International Seaways, Inc. · NYSE:INSW
International Seaways — Q2 2023 Earnings Presentation
20 slides from International Seaways's earnings presentation, Aug 9, 2023
Slide 1: International Seaways Second Quarter 2023 Earnings Presentation
International Seaways, Inc. Second Quarter 2023 Earnings Presentation August 9, 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: Second Quarter 2023 Highlights and Recent Developments
Second Quarter 2023 Highlights and Recent Developments Strong Q2 2023 Results & Solid Q3 Fixtures Quality Capital Structure Second Quarter 2023 & Last Twelve Months (LTM) Results Total Liquidity of $493 million $m except per share Q3 2022 Q4 2022 Q1 2023 Q2 2023 LTM • Cash & ST Investments of $236 m
Slide 5: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand forecasts have increased growth to over 2 mpbd in 2023 and another 1.5 - 2 mbpd growth in 2024 ‒ Macro environment has mild sentiment but physical data still holding ˄ Oil demand growth largely driven by China, which is expected to increase by over 1
Slide 6: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be lowest relative to size of the fleet: under 4.7% (by dwt) ˄ Net fleet growth is approximately 3% since July 2022 ˄ Average age of tanker fleet has grown to 12.6 years (vs. an average age of about 8.6 years in July 2013) increasing pote
Slide 7: IEA Forecast: Regional Imbalances Support Tanker Demand Near Term
IEA Forecast: Regional Imbalances Support Tanker Demand Near Term Growing disconnect between oil production growth and oil consumption growth should lead to greater demand for tankers Legend (mbpd) 2019 Oil Production 2019 Oil Demand 2028 Oil Production 2028 Oil Demand 34.1 28.1 24.8 27.7 Oil Produc
Slide 8: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 8
Slide 9: Strong Results
Strong Results For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 254.3 218.4 208.8 209.0 205.1 172.6 162.5 153.8 154.4 157.1 69.0 71.5 113.4 113.9 111.7 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022
Slide 10: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $519m $493m $16m interest $11m $75m $257m $40m amort $14m $46m $205m $257m $29m $79m $14m $3m Free Cash Flow ~ $146m $261m $236m $236m 03/31/23 Total Adjusted EBITDA(1) Debt Service Drydock & CAPEX Working Capital
Slide 11: Strong Financial Position
Strong Financial Position Balance Sheet $m Proforma Debt Balance – as of July 3, 2023 $m, unless noted As of June 30, At period end Facility Name Principal Maturity Rate Qtr Amortization ASSETS 2023 $750m Facility 301 May 2027 SOFR +245 bps(a) 26.0 Cash and Cash Equivalents + ST Investments $236 ING
Slide 12: Looking forward
Looking forward Refer to disclaimer on slide 2 The Company is Positioned to Capitalize on Strong Q3 Environment Well above our Cash Break Even & Estimated Costs Q3 2023 Booked to-Date Forward Estimated Cash Break Even(1) $ per day Spot Time Charter Overall OPEX Charter hire G&A Interest Principal DD
Slide 13: 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 $1.9bn in market cap(1) Disciplined Capital Allocator • Invested approximately $2bn in assets at low points in the c
Slide 14: Q&A
Q&A 14
Slide 15: Appendix
Appendix (a
Slide 16: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions, except days) 2023 Offhire Days Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 VLCC 33.0 39.9 21.0 0.0 94.0 Suezmax 42.8 14.0 0.0 0.0 56.8 Aframax / LR2 1.5 0.3 50.0 0.0 51.9 LR1 3.3 0.0 45.0 45.0 93.3 MR 209.9 76.8 284.0 121.0 691.7 290
Slide 17: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Time charter equivalent revenues 185,539 234,546 335,650 283,320 288,335 Add: Voyage expenses 2,658 2,283 2,507 3,810 3,868 Shipping revenues 188,197 236,829 338,157 287,130 292,203 17
Slide 18: Adjusted EBITDA and Net Income Reconciliation
Adjusted EBITDA and Net Income Reconciliation $000s Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net income 69,036 113,427 218,429 172,633 153,762 Income tax provision/(benefit) 52 7 25 (1) 381 Interest expense 12,558 15,332 17,091 16,947 17,914 Depreciation and amortization 27,256 27,728 28,404 29,548 3
Slide 19: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on page 2 • Time Charter-Out: *excludes 50/50 profit share, if applicable Charter Vessel Rate 2023 2024 2025 2026 2027 2028 2029 2030 Total Expiry 2012-Built VLCC $45,000 JUL-23 0.99 0.99 2007-Built MR $18,500 OCT-23 1.94 1
Slide 20: INSW Fleet Overview as of August 1, 2023
INSW Fleet Overview as of August 1, 2023 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI PELAGIC TOPE LR1 TC-In 2008 76,564 Dalien Shipyard SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao HIGH JUPITER MR OWNED 200
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