International Seaways, Inc. · NYSE:INSW

International Seaways — Q2 2020 Earnings Presentation

19 slides from International Seaways's earnings presentation, Aug 7, 2020

  1. Slide 1: International Seaways, Inc. Second Quarter 2020 Earnings Presentation

    1 International Seaways, Inc. Second Quarter 2020 Earnings Presentation International Seaways, Inc. August 7, 2020

  2. 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

  3. Slide 3: Business Review – Lois K. Zabrocky, President & CEO

    Business Review – Lois K. Zabrocky, President & CEO

  4. Slide 4: Coronavirus Update

    Coronavirus Update  Shoreside o All New York and Houston Lightering office employees working remotely since March 16 and we will continue to evaluate our return based upon our highest priority, the safety of our staff COVID - 19 RESPONSE o Full staff capabilities maintained o No delays in closing b

  5. Slide 5: Second Quarter 2020 Highlights and Recent Developments

    Second Quarter 2020 Highlights and Recent Developments  Another Record Quarter o 2020 Q2 net income $64.4 million; $68.5 million ($2.39/share) when excluding vessel impairments and gain on vessel sales o 2020 Q2 Adjusted EBITDA $96.3 million, an increase of $22.1 million from 2020 Q1 and $75.0 mill

  6. Slide 6: Market Update – Oil Supply, Demand and Market Implications

    Market Update – Oil Supply, Demand and Market Implications  Oil Demand Global Short-Term Crude in Floating Storage o While the Coronavirus (COVID-19) has negatively impacted oil demand, IEA has for the last two months increased their view of global oil demand, currently at 92.1 million b/d for 2020

  7. Slide 7: Market Update – Ship Supply

    Market Update – Ship Supply Historically Low Orderbook Orderbook Update • Orderbook remains historically low: 20 60% • VLCC 7.4% 50% 15 Million DWT • Suezmax 11.1% 40% • Aframax/LR2 9.6% 10 30% • Panamax/LR1 4.3% 20% 5 10% • MR 6.8% 0 0% • 31 VLCCs ordered in 2019; YTD 2020 only 10 thus far Q3-1999

  8. Slide 8: Financial Review – Jeffrey D. Pribor, SVP & CFO

    Financial Review – Jeffrey D. Pribor, SVP & CFO

  9. Slide 9: Financial Summary – TCE Revenue & Adjusted EBITDA

    Financial Summary – TCE Revenue & Adjusted EBITDA 1 ($ millions) 2019 Q2 vs 2020 Q2 Quarterly TCE Revenue Quarterly Adjusted EBITDA $135 $29 $62 $96 $17 $106 $45 $21 2019 Q2 2020 Q2 2019 Q2 2020 Q2 Crude Tankers Product Tankers 2020 Q1 vs 2020 Q2 Quarterly TCE Revenue Quarterly Adjusted EBITDA $135

  10. Slide 10: Financial Summary – Q2 & Q3 Earnings Update

    Financial Summary – Q2 & Q3 Earnings Update 2020 Q2 Actual 2020 Q3 Booked to Date 2 SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $71,700 $67,200 $70,500 55% $45,700 100% $73,300 69% $58,200 VLCC < 15 $75,300 $73,800 $74,900 56% $50,700 100% $80,500 69% $63,500 VLCC

  11. Slide 11: Breakeven Rates by Sector

    Lean and Scalable Model – Cash Breakevens –Last 12 Months TCE breakeven levels allow INSW to navigate low points in the tanker cycle while providing significant operating leverage in rising markets Last Twelve Months Q2 2020 Actuals Breakeven Rates by Sector • INSW Daily OPEX excludes DDK deviation

  12. Slide 12: Financial Summary – Change in Cash Balance

    Financial Summary – Change in Cash Balance ($ millions) $91 International Seaways, Inc. 12

  13. Slide 13: Strong Financial Position – Balance Sheet

    Strong Financial Position – Balance Sheet Strong balance sheet protects INSW during low portions of tanker cycle June 30, 2020 ($ M) Assets Liabilities INSW Book Value of FSO JV as of Current Liabilities (including $81M current June 30, 2020: $141 million Cash and Equivalents $128 portion of long te

  14. Slide 14: Summary

    Summary  Another Record Quarter o 2020 Q2 net income $64.4 million; $68.5 million ($2.39/share) when excluding vessel impairments and gain on vessel sales o 2020 Q2 Adjusted EBITDA $96.3 million, an increase of $22.1 million from 2020 Q1 and $75.0 million from 2019 Q2 o $144 million in cash and $18

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Estimated Drydock and CAPEX costs and Out-of-Service Days

    Estimated Drydock and CAPEX costs and Out-of-Service Days Out-of-Service Days * Q1 (A) Q2 (A) Q3 Q4 FY 2020 VLCC 390 203 4 30 627 Suezmax 0 2 10 0 12 Aframax / LR2 8 30 0 0 38 Panamax / LR1 16 7 138 199 360 MR 43 -14 35 0 64 456 229 187 229 1,101 Drydock Costs Q1 (A) Q2 (A) Q3 Q4 FY 2020 VLCC $6.4 $

  17. Slide 17: TCE Revenue Reconciliation

    TCE Revenue Reconciliation ($ thousands) 2Q19 2Q20 1Q20 Time charter equivalent revenues 62,487 135,289 119,731 Add: Voyage expenses 6,523 4,436 5,606 Shipping revenues 69,010 139,725 125,337 International Seaways, Inc. 17

  18. Slide 18: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation ($ thousands) All INSW 2Q19 2Q20 1Q20 Net income / (loss) (16,523) 64,358 33,019 Income tax provision / (benefit) 0 1 0 Interest expense 17,443 8,881 12,009 Depreciation and amortization 18,818 18,880 18,267 EBITDA 19,738 92,120 63,295 Third-party debt modification fee

  19. Slide 19: Chartered In Fleet

    Chartered In Fleet Charter-In Hire Details • Time Charter-Ins: – 1 MR vessel at 25% - redelivers March 2021 - Charter Hire expense for rest of 2020: $532K – 1 LR1 vessel that redelivers in August 2021 – Charter Hire expense for rest of 2020: $2.4M • Bareboat-Ins: – 2 Aframax vessels that redeliver i

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