International Seaways, Inc. · NYSE:INSW
International Seaways — Q1 2022 Earnings Presentation
21 slides from International Seaways's earnings presentation, May 4, 2022
Slide 1: International Seaways, Inc. First Quarter 2022 Earnings Presentation
International Seaways, Inc. First Quarter 2022 Earnings Presentation May 4, 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: First Quarter 2022 Highlights and Recent Developments
First Quarter 2022 Highlights and Recent Developments Return to Shareholders Fleet Optimization Program Q1 2022 fixed dividend of $0.06 per share, or about $3 million In Jan-22, agreed to vessel swap a 2010-built MR for a 2011-built marking nine consecutive quarters of dividend LR1, to build pre
Slide 5: Market Update: "Diesel"
Market Update: “Diesel” Tanker Demand Drivers ˄ Oil demand for 2022 is estimated to grow by around 3 million barrels per day (primarily 2H 2022) to about 100 million barrels per day ˅ Pandemic in China may be slower to recover as real estate and construction sectors facing headwinds ˄ Oil production
Slide 6: Market Update: "Grumpy Old Tankers"
Market Update: “Grumpy Old Tankers” Tanker Supply Drivers: Fleet Size has grown 3.4% since start of the pandemic ˄ Average age of tanker fleet has grown to 11.8 years (from 8.3 years in April 2012) increasing potential recycle candidates ˄ Recycle values at historic highs but lack volumes ˅ Sanction
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Financial Summary: TCE Revenue & Adjusted EBITDA
Financial Summary: TCE Revenue & Adjusted EBITDA (1)(2) TCE Revenue Adjusted EBITDA Crude Tankers Product Tankers $98m $26m $62m $45m $11m $9m $36m $36m Q1 2021 Q1 2022 Q1 2021 Q1 2022 (1) See Appendix for TCE Revenue and EBITDA reconciliation (2) Figures are rounded for the purposes of this present
Slide 9: Financial Summary – TCE Summary
Financial Summary – TCE Summary (1) Q1 2022 Actual Q2 2022 To-Date SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $12,300 $45,200 $13,700 51% $15,100 100% $43,900 55% $20,300 Suezmax $13,600 $26,600 $14,600 40% $24,600 100% $27,000 45% $25,000 Aframax/LR2 $13,200 $17,
Slide 10: Lean and Scalable Model – Cash Breakevens
Lean and Scalable Model – Cash Breakevens 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 for Next 12 Mos Cost Guidance for 2022 OPEX Charter hire G&A Interest Principal DDK & Capex
Slide 11: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash Balance $239m $166m $140m $50m $12m Interest $26m $2m $44m $90m $6m Debt Repaid $6m $27m $5m $3m $56m $3m $99m $8m $119m $119m $99m $95m $87m $84m $76m $76m 12/31/21 Adjusted Equity JV Drydock & Installments Seaways Completion Revolver Debt Service Cash Working 3/3
Slide 12: Strong Financial Position: Balance Sheet
Strong Financial Position: Balance Sheet Strong Balance Sheet protects INSW during low portions of the tanker cycle. March 31, 2022 ($ M) Assets Liabilities & Equity Cash and Equivalents $75 AP, Accruals and other current liabilities $56 Voyage Receivables 120 Current Portion of Operating Lease Liab
Slide 13: INSW Debt on 3/31/22
INSW Debt on 3/31/22 Debt Summary Details Facility Name Principal Balance ($m) Maturity Rate Annual Amortization in 2022 ($m) 8.5% Senior Notes $ 25 June 2023 8.50% $ - $360m Facility 135 March 2024 LIBOR +265 bps 36 $525m Facility 292 December 2024 LIBOR +250 bps 72 Core Facility (2) 173 January 20
Slide 14: 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 $1bn in market cap Disciplined Capital • Acquired Diamond S Shipping in July 2021 Allocator • Returned nearly $100 million t
Slide 15: Appendix
Appendix 15 International Seaways, Inc.
Slide 16: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions) 2022 Out-of-Service Days Q1 (A) Q2 (E) Q3 (E) Q4 (E) FY 2022 VLCC 63 0 0 0 63 Suezmax 20 110 241 37 408 Aframax / LR2 53 33 5 0 91 Panamax / LR1 121 5 0 0 126 MR 533 59 5 115 712 Handy 17 0 0 0 17 807 207 251 152 1,417 2022 Drydo
Slide 17: Fleet Optimization Program Update
Fleet Optimization Program Update • INSW has sold 24 vessels since 6/30/21 as part of its continued Fleet Optimization Program. Name Class Built Timing SOLD/RECYCLED SEAWAYS TANABE VLCC 2002 Q3 2021 SOLD SEAWAYS SAUGERTIES Suezmax 2006 Q4 2021 SOLD SEAWAYS HELLAS Panamax 2003 Q3 2021 RECYCLED SEAWAY
Slide 18: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q1 2022 Q1 2021 Time charter equivalent revenues 97,974 45,169 Add: Voyage expenses 3,507 1,587 Shipping revenues 101,482 46,756 18
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $000s Q1 2022 Q1 2021 Net income / (loss) (13,001) (13,365) Income tax provision 4 0 Interest expense 12,740 7,280 Depreciation and amortization 27,000 16,754 EBITDA 26,743 10,670 Amortization of time charter contracts acquired 340 - Third-party debt modification fees
Slide 20: Chartered In Fleet
Chartered In Fleet • Time Charter-Ins: – 1 LR1 vessel that redelivers in August 2022 – Charter Hire expense for 2022 : $1.5M – 1 LR1 vessel that redelivers in April 2023 – Charter Hire expense for 2022 : $3.9M – 1 LR1 vessel that redelivers in February 2023 – Charter Hire expense for 2022 : $4.0M •
Slide 21: INSW Fleet Overview as of May 1, 2022
INSW Fleet Overview as of May 1, 2022 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard FSO AFRICA FSO 50 % 2002 432,023 Daewoo HIGH JUPITER MR OWNED 2008 51,603 STX FSO ASIA FSO 50 % 2002 432,023 Daewoo ADRIATIC WAVE MR OWNED 2009 51,549 STX SEAWAYS RAFFLES VLCC OWNED 2010 317
International Seaways — Q1 2022 Earnings Presentation on 6ix