Photo credit: International Seaways

The tanker shipowner International Seaways reports the delivery of the Seaways Endeavor. The vessel is the first of three dual-fuel LNG VLCC’s expected to deliver this year.

The New-York listed company revealed the delivery of the first of the three vessels yesterday as it considers it “the beginning of an exciting new chapter in the future of International Seaways. This is an exciting step in our decarbonization journey,” as it is mentioned.

The newbuilding program, composed of three dual-fuel VLCCs, continues to progress with one vessel already delivered, and the remaining two scheduled for delivery in the first half of 2023, in order to reduce the company´s fleet carbon footprint.  

The vessels were ordered for an aggregate contract price of $288 million and have approximately $172 million in remaining payments as of December 31, 2022. The vessels as the company reveals are fully financed under a sale leaseback arrangement. “Upon delivery, the vessels will commence long term time charters with an oil major for the next seven years,” as International Seaways states in its report.

The New-York listed company anticipates continued market strength based on growing demand and higher tanker utilization from the shifting global energy trade, combined with the lowest orderbook in more than 30 years.

The President and CEO of International Seaways Lois K. Zabrocky said “our history of renewing our fleet at cyclical lows continues to serve us well, and we look forward to the delivery of three dual-fuel LNG VLCCs in the first half of 2023, which will not only reduce our carbon footprint today, but are well suited to adhere to anticipated environmental regulation into the future.”

The top management of the company reports highest ever earnings for the third consecutive quarter of 2022, driven by the company´s strategy of building a diverse fleet of crude and product tankers with sizable operating leverage. The company recorded net income in the fourth quarter of 2022 of $218.4 million, compared to a net loss of $34.0 million, in the same period the year before.

The shipowner now expects near-term catalysts to continue to drive tanker earnings, including sanctions on Russian oil, and the reopening of China.