International Seaways, Inc. · NYSE:INSW
International Seaways — Investor Presentation (November 2022)
27 slides from International Seaways's investor presentation, Nov 23, 2022
Slide 1: Company Presentation November 2022
Company Presentation November 2022 International Seaways, Inc.
Slide 2: Disclaimer: Forward-Looking Statements and Non-GAAP Measures
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 - loo
Slide 3: International Seaways at a Glance
2.0 0.6 0.1 0.5 2.1 3.0 0.9 39 8 1 4 13 13 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 MR LR1 LR2 Aframax Suezmax VLCC International Seaways at a Glance 3 Strong Financial Position $1,065m NYSE Listed December 2016 Headquartered NYC Employees 2,061 Market Cap (1) $2.2bn Large and diversified fleet (3) S
Slide 4: Investment Highlights
Investment Highlights 4 Disciplined Capital Allocator • Transformed company from spin - off & approximately $400m market cap in 2016 through today into one of the top 3 US publicly traded tanker companies by DWT with $2.2bn in market cap (1) • Acquired Diamond S Shipping in July 2021 • Returned over
Slide 5: Transformed through Fleet Renewal at Cyclical Lows
60.00 75.00 90.00 105.00 120.00 2016 2017 2018 2019 2020 2021 2022 Resale 5 yr Old Newbuild 12.00 16.00 20.00 24.00 28.00 32.00 2016 2017 2018 2019 2020 2021 2022 20.00 35.00 50.00 65.00 80.00 95.00 2016 2017 2018 2019 2020 2021 2022 Resale 10 Yr Old Transformed through Fleet Renewal at Cyclical Low
Slide 6: Fleet Investment, Debt Reduction and Returns to Shareholders
FLEET INVESTMENT OR RENEWAL INSW has a track record of asset purchases at the bottom of the cycle. In addition to those displayed to the right, 7 VLCCs and 2 Suezmax were purchased prior to 2020 at prices below the 5yr average. DEBT REDUCTION & REPAYMENT Our low - cost senior debt and sale leaseback
Slide 7: Industry Leading ESG Footprint
Industry Leading ESG Footprint 7 Environmental Social Governance • Reduce resource consumption, both fuel and consumables • Fleet improvements such as dual - fuel newbuilds, Mewis ducts, BWTS compliance and advanced hull coatings • 58% of debt portfolio is sustainability - linked • Committed to resp
Slide 8: Hybrid Operating Model: Pool Employment
No of vessels in pool INSW vessels in pool Pool co - owned by INSW Worlds largest VLCC pool with 60 vessels under commercial management. Share offices with INSW in NYC 69 9 Leading commercial manager of Suezmax , Aframax & Panamax vessels 15 ( Suez. only) 12 Operates Dakota Tankers, a pool specializ
Slide 9: Strategic Lightering Business
Strategic Lightering Business 30% Source: International Seaways 9 Asset - Light, Expertise - Heavy and Customer Oriented Geographical Footprint Market Share US Gulf Significant Cash Flow Contribution 3.7 6.5 2.8 4.5 3.9 6.1 2017 2018 2019 2020 2021 YTD 2022 EBITDA (USD million) Operations conducted
Slide 10: Strong Financial Position
41% 50% 41% 33% 45% 29% 2017 2018 2019 2020 2021 Q3 2022 Strong Financial Position 10 Low Net Loan to Value (%) Significant Liquidity 59 61 16 60 58 90 199 98 255 20 50 50 40 140 220 $91m $168m $200m $256m $239m $476m 2017 2018 2019 2020 2021 Q3 2022 1 Undrawn RCF Restricted cash Cash and cash equiv
Slide 11: Strong Financial Position cont.
4,400 1800 2,700 10,200 4,000 6,400 1,400 2,400 2,000 25,400 17,500 20,500 1,900 18,600 Crude Fleet Product Fleet Combined Fleet Less: Fixed Revs Est. Cash Breakeven OPEX Charter hire G&A Interest Principal DDK & Capex Strong Financial Position cont. 11 Strong Balance Sheet protects INSW during low
Slide 12: Market Outlook Summary
Market Outlook Summary Momentum building in tanker markets Near • Tanker revenue rates spiked in product carriers, large crude carriers followed • Oil demand above pre - pandemic levels; recessionary concerns could curb global oil demand • Imminent EU embargo on Russian crude and refined products wi
Slide 13: Current Tanker Rates
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Current Tanker Rates Source: Clarksons , includes Russian trade routes. INSW does not trade in Russian ports. 13 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Jan Feb Ma
Slide 14: Low Global Inventories Drive Seaborne Demand
Low Global Inventories Drive Seaborne Demand Commercial Inventories Well Below 10Yr Average Strategic Reserves Historically Low Source: EIA 14 40 50 60 70 80 90 2200 2450 2700 2950 3200 3450 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OECD INVENTORIES OECD Total Inventory (LHS)
Slide 15: Current Topics: Russian Exports Ahead of Sanctions
Current Topics: Russian Exports Ahead of Sanctions Source: Kpler , analysis of prior 2 years data compared to September data 15 Russian Crude Displacement Just Beginning Ahead of Dec Ban Russian Product Exports Not Yet Altered Ahead of Feb - 23 Ban Background Approximately 2.5 mbpd of Russian crude
Slide 16: Disconnect: Regional Imbalances in Oil Impact Tanker Demand
Oil Demand ( mbpd ) 2019 2026 Asia 27.7 32.1 OECD 47.7 45.8 Other 24.3 26.2 Total 99.7 104.1 27.7 32.1 Source: IEA Mar 2021 16 Disconnect: Regional Imbalances in Oil Impact Tanker Demand Growing disconnect between oil production growth and oil consumption growth should lead to greater demand for tan
Slide 17: Disconnect: Changes in Refinery Capacity
Disconnect: Changes in Refinery Capacity Refining landscape is likely to shift product trade patterns as expansion largely in the East is partially offset by smaller, less upgrading capacity in the West. 17 Source: Braemar (1.1) North America (0.9) Europe 1.2 China 0.3 India (0.5) Australasia 0.3 SE
Slide 18: Tanker Supply: Age & Newbuilds
Tanker Supply: Age & Newbuilds Source: Clarksons Tanker Fleet Ages at 20 Yr Highs Vessels on Order Not Replacing for Aging Fleet 10.6 yrs 12.6 yrs 7 8 9 10 11 12 13 14 15 16 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 VLCC Avg Age MR Avg Age Avg Age Years Orderbook/Fleet Percent The
Slide 19: Tanker Supply: Limited Capacity for Newbuilds
Tanker Supply: Limited Capacity for Newbuilds Tankers include major asset classes: VLCC, Suezmax , Aframax , Panamax, MR/Handy Source: Clarksons Shrinking orderbook compounded by limited shipyard capacity 19 Orderbook is at 20 yr Lows Shipyards are busy with Other Vessel Types 3.9 % 4.9 % 0.0% 10.0%
Slide 20: Appendix
Appendix 20 International Seaways, Inc. QD
Slide 21: Longstanding History as a Leading Tanker Shipping Company
Longstanding History as a Leading Tanker Shipping Company Source: Company data 21 Leading VLCC pool founded together with: Overseas Shipholding Group originally founded in 1948 Established as the International Flag trade of OSG operating in the transportation of crude oil and petroleum products OSG
Slide 22: Financial Summary – TCE Summary
Financial Summary – TCE Summary (1) As of November 3, 2022 22 SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $24,400 $43,900 $26,400 63% $59,400 100% $43,900 67% $57,100 Suezmax $34,200 $27,700 $33,600 51% $46,900 100% $32,500 55% $44,700 Aframax/LR2 $38,300 $17,100 $34,100 50% $58,3
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 23 . $000s Q3 2022 Q2 2022 Q3 2021 Q3 YTD 2022 Q3 YTD 2021 Net income / (loss) 113,427 69,036 (67,878) 169,462 (100,026) Income tax provision 7 52 35 63 36 Interest expense 15,332 12,558 10,639 40,630 24,925 Depreciation and amortization 27,728 27,256 25,806 81,984 59,
Slide 24: Lightering EBITDA Reconciliation
Lightering EBITDA Reconciliation 24 . Segment Information $000s Lightering Crude Fleet Total Crude Tankers Product Carriers Other Total TCE revenue (net of voyage expense) 20,683 150,441 171,124 346,936 - 518,060 Vessel expenses (5,521) (67,004) (72,525) (105,921) 1 (178,445) Charter hire expenses (
Slide 25: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out - of - Service Days ($ millions) *2023 Estimates are preliminary, please refer to forward looking statement on pg. 2. Capex includes vessel purchases and newbuildings 25 Q1 (A) Q2 (A) Q3 (A) Q4 (E) FY 2022 VLCC 63 11 16 0 90 76 Suezmax 20 129 255 105 509 52
Slide 26: Chartered In/Out Fleet
Chartered In/Out Fleet • Time Charter - Out (1) : • Time Charter - Ins/Bareboat - Ins : • Lightering: – 4 workboats that redeliver between December 2022 and January 2024 – Charter Hire expense for the 4 th Quarter of 2022 : $2.3m & for FY 2023: $8.6m 26 Vessel Type Type Built Charter Expiry Q4 2022
Slide 27: Fleet List
(1) The Company excludes TC - In vessels from fleet count when the time charter expires within one year at inception (2) In November 2022, the Company entered into a memorandum of agreement to sell this vessel with an expected delivery date in th e f ourth quarter of 2022. 27 Name Class Owned Built
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