Executive Officer, International Seaways: Thank you so much, Jeff. On slide 12, we have provided you with detailed Seaways investment highlights. I will summarize briefly. Over the last eight years, International Seaways has built a track record of returning cash to shareholders, maintaining a healthy balance sheet, and growing the company. Our total shareholder return represents around 20% compounded annual return.

We continue to renew our fleet so that our average age is close to ten years old and what we see as a sweet spot for tanker investments and returns. We have invested in a range of asset class, casting a wider net for growth opportunities and supplementing our scale in each class by operating in larger pool. We aim to keep our balance sheet fortified for any down cycle. We have nearly $600,000,000 in undrawn credit capacity to support our growth. Our net debt is under 15% of the fleet’s current value, and we have 32 vessels that are unencumbered.

Lastly, our spot ships only need to earn $13,000 per day to breakeven in the next twelve months. At this point in the cycle, we expect to continue generating cash that we will put to work to create value for the company and for our shareholders. Thank you very much. And with that said, operator, we’d like to open up the lines for questions.

Operator: Of course. We will now begin the question and answer session. If you would like to ask a question, please press star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2. And our first question comes from the line of Chris Robertson with Deutsche Bank.

Chris Robertson, Analyst, Deutsche Bank: Hi, good morning. Thank you for taking my questions. I have just one simple modeling type question and then a market question. The first is, Jeff, could you clarify on the four vessels expected to be delivered in the third quarter here on for $57,000,000 Is that $57,000,000 of net proceeds? Or is that prior to debt repayment?

Jeff Prevore, CFO, International Seaways: Chris, I think those debts should be considered to be debt proceeds. They’re on it. It could be because they’re part of our uncovered fleet.

Chris Robertson, Analyst, Deutsche Bank: Got it. Yeah. Thank you for that. Second question then on the recent sanctions package and then kind of some of the more recent threats by President Trump with regards to India taking Russian crude volumes. I guess could you provide some color on your thoughts around what impact the sanctions package will have?

And then if there are an increase in in sanctions US sanctions against India, or certain refiners there, something like that. What do you expect to happen in the market with regards to trade patterns?

Lois Zabrai, President and Chief Executive Officer, International Seaways: Hey, Chris. It’s Lois. It’s definitely, you know, definitely never, never a dull day, and we’re already seeing India only take compliant tonnage for export. They certainly have enjoyed a massive discount on copious volumes of Russian imports. You know?

So I I think this is, in the midst of negotiations likely behind the scene. You have seen India take more, US Gulf crude in the last six months than what we had seen previously. So, you know, this administration, they they seem to be, highly tactical in in their trading. So we’re we’re gonna see how this is all gonna cook over this, probably, the next thirty days.

Chris Robertson, Analyst, Deutsche Bank: Yeah. I I agreed with that. Alright. Thank you for the color.

Operator: Thank you. So the next question comes from Sheriff Almagrabi with BTIG.

Sherif Almagrabi, Analyst, BTIG: Hey, good morning. Thanks for taking my question. So OPEC plus announced they’re gonna finish unwinding those voluntary production cuts roughly a year ahead of schedule. That’s a lot of crude, and a lot will probably flow on bees. But can you speak to where we may see a benefit for smaller tankers?

Lois Zabrai, President and Chief Executive Officer, International Seaways: Yes, absolutely. I’m going to turn that over to Derek Stallone, our Chief Commercial Officer.

Derek Stallone, Chief Commercial Officer, International Seaways: Thanks, Lois. Sherif, thanks for the question. I I think you hit the nail on the head. Easy answer is a lot of that will move on VLCCs, so that should be beneficial to the B market. We’re seeing already an uptick in activity out of the Arabian Gulf over the last day or so on the back of this news.

And then to your question specifically, the VLCCs being much more engaged in moving crude out of the Arabian Gulf will be beneficial to the smaller segments because there’s less cannibalization of the VLCCs in the Suezmax routes and the Aframax routes. So all in should be very beneficial for crude tankers as a whole.

Sherif Almagrabi, Analyst, BTIG: Thanks. And sticking with that vessel mix thematic, I guess, you guys are buying that modern V at the end of the year. Opportunities like that don’t come around often. But how are you thinking about the balance of crude versus product in your own fleet, particularly given product tanker rates seem resurgent thus far in q three?

Lois Zabrai, President and Chief Executive Officer, International Seaways: So, Chris, you know, we brought in nine more modern MRs throughout 2024. And those vessels, you know, as you see with our days booked in the third quarter of twenty three thousand eight hundred dollars per day, even though we’re selling, and it pains me to sell those older MRs because they’re earning incredibly. You know, we have shored up, with more modern fleet profile across our MR space. And as you know, you know, we will be taking in September our first LR one of our six new building delivery, built in Korea in in a sector where there’s been five recycles, which for this year is a lot, and there’s been no deliveries in three and a half years. So if you look at, you know, the, smaller smaller part of our fleet and the product carriers and as we bubble up, it’s time.

Sherif Almagrabi, Analyst, BTIG: Okay. Thanks for taking my questions.

Operator: The next question comes from Omar Nokta with Jefferies.

Omar Nokta, Analyst, Jefferies: Thank you. Good morning. Hi, Lois. Hi, Jeff. Just a couple of questions and maybe just a little bit of a follow-up to start with Sharif’s last question.

Clearly, earlier in the year, rolled those older VLCCs into modern MRs and then recently you did the reverse by kind of rolling the older MRs into a new modern V. Do you see yourselves doing more of this type of action within those specific segments? Or are there any other segments you need or have a desire, to tweak in a similar fashion?

Lois Zabrai, President and Chief Executive Officer, International Seaways: No. Thank you, Omar. You know, definitely, you know, the prices we received on those, you know, fifteen year old VLTs were really, you know, strongly above mid cycle levels. You know? So we look very opportunistically at constantly improving our sleep profile.

We’re very deliberate with the moves that we’re making, and, you know, we do see upside on the VLCCs. It’s you know, people have been waiting for that and kind of maybe move prematurely where we have a more balanced fleet. We think that, the opportunity is coming on the horizon there.

Omar Nokta, Analyst, Jefferies: Okay. Thanks, Lois. And and then maybe, Jeff, for for you, just sort of on the on the financing, that you just announced. You secured the new 260,000,000 for the LR1s. That gives you, it looks like, about two thirds of the order cost in the facility is repaid over twelve years.

Can you talk a little bit about how you think the six VLCCs would be refinanced that are coming off those leases later in the year? I figure they may not be able to get the same type of package given they’re not new buildings. But do you have an idea of what the what that type

Jeff Prevore, CFO, International Seaways: of financing package could look like? Hi, Omar. Well well, first of all, we’re pleased about this K Shore financing for the LR1 newbuilds. I think marrying up new buildings in Korea with financing that’s backed by government agencies there is a good way to do things and a good new avenue to open up for us. So it was really appropriate for those ships in particular.

Regarding the six ships that will be freed up or unencumbered by paying off ocean yield, there’s there’s numerous options. We we really, are in the the middle of evaluating all that. First of all, we can just you know, we have enough revolver to simply stroke a check, right? But we’ll use this as an opportunity to see whether or not we can tweak get a further tweak in our balance sheet to lower our breakevens a bit. So we’re evaluating sort of everything.

So I really can’t tell you much more than that, but we feel very fortunate that there will be a lot of good opportunities for that financing.

Omar Nokta, Analyst, Jefferies: Okay. Thanks, Jeff. And maybe just a quick follow-up to that. We’ve generally seen whenever a refinancing takes place of vessels on the water tends to be maybe a five year term, and we’re seeing these new buildings get twelve years. Is five years still the more kind of is that what can be expected?

Or do

Jeff Prevore, CFO, International Seaways: you see that extending? Look, I think that there’s usually trade offs involved. Like it can certainly possibly get six or seven years. But depending upon the age, you may of the vessels securing it may or may not make a trade off for that. If you look at the age of the vessels that are coming off, it’s certainly not going be a twelve year term on those vessels that are relatively minor, but they’re closer to ten years old.

But I think that is one of the factors. The other things that go into it are obviously margin. Everyone looks at margin. That’s important. And they’ve been coming down.

But it’s also profile. Like we have a twenty year profile on this ECA financing and a lot of our other financing. That’s really helpful in terms of reducing the amortization, therefore, lowering your daily cash breakeven. So we, as a company, kind of look at all of these factors as part of the fabric of what’s the right choice. So any one of them is relevant, but you kind of look at them all together and make the best choice.

So I hope that kinda answers your question, Omar.

Omar Nokta, Analyst, Jefferies: Yeah. That’s that’s helpful. I appreciate your your comments, Jeff. Thank you, and and thanks, Lois.

Lois Zabrai, President and Chief Executive Officer, International Seaways: Thank you.

Jeff Prevore, CFO, International Seaways: She just want a question. Okay.

Lois Zabrai, President and Chief Executive Officer, International Seaways: Alright. We wanna thank everyone for joining us for our earnings call today. And as as we sit here, in the August, we’re starting to see a synchronized uptick in the spot market on both crude and products. So we look forward to, having you join us on the next quarter. Thank you so very much.

Operator: Thank you, everyone. This concludes today’s call. You may now disconnect.

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