International Seaways, Inc. · NYSE:INSW
International Seaways — Capital Link Company Presentation Series January 2024
26 slides from International Seaways's conference presentation, January 2024
Slide 1: International Seaways, Inc. Company Presentation
International Seaways, Inc. Company Presentation January 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: International Seaways at a Glance
International Seaways at a Glance Our Large, Diversified Fleet(1) LARGEST US-LISTED, US HEADQUARTERED TANKER COMPANY 77 Class Capacity Count Avg Age Class Capacity Count Avg Age Vessels VLCC(3) 3.9m dwt 13 7 LR2 0.1m dwt 1 9 9.1m dwt 9.8 Yrs Old Suezmax(3) 2.1m dwt 13 9 LR1 0.8m dwt 11 9 Aframax 0.5
Slide 4: Our History
Our History As of December 31, except as noted Fleet Composition Conventional Fleet Capacity (million deadweight tons) Crude Product FSO JV LNG JV Crude Product 85 77 77 9.3 9.1 9.0 48 49 42 36 6.0 6.2 6.1 33 5.5 5.1 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Tot
Slide 5: 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 $2.3bn in market cap(1) Disciplined Capital Allocator • Invested approximately $2bn in assets at low points in t
Slide 6: Balanced Capital Allocation Strategy & Track Record
Balanced Capital Allocation Strategy & Track Record We have a balanced capital allocation strategy where we pull each lever commensurate with the tanker cycles. Using Significant Free Cash Flow Generation To Allocate Capital Free Cash Flow Returns to Shareholders (dividends & repurchases) Debt Prepa
Slide 7: Results of Capital Allocation Approach
Results of Capital Allocation Approach We have a track record of pulling the levers of capital allocation at the right times in the tanker cycle. Fleet Renewal: Increased Capacity While Lowering Average Age Debt Reduction: Resulted in Significantly Lower Cash Break Even TOTAL MDWT AVERAGE AGE A Year
Slide 8: Successful Investment in Fleet at Low Points in the Cycle
Successful Investment in Fleet at Low Points in the Cycle Seaways has invested about $2 billion in the Fleet that is worth over $3 billion today. Clarksons Tanker Secondhand Price Index 235.0% Seaways’ heatmap of purchases 215.0% 195.0% 4x Newbuild 175.0% LR1 64x DSSI Merger 155.0% 14 crude, 50 prod
Slide 9: A Leader in ESG
A Leader in ESG Environment, Social and Governance at Seaways is our investment in the future. Environmental • Reduce resource consumption, both fuel and consumables • Fleet improvements such as dual-fuel newbuilds, Mewis ducts, BWTS compliance and advanced hull coatings • Sustainability-linked cove
Slide 10: Hybrid Operating Model
Hybrid Operating Model Our in-house expertise utilizes 3rd party execution to enable flexibility to scale operations with our fleet across the cycle. Pool Employment to Increase Scale and Reduce Cost Leading Top Quality Technical Management • Most of the fleet is employed in leading commercial pools
Slide 11: Strong Financial Position
Strong Financial Position Balance Sheet $m Key Balance Sheet Figures $m As of September 30, ASSETS 2023 Cash and Cash Equivalents + ST Investments $214 Ample Cash & Total Liquidity Voyage Receivables 220 $50m (1) $367m $581m Vessel Held for Sale 9 Other Current Assets 31 $214m Total Current Assets $
Slide 12: Market Outlook Summary
Market Outlook Summary • Tanker revenues around historical averages, well above in product fleet • Oil demand above pre-pandemic levels; recessionary concerns could curb global oil demand Strong Tanker Markets Near • Sanctions on Russian crude and refined products driving ton-mile demand • Inventori
Slide 13: Tanker Rates
Tanker Rates VLCC Spot Rates (300k dwt) Suezmax Spot Rates (160k dwt) $/day $/day 200,000 150,000 180,000 135,000 160,000 120,000 140,000 105,000 120,000 90,000 100,000 75,000 80,000 60,000 60,000 45,000 40,000 30,000 20,000 15,000 0 0 2000 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Slide 14: Tanker Demand
Tanker Demand Growth in Oil Supply & Demand Creating Regional Imbalances That Support More Demand for Tankers Global Demand Supply Oil Production Growth Predominately from the West Oil Demand Growth Predominately from the East 103.2 102.7 101.6 101.8 35.6mpbd 34.1mpbd 100.1 99.4 30.1mpbd 97.4 27.7mp
Slide 15: Russian Oil Displacement
Russian Oil Displacement 3 MBPD of Crude Oil Displaced From EU to Asia 1MBPD of Products Displaced From EU To Europe Total Russian Clean Exports 2.2 mbpd Before Sanctions 2.0 mbpd 1.8 mbpd 1.6 mbpd 1.4 mbpd 300K PD MEG 1.2 mbpd 300K PD WAF 1.0 mbpd 0.8 mbpd 0.6 mbpd 0.4 mbpd 0.2 mbpd 0.0 mbpd Jan-21
Slide 16: Tanker Supply
Tanker Supply Tankers on Order Will Not Replace the Fleet that May Age Out of the Commercial Fleet » Little Availability to Order Due to Other Shipping Sectors All Charts Reflect Oil Tankers over 10k DWT Vessels On Order Not Replacing Older Fleet While Tanker Orders Have Risen… 0-4 yrs 5-9 yrs 10+ y
Slide 17: Appendix
Appendix 17
Slide 18: Strong Results
Strong Results For the three months ended Net Income & Adjusted Net Income(1) Adjusted EBITDA(1) $ million $ million Net Income Adjusted Net Income 254.3 218.4 208.8 209.0 205.1 172.6 162.5 153.8 154.4 157.1 150.9 113.4 113.9 97.9 100.7 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023
Slide 19: TCE Revenue Reconciliation
TCE Revenue Reconciliation $000s Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Time charter equivalent revenues 234,546 335,650 283,320 288,335 235,952 Add: Voyage expenses 2,283 2,507 3,810 3,868 5,756 Shipping revenues 236,829 338,157 287,130 292,203 241,708 19
Slide 20: Adjusted EBITDA and Net Income Reconciliation
Adjusted EBITDA and Net Income Reconciliation $000s Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net income 113,427 218,429 172,633 153,762 97,937 Income tax provision/(benefit) 7 25 (1) 381 52 Interest expense 15,332 17,091 16,947 17,914 16,817 Depreciation and amortization 27,728 28,404 29,548 32,445 3
Slide 21: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $000s Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net cash provided by operating activities (1) 181,600 220,822 193,634 148,463 Repayments of debt (1) (54,706) (137,449) (55,407) (132,152) Payments on sale and leaseback financing and finance leases (1) (10,600) (34,619) (78,167) (1
Slide 22: Looking Forward
Looking Forward All data herein is as of November 1, 2023. Refer to disclaimer on slide 2 The Company is Positioned to Capitalize on Strong Q4 Environment Well Above our Cash Break Even & Estimated Costs Q4 2023 Booked to-Date Forward Estimated Cash Break Even(1) $ per day Spot Time Charter Overall
Slide 23: Chartered In/Out Fleet as of November 1, 2023
Chartered In/Out Fleet as of November 1, 2023 Please refer to Forward Looking Statements disclaimer on page 2 • Time Charter-Out: *excludes 50/50 profit share, if applicable Charter Vessel Rate 2023 2024 2025 2026 2027 2028 2029 2030 Total Expiry 2007-Built MR $18,500 OCT-23 0.2 0.2 2016-Built Suezm
Slide 24: INSW Fleet Overview as of December 1, 2023
INSW Fleet Overview as of December 1, 2023 Name Class Owned Built DWT Shipyard Name Class Owned Built DWT Shipyard SEAWAYS RAFFLES VLCC OWNED 2010 317,858 Hyundai HI SEAWAYS LEYTE LR1 OWNED 2011 73,944 SPP SEAWAYS LIBERTY VLCC BB-In 2016 300,973 Shanghai Waigaoqiao SEAWAYS SAMAR LR1 OWNED 2011 73,92
Slide 25: Regional Imbalances Support Tanker Demand
Regional Imbalances Support Tanker Demand Growing disconnect between oil production growth and oil consumption growth should lead to greater demand for tankers Legend (mbpd) 2019 Oil Production 2019 Oil Demand 2028 Oil Production 2028 Oil Demand 34.1 28.1 24.8 27.7 Oil Production (mbpd) Oil Demand (
Slide 26: Evolution of Refinery Throughput
Evolution of Refinery Throughput Refining landscape is likely to shift product trade patterns as expansion largely in the East is partially offset by smaller, less upgrading capacity in the West. Atlantic Basin Throughput 42.4 East of Suez Throughput 43.7 41.5 38.4 2022 2028 2022 2028 Source: IEA Ju
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