International Seaways, Inc. · NYSE:INSW
International Seaways — Q4 2022 Earnings Presentation
22 slides from International Seaways's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter and Fiscal Year 2022 Earnings Presentation
International Seaways, Inc. Fourth Quarter and Fiscal Year 2022 Earnings Presentation February 28, 2023
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 2022 Highlights and Recent Developments
Fourth Quarter & Full Year 2022 Highlights and Recent Developments Q4 2022 & FY 2022 Results Fleet Optimization Program Record Fourth Quarter Results Progress on Newbuild Dual‐Fuel VLCCs • Third consecutive quarter of record earnings: • Seaways Endeavor first to deliver in March 2023 • Net Income $2
Slide 5: Hot Topics: Russian Oil Exports
Hot Topics: Russian Oil Exports Crude Oil Flowing East Early Stages in Oil Product Displacement RUSSIAN CRUDE OIL FLOWS TO ASIA RUSSIAN PRODUCT EXPORTS 5.5 mbpd 2.2 mbpd To Asia Total Crude Exports To Europe Total Product Exports 4.5 mbpd 1.8 mbpd 3.5 mbpd 1.4 mbpd 2.5 mbpd 1.0 mbpd 1.5 mbpd 0.6 mbp
Slide 6: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand expected to average 101 mbpd in 2023, ramping up from 100 mbpd in 1H to 102 mbpd in 2H. Nearly 2% YOY growth ‒ Mixed signals on macro economy ˄ Chinese demand expected to increase by 0.7 mbpd ˄ Non‐OPEC production expected to increase by 1.0 – 1.5 mp
Slide 7: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be lowest relative to size of the fleet: under 4.0% (by dwt) ˄ Net fleet growth is approximately 2.8% since January 2022 ˄ Average age of tanker fleet has grown to 12.3 years (vs. an average age of about 8.4 years in Feb 2013) increasing
Slide 8: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 8
Slide 9: FY 2022 Highest Earnings in Our History
FY 2022 Highest Earnings in Our History For the year ended December 31, Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million 380.0 549.1 125.4 22.7 220.1 (2.4) (64.3) 164.7 (87.0) 117.0 68.3 40.4 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 TCE Revenues(1) $ million 854 $ per
Slide 10: Record Earnings in Q4 2022
Record Earnings in Q4 2022 For the three months ended Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million 208.8 254.3 113.9 157.1 71.5 111.7 (14.1) (29.5) 11.9 26.0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 TCE Revenues(1) $ million $ per day Crude Pro
Slide 11: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $541m $254m $17m interest $474m $41 amortization $14m $217m $16m $220m $51m $3m RCF decline $18m $55m Free Cash Flow ~ $130m $324m $254m 9/30/22 Total Cash Adjusted EBITDA (1) Debt Service on Drydock & CAPEX Workin
Slide 12: Strong Financial Position: Balance Sheet
Strong Financial Position: Balance Sheet During 2022, INSW continued to enhance its strong financial position with: December 31, 2022 ($ M) Assets Liabilities & Equity 2021 2022 2021 2022 Cash and Equivalents + ST Investments $98 $324 AP, Accruals and other current liabilities $48 $51 Receivables 11
Slide 13: Looking forward
Looking forward Refer to disclaimer on slide 2 Market remains strong during Q1 2023 well above our break‐even levels and estimated costs. Q1 2023 Booked to‐Date Forward Estimated Cash Break Even(1) Spot Time Charter Overall Proforma Amendment(2) and DF VLCC deliveries on conventional fleet $ per day
Slide 14: Investment Highlights
Investment Highlights • Transformed company from spin‐off & approximately $0.4bn market cap in 2016 through today into one of the top 3 US publicly traded tanker companies by DWT with $2.0bn in market cap(1) Disciplined Capital Allocator • Invested in about $2bn in assets at low points in the cycle
Slide 15: SEAWAYS RIO G
SEAWAYS RIO G MAJURO imo 9693438
Slide 16: Appendix
Appendix
Slide 17: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out‐of‐Service Days ($ millions, except days) 2023 Offhire Days Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 VLCC 14 14 ‐ ‐ 28 Suezmax 42 ‐ ‐ ‐ 42 Aframax / LR2 5 7 43 ‐ 55 LR1 5 5 40 45 95 MR 236 113 209 119 677 302 139 292 164 897 2023 Drydock Costs Q1 2023 Q2 2023
Slide 18: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s 2017 2018 2019 2020 2021 2022 Time charter equivalent revenues 274,995 243,100 339,919 402,005 255,860 853,710 Add: Voyage expenses 15,106 27,261 26,265 19,643 16,686 10,955 Shipping revenues 290,101 270,361 366,184 421,648 272,546 864,665 $000s Q4 2021 Q1 2022 Q2 20
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $000s 2017 2018 2019 2020 2021 2022 Net income / (loss) (106,088) (88,940) (830) (5,531) (134,660) 387,891 Income tax provision 44 (105) 1 1 1,618 88 Interest expense 40,438 60,231 66,267 36,712 36,796 57,721 Depreciation and amortization 78,853 72,428 75,653 74,343 86
Slide 20: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation $000s 2017 2018 2019 2020 2021 2022 Net income / (loss) (106,088) (88,940) (830) (5,531) (134,660) 387,891 Gain on disposal of vessels, net of impairments 86,855 19,680 308 100,087 (9,753) (19,647) Loss on sale of investments ‐ ‐ 18,582 ‐ ‐ 9,378 3rd party debt mod
Slide 21: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on page 2 • Time Charter‐Out: Q1 2023 FY 2023 Vessel Type Type Built Charter Expiry Rev Rev VLCC TC‐Out 2012 March 2023 LR2 TC‐Out 2014 May 2023 MR TC‐Out 2007 October 2023 $12.9m $57.0m Suezmax TC‐Out 2016 September 2024 S
Slide 22: INSW Fleet Overview as of December 31, 2022
INSW Fleet Overview as of December 31, 2022 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI NORDIC GENEVA LR1 TC‐In 2009 73,700 New Times SEAWAYS LIBERTY VLCC BB‐In 2016 300,973 Shanghai Waigaoqiao HIGH JUPITER MR OWNED 2008
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