International Seaways (INSW) Capital Link’s 2025 Virtual Company Presentation Series summary

Company overview and operations

• Operates a fleet of 83 tankers, nearly evenly split between crude and product transport, with six newbuilds on order.

• Utilizes a hybrid operating model, combining internal strategic direction with commercial pool partnerships and technical management from leading firms.

• Pools expand commercial reach, providing access to nearly 200 ships and enabling higher TCEs through customer solutions and market representation.

• Maintains a strong focus on sustainability, with a dedicated board committee and annual green investments to improve fleet efficiency.

• Eight years after NYSE listing, has grown from under $500 million to $2 billion in value, with a younger, more efficient fleet.

Financial performance and capital allocation

• Generated over $1 billion in free cash flow over eight quarters, with $650 million returned to shareholders and a double-digit return in the last four quarters.

• Maintains a net loan-to-value under 20% and nearly $700 million in liquidity as of September 30, 2024.

• Book value of fleet is just over $2 billion, while market value is about $3.7 billion, reflecting disciplined asset acquisitions.

• Weighted average interest rate is just over 6%, with 80% of interest costs fixed; annual debt amortization is under $50 million.

• Payout ratio increased to 75% of adjusted net income, with both dividends and share buybacks used for shareholder returns.

Market outlook and strategy

• Balanced exposure to both crude and product markets, benefiting from flexibility as global trade patterns shift between crude exports and refined product exports.

• Geopolitical risks, including sanctions and OFAC-listed vessels, are closely monitored, with a diversified fleet mitigating exposure.

• Russian oil exports have tightened, and non-OPEC supply is expected to cover demand growth in 2025.

• Order book for new tankers remains low, with only 2.5% fleet growth expected in 2025, and owners cautious about new orders due to geopolitical and economic uncertainties.

• Growth strategy includes targeted newbuilds in niche segments and opportunistic secondhand acquisitions to enhance efficiency and sustainability.