International Seaways (INSW) risk factors, FY2025 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 cash69% rewritten
2. 02International Seaways, Inc49% rewritten
3. 03The market value of vessels fluctuates significantly, which could adversely affect INSW’s liquidity or otherwise adversely affect its financial condition34% rewritten
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 losses56% rewritten
7. 07Counterparty credit risk and constraints on capital availability may adversely affect INSW’s business
8. 08The 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
9. 09INSW conducts its operations internationally, which subjects it to changing economic, political and governmental conditions that may adversely affect its business
10. 10The occurrence of any such event could have a material adverse effect on the Company’s business42% rewritten
11. 11Changes in fuel prices may adversely affect profits
12. 12Terrorist attacks and international hostilities and instability can affect the tanker industry, which could adversely affect INSW’s business
13. 13Acts of piracy on ocean-going vessels could adversely affect the Company’s business
14. 14Public health threats could have an adverse effect on the Company’s operations and financial results

Risks Related to Our Company

1. 15INSW 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. 16The 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. 17INSW 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. 18The 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 financing27% rewritten
5. 19The Company depends on third-party service providers for technical and commercial management of its fleet
6. 20INSW’s business depends on voyage charters, and any future decrease in spot charter rates could adversely affect its earnings
7. 21INSW may not be able to renew Time Charters when they expire or enter into new Time Charters20% rewritten
8. 22Termination 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 business21% rewritten
9. 23In the highly competitive international market, INSW may not be able to compete effectively for charters
10. 24INSW may not realize the benefits it expects from past acquisitions or acquisitions or other strategic transactions it may make in the future
11. 25The smuggling or alleged smuggling of drugs or other contraband onto the Company’s vessels may lead to governmental claims against the Company
12. 26Operating 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. 27The 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. 28The 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. 29The 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. 30The Company may face unexpected drydock costs for its vessels
17. 31Technological innovation could reduce the Company’s charter income and the value of the Company’s vessels
18. 32INSW’s revenues are subject to seasonal variations
19. 33The Company maintains a system of internal controls to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAPNew
20. 34Work stoppages or other labor disruptions may adversely affect INSW’s operations

Risks Related to Legal and Regulatory Matters

1. 35Climate change and greenhouse gas restrictions may adversely affect our operating results
2. 36Increasing 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. 37Employment of the Company’s vessels could be adversely affected by an inability to clear the oil majors’ risk assessment process
4. 38The 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 shares61% rewritten
5. 39The 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. 40Maritime claimants could arrest INSW’s vessels, which could interrupt cash flows
7. 41Governments 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. 42Pending and future tax law changes may result in significant additional taxes to us37% rewritten

Risks Related to the Common Stock

1. 43We 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. 44It 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. 45The market price of the Company’s securities may fluctuate significantly
4. 46If 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 decline93% rewritten
5. 47Company, the trading price for its shares might be adversely affected. Similarly, if analysts 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 declineNew
6. 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
7. 49INSW may not continue to pay cash dividends on its Common Stock29% rewritten