International Seaways, Inc. · NYSE:INSW
International Seaways — Q3 2020 Earnings Presentation
19 slides from International Seaways's earnings presentation, Nov 6, 2020
Slide 1: International Seaways, Inc. Third Quarter 2020 Earnings Presentation
International Seaways, Inc. Third Quarter 2020 Earnings Presentation November 6, 2020
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 2020 Highlights and Recent Developments
Third Quarter 2020 Highlights and Recent Developments • Another Strong Quarter Despite Weakening Market o 2020 Q3 net income $14.0 million ($0.50/share), or $27.6 million ($0.98/share) when excluding vessel impairments, loss on vessel sales and write-off of deferred financing costs o 2020 Q3 Adjuste
Slide 5: Market Update – Oil Supply, Demand and Implications
Market Update – Oil Supply, Demand and Implications • Oil Supply and Demand o IEA expects 2020 Q4 demand to be at 96.1 million b/d, a slight upward revision, and expects demand to be at 98.8 million b/d by end of next year o With demand rising in Q4, IEA anticipates 4 million b/d stock draw, helping
Slide 6: Market Update – Ship Supply
Market Update – Ship Supply • Orderbook Update 20 60% o Orderbook has continued to decline to historical lows: 50% • 15 Million DWT VLCC 7.1% 40% • Suezmax 10.5% 10 30% • Aframax/LR2 9.4% • Panamax/LR1 3.1% 20% 5 • MR 6.7% 10% o 31 VLCCs ordered in 2019; YTD 2020 only 16 thus far, although 0 0% Q4-2
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Financial Summary – TCE Revenue & Adjusted EBITDA
Financial Summary – TCE Revenue & Adjusted EBITDA1 ($ millions) 3Q 2019 vs 3Q 2020 Quarterly TCE Revenue Quarterly Adjusted EBITDA LTM Adjusted EBITDA1: 2Q 2020 vs 3Q 2020 $297M Quarterly TCE Revenue Quarterly Adjusted EBITDA 1 See Appendix for TCE Revenue and EBITDA reconciliation 8
Slide 9: Financial Summary – Q3 & Q4 Earnings Update
Financial Summary – Q3 & Q4 Earnings Update 2020 Q3 Actual 2020 Q4 Booked to Date 1 SPOT TC OVERALL SPOT TC OVERALL TCE TCE TCE Fixed TCE Fixed TCE Fixed TCE VLCC $35,700 $73,400 $47,400 59% $19,600 100% $63,700 72% $38,600 VLCC < 15 $40,400 $80,600 $52,500 59% $19,600 100% $70,300 68% $36,200 VLCC
Slide 10: Lean and Scalable Model – Cash Breakevens
Lean and Scalable Model – Cash Breakevens TCE breakeven levels allow INSW to navigate low points in the tanker cycle while providing significant operating leverage in rising markets INSW Daily OPEX excludes DDK deviation bunkers, insurance claims and one-off expenses G&A for the Lightering segment i
Slide 11: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash Balance 11
Slide 12: Strong Financial Position – Balance Sheet
Strong Financial Position – Balance Sheet Strong balance sheet protects INSW during low portions of tanker cycle September 30, 2020 ($ M) Assets Liabilities Current Liabilities (including $61M current INSW Book Value of FSO JV as of Cash and Equivalents $137 portion of long term debt and $10M curren
Slide 13: Summary
Summary • Another Strong Quarter Despite Weakening Market o 2020 Q3 net income $14.0 million ($0.50/share), or $27.6 million ($0.98/share) when excluding vessel impairments, loss on vessel sales and write-off of deferred financing costs o 2020 Q3 Adjusted EBITDA $54.6 million, an increase of $31.0 m
Slide 14: Appendix
Appendix 14 International Seaways, Inc. BD
Slide 15: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days 1 Out-of-Service Days Q1 (A) Q2 (A) Q3 (A) Q4 FY 2020 VLCC 390 203 -86 80 587 Suezmax 0 2 4 0 7 Aframax / LR2 8 30 0 0 38 Panamax / LR1 16 7 275 501 800 MR 43 -14 1 35 65 456 229 195 616 1,496 Drydock Costs Q1 (A) Q2 (A) Q3 (A) Q4 FY 2020 VLC
Slide 16: TCE Revenue Reconciliation
TCE Revenue Reconciliation ($ thousands) 3Q19 3Q20 2Q20 Time charter equivalent revenues 65,808 94,032 135,289 Add: Voyage expenses 5,470 5,851 4,436 Shipping revenues 71,278 99,883 139,725 16
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ thousands) All INSW 3Q19 3Q20 2Q20 LTM 3Q20 Net income / (loss) (11,095) 13,981 64,358 127,249 Income tax provision 0 - 1 2 Interest expense 17,010 7,999 8,881 43,169 Depreciation and amortization 18,961 19,014 18,880 75,107 EBITDA 24,876 40,994 92,120 245,527 Third
Slide 18: Chartered In Fleet
Chartered In Fleet Charter-In Hire Details • Time Charter-Ins: o 1 MR vessel at 25% - redelivers March 2021 - Charter Hire expense for rest of 2020: $0.3M o 1 LR1 vessel that redelivers in August 2021 – Charter Hire expense for rest of 2020: $0.9M • Bareboat-Ins: o 2 Aframax vessels that redeliver i
Slide 19: INSW Fleet as of November 1, 2020
INSW Fleet as of November 1, 2020 Ship Type Built DWT Ownership Ship Type Built DWT Ownership Gener8 Chiotis VLCC 2016 300,973 Owned Seaways Leyte LR1 2011 73,944 Owned Gener8 Success VLCC 2016 300,932 Owned Seaways Samar LR1 2011 73,920 Owned Gener8 Supreme VLCC 2016 300,933 Owned Seaways Guayaquil
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