International Seaways, Inc. · NYSE:INSW
International Seaways — Q3 2023 Earnings Presentation
19 slides from International Seaways's earnings presentation, Nov 7, 2023
Slide 1: International Seaways Third Quarter 2023 Earnings Presentation
International Seaways, Inc. Third Quarter 2023 Earnings Presentation November 7, 2023
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: Third Quarter 2023 Highlights and Recent Developments
Third Quarter 2023 Highlights and Recent Developments Solid Q3 2023 Results & Q4 Fixtures Quality Capital Structure Third Quarter 2023 & Last Twelve Months (LTM) Results Total Liquidity of $581 million as of September 30 $m except per share Q4 2022 Q1 2023 Q2 2023 Q3 2023 LTM • Cash & ST Investments
Slide 5: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand forecasts have increased growth to over 2 mpbd in 2023 and another 1.5 - 2 mbpd growth in 2024 ‒ Macro environment has mildly negative sentiment but physical data still holding ˄ Oil demand growth largely driven by China, which is expected to increas
Slide 6: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be low relative to size of the fleet: under 5.9% (by dwt) ˄ Net fleet growth is approximately 3% since November 2022 ˄ Average age of tanker fleet has grown to 12.8 years (vs. an average age of about 8.8 years in November 2013) increasing
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Strong Results
Strong Results For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 254.3 218.4 208.8 209.0 205.1 172.6 162.5 153.8 154.4 157.1 150.9 113.4 113.9 97.9 100.7 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023
Slide 9: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $581m $493m $15m interest $110m $367m $257m $20m $151m $39m amort $54m $13m $69m $3m Free Cash Flow ~ $104m $236m $214m $214m 06/30/23 Total Adjusted EBITDA (1) Debt Service Drydock & CAPEX Working Capital De-lever
Slide 10: Strong Financial Position
Strong Financial Position Balance Sheet $m Proforma Debt Balance – as of November 1, 2023 $m, unless noted As of September 30, Facility Name Principal Maturity Rate Qtr Amortization ASSETS 2023 $750m Facility 142 May 2027 SOFR +245 bps(a) 19.5 Cash and Cash Equivalents + ST Investments $214 $160m Fa
Slide 11: Looking Forward
Looking Forward Refer to disclaimer on slide 2 The Company is Positioned to Capitalize on Strong Q4 Environment Well Above our Cash Break Even & Estimated Costs Q4 2023 Booked to-Date Forward Estimated Cash Break Even(1) $ per day Spot Time Charter Overall OPEX Charter hire G&A Interest Principal DD
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 $2.2bn in market cap(1) Disciplined Capital Allocator • Invested approximately $2bn in assets at low points in t
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix
Slide 15: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions, except days) 2023 Offhire Days Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 FY 2024 E VLCC 33.0 39.9 28.9 18.0 119.9 45.0 Suezmax 42.8 14.0 0.4 0.0 57.2 15.0 Aframax / LR2 1.5 0.3 63.4 11.0 76.3 134.0 LR1 3.3 0.0 8.8 79.0 91.1 100.0 M
Slide 16: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Time charter equivalent revenues 234,546 335,650 283,320 288,335 235,952 Add: Voyage expenses 2,283 2,507 3,810 3,868 5,756 Shipping revenues 236,829 338,157 287,130 292,203 241,708 16
Slide 17: Adjusted EBITDA and Net Income Reconciliation
Adjusted EBITDA and Net Income Reconciliation $000s Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net income 113,427 218,429 172,633 153,762 97,937 Income tax provision/(benefit) 7 25 (1) 381 52 Interest expense 15,332 17,091 16,947 17,914 16,817 Depreciation and amortization 27,728 28,404 29,548 32,445 3
Slide 18: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on page 2 • Time Charter-Out: *excludes 50/50 profit share, if applicable Charter Vessel Rate 2023 2024 2025 2026 2027 2028 2029 2030 Total Expiry 2007-Built MR $18,500 OCT-23 0.2 0.2 2016-Built Suezmax $32,500 AUG-24 3.0 7
Slide 19: INSW Fleet Overview as of November 1, 2023
INSW Fleet Overview as of November 1, 2023 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI NORDIC C(2) LR1 TC-In 2009 73,700 New Times SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao PELAGIC TOPE LR1 TC-In 2008 76
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