International Seaways' CEO On IMO 2020 And Capital Allocation (Podcast)
Summary
- Lois Zabrocky and Jeffrey Pribor, CEO and CFO of International Seaways respectively, join Value Investor's Edge Live in this bonus episode.
- J Mintzmyer discusses the recent Saudi Arabia oil market disruption as well as the looming IMO 2020 catalyst.
- The discussion is also an open one about the company's stock performance, capital allocation outlook, and what might be ahead.
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The third public episode of Value Investor's Edge Live is a bonus episode, following on Thursday's discussion with Euronav's (EURN) CEO Hugo de Stoop. J Mintzmyer spoke a few days later with peer company International Seaways (NYSE:INSW), specifically CEO Lois Zabrocky and CFO Jeffrey Pribor. The conversation touched on similar themes, including the recent disruption in Saudi Arabia's oil supply and the pending IMO 2020 regulations. Zabrocky and Pribor shared how they are thinking about capital allocation and their view on the stock's relative underperformance, compared to peers. This was recorded on the 20th of September and released on Value Investor's Edge, before the recent big move in the shares. Given recent attention on the sector and the forthright nature of the conversation, it should be an interesting listen for followers in the sector.
Topics Covered
- 1:10 minute mark - Start of discussion/Initial commentary on Saudi disruption
- 3:50 - What sort of situation could hurt rates?
- 6:20 - How are US exports looking? Signs of capacity constraints?
- 11:30 - IMO 2020 discussion/What have you seen in the markets? Positioning?
- 14:40 - What's going on with product tanker markets? When will they move?
- 17:25 - What are the capital allocation priorities?
- 20:10 - Is fleet growth and renewal still a consideration?
- 21:00 - Scrubber commitment beyond 10 vessels?
- 22:00 - Scrubber savings expectation in TCE?
- 23:10 - What are futures showing for spreads between fuels?
- 26:00 - What is INSW underperforming peers? Why should investors buy now?
- 29:30 - Are you considering repurchases? Any constraints to implementation?
- 30:50 - Strategic vision of refinancing? Any relevant covenants?
- 32:50 - Are your joint-ventures considered 'core?' Economics & plan there?
- 34:45 - What's the potential timeline for LNG JV refinancing?
- 36:40 - Is the share float or liquidity a concern for repurchases?
- 38:00 - How is your performance compensation related to share prices?
The Investing Edge will feature multiple shows from some of our top authors, with each focusing on the given hosts' investing style and interests. We're launching the new channel with two shows. Value Investor's Edge Live is the first. Hosted by J Mintzmyer of Value Investor's Edge, the show will feature J's conversations with publicly traded shipping company CEOs, sector experts, and fellow deep value investors about their companies and investing approaches. J has been a contributor on Seeking Alpha since 2011 and has become a leading analyst in the shipping sector, often quoted in industry publications and speaking at industry events like Marine Money.
Akram's Razor of The Razor's Edge will be the lead host of our other show, also called The Razor's Edge. SA Editor Daniel Shvartsman will be co-hosting, and the two will be discussing specific ideas from his investing watch list or portfolio, including specific ideas and takes as well as discussion about the research process. Akram's Razor has been on Seeking Alpha since 2010 and has built a reputation for deep-dive research, including thoroughly supported short ideas.
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This article was written by
Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
J Mintzmyer is long INSW and EURN. Lois Zabrocky and Jeffrey Pribor are employed by INSW. Nothing on this podcast should be taken as investment advice.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.