International Seaways, Inc. · NYSE:INSW
International Seaways — Q1 2023 Earnings Presentation
20 slides from International Seaways's earnings presentation, May 5, 2023
Slide 1: International Seaways First Quarter 2023 Earnings Presentation
International Seaways, Inc. First Quarter 2023 Earnings Presentation May 5, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements During the course of this presentation, the Company (International Seaways, Inc. (INSW)) may make forward-looking statements or provide forward-looking information. All statements other than statements of historical facts should be considered forward-looking sta
Slide 3: Business Review
Business Review Lois K. Zabrocky President & CEO 3
Slide 4: First Quarter 2023 Highlights and Recent Developments
First Quarter 2023 Highlights and Recent Developments Q1 2023 Results & Solid Q2 Fixtures Returns to Shareholders Third Consecutive Quarter of Earnings Above $100m $504.4 million Declared combined dividend of $1.62 per share payable in June • Net income of $172.6 million, or $3.47 diluted EPS 218.4
Slide 5: Hot Topics: Russian Oil Exports
Hot Topics: Russian Oil Exports Russian Crude Exports Displaced Mostly to Asia Russian Product Exports Still Strong – No Clear Displacement Total To Europe % (RHS) To Asia % (RHS) Total To Europe as % (RHS) To Asia as % (RHS) To Africa as % (RHS) 5.5 mbpd 80% 2.3 mbpd 90% 5.0 mbpd 70% 2.1 mbpd 80% 4
Slide 6: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand expected to grow about 2mpbd in 2023, averaging 101.5 mbpd, ramping up from 101 mbpd in 1H to 102 mbpd in 2H. ‒ Macro conditions remain mixed ˄ Oil demand growth largely driven by China, which is expected to increase by 0.8 mbpd ˄ Non-OPEC production
Slide 7: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be lowest relative to size of the fleet: under 3.7% (by dwt) ˄ Net fleet growth is approximately 3.4% since April 2022 ˄ Average age of tanker fleet has grown to 12.4 years (vs. an average age of about 8.5 years in April 2013) increasing
Slide 8: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 8
Slide 9: Strong Results
Strong Results For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 254.3 218.4 208.8 172.6 209.0 162.5 157.1 113.4 113.9 111.7 69.0 71.5 26.0 (13.0) (14.1) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022
Slide 10: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $541m $16m interest $519m $10m $24m $41m amort $23m $40m $217m $209m $18m to Restricted Cash $97m $257m $98m $4m Free Cash Flow ~ $169m $364m $324m $262m $261m 12/31/22 Total Adjusted Debt Service Drydock & Working
Slide 11: Strong Financial Position
Strong Financial Position Balance Sheet $m Significant Liquidity As of March 31, At period end ASSETS 2023 Undrawn RCF $541m Cash and cash equivalents + ST investments $519m Cash and Cash Equivalents + ST Investments $ 261 $476m Restricted Cash(1) 18 $452m 217 Voyage Receivables 248 257 220 Other Cu
Slide 12: Looking forward
Looking forward Refer to disclaimer on slide 2 The Company is Positioned to Capitalize on Strong Q2 Environment Well above our Cash Break Even & Estimated Costs Q2 2023 Booked to-Date Forward Estimated Cash Break Even(1) Spot Time Charter Overall Proforma for fully delivered DF VLCC deliveries $ per
Slide 13: Investment Highlights
Investment Highlights • Transformed company from spin-off & approximately $0.4bn market cap in 2016 through today into one of the top 3 US publicly traded tanker companies by DWT with $2.0bn in market cap(1) Disciplined Capital Allocator • Invested approximately $2bn in assets at low points in the c
Slide 14: Q&A
Q&A 14
Slide 15: Appendix
Appendix
Slide 16: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions, except days) 2023 Offhire Days Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 VLCC 33.0 30.0 0.0 0.0 63.0 Suezmax 42.8 9.0 0.0 0.0 51.8 Aframax / LR2 1.5 7.0 43.0 0.0 51.5 LR1 3.3 5.0 40.0 45.0 93.3 MR 209.9 83.0 242.0 119.0 653.9 290.6
Slide 17: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Time charter equivalent revenues 97,975 185,539 234,546 335,650 283,320 Add: Voyage expenses 3,507 2,658 2,283 2,507 3,810 Shipping revenues 101,482 188,197 236,829 338,157 287,130 17
Slide 18: Adjusted EBITDA and Net Income Reconciliation
Adjusted EBITDA and Net Income Reconciliation $000s Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net (loss)/income (13,001) 69,036 113,427 218,429 172,633 Income tax provision/(benefit) 4 52 7 25 (1) Interest expense 12,740 12,558 15,332 17,091 16,947 Depreciation and amortization 27,000 27,256 27,728 28
Slide 19: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on page 2 • Time Charter-Out: Q2 2023 Q2-Q4 2023 Vessel Type Type Built Charter Expiry Total Total Revenue Revenue VLCC TC-Out 2012 July 2023 LR2 TC-Out 2014 May 2023 MR TC-Out 2007 October 2023 2x MRs TC-Out 2008 April 202
Slide 20: INSW Fleet Overview as of May 1, 2023
INSW Fleet Overview as of May 1, 2023 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI NORDIC GENEVA LR1 TC-In 2009 73,700 New Times SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao HIGH JUPITER MR OWNED 2008 51,603
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