International Seaways, Inc. · NYSE:INSW
International Seaways — Q1 2024 Earnings Presentation
21 slides from International Seaways's earnings presentation, May 8, 2024
Slide 1: International Seaways First Quarter 2024 Earnings Presentation
International Seaways, Inc. First Quarter 2024 Earnings Presentation May 8, 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 3
Slide 4: First Quarter 2024 Highlights and Recent Developments
First Quarter 2024 Highlights and Recent Developments Strong Quarterly Earnings & Q2 Fixtures Fortress Balance Sheet First Quarter 2024 & Last Twelve Months (LTM) Results Total Liquidity of $626 million $m except per share Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 LTM • $215 million in cash & short-te
Slide 5: Market Update: Tanker Demand Drivers
Market Update: Tanker Demand Drivers ˄ Oil demand forecasted to grow by 1.5 mpbd each in 2024 & 2025 ˄ Oil demand growth largely driven by Asia, which structurally short oil and refined products ˄ Non-OPEC production expected to increase by more than 1 mpbd, primarily from Americas (US, Brazil, Cana
Slide 6: Market Update: Tanker Supply Drivers
Market Update: Tanker Supply Drivers ˄ Orderbook continues to be low relative to size of the fleet: about 9% (by dwt) ˄ Net fleet growth is under 4.5% since the beginning of 2022 ˄ Average age of tanker fleet has grown to 13.2 years (vs. an average age of about 9.0 years in May 2014) increasing pote
Slide 7: Financial Review
Financial Review Jeffrey D. Pribor SVP & CFO 7
Slide 8: Q1 2024: Another Solid Quarter
Q1 2024: Another Solid Quarter For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 209.0 205.1 172.6 191.5 162.5 153.8 154.4 144.5 144.4 150.9 158.8 132.1 97.9 100.7 107.6 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023
Slide 9: Rollforward of Cash & Liquidity
Rollforward of Cash* & Liquidity *Cash & Cash Equivalents plus Short Term Investments $626m $601m $411m $414m $12m interest $32m amort $14m $23m $192m $13m $65m $5m $321m $308m Free Cash Flow ~ $121m (1) $215m $215m $187m 12/31/23 Total Adjusted EBITDA(1) Debt Service on Drydock & CAPEX Working Capi
Slide 10: Strong Financial Position
Strong Financial Position Balance Sheet $m Key Balance Sheet Figures $m Mar 31, Dec 31, ASSETS 2024 2023 Cash and Cash Equivalents + Short Term Investments $215 $187 Ample Cash & Total Liquidity Voyage Receivables 243 247 $626m Other Current Assets 32 31 Total Current Assets $490 $465 $411m $215m Ve
Slide 11: Looking Forward
Looking Forward Refer to disclaimer on slide 2 The Company is Positioned to Capitalize on Strong Q2 Environment Well Above our Spot Break Even & Estimated Costs Q2 2024 Booked to-Date as of May 2, 2024 Forward Estimated Spot Break Even(1) $ per day Spot Time Charter Overall OPEX Charter hire G&A Int
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 $2.6bn in market cap(1) • Invested approximately $2bn in assets at low points in the cycle (valued at over $3bn
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix
Slide 15: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days ($ millions, except days) 2024 Offhire Days Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 VLCC 46.6 15.0 5.0 0.0 66.6 Suezmax 1.7 5.0 0.0 5.0 11.7 Aframax / LR2 51.1 54.0 50.0 0.0 155.1 LR1 46.7 103.0 0.0 0.0 149.7 MR 174.0 182.0 205.0 191.0 752.0
Slide 16: LR1 Newbuilding Schedule
LR1 Newbuilding Schedule Amount Due Amount Due Hull Hull Hull Hull Hull Hull ($M) ($M) 1810 1811 1812 1813 1814 1815 per vesel per vesel Signing AUG-23 AUG-23 OCT-23 OCT-23 - APR-24 APR-24 First Payment Due NOV-23 NOV-23 JUN-24 JUN-24 5.774 OCT-24 OCT-24 5.800 Payment after steel cutting SEP-24 NOV-
Slide 17: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Time charter equivalent revenues 283,320 288,335 235,952 247,912 270,928 Add: Voyage expenses 3,810 3,868 5,756 2,822 3,473 Shipping revenues 287,130 292,203 241,708 250,734 274,401 17
Slide 18: Adjusted EBITDA and Net Income Reconciliation: Quarters
Adjusted EBITDA and Net Income Reconciliation: Quarters $000s Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net income 172,633 153,762 97,937 132,114 144,490 Income tax (benefit)/provision (1) 381 52 3,446 - Interest expense 16,947 17,914 16,817 14,081 12,887 Depreciation and amortization 29,548 32,445 33
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $000s Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net cash provided by operating activities (1) 220,822 193,634 148,463 125,483 156,442 Repayments of debt (1) (137,449) (55,407) (132,152) (108,365) (19,538) Payments on sale and leaseback financing and finance leases (1) (34
Slide 20: Chartered In/Out Fleet
Chartered In/Out Fleet Please refer to Forward Looking Statements disclaimer on page 2 • Time Charter-Out ($m): Vessel Rate Charter Expiry 2024 2025 2026 2027 2028 2029 2030 2016-Built Suezmax $32,500 AUG-24 4.3 4.3 2012-Built Suezmax $30,650 JAN-25 8.4 0.1 8.6 2008-Built MR $22,000 FEB-25 6.1 0.9 7
Slide 21: INSW Fleet Overview as of May 1, 2024
INSW Fleet Overview as of May 1, 2024 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI SEAWAYS VISAYAS LR1 OWNED 2006 74,933 STX SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao SEAWAYS LUZON LR1 OWNED 2006 74,909 S
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