International Seaways, Inc. · NYSE:INSW
International Seaways — Q4 2023 Earnings Presentation
23 slides from International Seaways's earnings presentation, Feb 29, 2024
Slide 1: Fourth Quarter 2023 Earnings Presentation
International Seaways, Inc. Fourth Quarter 2023 Earnings Presentation February 29, 2024
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: Fourth Quarter & FY 2023 Highlights and Recent Developments
Fourth Quarter & FY 2023 Highlights and Recent Developments Record Annual Results & Strong Q1 Bookings Quality Capital Structure $m except per share Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Total Liquidity of $601 million • $187 million in cash & short-term investments Net Income $218.4 $172.
Slide 5: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand forecasted to grow to 1.5 mpbd in 2024; 1.5% demand growth higher than last 30 yrs CAGR ˄ Oil demand growth largely driven by Asia, which structurally short oil and refined products ˄ Non-OPEC production expected to increase by more than 1 mpbd, prim
Slide 6: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be low relative to size of the fleet: under 7.0% (by dwt) ˄ Net fleet growth is under 3% since February 2022 ˄ Average age of tanker fleet has grown to 13.1 years (vs. an average age of about 8.9 years in February 2014) increasing potenti
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Q4 2023: Another Solid Quarter
Q4 2023: Another Solid Quarter For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 254.3 218.4 208.8 209.0 205.1 172.6 162.5 153.8 154.4 150.9 158.8 132.1 97.9 100.7 107.6 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022
Slide 9: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $601m $581m $367m $13m interest $414m $28m $50m $159m $32m amort $9m $14m $12m $71m $61m $2m Free Cash Flow ~ $91m $319m $305m $214m $187m $187m 09/30/23 Total Adjusted Debt Service Drydock & Working Capital Procee
Slide 10: Strong Financial Position
Strong Financial Position Balance Sheet $m Key Balance Sheet Figures $m As of December 31, ASSETS 2022 2023 Cash and Cash Equivalents + Short Term Investments $324 $187 Ample Cash & Total Liquidity Voyage Receivables 290 247 $414m $601m Other Current Assets 29 31 Total Current Assets $643 $465 $187m
Slide 11: Looking Forward
Looking Forward Refer to disclaimer on slide 2 The Company is Positioned to Capitalize on Strong Q1 Environment Well Above our Cash Break Even & Estimated Costs Q1 2024 Booked to-Date as of February 22, 2024 Forward Estimated Cash Break Even(1) $ per day Spot Time Charter Overall OPEX Charter hire G
Slide 12: Conclusion
Conclusion Core Objectives Met in 2023 ✓ Capitalized on significant operating leverage ✓ Optimized the fleet ✓ Significantly strengthened the balance sheet ✓ Advanced balanced capital allocation approach Strong Execution Since Spin Off ✓ Increased earnings power and tanker leadership ✓ Enhanced capi
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix
Slide 15: Investment Highlights
Investment Highlights • Transformed company approximately $0.4bn market cap at time of spin-off in 2016 through today into one of the top 3 US publicly traded tanker companies by DWT with $2.5bn in market cap(1) • Invested approximately $2bn in assets at low points in the cycle (valued at over $3bn
Slide 16: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions, except days) 2023 Offhire Days 2024 Offhire Days Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 VLCC 33.0 39.9 28.9 82.7 184.6 VLCC 50.0 5.0 5.0 5.0 65.0 Suezmax 42.8 14.0 0.4 6.2 63.4 Suezmax 5.0
Slide 17: LR1 Newbuilding Schedule
LR1 Newbuilding Schedule Hull Hull Hull Hull Amount Due ($M) 1810 1811 1812 1813 per vesel Signing AUG-23 AUG-23 OCT-23 OCT-23 - First Payment Due NOV-23 NOV-23 JUN-24 JUN-24 5.774 Payment after steel cutting SEP-24 NOV-24 MAR-25 APR-25 5.774 Payment after keel laying JAN-25 MAR-25 JUL-25 SEP-25 5.7
Slide 18: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Time charter equivalent revenues 335,650 283,320 288,335 235,952 247,912 Add: Voyage expenses 2,507 3,810 3,868 5,756 2,822 Shipping revenues 338,157 287,130 292,203 241,708 250,734 18
Slide 19: Adjusted EBITDA and Net Income Reconciliation: Quarters
Adjusted EBITDA and Net Income Reconciliation: Quarters $000s Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net income / (loss) 218,429 172,633 153,762 97,937 132,114 Income tax provision 25 (1) 381 52 3,446 Interest expense 17,091 16,947 17,914 16,817 14,081 Depreciation and amortization 28,404 29,548 32
Slide 20: Adjusted EBITDA and Net Income Reconciliation: Annual
Adjusted EBITDA and Net Income Reconciliation: Annual $000s 2017 2018 2019 2020 2021 2022 2023 Net income / (loss) (106,088) (88,940) (830) (5,531) (134,660) 387,891 556,446 Income tax provision/(benefit) 44 (105) 1 1 1,618 88 3,878 Interest expense 40,438 60,231 66,267 36,712 36,796 57,721 65,759 D
Slide 21: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $000s Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Net cash provided by operating activities (1) 181,600 220,822 193,634 148,463 125,483 688,402 Repayments of debt (1) (54,706) (137,449) (55,407) (132,152) (108,365) (433,373) Payments on sale and leaseback financing
Slide 22: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on page 2 • Time Charter-Out: *excludes 50/50 profit share, if applicable Charter Vessel Rate 2024 2025 2026 2027 2028 2029 2030 Total Expiry 2016-Built Suezmax $32,500 AUG-24 7.3 7.3 2012-Built Suezmax $30,650 JAN-25 11.2
Slide 23: INSW Fleet Overview as of February 1, 2024
INSW Fleet Overview as of February 1, 2024 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI SEAWAYS LEYTE LR1 OWNED 2011 73,944 SPP SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao SEAWAYS SAMAR LR1 OWNED 2011 73,92
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