Note 6 — Equity Method Investments:

Investments in affiliated companies include joint ventures accounted for using the equity method. As of September 30, 2019, the Company had an approximate 50% interest in three joint ventures. One joint venture operated four LNG carriers (the “LNG Joint Venture”). The other two joint ventures - TI Africa Limited (“TI Africa”) and TI Asia Limited (“TI Asia”) - operate two Floating Storage and Offloading Service vessels that were converted from two ULCCs (collectively the “FSO Joint Venture”).

Investments in and advances to affiliated companies as reflected in the accompanying condensed consolidated balance sheet as of September 30, 2019 consisted of: FSO Joint Venture of $135,049, LNG Joint Venture of $120,415 and Other of $16,191, which primarily relates to working capital deposits that the Company maintains for commercial pools in which it participates.

On October 7, 2019 (the “Closing Date”), the Company sold its 49.9% ownership interest in the LNG Joint Venture with Qatar Gas Transport Corporation (Nakilat) (“Nakilat”) to Nakilat (the “Transaction”) pursuant to a share purchase agreement (the “Agreement”) entered into on the Closing Date. The purchase price for the Transaction was $123,000, excluding fees and expenses. The Agreement contains specified representations, warranties, covenants and indemnification provisions of the parties customary for transactions of this type. In addition, in connection with the Transaction, various other agreements governing the LNG Joint Venture and the LNG Joint Venture’s relationships with its counterparties were also amended to reflect the change in ownership and related matters. During the fourth quarter of 2019, the Company expects to record a cash gain on the sale of approximately $3,000, and to reclassify the Company’s share of the unrealized losses associated with the interest rate swaps held by the LNG Joint Venture of approximately $21,000, which is already reflected in the carrying value of the investment in the LNG Joint Venture as of September 30, 2019, into earnings from Accumulated Other Comprehensive Loss.

As of September 30, 2019 and December 31, 2018, the maximum aggregate potential amount of future principal payments (undiscounted) relating to the FSO Joint Venture’s secured bank debt and interest rate swap obligations that INSW could be required to make was $77,065 and $93,548, respectively, and the carrying value of the Company’s guaranty of such FSO Joint Venture obligations in the accompanying condensed consolidated balance sheets was $349 and $673, respectively.

A condensed summary of the results of operations of the joint ventures follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
		2019		2018		2019		2018
Shipping revenues	$	58,210	$	50,105	$	163,995	$	156,427
Ship operating expenses		(32,003)		(28,407)		(86,330)		(82,738)
Income from vessel operations		26,207		21,698		77,665		73,689
Other income		462		424		1,358		1,125
Interest expense		(9,816)		(11,095)		(30,205)		(29,862)
Income tax provision		(882)		(837)		(2,551)		(2,665)
Net income	$	15,971	$	10,190	$	46,267	$	42,287