International Seaways, Inc. · NYSE:INSW
International Seaways — UBS Global Industrials and Transportation Conference 2020
15 slides from International Seaways's conference presentation, Jun 2, 2020
Slide 1: International Seaways, Inc. – UBS Global Industrials and Transportation Conference
1 International Seaways, Inc. UBS Global Industrials and Transportation Conference International Seaways, Inc. June 2020
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: Introduction to International Seaways (NYSE: INSW)
Introduction to International Seaways (NYSE: INSW) • Leading diversified tanker owner with significant presence in crude and product sectors • 40 vessel fleet with balanced mix of contracted cash flows and spot market upside • Planning to install 10 scrubbers on VLCCs representing 40% of our fuel co
Slide 4: Why Invest in International Seaways?
Why Invest in International Seaways? • Invested $600 million, renewing fleet at bottom of cycle without issuing equity • Sold LNG joint venture for $123 million in cash Disciplined Capital • Prepaid $110 million of long term debt, saving about $9 million annual interest Allocator • Installing 10 scr
Slide 5: Coronavirus Update
Coronavirus Update Crewing o Strict measures are in effect on all of our ships for the health and safety of our seafarers o Test kits are being deployed to all ships COVID - 19 RESPONSE o Global travel restrictions are making crew changes exceptionally difficult, although we see some movement towa
Slide 6: Market Update – Oil Supply, Demand and Market Implications
Market Update – Oil Supply, Demand and Market Implications Oil Demand Contango Caused Demand for Storage Vessels o The Coronavirus (COVID-19) has negatively impacted oil demand. IEA currently forecasts reduced demand of 19.9 million b/d for Q2 of 2020 and 8.6 million b/d for 2020 as a whole Oil
Slide 7: Market Update – Ship Supply
Market Update – Ship Supply Historically Low Orderbook Orderbook Update • Orderbook remains historically low: 20 60% • VLCC 7.3% 50% 15 Million DWT • Suezmax 11.0% 40% • Aframax/LR2 8.4% 10 30% • Panamax/LR1 4.3% 20% 5 10% • MR 6.9% 0 0% • 31 VLCCs ordered in 2019; YTD 2020 only six thus far Q2-2001
Slide 8: VLCC 1 Year TC Rates
VLCC 1 Year TC Rates VLCC 1 Year TC (non-ECO) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 VLCC 1 Year TC (non-ECO) Source: Clarksons Weekly VLCC 1 Year Timecharter Rate through May 22, 2020 International Seaways, Inc. 8
Slide 9: INSW Financial Highlights
INSW Financial Highlights • Accomplished fleet upgrade while maintaining one of the lowest leverage profiles in the Low Financial tanker space Leverage and Strong • 43% Net Loan to Asset Value at March 31 (excludes the value of the FSO JV) Balance Sheet • Approximately $150 million in liquidity (inc
Slide 10: Financial Summary – Q1 & Q2
Financial Summary – Q1 & Q2 Earnings Update 1st Quarter 2020 2nd Quarter 20201 Spot Overall Spot % Fixed Overall % Fixed VLCC2 $63,800 $63,800 $87,900 71% $79,700 80% Modern VLCC $90,600 73% $85,400 79% 15+ VLCC $68,800 62% $56,000 83% Suezmax $42,800 $42,800 $63,100 58% $63,100 58% Aframax/LR2 $31,
Slide 11: Refinancing Details – Lowers Cost of Capital
Refinancing Details – Lowers Cost of Capital Pre-Refinancing Facilities Pro Forma Post-Refinancing Principal Annual Principal Annual ($m) Maturity Rate Amortization ($m) Maturity Rate Amortization Term Loan B $331.5 2022 L + 600 $18.4 Core Facility Term Loan $300.0 2025 L + 260 $37.7 ABN Term Loan $
Slide 12: Refinancing Details – Debt Amortization
Refinancing Details – Debt Amortization $ millions 300 250 200 150 100 50 0 2020 2021 2022 2023 2024 Amortization Balloon International Seaways, Inc. 12
Slide 13: Breakeven Rates by Sector
Lean and Scalable Model – Cash Breakevens –Last 12 Months TCE breakeven levels allow INSW to navigate low points in the tanker cycle while providing significant operating leverage in rising markets Last Twelve Months Q1 2020 Actuals Breakeven Rates by Sector • INSW Daily OPEX excludes DDK deviation
Slide 14: Strong Environmental Social & Governance Culture
Strong Environmental Social & Governance Culture • INSW is committed to implementing and advocating industry leading Environmental, Social and Governance practices Environmental • Commitment to minimizing risk of all forms of pollution and managing waste streams • Sustainability-linked pricing featu
Slide 15: Strong Environmental Social & Governance Culture
Strong Environmental Social & Governance Culture Governance • Six members of Board of Directors fully independent • Split non-Executive Chairman and CEO • Commitment to diversity exemplified by two female Directors, one of whom is CEO • Shareholder representation on Board • Board includes former CEO
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