NAMEPA October 24, 2019 - Decarbonization Challenges for Shipowners 1 International Seaways, Inc.

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                                           NAMEPA
                              Decarbonization Challenges for Shipowners
International Seaways, Inc.
                                          October 24, 2019

International Seaways Overview

    •        Leading diversified tanker owner with significant presence in crude, product and gas sectors
    •        46 vessel fleet with balanced mix of contracted cash flows and spot market upside
    •        Total liquidity $200 million ($150 cash and $50 undrawn revolver) at June 30, 2019
    •        Market cap $725 million on October 22, 2019
    •        FSO joint venture that provide stable cash flows and significantly contributes to INSW value

                                    Conventional Tanker Fleet – 40 Ships1                                                                                               Joint Ventures – 2 Ships

                                                                         MR 6%
                                                                              (7)
                                                        Panama
                                                         x/ LR1
                                                          14%
                                                   Aframax (12)
                                                    / LR2 (6)                                                                                                                                    FSO JV
                                                     11%                                                                                                                                  2 Converted ULCCs
                                                     Suezma (2)                                             VLCC
                                                       x 5%                                                 63%
                                                                                                           (13)

                                                              By Deadweight Tons
    1 Represents   the number of vessels in each class as a percentage of the total fleet deadweight, as of October 1, 2019. Does not include JV vessels. Does not include short-term time charters

International Seaways, Inc.
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Global Warming

    <      All ships consume about 430 million tons of fuel a year producing 1.21 BILLION tons of CO2 a year
    <      The 15 largest ships in the world produce as much CO2 as 760 million cars
    <      Every ton of fuel we save reduces our CO2 emissions by three tons
    <      Every ton of fuel we save reduces our emissions of sulfur, NOx, and particulate matter (PM)
    <      In everything we do onboard, we strive to continuously improve
    <      We have the same obligation to reduce emissions

                                                                                                           NEWS
                                                                                                         L
                                                                                                      REA
                                                               The United Nations' Intergovernmental Panel on Climate Change (IPCC)
                                      S
                                   NEW                         says pledges from the world's governments to reduce greenhouse gases,
                                 E
                              FAK
                                                               made in Paris in 2015, aren't enough to keep global warming from rising
                                                               more than 1.5 degrees Celsius (2.7 degrees F) above pre-industrial
                                                               temperatures.

International Seaways, Inc.
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Shipping Regulations

    <      EEDI, EEOI, SEEMP
    <      Ballast Water Treatment
    <      MARPOL
    <      IMO 2020 From 1 January 2020, the limit for Sulphur in fuel oil
           used on board ships operating outside designated emission
           control areas will be reduced from 3.5 % to 0.50%
             •     0.5% Fuels
             •     Scrubbers
    <      IMO 2050 cut shipping CO2 emissions by 50%
             •     Batteries, Solar, Hydrogen, LNG, ???

                               We cannot wait.
                              We are starting now.

                               GET TO GREEN

International Seaways, Inc.
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Get To Green

    <      Campaign to reduce emissions and improve our environmental footprint
    <      Reduce fuel consumption through data gathering, analysis, and feedback
    <      Evaluated a number of tools for >12 months
             •     Existing in-house tools
             •     Noon reports
             •     Satellite based data gathering and analysis
             •     “Big Data” analysis

    <      Partnered with Tres Solutions
    <      Using Tres Vessel Analytics or “TVA”
             • Software tool combined with experienced dedicated team of shoreside analysts with
               shipping experience
             • Focused communications between ship and shore

    <      Very similar system to that used in pilot program
             •     Used strong data gathering tool combined with strong analysis and human interaction
             •     Reduced consumption by about 500t/year per ship

International Seaways, Inc.

How will we use this tool?

    <      Implementation Phases
             ü     Software Install & Familiarization
             ü     Initial data gathering
             v     Data excellence
             •     At sea analysis and feedback
             •     In port analysis and feedback
    <      Key features
             •     Comparison of reported data against “Virtual Twin”
             •     Immediate feedback through dashboard
             •     Fleet comparisons and league tables
             •     Shared learnings
             •     Deep dive analysis
                     – Hull cleanings
                     – Generator and Main Engine performance
                     – Identify areas of excess consumption (Hull, Weather, Plant)
                     – Charter compliance
                     – Best practices

International Seaways, Inc.
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First Year Results

    <      Generator running hours reduced by approx. 14,000 hours
    <      Propulsion efficiency improved by 5.8%, saving over 8,000 tonnes
    <      CO2 emissions reduced by 26,000 tonnes

                              Get to Green
International Seaways, Inc.
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