International Seaways, Inc. · NYSE:INSW
International Seaways — Q4 2020 Earnings Presentation
19 slides from International Seaways's earnings presentation, Mar 12, 2021
Slide 1: International Seaways, Inc. Fourth Quarter 2020 Earnings Presentation
International Seaways, Inc. Fourth Quarter 2020 Earnings Presentation March 12, 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: Business Review
Business Review Lois K. Zabrocky President & CEO 3
Slide 4: Fourth Quarter 2020 Highlights and Recent Developments
Fourth Quarter 2020 Highlights and Recent Developments • Increased Financial Strength During Weak Quarter o Signed 10-year extensions for our FSO JVs in direct continuation of the current 5 year contracts. New contracts will generate approximately $20 million annually for INSW continuing through 203
Slide 5: Market Update – Oil Supply, Demand and Implications
Market Update – Oil Supply, Demand and Implications • Oil Supply and Demand o IEA’s February forecast estimates 2021 demand to be up 5.4 mb/d, recovering about 60% of the volume lost in 2020, and increasing to 99.2 mb/d by Q4 2021 o EIA expects a similar 5.4 mb/d increase in demand for 2021 and 3.5
Slide 6: Market Update – Ship Supply
Market Update – Ship Supply • Orderbook Update o Orderbook remains at historical lows: VLCC Orderbook Recycling Candidates • VLCC 8.1% • Suezmax 10.0% 20 • Aframax/LR2 10.2% 18 • Panamax/LR1 1.8% 16 • MR 6.1% 14 o 31 VLCCs ordered in 2019; 41 in 2020; 10 cancelled recently Million DWT o Ordering tem
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Financial Summary – TCE Revenue & Adjusted EBITDA
Financial Summary – TCE Revenue & Adjusted EBITDA1 ($ millions) 4Q 2019 vs 4Q 2020 Quarterly TCE Revenue Quarterly Adjusted EBITDA $118 $25 $53 $9 $72 $93 $44 ($5) LTM 2019 Q4 2020 Q4 2019 Q4 2020 Q4 Adjusted Crude Tankers Product Tankers EBITDA1: FY 2019 vs FY 2020 $220.1M Annual TCE Revenue Annual
Slide 9: Financial Summary – Q4 & Q1 Earnings Update
Financial Summary – Q4 & Q1 Earnings Update 2020 Q4 Actual 2021 Q1 Booked to Date 1 SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $17,500 $63,600 $29,400 93% $16,800 100% $47,000 94% $22,200 VLCC < 15 $19,200 $70,100 $29,500 93% $16,800 100% $43,900 93% $19,900 Suezm
Slide 10: Lean and Scalable Model – Cash Breakevens
Lean and Scalable Model – Cash Breakevens TCE breakeven levels allow INSW to navigate low points in the tanker cycle while providing significant operating leverage in rising markets INSW Daily OPEX excludes DDK deviation bunkers, insurance claims and one-off expenses G&A for the Lightering segment i
Slide 11: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash Balance 11
Slide 12: Strong Financial Position – Balance Sheet
Strong Financial Position – Balance Sheet Strong balance sheet protects INSW during low portions of tanker cycle December 31, 2020 ($ M) Assets Liabilities INSW Book Value of FSO JV as of Current Liabilities (including $61M current December 31, 2020: $129 million Cash and Equivalents $199 portion of
Slide 13: Summary
Summary • Increased Financial Strength During Weak Quarter o Signed 10-year extensions for our FSO JVs in direct continuation of the current 5 year contracts. New contracts will generate approximately $20 million annually for INSW continuing through 2032 o Sold three unencumbered ships for over $60
Slide 14: Appendix
Appendix 14 International Seaways, Inc. BD
Slide 15: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions) 2020 Out-of-Service Days 2021 Out-of-Service Days Q1 (A) Q2 (A) Q3 (A) * Q4 (A) FY 2020 Q1 Q2 Q3 Q4 FY 2021 VLCC 390 203 -86 109 616 VLCC 95 107 10 66 277 Suezmax 0 2 4 0 7 Suezmax 3 3 2 2 9 Aframax / LR2 8 30 0 19 57 Aframax / L
Slide 16: TCE Revenue Reconciliation
TCE Revenue Reconciliation ($ thousands) 4Q19 4Q20 LTM 4Q19 LTM 4Q20 Time charter equivalent revenues 117,595 52,953 339,919 402,005 Add: Voyage expenses 6,427 3,750 26,265 19,643 Shipping revenues 124,022 56,703 366,184 421,648 16
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ thousands) All INSW 4Q19 4Q20 3Q20 LTM 4Q19 LTM 4Q20 Net income / (loss) 15,891 (116,889) 13,981 (830) (5,531) Income tax provision 1 - - 1 1 Interest expense 14,281 7,823 7,999 66,267 36,712 Depreciation and amortization 18,945 18,182 19,014 75,653 74,343 EBITDA 49
Slide 18: Chartered In Fleet
Chartered In Fleet Charter-In Hire Details • Time Charter-Ins: – 1 MR vessel at 25% - redelivers March 2021 - Charter Hire expense for 2021: $0.1M – 1 LR1 vessel that redelivers in August 2021 – Charter Hire expense for 2021 : $3.0M • Bareboat-Ins: – 2 Aframax vessels that redeliver in 2024 – Charte
Slide 19: INSW Fleet as of March 1, 2021
INSW Fleet as of March 1, 2021 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 Seaways Triton VLCC 2016 300,933 Owned Seaways Guayaquil LR
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