International Seaways, Inc. · NYSE:INSW
International Seaways — Sidoti Conference (January 2021)
19 slides from International Seaways's conference presentation, Jan 14, 2021
Slide 1: International Seaways, Inc.
International Seaways, Inc. January 2021
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 • 36 vessel fleet with balanced mix of contracted cash flows and spot market upside • Renewed and upgraded fleet with $600m of acquisitions since Dec 2016 spin
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 non-core LNG joint venture for $123 million in cash Disciplined Capital • Completed 10-year contract extensions on our FSO JVs Allocator • Deleveraged approximately $120m in
Slide 5: Disciplined Capital Allocation – Fleet Renewal
Disciplined Capital Allocation – Fleet Renewal • International Seaways Invested $600 million at the bottom of the cycle o Two Suezmax newbuilding resales purchased for $58 million each in 2017 o 2010-built VLCC purchased for $53 million in 2017 o Six VLCCs built 2016 and 2015 purchased for $434 mill
Slide 6: Fleet Evolution Since Spin-Off
Fleet Evolution Since Spin-Off 6.0 5.2 m DWT Total DWT (millions) 5.5 5.0 5.6 m DWT 4.5 4.0 3.5 3.0 Spin-Off Dec 2016 Jan 1, 2021 14 12.1 years Average Age 12 10 9.2 years 8 6 Spin-Off Dec 2016 Jan 1, 2021 60 55.6 Ton-Years Total Ton-Years 55 50 47.6 Ton-Years 45 40 Spin-Off Dec 2016 Jan 1, 2021 1 B
Slide 7: Market Update – Oil Supply, Demand and Implications
Market Update – Oil Supply, Demand and Implications • Oil Supply and Demand o IEA’s December forecast estimates 2020 Q4 demand to be at 94.7 million b/d and expects demand to be at 99.2 million b/d by Q4 of 2021 o IEA expects stock drawdowns which are needed to set the stage for tanker recovery o OP
Slide 8: Market Update – Ship Supply
Market Update – Ship Supply • Orderbook Update 20 60% o Orderbook remains at historical lows: 50% • 15 Million DWT VLCC 8.2% 40% • Suezmax 10.0% 10 30% • Aframax/LR2 9.9% • Panamax/LR1 1.8% 20% 5 • MR 6.3% 10% o 31 VLCCs ordered in 2019; 41 in 2020 0 0% Q4-2004 Q1-1996 Q4-1997 Q3-1999 Q2-2001 Q1-200
Slide 9: VLCC 1 Year TC
VLCC 1 Year TC 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 Jan 1, 2021 9
Slide 10: 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 • 34% Net Loan to Asset Value at September 30 (includes the value of the FSO JV) Balance Sheet • 27% Net Debt to Capitalization at Septem
Slide 11: Q1 $380 Million Refinancing Deleveraged and Lowered Costs
Q1 $380 million Refinancing Deleveraged and Lowered Costs As of December 31, 2019 As of September 30, 2020 Principal Annual Principal Annual ($m) Maturity Rate Amortization ($m) Maturity Rate Amortization 1 Term Loan B $331.5 2022 L + 600 $18.4 Core Facility Term Loan $281.0 2025 L + 240 $37.7 ABN T
Slide 12: 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 LTM is as of September 30, 2020 INSW Daily OPEX excludes DDK deviation bunkers, insurance claims and one-off expenses.
Slide 13: Industry Leading ESG Footprint
Industry Leading ESG Footprint • Environmental o Commitment to minimizing risk of all forms of pollution o Sustainability-linked pricing feature of INSW’s new debt facility o Active compliance programs for IMO 2020, ballast water treatment o CEO on the board of ITOPF o NAMEPA Marine Environment Prot
Slide 14: Transparency in CO2 Emissions Reporting
Transparency in CO2 Emissions Reporting • In 2018, the IMO adopted an initial strategy for reducing greenhouse gas (“GHG”) emissions from vessels, and calling for a 70% reduction in carbon emissions from 2008 levels by 2050 o IMO established trajectories and targets for each ship type and size, cons
Slide 15: We Will Achieve Decarbonization Using the Technology of Today
We Will Achieve Decarbonization Using the Technology of Today … • “Get To Green” Initiative o Working in conjunction with our third-party technical managers, in 2018 we initiated a “Get to Green” initiative, where we encourage our crews to continually monitor and report equipment performance metrics
Slide 16: INSW Metrics Based on FactSet Consensus Estimates
INSW Metrics Based on FactSet Consensus Estimates Metrics FactSet 20211 EBITDA $152.6mm Net Income $80.4mm EPS $2.56 Operating Cash Flow2 $162.4mm Current INSW Values FactSet 2021 INSW share price $17.35 P/E 6.8x Market Capitalization $486mm EV/EBITDA 5.9x Total Enterprise Value $899mm 1 Source – Fa
Slide 17: Appendix
APPENDIX 17 International Seaways, Inc. BD
Slide 18: VLCC Time Charter Details
VLCC Time Charter Details Seaways Kilimanjaro 3 Years $45,000 / day Seaways Tanabe 1 Year $53,000 / day Seaways Tybee 7 Months $100,000 / day average Seaways McKinley 2020-01 2021-01 2022-01 2023-01 18
Slide 19: INSW Fleet as of January 1, 2020
INSW Fleet as of January 1, 2020 Ship Type Built DWT Ownership Ship Type Built DWT Ownership Gener8 Chiotis VLCC 2016 300,973 Owned Seaways Leyte LR1 2011 73,944 Owned Gener8 Success VLCC 2016 300,932 Owned Seaways Samar LR1 2011 73,920 Owned Gener8 Supreme VLCC 2016 300,933 Owned Seaways Guayaquil
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