International Seaways, Inc. · NYSE:INSW
International Seaways — Q3 2021 Earnings Presentation
21 slides from International Seaways's earnings presentation, Nov 9, 2021
Slide 1: International Seaways, Inc. Third Quarter 2021 Earnings Presentation
International Seaways, Inc. Third Quarter 2021 Earnings Presentation November 9, 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: Third Quarter 2021 Highlights and Recent Developments
Third Quarter 2021 Highlights and Recent Developments • Completed Merger with Diamond S Shipping o INSW’s net asset value roughly doubled in an all-stock merger and fleet size tripled; now the largest diversified US-listed tanker owner o On track for annual cost synergies of $23 million and revenue
Slide 5: Market Update – The Recovery is in Progress
Market Update – The Recovery is in Progress • Oil Supply and Demand o Oil production continuing to increase as European field maintenance concludes, US hurricane-related shutdowns recover and OPEC+ continues to gradually ramp up production o 2021 Q3 Oil demand estimated at 97.8 mb/d, up from 95.2 mb
Slide 6: Market Update – Ship Supply
Market Update – Ship Supply Projected Tanker Supply Curves • Orderbook Update o Orderbook remains at historical lows: • VLCC 8.8% • Suezmax 8.1% • Aframax/LR2 8.8% • Panamax/LR1 0.4% • MR 5.8% o 31 VLCCs ordered in 2019; 31 in 2020; 33 YTD 2021 o No new VLCC orders since early June o Ordering temper
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Financial Summary – TCE Revenue & Adjusted EBITDA
Financial Summary – TCE Revenue & Adjusted EBITDA1 ($ millions) Quarterly: 3Q 2020 vs 3Q 2021 Quarterly TCE Revenue Quarterly Adjusted EBITDA $94 $14 $73 $55 $38 $80 $35 $8 2020 Q3 2021 Q3 Crude Tankers Product Tankers 2020 Q3 2021 Q3 LTM2: 3Q 2020 vs 3Q 2021 LTM TCE Revenue LTM Adjusted EBITDA $467
Slide 9: Financial Summary – 2021 Q3 & Q4 Earnings Update
Financial Summary – 2021 Q3 & Q4 Earnings Update 2021 Q3 Actual 2021 Q4 to Date1 SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $10,700 $43,900 $14,300 59% $16,100 100% $43,900 63% $20,000 Suezmax $10,700 $26,600 $12,400 58% $13,900 100% $27,000 62% $15,800 Aframax/LR
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 Forward 12 Months - ESTIMATED Cost Guidance for Q4 2021: • Regular Daily OPEX • VLCC: $8,800/day • Suezmax $7,600/day
Slide 11: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash Balance 11
Slide 12: Strong Financial Position – Balance Sheet
Strong Financial Position – Balance Sheet Strong balance sheet protects INSW during low portions of tanker cycle September 30, 2021 ($ M) Assets Liabilities Current Liabilities (including $221M current portion of Cash and Equivalents $109 long term debt and $7M current portion of lease $281 liabilit
Slide 13: Proforma INSW Debt
Proforma INSW Debt Proforma INSW Debt Principal Balance ($M) Maturity Rate Quarterly Amortization ($M) 8.5% Senior Notes $25.0 June 2023 8.50% 0 DSSI $360m Facility $175.5 March 2024 LIBOR +265 bps $10.21 DSSI $525m Facility $378.5 December 2024 LIBOR +250 bps $18.00 Core Facility $243.1 January 202
Slide 14: Summary
Summary • Completed Merger with Diamond S Shipping o INSW’s net asset value roughly doubled in an all-stock merger and fleet size tripled; now the largest diversified US-listed tanker owner o On track for annual cost synergies of $23 million and revenue synergies of $9 million within 2022 by adherin
Slide 15: Appendix
Appendix 15 International Seaways, Inc. BD
Slide 16: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions) 2021 Out-of-Service Days Q1 (A) Q2 (A) Q3 (A) Q4 (E) FY 2021 VLCC 76 259 76 42 454 Suezmax 0 0 84 79 163 Aframax / LR2 0 7 0 13 20 Panamax / LR1 169 28 142 181 520 MR 2 0 283 242 528 Handy 0 0 137 153 290 248 294 722 710 1,974 20
Slide 17: Fleet Optimization Program Update
Fleet Optimization Program Update • INSW has sold or is in contract to sell 14 vessels since 6/30/21 as part of its continued Fleet Optimization Program. Ship Segment Tanabe VLCC Total reduction of Hellas Panamax Number of Operating Days for Jademar Panamax Vessels the balance of 2021 Goldmar Panama
Slide 18: TCE Revenue Reconciliation
TCE Revenue Reconciliation ($ thousands) 3Q20 3Q21 LTM 3Q20 LTM 3Q21 Time charter equivalent revenues 94,032 72,968 466,647 215,808 Add: Voyage expenses 5,851 11,848 22,320 18,771 Shipping revenues 99,883 84,816 488,967 234,579 LTM reflects reported results and is not proforma for the Diamond S merg
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ thousands) All INSW 3Q20 3Q21 LTM 3Q20 LTM 3Q21 Net income / (loss) 13,981 (67,878) 127,249 (216,915) Income tax provision - 35 2 36 Interest expense 7,999 10,639 43,169 32,748 Depreciation and amortization 19,014 25,806 75,107 77,821 Noncontrolling Interest - (312)
Slide 20: Chartered In Fleet
Chartered In Fleet Charter-In Hire Details • Time Charter-Ins: – 1 MR vessel at 50% - redelivers December 2021 - Charter Hire expense for 2021: $0.4M – 1 LR1 vessel that redelivers in August 2022 – Charter Hire expense for 2021 : $0.8M – 1 LR1 vessel that redelivers in April 2023 – Charter Hire expe
Slide 21: INSW Fleet as of November 1, 2021
INSW Fleet as of November 1, 2021 Ship Type DWT Built Ownership Yard Ship Type DWT Built Ownership Yard FSO Africa FSO 432,023 2002-06 50% Daewoo Anikitos MR 50,082 2016-06 Owned Samsung (Ningbo) FSO Asia FSO 432,023 2002-03 50% Daewoo Seaways Jeju MR 49,999 2015-09 Owned Samsung (Ningbo) Amadeus MR
International Seaways — Q3 2021 Earnings Presentation on 6ix