International Seaways, Inc. · NYSE:INSW
International Seaways — Investor Presentation (December 2020)
21 slides from International Seaways's investor presentation, Dec 1, 2020
Slide 1: International Seaways, Inc. December 2020
International Seaways, Inc. December 2020
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 - loo
Slide 3: Introduction to International Seaways (NYSE: INSW)
Introduction to International Seaways (NYSE: INSW) 1 Represents the number of vessels in each class as a percentage of the total fleet deadweight, as of December 1, 2020. Does n ot include JV vessels. 3 • Leading diversified tanker owner with significant presence in crude and product sectors • 37 ve
Slide 4: Why Invest in International Seaways?
Why Invest in International Seaways? 1 Includes the value of INSW’s equity interest in the FSO JVs at book value, which takes into account assets and liabilities at t hose entities 2 Excludes Seaways Mulan which is in the process of being sold 4 • Best in class safety and environmental performance •
Slide 5: Disciplined Capital Allocation – Fleet Renewal
Disciplined Capital Allocation – Fleet Renewal • International Seaways Invested $600 million at the bottom of the cycle o Two Suezmax newbuilding resales purchased for $58 million each in 2017 o 2010 - built VLCC purchased for $53 million in 2017 o Six VLCCs built 2016 and 2015 purchased for $434 mi
Slide 6: Fleet Evolution Since Spin-Off
Fleet Evolution Since Spin - Off 1 Basis DWT x remaining life of fleet (Ton - Years). 20 year life for illustrative purposes only. INSW accounting policy is 25 yea r ship life 6 5.0 5.2 5.4 5.6 5.8 6.0 Spin-Off Dec 2016 Dec 1, 2020 Total DWT (millions) 6 8 10 12 14 Spin-Off Dec 2016 Dec 1, 2020 Aver
Slide 7: Market Update – Oil Supply, Demand and Implications
Market Update – Oil Supply, Demand and Implications • Oil Supply and Demand o IEA’s November forecast expects 2020 Q4 demand to be at 94.9 million b/d, down from 96.1 million b/d, and expects demand to be at 99.1 million b/d by end of next year o IEA expects stock drawdowns which are needed to set t
Slide 8: Market Update – Ship Supply
Market Update – Ship Supply • Orderbook Update o Orderbook remains at historical lows: • VLCC 7.7% • Suezmax 9.7% • Aframax/LR2 10.1% • Panamax/LR1 1.8% • MR 6.4% o 31 VLCCs ordered in 2019; 2020 saw only 16 orders through September, although an additional 14 orders are believed to be firm o Orderin
Slide 9: VLCC Year TC
VLCC 1 Year TC Source: Clarksons Weekly VLCC 1 Year Timecharter Rate through Nov 20, 2020 9 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 VLCC 1 Year TC (non-ECO)
Slide 10: INSW Financial Highlights
INSW Financial Highlights 1 Excludes Seaways Mulan which is in the process of being sold 10 • Traditional bank debt with low margins • Structured to provide capital allocation flexibility • Repaid $40 million Transition loan in August 2020 Strong and Flexible Balance Sheet Low Cash Breakeven • Fleet
Slide 11: Q1 $380 million Refinancing Deleveraged and Lowered Costs
Q1 $380 million Refinancing Deleveraged and Lowered Costs 1 Margin on Core and Revolving facilities dropped to 240 bps on August 10 2 ncludes the value of INSW’s equity interest in the FSO JVs at book value, which takes into account assets and liabilities at those en ti ties 11 Principal ($m) Maturi
Slide 12: Lean and Scalable Model – Cash Breakevens
Lean and Scalable Model – Cash Breakevens LTM is as of September 30, 2020 INSW Daily OPEX excludes DDK deviation bunkers, insurance claims and one - off expenses. G&A for the Lightering segment is exclude d Vessels that have been sold are excluded Only includes owned vessels. Two bareboat - in Afram
Slide 13: Financial Summary – Q3 & Q4
Financial Summary – Q3 & Q4 Earnings Update 1 As of November 30, 2020 Overall 2020 Q3 VLCC TCE includes 362 time charter days at $73,400/day. Overall 2020 Q4 VLCC TCE includes 262 time charter d ays at $63,900/day Overall 2020 Q3 Panamax TCE includes 269 time charter days at $15,800/day. Overall 202
Slide 14: INSW Metrics Based on Clarksons Estimates
INSW Metrics Based on Clarksons Estimates • The view from the tanker bridge is somewhat foggy – Research views on remainder of 2020 and full year 2021 rates vary widely, given differing views on the pace, extent and effect of the global oil and refined product de - stocking period. • To assist analy
Slide 15: INSW Metrics Based on Clarksons Estimates
INSW Metrics Based on Clarksons Estimates 1 Source – Clarksons research publications – INSW does not endorse this or any other published research as a company forecast 2 Net Income plus estimated $82mm annual depreciation and amortization 15 Metrics Clarksons 2021 1 EBITDA $167.3mm Net Income $74.1m
Slide 16: Industry Leading ESG Footprint
Industry Leading ESG Footprint • Environmental o Commitment to minimizing risk of all forms of pollution o Sustainability - linked pricing feature of INSW’s new debt facility o Active compliance programs for IMO 2020, ballast water treatment o CEO on the board of ITOPF o NAMEPA Marine Environment Pr
Slide 17: Transparency in CO2 Emissions Reporting
Transparency in CO 2 Emissions Reporting • In 2018, the IMO adopted an initial strategy for reducing greenhouse gas (“GHG”) emissions from vessels, and calling for a 70% reduction in carbon emissions from 2008 levels by 2050 o IMO established trajectories and targets for each ship type and size, con
Slide 18: We Will Achieve Decarbonization Using the Technology of Today
We Will Achieve Decarbonization Using the Technology of Today … • “Get To Green” Initiative o Working in conjunction with our third - party technical managers, in 2018 we initiated a “Get to Green” initiative, where we encourage our crews to continually monitor and report equipment performance metri
Slide 19: Appendix
APPENDIX 19
Slide 20: VLCC Time Charter Details
VLCC Time Charter Details 20 2020-01 2021-01 2022-01 2023-01 Seaways McKinley Seaways Tybee Seaways Tanabe Seaways Kilimanjaro 3 Years $45,000 / day 1 Year $53,000 / day 7 Months $100,000 / day average
Slide 21: INSW Fleet as of December 1, 2020
INSW Fleet as of December 1, 2020 21 Ship Type Built DWT Ownership Ship Type Built DWT Ownership Gener8 Chiotis VLCC 2016 300,973 Owned Seaways Leyte LR1 2011 73,944 Owned Gener8 Success VLCC 2016 300,932 Owned Seaways Samar LR1 2011 73,920 Owned Gener8 Supreme VLCC 2016 300,933 Owned Seaways Guayaq
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