International Seaways, Inc. · NYSE:INSW
International Seaways — Investor Presentation (April 2020)
13 slides from International Seaways's investor presentation, Apr 1, 2020
Slide 1: International Seaways, Inc. April 2020
International Seaways, Inc. 1 International Seaways, Inc. April 2020
Slide 2: Introduction to International Seaways (NYSE: INSW)
International Seaways, Inc. Introduction to International Seaways (NYSE: INSW) 1 Represents the number of vessels in each class as a percentage of the total fleet deadweight, as of March 31, 2020. Does not in clude JV vessels. • Leading diversified tanker owner with significant presence in crude and
Slide 3: Why Invest in International Seaways?
International Seaways, Inc. • Best in class safety and environmental performance • Sector leading commercial pools, many with INSW ownership • New York representation in Tankers International VLCC pool • Invested $600 million, renewing fleet at bottom of cycle without issuing equity • Sold LNG joint
Slide 4: Record Oil Production and Covid-Related Demand Decrease
International Seaways, Inc. 4 Record Oil Production and Covid - 19 Related Demand Decrease… Saudi Crude Production (million b/d) Projected Demand Impact from Covid - 19 (thousand b/d) Source: S&P Global Platts Source: ZeroHedge
Slide 5: Leading to Huge Increase in Ship Earnings
International Seaways, Inc. 5 …Leading to Huge Increase in Ship Earnings $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week # 2019 VLCC Earnings 2020 VLCC Earnings Source: Clarksons Weekly Average VLCC TCE
Slide 6: Contango Leading to Increased Storage
International Seaways, Inc. 6 Contango Leading to Increased Storage… “Crude is likely to stay in floating storage for between six and nine months and tie up to twice the vessels that it did during the 2014 - 2016 period” – Braemar ACM, March 27, 2020
Slide 7: VLCC Year TC Rates
International Seaways, Inc. 7 VLCC 1 Year TC Rates 10,000 20,000 30,000 40,000 50,000 60,000 70,000 VLCC 1 Year TC (non - ECO) VLCC 1 Year TC (non-ECO) Source: Clarksons Weekly VLCC 1 Year Timecharter Rate
Slide 8: Refinancing Brings Strong and Flexible Balance Sheet
International Seaways, Inc. • Refinanced Term Loan B and other instruments with traditional bank debt, completes balance sheet evolution from acquisition to long term capital allocation • Lower margins and $110m debt prepayment yield savings of appr $25 million/ yr • Support of top tier shipping ban
Slide 9: Financial Summary – Q4 & Q1
International Seaways, Inc. Financial Summary – Q4 & Q1 Earnings Update 9 Spot Overall Spot % Fixed Overall % Fixed VLCC $54,100 $54,100 $63,000 99% $63,000 99% Suezmax $50,900 $50,900 $53,000 99% $53,000 99% Aframax/LR2 $29,400 $29,400 $29,000 92% $29,000 92% Panamax/LR1 2 $28,700 $21,300 $36,000 9
Slide 10: Refinancing Details – Lowers Cost of Capital
International Seaways, Inc. Refinancing Details – Lowers Cost of Capital Net LTV 41% Net LTV 41% Principal ($m) Maturity Rate Annual Amortization Principal ($m) Maturity Rate Annual Amortization Term Loan B $331.5 2022 L + 600 $18.4 Core Facility Term Loan $300.0 2025 L + 260 $37.7 ABN Term Loan $23
Slide 11: Refinancing Details – Debt Amortization
International Seaways, Inc. 11 Refinancing Details – Debt Amortization 0 50 100 150 200 250 300 2020 2021 2022 2023 2024 Amortization Balloon $ millions
Slide 12: Lean and Scalable Model – Cash Breakevens
International Seaways, Inc. Lean and Scalable Model – Cash Breakevens – Last 12 Months 12 • INSW Daily OPEX excludes DDK deviation bunkers, insurance claims and one - off expenses • G&A for the Lightering segment is excluded • Vessels that have been sold are excluded • Only includes owned vessels. T
Slide 13: Operating Leverage – Our Fleet Provides Tremendous Upside Exposure
International Seaways, Inc. (Mid-Cycle) (Recent Peak) 15-Year Average 2015 Average VLCC 42,800 72,200 Suezmax 33,200 50,400 Aframax/LR2 24,600 39,300 Panamax/LR1 20,000 26,500 MR 15,500 21,400 Adjusted EBITDA ($m) $243 $441 Annual EPS $4.10 $10.88 Note: 15 Year Average and 2015 Average are Clarksons
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