International Seaways, Inc. · NYSE:INSW
International Seaways — Q2 2022 Earnings Presentation
22 slides from International Seaways's earnings presentation, Aug 9, 2022
Slide 1: International Seaways, Inc. Second Quarter 2022 Earnings Presentation
International Seaways, Inc. Second Quarter 2022 Earnings Presentation August 9, 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: Second Quarter 2022 Highlights and Recent Developments
Second Quarter 2022 Highlights and Recent Developments Q2 2022 Results Strong Balance Sheet Second Quarter Results Available liquidity of over $450 million at Jun-22 includes cash of Net income $69.0 million, or $1.38/share. Excluding special items(2), $232 million and $220 million available in
Slide 5: Market Rate Update: MR Brightside
Market Rate Update: MR Brightside Aframax Spot Rates During the second quarter, product carrier spot rates rose to levels not seen since the super 75,000 cycle (2004-2008). As oil demand continues to rise and inventories remain a low levels, seaborne transportation demand increased to supply regiona
Slide 6: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand expected to increase to nearly 101 mbpd in 2H 2022 and approximately 102 mbpd in 2023 ˅ Recessionary fears from high inflation and rising energy costs could curtail demand growth ˄ Oil production growth particularly in the West, led by the Americas a
Slide 7: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be lowest relative to size of the fleet: 5% (by dwt) ˄ Net fleet growth is approximately 1% since June 2021 ˄ Average age of tanker fleet has grown to 11.8 years (from 8.7 years vs. 10 years ago) increasing potential recycle candidates ˄
Slide 8: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 8
Slide 9: Financial Summary: TCE Revenue & Adjusted EBITDA
Financial Summary: TCE Revenue & Adjusted EBITDA (1)(2) TCE Revenue - QoQ Adjusted EBITDA - QoQ Crude Tankers Product Tankers $112m $186m $126m $98m $61m $26m $45m $14m $10m $59m $36m $31m Q2 2022 Q1 2022 Q2 2021 Q2 2022 Q1 2022 Q2 2021 TCE Revenue – YoY YTD Adjusted EBITDA - YoY YTD Crude Tankers P
Slide 10: Financial Summary – TCE Summary
Financial Summary – TCE Summary Q2 2022 Actual Q3 2022 To-Date(1) SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $16,400 $43,900 $19,200 62% $19,500 100% $43,900 65% $23,300 Suezmax $23,700 $26,700 $23,900 53% $33,300 100% $28,200 58% $32,400 Aframax/LR2 $34,100 $17,1
Slide 11: 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 12: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash Balance $452m $24m $15m $54m $140m $11m Interest $220m $70m $11m $15m Debt Repaid $6m $112m $72m $166m $378m $4m $308m $304m $90m $232m $232m $183m $183m $76m $76m 3/31/22 Total Adjusted Equity Income Proceeds from Drydock & Net Proceeds Completion of Refinancing R
Slide 13: Strong Financial Position: Balance Sheet
Strong Financial Position: Balance Sheet While cash has built as a result of strong markets and strategic initiatives INSW maintains a strong balance sheet to protect against weaker market conditions. June 30, 2022 ($ M) Assets Liabilities & Equity Cash and Equivalents $231 AP, Accruals and other cu
Slide 14: Proforma INSW Debt
Proforma INSW Debt Debt Summary Details Principal Amortization in Facility Name Maturity Rate Balance ($m) 2nd half 2022 ($m) Macquarie Facility(1) 18.4 Mar-25 LIBOR +383 bps 1.3 ING Facility 24.0 Nov-26 LIBOR +200 bps 1.0 $750m Facility(2) 530.0 May-27 SOFR +240 bps(3) 30.6 Cosco SLB(1) 50.2 Dec-28
Slide 15: 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 $1.2bn in market cap Disciplined Capital • Acquired Diamond S Shipping in July 2021 Allocator • Returned over $100 million t
Slide 16: Appendix
Appendix 16 International Seaways, Inc.
Slide 17: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions) 2022 Out-of-Service Days Q1 (A) Q2 (A) Q3 (E) Q4 (E) FY 2022 VLCC 63 11 0 0 74 Suezmax 20 129 294 37 480 Aframax / LR2 53 38 17 0 108 Panamax / LR1 121 -35 0 0 86 MR 533 130 5 115 783 Handy 17 35 0 0 52 807 308 316 152 1,583 2022
Slide 18: 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 19: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q2 2022 Q1 2022 Q2 2021 1st Half 2022 2nd Half 2021 1st Half 2021 Time charter equivalent revenues 185,539 97,974 44,718 283,514 165,973 89,887 Add: Voyage expenses 2,658 3,507 1,586 6,165 13,513 3,173 Shipping revenues 188,197 101,481 46,304 289,679 179,486 93,059 1
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $000s Q2 2022 Q1 2022 Q2 2021 1st Half 2022 2nd Half 2021 1st Half 2021 Net income / (loss) 69,036 (13,001) (18,783) 56,035 (102,713) (32,148) Income tax provision 52 4 1 56 1,329 1 Interest expense 12,558 12,740 7,006 25,298 22,510 14,286 Depreciation and amortization
Slide 21: Chartered In Fleet
Chartered In Fleet • Time Charter-Ins: – 1 LR1 vessel that redelivers in August 2022 – Charter Hire expense for second half of 2022 : $0.2M – 1 LR1 vessel that redelivers in April 2023 – Charter Hire expense for second half of 2022 : $2.6M – 1 LR1 vessel that redelivers in March 2023 – Charter Hire
Slide 22: INSW Fleet Overview as of August 1, 2022
INSW Fleet Overview as of August 1, 2022 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI HIGH JUPITER MR OWNED 2008 51,603 STX SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao ADRIATIC WAVE MR OWNED 2009 51,549 STX
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