International Seaways, Inc. · NYSE:INSW
International Seaways — Q1 2020 Earnings Presentation
22 slides from International Seaways's earnings presentation, May 7, 2020
Slide 1: First Quarter 2020 Earnings Presentation
1 International Seaways, Inc. First Quarter 2020 Earnings Presentation International Seaways, Inc. May 7, 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 – Lois K. Zabrocky, President & CEO
Business Review – Lois K. Zabrocky, President & CEO
Slide 4: Coronavirus Update
Coronavirus Update Crewing o Strict measures are in effect on all of our ships for the health and safety of our seafarers o Global travel restrictions are making crew changes exceptionally COVID - 19 RESPONSE difficult, resulting in longer stays on board the vessels and at home Shoreside o Advan
Slide 5: First Quarter 2020 Highlights and Recent Developments
First Quarter 2020 Highlights and Recent Developments Executing on Capital Allocation Strategy o Completed refinancing, saving $25 million in annual interest o Instituted $0.06/share quarterly dividend o Share repurchases totaling $10 million made during quarter o Revolver fully repaid. $40 millio
Slide 6: Market Update – Oil Supply, Demand and Market Implications
Market Update – Oil Supply, Demand and Market Implications Oil Demand Contango Causing Demand for Storage Vessels o The Coronavirus (COVID-19) has negatively impacted oil demand. IEA forecasts reduced demand of 29 million b/d for April and 9.3 million b/d for 2020 Oil Supply o In March, OPEC and
Slide 7: Market Update – Ship Supply
Market Update – Ship Supply Historically Low Orderbook Orderbook Update • Orderbook remains historically low: 20 60% • VLCC 7.3% 50% 15 Million DWT • Suezmax 11.0% 40% • Aframax/LR2 8.4% 10 30% • Panamax/LR1 4.3% 20% 5 10% • MR 6.9% 0 0% • 31 VLCCs ordered in 2019; YTD 2020 only six thus far Q2-2001
Slide 8: Financial Review – Jeffrey D. Pribor, SVP & CFO
Financial Review – Jeffrey D. Pribor, SVP & CFO
Slide 9: Financial Summary – TCE Revenue & Adjusted EBITDA
Financial Summary – TCE Revenue & Adjusted EBITDA 1 ($ millions) 1Q 2019 vs 1Q 2020 Quarterly TCE Revenue Quarterly Adjusted EBITDA $120 $94 $89 $73 $74 $47 $21 $31 1Q19 1Q20 Product Tankers Crude Tankers 1Q19 1Q20 4Q 2019 vs 1Q 2020 Quarterly TCE Revenue Quarterly Adjusted EBITDA $118 $120 $93 $89
Slide 10: Financial Summary – Q1 & Q2
Financial Summary – Q1 & Q2 Earnings Update 1st Quarter 2020 2nd Quarter 20201 Spot Overall Spot % Fixed Overall % Fixed VLCC2 $63,800 $63,800 $87,900 71% $79,700 80% Modern VLCC $90,600 73% $85,400 79% 15+ VLCC $68,800 62% $56,000 83% Suezmax $42,800 $42,800 $63,100 58% $63,100 58% Aframax/LR2 $31,
Slide 11: Breakeven Rates by Sector
Lean and Scalable Model – Cash Breakevens –Last 12 Months TCE breakeven levels allow INSW to navigate low points in the tanker cycle while providing significant operating leverage in rising markets Last Twelve Months Q1 2020 Actuals Breakeven Rates by Sector • INSW Daily OPEX excludes DDK deviation
Slide 12: Financial Summary – Change in Cash Balance
Financial Summary – Change in Cash Balance ($ millions) $91 * Reflects an increase in Trade Receivables International Seaways, Inc. 12
Slide 13: Strong Financial Position – Balance Sheet
Strong Financial Position – Balance Sheet Strong balance sheet protects INSW during low portions of tanker cycle March 31, 2020 ($ M) Assets Liabilities INSW Book Value of FSO JV as of Current Liabilities (including $81M current March 31, 2020: $138 million Cash and Equivalents $93 portion of long t
Slide 14: First Public Company Sustainability-linked Loan
First Public Company Sustainability-linked Loan Emissions Reduction Trajectory • INSW’s new loan facility has a sustainability-linked pricing mechanism • This is a first of its kind for public shipping companies • Targeted emissions reductions follow the trajectory outlined in Poseidon Principles •
Slide 15: Summary – Lois K. Zabrocky, President & CEO
Summary – Lois K. Zabrocky, President & CEO
Slide 16: Summary
Summary Executing on Capital Allocation Strategy o Completed refinancing, saving $25 million in annual interest o Instituted $0.06/share quarterly dividend o Share repurchases totaling $10 million made during quarter o Revolver fully repaid. $40 million available o Purchased Seaways Guayaquil, an
Slide 17: Ce
International Seaways, Inc. Ce
Slide 18: Appendix
Appendix International Seaways, Inc. Ce
Slide 19: Estimated Drydock and CAPEX costs and Out-of-Service Days
Estimated Drydock and CAPEX costs and Out-of-Service Days Out-of-Service Days Q1 (A) Q2 Q3 Q4 FY 2020 VLCC 390 160 56 30 636 Suezmax 0 0 10 0 10 Aframax / LR2 8 0 0 0 8 Panamax / LR1 16 0 168 224 408 MR 43 0 35 0 78 456 160 269 254 1,139 Drydock Costs Q1 (A) Q2 Q3 Q4 FY 2020 VLCC $6.4 $3.1 $3.8 $0.0
Slide 20: TCE Revenue Reconciliation
TCE Revenue Reconciliation ($ thousands) 1Q19 1Q20 4Q19 Time charter equivalent revenues 94,029 119,731 117,595 Add: Voyage expenses 7,845 5,606 6,427 Shipping revenues 101,874 125,337 124,022 International Seaways, Inc. 20
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ thousands) All INSW 1Q19 1Q20 4Q19 Net income 10,897 33,019 15,891 Income tax provision / (benefit) 0 0 1 Interest expense 17,533 12,009 14,281 Depreciation and amortization 18,929 18,267 18,945 EBITDA 47,359 63,295 49,118 Third-party debt modification fees 30 232 (
Slide 22: Chartered In Fleet
Chartered In Fleet Charter-In Hire Details • Time Charter-Ins: – 1 MR vessel - firm period end in June 2020 – Charter Hire expenses for rest of 2020: $1.0 million. Excludes optional periods – 1 MR vessel at 25% - redelivers March 2021 - Charter Hire expense for rest of 2020: $1.1 million – 1 LR1 ves
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