International Seaways, Inc. · NYSE:INSW
International Seaways — Q3 2022 Earnings Presentation
21 slides from International Seaways's earnings presentation, Nov 8, 2022
Slide 1: International Seaways, Inc. Third Quarter 2022 Earnings Presentation
International Seaways, Inc. Third Quarter 2022 Earnings Presentation November 8, 2022
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: Third Quarter 2022 Highlights and Recent Developments
Third Quarter 2022 Highlights and Recent Developments Q3 2022 Results Strong Balance Sheet Third Quarter Results Total liquidity of approximately $476 million at Sep-22 includes cash Record net income $113.4 million, or $2.28/share. of $176 million, $80 million of short-term investments and $220
Slide 5: Market Rate Update: Russian Exports Ahead of Sanctions
Market Rate Update: Russian Exports Ahead of Sanctions Russian Crude Displacement Just Beginning Ahead of Dec Ban Russian Product Exports Not Yet Altered Ahead of Feb-23 Ban Background Background Approximately 2.5 mbpd of Russian crude by sea was exported to Europe prior Approximately 1.0 mbpd of Ru
Slide 6: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand expected to increase to nearly 101 mbpd in Q4 2022 and approximately 102 mbpd in 2023 ˅ Economic outlook concerns due to high inflation and energy costs ˅ OPEC+ production cuts expected to be less than announced but may be roughly 1 mpbd ˄ Inventorie
Slide 7: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be lowest relative to size of the fleet: under 4.5% (by dwt) ˄ Net fleet growth is approximately 1.5% since September 2021 ˄ Average age of tanker fleet has grown to 12.1 years (from about 8.3 years vs. 10 years ago) increasing potential
Slide 8: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 8
Slide 9: Financial Summary: Segments, TCE Revenue & Adjusted EBITDA
Financial Summary: Segments, TCE Revenue & Adjusted EBITDA (1)(2) Segment Information Total Crude Product Other Total TCE revenue (net of voyage expense) 75,192 159,355 (1) 234,546 Vessel expenses (24,713) (33,852) - (58,565) Charter hire expenses (3,715) (4,082) - (7,797) Depreciation and amortizat
Slide 10: Financial Summary – TCE Summary
Financial Summary – TCE Summary Q3 2022 Actual Q4 2022 To-Date(1) SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $24,400 $43,900 $26,400 63% $59,400 100% $43,900 67% $57,100 Suezmax $34,200 $27,700 $33,600 51% $46,900 100% $32,500 55% $44,700 Aframax/LR2 $38,300 $17,1
Slide 11: Cash Break Even & Cost Guidance
Cash Break Even & Cost Guidance TCE breakeven levels allow INSW to navigate low points in the tanker cycle while providing significant operating leverage in rising markets Estimated Cash Break Even(1) for Next 12 Mos Cost Guidance for Rest of 2022 & Estimated 2023 OPEX Charter hire G&A Interest Prin
Slide 12: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash* Balance *Cash & Cash Equivalents plus Short Term Investments $476m $452m $157m $11m Debt Repaid $220m $14m Interest $220m $12m $25m $20m $6m $45m $364m $301m $256m $256m $232m $232m 6/30/22 Total Cash Adjusted EBITDA Debt Service Drydock & Capex Redemption of 8.5%
Slide 13: Strong Financial Position: Balance Sheet
Strong Financial Position: Balance Sheet While cash has built as a result of strong markets and strategic initiatives INSW maintains a strong balance sheet to protect against weaker market conditions. September 30, 2022 ($m) Assets Liabilities & Equity Cash and Cash Equivalents + ST Investments $254
Slide 14: INSW Debt
INSW Debt As of September 30, 2022 Debt Summary Details Principal Amortization ($m) Facility Name Balance ($m) Maturity Rate Q4 2022 FY 2023 (5) Macquarie Facility (1) 17.8 Mar-25 LIBOR +383 bps 0.7 2.4 ING Facility 23.4 Nov-26 LIBOR +200 bps 0.5 2.1 $750m Facility (2) 530.0 May-27 SOFR +240 bps (3)
Slide 15: Investment Highlights
Investment Highlights • Transformed company from spin-off & approximately $400m market cap in 2016 through today into the top 3 US publicly traded tanker companies by DWT with $2.0bn in market cap Disciplined Capital • Acquired Diamond S Shipping in July 2021 Allocator • Returned over $129 million t
Slide 16: Appendix
Appendix 16 International Seaways, Inc.
Slide 17: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions) 2022 Out-of-Service Days Q1 (A) Q2 (A) Q3 (A) Q4 (E) FY 2022 FY 2023 (E) VLCC 63 11 16 0 90 76 Suezmax 20 129 255 105 509 52 Aframax / LR2 53 38 5 5 101 69 Panamax / LR1 121 -35 1 0 87 119 MR 533 129 -22 115 755 711 Handy 17 35 0
Slide 18: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q3 2022 Q3 2021 Q3 YTD 2022 Q3 YTD 2021 Time charter equivalent revenues 234,546 72,968 518,060 162,855 Add: Voyage expenses 2,283 11,848 8,448 15,021 Shipping revenues 236,829 84,816 526,508 177,876 18
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $000s Q3 2022 Q2 2022 Q3 2021 Q3 YTD 2022 Q3 YTD 2021 Net income / (loss) 113,427 69,036 (67,878) 169,462 (100,026) Income tax provision 7 52 35 63 36 Interest expense 15,332 12,558 10,639 40,630 24,925 Depreciation and amortization 27,728 27,256 25,806 81,984 59,639 N
Slide 20: Chartered In/Out Fleet
Chartered In/Out Fleet • Time Charter-Out(1): Q4 2022 FY 2023 Vessel Type Type Built Charter Expiry Rev Rev LR2 TC-Out 2014 April 2023 Suezmax TC-Out 2016 September 2024 $9.9m $22.1m VLCC TC-Out 2012 April 2023 MR TC-Out 2007 October 2023 • Time Charter-Ins/Bareboat-Ins: Q4 2022 2023 Vessel Type Typ
Slide 21: INSW Fleet Overview as of November 1, 2022
INSW Fleet Overview as of November 1, 2022 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI HIGH JUPITER MR OWNED 2008 51,603 STX SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao ADRIATIC WAVE MR OWNED 2009 51,549 S
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