International Seaways (INSW) risk factors, FY2024 10-K

Risks Related to Our Industry

1. 01The highly cyclical nature of the industry may lead to volatile changes in charter rates and vessel values, which could adversely affect the Company’s earnings and available cash
2. 02International Seaways, Inc
3. 03The market value of vessels fluctuates significantly, which could adversely affect INSW’s liquidity or otherwise adversely affect its financial condition
4. 04Declines in charter rates and other market deterioration could cause INSW to incur impairment charges
5. 05Changes in the worldwide supply of vessels or an expansion of the capacity of newly-built tankers, without a commensurate shift in demand for such vessels, may cause spot charter rates to increase or decline, affecting INSW’s revenues, profitability and cash flows, and the value of its vessels
6. 06Shipping is a business with inherent risks, and INSW’s insurance may not be adequate to cover its losses
7. 07INSW’s reputation and cause INSW either to lose business or to be less likely to be able to enter into new business (either because of customer concerns or changes in customer vetting processes). Any of these events could result in loss of revenues, decreased cash flows and increased costs
8. 08Counterparty credit risk and constraints on capital availability may adversely affect INSW’s business
9. 09The state of the global financial markets may adversely impact the Company’s ability to obtain additional financing on acceptable terms and otherwise negatively impact the Company’s business
10. 10INSW conducts its operations internationally, which subjects it to changing economic, political and governmental conditions that may adversely affect its business
11. 11The occurrence of any such event could have a material adverse effect on the Company’s business
12. 12Changes in fuel prices may adversely affect profits
13. 13Terrorist attacks and international hostilities and instability can affect the tanker industry, which could adversely affect INSW’s business
14. 14Acts of piracy on ocean-going vessels could adversely affect the Company’s business
15. 15Public health threats could have an adverse effect on the Company’s operations and financial results

Risks Related to Our Company

1. 16INSW has incurred significant indebtedness which could affect its ability to finance its operations, pursue desirable business opportunities and successfully run its business in the future, all of which could affect INSW’s ability to fulfill its obligations under that indebtedness
2. 17The Company may not be able to generate sufficient cash to service all of its indebtedness and could in the future breach covenants in its credit facilities, term loans, and certain vessel charters
3. 18INSW is a holding company and depends on the ability of its subsidiaries to distribute funds to it in order to satisfy its financial obligation or pay dividends
4. 19The Company will be required to make additional capital expenditures to expand the number of vessels in its fleet and to maintain all of its vessels, which depend on additional financing
5. 20The Company depends on third-party service providers for technical and commercial management of its fleet
6. 21INSW’s business depends on voyage charters, and any future decrease in spot charter rates could adversely affect its earnings
7. 22INSW may not be able to renew Time Charters when they expire or enter into new Time Charters
8. 23Termination of, or a change in the nature of, INSW’s relationship with any of the commercial pools in which it participates could adversely affect its business
9. 24In the highly competitive international market, INSW may not be able to compete effectively for charters
10. 25INSW may not realize the benefits it expects from past acquisitions or acquisitions or other strategic transactions it may make in the future
11. 26The smuggling or alleged smuggling of drugs or other contraband onto the Company’s vessels may lead to governmental claims against the Company
12. 27Operating costs and capital expenses will increase as the Company’s vessels age and may also increase due to unanticipated events relating to secondhand vessels and the consolidation of suppliers
13. 28The Company’s lightering business faces significant competition and market volatility, and revenues and profitability for these operations may vary significantly from period to period
14. 29The Company is subject to credit risks with respect to its counterparties on contracts, and any failure by those counterparties to meet their obligations could cause the Company to suffer losses on such contracts, decreasing revenues and earnings
15. 30The Company relies on the skills of its senior management team, and if the Company were required to replace them, it could negatively impact the effectiveness of management and the Company’s results of operations could be negatively impacted
16. 31The Company may face unexpected drydock costs for its vessels
17. 32Technological innovation could reduce the Company’s charter income and the value of the Company’s vessels
18. 33INSW’s revenues are subject to seasonal variations
19. 34Effective internal controls are necessary for the Company to provide reliable financial reports and effectively prevent fraud
20. 35Work stoppages or other labor disruptions may adversely affect INSW’s operations

Risks Related to Legal and Regulatory Matters

1. 36Climate change and greenhouse gas restrictions may adversely affect our operating results
2. 37Increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our sustainability and governance policies may impose additional costs on us or expose us to additional risks
3. 38Employment of the Company’s vessels could be adversely affected by an inability to clear the oil majors’ risk assessment process
4. 39The Company’s vessels may be directed to call on ports located in countries that are subject to restrictions imposed by the U.S., the U.N., the U.K. or the EU, which could negatively affect the trading price of the Company’s common shares
5. 40The Company may be subject to litigation and government inquiries or investigations that, if not resolved in the Company’s favor and not sufficiently covered by insurance, could have a material adverse effect on it
6. 41Maritime claimants could arrest INSW’s vessels, which could interrupt cash flows
7. 42Governments could requisition the Company’s vessels during a period of war or emergency, which may negatively impact the Company’s business, financial condition, results of operations and available cash
8. 43Pending and future tax law changes may result in significant additional taxes to us

Risks Related to the Common Stock

1. 44We are incorporated in the Marshall Islands, which does not have a well-developed body of corporate case law or bankruptcy law, and, as a result, shareholders may have fewer rights and protections under Marshall Islands law than under a typical jurisdiction in the United States
2. 45It may be difficult to serve process on or enforce a United States judgment against us, our officers and our directors because we are a foreign corporation
3. 46The market price of the Company’s securities may fluctuate significantly
4. 47If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about the Company’s business, the price and/or trading volume of shares of the Company’s common stock could decline
5. 48Future offerings of debt or equity securities by the Company may materially adversely affect the share price, and future capitalization measures could lead to substantial dilution of existing stockholders’ interests in the Company
6. 49INSW may not continue to pay cash dividends on its Common Stock