International Seaways, Inc. · NYSE:INSW
International Seaways — Q2 2024 Earnings Presentation
21 slides from International Seaways's earnings presentation, Aug 7, 2024
Slide 1: International Seaways, Inc. Second Quarter 2024 Earnings Presentation
International Seaways, Inc. Second Quarter 2024 Earnings Presentation August 7, 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: Second Quarter 2024 Highlights and Recent Developments
Second Quarter 2024 Highlights and Recent Developments Strong Quarterly Earnings & Q3 Fixtures Healthy Balance Sheet Second Quarter 2024 & Last Twelve Months (LTM) Results Total Liquidity of $682 million $m except per share Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 LTM • $176 million in cash & short-t
Slide 5: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand forecasted to grow by 1.5 mpbd each in 2024 & 2025 ‒ Oil demand growth largely driven by Asia, which structurally short oil and refined products ˄ Non-OPEC production about 1 mpbd increase YOY, primarily from Americas (US, Brazil, Canada, Guyana) ‒ O
Slide 6: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook relative to size of the fleet: 11% (by dwt) ˄ Net fleet growth is less than 1% YOY ˄ Average age of tanker fleet has grown to 13.4 years (vs. an average age of about 9.1 years in July 2014) increasing potential recycle candidates ˅ No recycling volume
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Q2 2024: Another Solid Quarter
Q2 2024: Another Solid Quarter For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 205.1 191.5 153.8 154.4 167.0 144.5 144.4 144.7 150.9 158.8 132.1 107.6 118.0 97.9 100.7 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023
Slide 9: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $682m $626m Free Cash Flow ~ $154m(1) $411m $506m $12m interest $48m $28m $175m $95m $12m amort $16m $167m $20m $50m $87m $8m $340m $340m $271m $242m $215m $185m $176m $176m 3/31/24 Adjusted Debt Service Drydock &
Slide 10: Strong Financial Position
Strong Financial Position Balance Sheet $m Key Balance Sheet Figures $m Jun 30, Mar 31, ASSETS 2024 2024 Cash and Cash Equivalents + Short Term Investments $176 $215 Ample Cash & Total Liquidity Voyage Receivables $223 243 $682m Other Current Assets $35 32 Total Current Assets $435 $490 $506m $176m
Slide 11: Looking Forward
Looking Forward Refer to Forward Looking Statements disclaimer on slide 2 The Company is Positioned to Capitalize on Strong Q3 Environment Well Above our Spot Break Even & Estimated Costs Q3 2024 Booked to-Date as of August 1, 2024 Forward Estimated Spot Break Even(1) $ per day Spot Time Charter Ove
Slide 12: 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 $2.8bn in market cap(1) • Invested in over $2bn in assets at low points in the cycle (valued at over $3.5bn toda
Slide 13: Seaways, Inc.
Seaways, Inc. DF
Slide 14: Appendix
Appendix (a
Slide 15: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions, except days) 2024 Drydock Costs Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 VLCC $0.8 $0.2 $0.1 $0.0 $1.0 Suezmax $0.0 $0.0 $0.1 $0.1 $0.2 Aframax / LR2 $1.3 $2.9 $2.2 $0.0 $6.4 LR1 $1.9 $2.7 $1.7 $0.0 $6.3 MR $6.0 $8.6 $5.2 $11.8 $3
Slide 16: LR1 Newbuilding Schedule
LR1 Newbuilding Schedule Hull Hull Amount Due Hull Hull Hull Hull Amount Due 1810 1811 ($M) 1812 1813 1814 1815 ($M) Signing AUG-23 AUG-23 OCT-23 OCT-23 APR-24 APR-24 First Payment Due NOV-23 NOV-23 5.774 JUL-24 JUL-24 SEP-24 SEP-24 3.040 Payment after steel cutting SEP-24 NOV-24 5.774 MAR-25 APR-25
Slide 17: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Time charter equivalent revenues 288,335 235,952 247,912 270,928 251,848 Add: Voyage expenses 3,868 5,756 2,822 3,473 5,561 Shipping revenues 292,203 241,708 250,734 274,401 257,409 17
Slide 18: Adjusted EBITDA and Net Income Reconciliation: Quarters
Adjusted EBITDA and Net Income Reconciliation: Quarters $000s Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net income 153,762 97,937 132,114 144,490 144,723 Income tax provision 381 52 3,446 - - Interest expense 17,914 16,817 14,081 12,887 12,425 Depreciation and amortization 32,445 33,363 33,682 34,153
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $000s Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net cash provided by operating activities (1) 193,634 148,463 125,483 156,442 167,939 Repayments of debt (1) (55,407) (132,152) (108,365) (19,538) - Payments on sale and leaseback financing and finance leases (1) (78,167) (1
Slide 20: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on slide 2 • Time Charter-Out ($m): Vessel Rate Charter Expiry 2024 2025 2026 2027 2028 2029 2030 2016-Built Suezmax $32,500 AUG-24 1.4 1.4 2012-Built Suezmax $30,650 JAN-25 5.6 0.1 5.8 2008-Built MR $22,000 FEB-25 4.0 0.9
Slide 21: INSW Fleet Overview as of August 1, 2024
INSW Fleet Overview as of August 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 73,920
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