International Seaways, Inc. · NYSE:INSW
International Seaways — Q3 2024 Earnings Presentation
21 slides from International Seaways's earnings presentation, Nov 7, 2024
Slide 1: International Seaways, Inc. Third Quarter 2024 Earnings Presentation
International Seaways, Inc. Third Quarter 2024 Earnings Presentation November 7, 2024
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
Slide 4: Third Quarter 2024 Highlights and Recent Developments
Third Quarter 2024 Highlights and Recent Developments Quarterly Earnings & Q4 Fixtures Healthy Balance Sheet Third Quarter 2024 & Last Twelve Months (LTM) Results Total Liquidity of $694 million $m except per share Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 LTM • $153 million in cash & short-term inves
Slide 5: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand forecasted to grow by 1.2 mpbd each in 2024 & 2025; aligned with historical CAGR ‒ Oil demand growth largely driven by Asia; China/India primary contributors to Asia demand growth ˄ Non-OPEC production about 1 mpbd increase YOY, primarily from Americ
Slide 6: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook relative to size of the fleet: 13% (by dwt) ˄ Net fleet growth is less than 1% YOY ˄ Average age of tanker fleet has grown to 13.5 years (vs. an average age of about 9.2 years in October 2014) increasing potential recycle candidates ˅ No recycling vol
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Q3 2024: Quarterly Results
Q3 2024: Quarterly Results For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 144.5 144.4 144.7 191.5 132.1 118.0 158.8 167.0 107.6 150.9 97.9 100.7 130.0 91.7 78.2 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 20
Slide 9: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $682m $694m Free Cash Flow ~ $115m(1) $506m $541m $12m interest $35m $24m $29m $12m $50m $25m sh buyback $130m $12m amort $21m $74m Dividend $176m $153m (1) 6/30/24 Adjusted EBITDA Debt Service Drydock & CAPEX Work
Slide 10: Strong Financial Position
Strong Financial Position Balance Sheet $m Key Balance Sheet Figures $m Sep 30, Jun 30, ASSETS 2024 2024 Cash and Cash Equivalents + Short Term Investments $153 $176 Ample Cash & Total Liquidity Voyage Receivables $191 $223 $694m Other Current Assets $28 $35 Total Current Assets $372 $435 $541m $153
Slide 11: Looking Forward
Looking Forward Refer to Forward Looking Statements disclaimer on slide 2 The Company is Positioned to Generate Free Cash Flow as our Spot Break Even is Well Above our Estimated Costs Q4 2024 Booked to-Date as of October 31, 2024 Forward Estimated Spot Break Even(1) $ per day Spot Time Charter Overa
Slide 12: Investment Highlights
Investment Highlights • Transformed company approximately $0.4bn market cap at time of spin-off in 2016 through today into one of the top 3 US publicly traded tanker companies by DWT with $2.4bn in market cap(1) • Invested in over $2bn in assets at low points in the cycle (valued at over $3.5bn toda
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix
Slide 15: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions, except days) 2024 Offhire Days Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 FY 2025 (E) VLCC 46 82 39 103 271 112 Suezmax 2 - 0 18 19 38 Aframax / LR2 51 116 62 0 229 14 LR1 47 131 50 0 227 116 MR 174 230 128 217 749 575 320 559 279 3
Slide 16: LR1 Newbuilding Schedule
LR1 Newbuilding Schedule Hull Hull Amount Due Hull Hull Hull Hull Amount Due 1810 1811 ($M) 1812 1813 1814 1815 ($M) Signing AUG-23 AUG-23 OCT-23 OCT-23 APR-24 APR-24 First Payment Due NOV-23 NOV-23 5.774 JUL-24 JUL-24 OCT-24 OCT-24 3.040 Payment after steel cutting SEP-24 NOV-24 5.774 MAR-25 MAY-25
Slide 17: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Time charter equivalent revenues 235,952 247,912 270,928 251,848 219,687 Add: Voyage expenses 5,756 2,822 3,473 5,561 5,503 Shipping revenues 241,708 250,734 274,401 257,409 225,190 17
Slide 18: Adjusted EBITDA and Net Income Reconciliation: Quarters
Adjusted EBITDA and Net Income Reconciliation: Quarters $000s Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net income 97,937 132,114 144,490 144,723 91,688 Income tax (benefit)/provision 52 3,446 - - (1) Interest expense 16,817 14,081 12,887 12,425 12,496 Depreciation and amortization 33,363 33,682 34,15
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $000s Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net cash provided by operating activities (1) 148,463 125,483 156,442 167,939 129,135 Repayments of debt (1) (132,152) (108,365) (19,538) - - Payments on sale and leaseback financing and finance leases (1) (10,946) (12,233)
Slide 20: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on slide 2 • Time Charter-Out ($m): Vessel Rate Charter Expiry 2024 2025 2026 2027 2028 2029 2030 2016-Built Suezmax * $32,500 NOV-24 1.4 1.4 2012-Built Suezmax $30,650 JAN-25 2.8 0.1 2.9 2008-Built MR $22,000 FEB-25 2.0 0.
Slide 21: INSW Fleet Overview as of November 1, 2024
INSW Fleet Overview as of November 1, 2024 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI SEAWAYS LEYTE LR1 OWNED 2011 73,944 SPP SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao SEAWAYS SAMAR LR1 OWNED 2011 73,92
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