International Seaways, Inc. · NYSE:INSW
International Seaways — Q4 2021 Earnings Presentation
22 slides from International Seaways's earnings presentation, Mar 2, 2022
Slide 1: International Seaways, Inc. Fourth Quarter 2021 Earnings Presentation
International Seaways, Inc. Fourth Quarter 2021 Earnings Presentation March 2, 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: Fourth Quarter & Full Year 2021 Highlights and Recent Developments
Fourth Quarter & Full Year 2021 Highlights and Recent Developments Return to Shareholders Transformational Merger & Fleet Optimization Program $57.6 Million Returned to Shareholders in 2021 Completed Diamond S Merger to become largest diversified US-listed Regular $0.06 dividend paid, $9.4 mil
Slide 5: Market Update: "About to Pop"
Market Update: “About to Pop” Tanker Demand Drivers Oil demand increase for 2022 is estimated to grow by over 3 million barrels per day to nearly 101 million barrels per day Global pandemic fading impact on oil demand Oil production increase in 2022 to all time highs to meet global demand esti
Slide 6: Market Update: "More wood to chop"
Market Update: “More wood to chop” Tanker Supply Drivers Fleet size has grown nearly 4% since the start of the pandemic, but growing average age to 11.7 years Recycle volumes increased in latter half of 2021; recycle values at historic highs after adjusting for inflation Sanctioned oil trades
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) YOY Quarterly (Q4 2020 vs Q4 2021) TCE Revenue Adjusted EBITDA Crude Tankers Product Tankers $93m $12m $51m $53m $9m ($5m) $44m $42m Q4 2020 Q4 2021 Q4 2020 Q4 2021 YOY LTM(3) (FY 2020 vs FY 2021) TCE Revenue Adjusted EBITDA Crude Tankers Produ
Slide 9: Financial Summary – TCE Summary
Financial Summary – TCE Summary Q4 2021 Actual Q1 2022 To-Date(1) SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $14,300 $44,200 $16,900 64% $12,400 100% $43,900 66% $14,200 Suezmax $13,100 $27,400 $14,000 77% $12,800 100% $27,000 79% $14,200 Aframax/LR2 $11,500 $21,8
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: Synergies
Synergies Over $25 Million in Cost Synergies Expected to be Realized in 2022 Over $20 Million in G&A Synergies Over $5 Million in OPEX Synergies $15m • Consolidated Management Team & Board creates savings $ 3m • Savings on technical management fees as a result of the in salaries and benefits, travel
Slide 12: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash Balance $239m $91m $173m $140m $40m $12m $3m $5m $53m $20m $33m $10m $19m $133m $133m $139m $139m $138m $110m $99m 9/30/21 Total Adjusted Equity Income JV Drydock & Installments Liquidity Debt Service Cash W/C & Other 12/31/21 Total Cash Balance EBITDA from JVs Dis
Slide 13: Strong Financial Position: Balance Sheet
Strong Financial Position: Balance Sheet Strong Balance Sheet protects INSW during low portions of the tanker cycle. $m Assets Liabilities & Equity Pre Merger Post Merger Pre Merger Post Merger Q2 2021 Q4 2021 Q2 2021 Q4 2021 Cash and Equivalents $ 117 $ 98 AP, Accruals and other current liabilities
Slide 14: INSW Debt on 12/31/21
INSW Debt on 12/31/21 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 144 March 2024 LIBOR +265 bps 36 $525m Facility 261 December 2024 LIBOR +250 bps 72 Core Facility (2) 191 January 2
Slide 15: Investment Highlights
Investment Highlights • Transformed company from spin-off in 2016 through today into the top 3 US publicly traded tanker companies by DWT, expanding scale and earnings power Disciplined Capital • Acquired Diamond S Shipping in July 2021, bringing fleet to 100 ships Allocator • Returned nearly $95 mi
Slide 16: Appendix
Appendix 16 International Seaways, Inc. DD
Slide 17: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions) 2021 Out‐of‐Service Days 2022 Out‐of‐Service Days Q1 (A) Q2 (A) Q3 (A) Q4 (A) FY 2021 Q1 (E) Q2 (E) Q3 (E) Q4 (E) FY 2022 VLCC 76 259 76 68 480 VLCC 55 0 0 0 55 Suezmax 0 0 84 146 230 Suezmax 110 188 102 0 400 Aframax / LR2 0 7 0
Slide 18: Fleet Optimization Program Update
Fleet Optimization Program Update • INSW has sold or is in contract to sell 16 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 20
Slide 19: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q4 2021 Q4 2020 LTM Q4 2021 LTM Q4 2020 Time charter equivalent revenues $ 93,005 $ 52,953 $ 255,860 $ 402,005 Add: Voyage expenses 1,665 3,750 16,686 19,643 Shipping revenues $ 94,670 $ 56,703 $ 272,546 $ 421,648 LTM reflects reported results and is not proforma for
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation All INSW Q4 2021 Q4 2020 LTM Q4 2021 LTM Q4 2020 Net income / (loss) $ (34,634) $ (116,889) $ (134,660) $ (5,531) Income tax provision 1,582 - 1,618 1 Interest expense 11,871 7,823 36,796 36,712 Depreciation and amortization 27,035 18,182 86,674 74,343 Noncontrolling I
Slide 21: Chartered In Fleet
Chartered In Fleet • Time Charter-Ins: – 1 MR vessel at 50% - redelivers March 2022 - Charter Hire expense for 2022: $0.4M – 1 LR1 vessel that redelivers in August 2022 – Charter Hire expense for 2022 : $2.4M – 1 LR1 vessel that redelivers in April 2023 – Charter Hire expense for 2022 : $5.2M – 1 LR
Slide 22: INSW Fleet Overview as of March 1, 2022
INSW Fleet Overview as of March 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 3
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