Q4 2025 International Seaways Inc Earnings Call

February 26, 2026

Speaker #1: Hello everyone . Thank you for attending today's International Seaways, Inc. fourth quarter 2025 Earnings Conference call . My name is William and I will be your moderator today All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end .

Operator: Hello, everyone. Thank you for attending today's International Seaways Inc.'s Q4 2025 earnings conference call. My name is William, and I will be your moderator today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, you can do so by pressing star 1 on your telephone keypad. At this time, I would now like to pass the conference over to our host, James Small, General Counsel with International Seaways. James, you may go ahead.

Speaker #1: If you would like to ask a question , you can do so by pressing star one on your telephone keypad . At this time , I would now like to pass the conference over to our host James Small General Counsel with International James .

Speaker #1: You may go ahead

Speaker #2: Thank you and good morning , everyone . Welcome to International Seaways earnings call for the fourth quarter and full year 2025 . Before we begin , I would like to start off by advising everyone with us today of the following During this call and in the accompanying presentation , management may make forward looking statements regarding the company or the industry in which it operates , which may address , without limitation , the following topics .

James D. Small III: Thank you. Good morning, everyone. Welcome to International Seaways earnings call for Q4 and full year 2025. Before we begin, I would like to start off by advising everyone with us today of the following. During this call and in the accompanying presentation, management may make forward-looking statements regarding the company or the industry in which it operates, which may address, without limitation, the following topics: outlooks for the crude tanker and product tanker markets, changing trading patterns, forecasts of world and regional economic activity, forecasts covering the production of and demand for oil and petroleum products, the effects of ongoing and threatened conflicts around the world, the company's strategy and business prospects, expectations about revenues and expenses, including vessel, charter hire, and G&A expenses.

James Small: Thank you. Good morning, everyone. Welcome to International Seaways earnings call for Q4 and full year 2025. Before we begin, I would like to start off by advising everyone with us today of the following. During this call and in the accompanying presentation, management may make forward-looking statements regarding the company or the industry in which it operates, which may address, without limitation,

James Small: the following topics: outlooks for the crude tanker and product tanker markets, changing trading patterns, forecasts of world and regional economic activity, forecasts covering the production of and demand for oil and petroleum products, the effects of ongoing and threatened conflicts around the world, the company's strategy and business prospects, expectations about revenues and expenses, including vessel, charter hire, and G&A expenses.

Speaker #2: Outlooks for the crude tanker and product tanker markets . Changing trading patterns . Forecasts of world and regional economic activity . Forecasts covering the production of and demand for oil and petroleum products .

Speaker #2: The effects of ongoing and threatened conflicts around the world . The company's strategy and business prospects , expectations about revenues and expenses , including vessel charter , hire and G&A expenses , estimated future bookings , TCE rates and capital expenditures , projected drydock and off hire days , new build vessel construction , vessel sales and purchases , anticipated financing transactions , and plans to issue dividends .

James D. Small III: Estimated future bookings, TCE rates, and capital expenditures, projected dry dock and off-hire days, new build vessel construction, vessel sales and purchases, anticipated financing transactions and plans to issue dividends, economic, regulatory, and political developments in the United States and globally, the company's ability to achieve its financing and other objectives and its consideration of strategic alternatives, and the company's relationships with its stakeholders. Forward-looking statements take into account assumptions made by management based on various factors, including management's experience and perception of historical trends, current conditions, expected and future developments, and other factors that management believes are appropriate to consider in the circumstances. Forward-looking statements are subject to risks, uncertainties, and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from those implied or expressed by the statements.

James Small: Estimated future bookings, TCE rates, and capital expenditures, projected dry dock and off-hire days, new build vessel construction, vessel sales and purchases, anticipated financing transactions and plans to issue dividends, economic, regulatory, and political developments in the United States and globally, the company's ability to achieve its financing and other objectives and its consideration of strategic alternatives, and the company's relationships with its stakeholders.

Speaker #2: Economic , regulatory and political developments in the United States and globally . The company's ability to achieve its financing and other objectives , and its consideration of strategic alternatives , and the company's relationships with its stakeholders Forward looking statements take into account assumptions made by management based on various factors , including management's experience and perception of historical trends , current conditions , expected future developments , and other factors that management believes are appropriate to consider in the circumstances .

James Small: Forward-looking statements take into account assumptions made by management based on various factors, including management's experience and perception of historical trends, current conditions, expected and future developments, and other factors that management believes are appropriate to consider in the circumstances.

Speaker #2: Forward looking statements are subject to risks , uncertainties and assumptions , many of which are beyond the company's control . That could cause actual results to differ materially from those implied or expressed by the statements Factors , risks and uncertainties that could cause the company's actual results to differ from expectations include those described in our annual Report on Form 10-K for 2025 , as well as in other filings that we have made , or in the future may make with the US Securities and Exchange Commission Now , let me turn the call over to Lois Zabrocky , our President and Chief Executive Officer Lois .

James Small: Forward-looking statements are subject to risks, uncertainties, and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from those implied or expressed by the statements.

James D. Small III: Factors, risks, and uncertainties that could cause the company's actual results to differ from expectations include those described in our annual report on Form 10-K for 2025, as well as in other filings that we have made or in the future may make with the US Securities and Exchange Commission. Now, let me turn the call over to Lois Zabrocky, our President and Chief Executive Officer. Lois?

James Small: Factors, risks, and uncertainties that could cause the company's actual results to differ from expectations include those described in our annual report on Form 10-K for 2025, as well as in other filings that we have made or in the future may make with the US Securities and Exchange Commission. Now, let me turn the call over to Lois Zabrocky, our President and Chief Executive Officer. Lois?

Speaker #3: Thank you very much , James . Good morning , everyone Thank you for joining International earnings call for the fourth quarter and full year of 2025 .

Lois K. Zabrocky: Thank you very much, James. Good morning, everyone. Thank you for joining International Seaways earnings call for the Q4 and full year of 2025. On slide 4 of the presentation, which you can find in the investor relations section of our website, net income for the Q4 was $128 million or $2.56 per diluted share. Excluding special items, adjusted net income for the Q4 was $122 million or $2.45 per diluted share, and adjusted EBITDA was $175 million. Today, we also announced the declaration of our largest-ever quarterly dividend, which is a combined $2.15 per share to be paid in March.

Lois Zabrocky: Thank you very much, James. Good morning, everyone. Thank you for joining International Seaways earnings call for the Q4 and full year of 2025. On slide 4 of the presentation, which you can find in the investor relations section of our website, net income for the Q4 was $128 million or $2.56 per diluted share.

Speaker #3: On slide four of the presentation , which you can find in the Investor Relations section of our website . Net income for the fourth quarter was $128 million , or $2.56 per diluted share , excluding special items .

Lois Zabrocky: Excluding special items, adjusted net income for the Q4 was $122 million or $2.45 per diluted share, and adjusted EBITDA was $175 million. Today, we also announced the declaration of our largest-ever quarterly dividend, which is a combined $2.15 per share to be paid in March.

Speaker #3: Adjusted net income for the fourth quarter was $122 million , or $2.45 per diluted share , and adjusted EBITDA was $175 million . Today , we also announced the declaration of our largest ever quarterly dividend , which is a combined $2.15 per share to be paid in March After this payment Seaways will have paid over $1 billion in returns to our shareholders since 2020 .

Lois K. Zabrocky: After this payment, Seaways will have paid over $1 billion in returns to our shareholders since 2020, a milestone that we are very proud of. As you can see in the upper right section of the slide, the dividend represents a payout ratio of 87% of our Q4 adjusted net income and is our 6th consecutive quarter with a payout ratio of at least 75%. We continue to believe in building on our track record of returning to shareholders as part of our consistent and balanced capital allocation strategy.

Lois Zabrocky: After this payment, Seaways will have paid over $1 billion in returns to our shareholders since 2020, a milestone that we are very proud of. As you can see in the upper right section of the slide, the dividend represents a payout ratio of 87% of our Q4 adjusted net income and is our 6th consecutive quarter with a payout ratio of at least 75%. We continue to believe in building on our track record of returning to shareholders as part of our consistent and balanced capital allocation strategy.

Speaker #3: A milestone that we are very proud of As you can see in the upper right section of the slide , the dividend represents a payout ratio of 87% of our fourth quarter adjusted net income and is our sixth consecutive quarter with a payout ratio of at least 75% .

Speaker #3: We continue to believe in building on our track record of returning to shareholders as part of our consistent and balanced capital allocation strategy .

Speaker #3: We also have our $50 million share repurchase program in place until the end of 2026 . As share repurchases remain an option for seaways .

Lois K. Zabrocky: We also have our $50 million share repurchase program in place until the end of 2026, as share repurchases remain an option for Seaways as an addendum to our payout ratio. On the lower part of the page, we are consolidating Tankers International, leading the LCC pool by acquiring the remaining 50% interest and expanding Tankers International with a Suezmax platform. We took delivery of the Seaways Gibbs Hill, and she delivered into Tankers International at the end of December. We paid $119 million for this high-spec scrubber-fitted VLCC after disposing of 10 older vessels with an average age of 18 years for proceeds of $131 million. So far in 2026, we've continued this trend by selling another 7 older vessels for proceeds of $216 million.

Lois Zabrocky: We also have our $50 million share repurchase program in place until the end of 2026, as share repurchases remain an option for Seaways as an addendum to our payout ratio. On the lower part of the page, we are consolidating Tankers International, leading the LCC pool by acquiring the remaining 50% interest and expanding Tankers International with a Suezmax platform. We took delivery of the Seaways Gibbs Hill, and she delivered into Tankers International at the end of December.

Speaker #3: As an addendum to our payout ratio On the lower part of the page . We are consolidating tankers international , the leading VLC pool , by acquiring the remaining 50% interest and expanding tankers International with a Suez Max platform .

Speaker #3: We took delivery of the seaways , Gibbs Hill and she delivered into Tankers International at the end of December We paid $119 million for this high spec scrubber fitted Vlcc after disposing of ten older vessels with an average age of 18 years for proceeds of $131 million .

Lois Zabrocky: We paid $119 million for this high-spec scrubber-fitted VLCC after disposing of 10 older vessels with an average age of 18 years for proceeds of $131 million. So far in 2026, we've continued this trend by selling another 7 older vessels for proceeds of $216 million.

Speaker #3: So far in 2026 . We've continued this trend by selling another seven older vessels for proceeds of $216 million . Our remaining four LR ones will deliver in 2026 , completing our new build program , which is fully financed These two fundamental reasons are why we were able to extend our dividend beyond our 70% payout ratio , with only $30 million of Seaways cash needed to take delivery of the LR one , as well as the impeccable state of our balance sheet , which you can see on the lower right hand of the page .

Lois K. Zabrocky: Our remaining four LR1s will deliver in 2026, completing our new build program, which is fully financed. These two fundamental reasons are why we were able to extend our dividend beyond our 70% payout ratio. With only $30 million of Seaways cash needed to take delivery of the LR1, as well as the impeccable state of our balance sheet, which you can see on the lower right-hand of the page, we believe this dividend provided great returns for our shareholders. We review our capital allocation strategy quarterly with our board. We remain steadfast in our commitment to shareholders. We have $724 million in total liquidity, which includes nearly $170 million in cash and $560 million in undrawn revolver capacity.

Lois Zabrocky: Our remaining four LR1s will deliver in 2026, completing our new build program, which is fully financed. These two fundamental reasons are why we were able to extend our dividend beyond our 70% payout ratio. With only $30 million of Seaways cash needed to take delivery of the LR1, as well as the impeccable state of our balance sheet, which you can see on the lower right-hand of the page, we believe this dividend provided great returns for our shareholders.

Speaker #3: We believe this dividend , provided great returns for our shareholders We review our capital allocation strategy quarterly with our board , and we remain steadfast in our commitment to shareholders We have $724 million in total liquidity , which includes nearly $170 million in cash and $560 million in undrawn revolver capacity During the fourth quarter , we repaid our leases .

Lois Zabrocky: We review our capital allocation strategy quarterly with our board. We remain steadfast in our commitment to shareholders. We have $724 million in total liquidity, which includes nearly $170 million in cash and $560 million in undrawn revolver capacity.

Lois K. Zabrocky: During Q4, we repaid our leases, as previously announced, of about $258 million. This was then followed by Q3's bond issuance for $250 million, which unencumbered 6 VLCCs and lowered our cost of debt. Our net loan to value is below 13%. Our spot cash break-even rate is less than $15,000 per day. Turning to slide 5, we've updated our standard set of bullets on tanker demand drivers with subtle green up arrows next to the bullet, representing positive influences for tankers, the black dash representing a neutral impact, and red down arrows, meaning the topic is not positive for tanker demand. Without reading these bullets individually, we believe demand fundamentals are solid and continue to support a constructive outlook for seaborne tanker transportation.

Lois Zabrocky: During Q4, we repaid our leases, as previously announced, of about $258 million. This was then followed by Q3's bond issuance for $250 million, which unencumbered 6 VLCCs and lowered our cost of debt. Our net loan to value is below 13%. Our spot cash break-even rate is less than $15,000 per day.

Speaker #3: As previously announced , of about $258 million . This was then followed by the third quarter bond issuance for $250 million , which unencumbered six vlccs and lowered our cost of debt Our net loan to value is below 13% , and our spot cash breakeven rate is less than $15,000 per day .

Speaker #3: Turning to slide five . We've updated our standard set of bullets on tanker demand . Drivers with subtle green arrows next to the bullet representing positive influences for tankers .

Lois Zabrocky: Turning to slide 5, we've updated our standard set of bullets on tanker demand drivers with subtle green up arrows next to the bullet, representing positive influences for tankers, the black dash representing a neutral impact, and red down arrows, meaning the topic is not positive for tanker demand. Without reading these bullets individually, we believe demand fundamentals are solid and continue to support a constructive outlook for seaborne tanker transportation.

Speaker #3: The black dash representing a neutral impact and red down arrows , meaning the topic is not positive for tanker demand . Without reading these bullets individually , we believe demand fundamentals are solid and continue to support our constructive outlook for seaborne tanker transportation .

Speaker #3: Oil demand growth remains healthy at more than 1 million barrels per day of growth projected for both 2026 and 2027 . OPEC plus is supplementing the million barrels per day of non-OPEC production increases by unwinding their own previous cuts in the lower left hand chart .

Lois K. Zabrocky: Oil demand growth remains healthy at more than 1 million barrels per day of growth projected for both 2026 and 2027. OPEC+ is supplementing the million barrels per day of non-OPEC production increases by unwinding their own previous cuts. In the lower left-hand chart, both the EIA and the IEA are forecasting supply to exceed demand in 2026. We experienced some of this during the Q4, where there was a substantial amount of oil on the water, much of which we understand to have been sanctioned barrels. However, as we look ahead, the market has not reacted to this projected oversupply. You would expect a contangoed structure market or at least a drop in the absolute price of oil. However, as you can see in the middle bottom chart, the market structure remains backwardated and absolute prices remain elevated.

Lois Zabrocky: Oil demand growth remains healthy at more than 1 million barrels per day of growth projected for both 2026 and 2027. OPEC+ is supplementing the million barrels per day of non-OPEC production increases by unwinding their own previous cuts. In the lower left-hand chart, both the EIA and the IEA are forecasting supply to exceed demand in 2026. We experienced some of this during the Q4, where there was a substantial amount of oil on the water, much of which we understand to have been sanctioned barrels.

Speaker #3: Both the EIA and the IEA are forecasting supply to exceed demand in 2026 . We experienced some of this during the fourth quarter , where there was a substantial amount of oil on the water , much of which we understand to have been sanctioned barrels However , as we look ahead , the market has not reacted to this projected oversupply .

Lois Zabrocky: However, as we look ahead, the market has not reacted to this projected oversupply. You would expect a contangoed structure market or at least a drop in the absolute price of oil. However, as you can see in the middle bottom chart, the market structure remains backwardated and absolute prices remain elevated.

Speaker #3: You would expect a contango structure market , or at least a drop in the absolute price of oil However , as you can see in the middle bottom chart , the market structure remains backwardated an absolute .

Speaker #3: Prices remain elevated We believe China to be stocking up as they have built substantial storage capacity , as seen in the lower right hand chart Another element driving the oil market dynamics is the geopolitical environment .

Lois K. Zabrocky: We believe China to be stocking up as they have built substantial storage capacity, as seen in the lower right-hand chart. Another element driving the oil market dynamics is the geopolitical environment. The US-Iran tensions remain elevated. The Russia-Ukraine conflict has not been resolved. The United States started the year with upheaval of the Venezuelan government and their oil production. The geopolitical intensity on tankers remains strong, and we continue to work through a multitude of scenarios that constantly impact our business. On the supply side, on slide six of the presentation, we're starting to see the enforcement of sanctions that are affecting our business, which provides support for the compliant fleet. When we take into consideration sanctioned vessels, the order book remains well below replacement of the fleet.

Lois Zabrocky: We believe China to be stocking up as they have built substantial storage capacity, as seen in the lower right-hand chart. Another element driving the oil market dynamics is the geopolitical environment. The US-Iran tensions remain elevated. The Russia-Ukraine conflict has not been resolved. The United States started the year with upheaval of the Venezuelan government and their oil production.

Speaker #3: The US , Iran tensions remain elevated . The Russia-Ukraine conflict has not been resolved . The United States started the year with upheaval of the Venezuelan government and their oil production .

Speaker #3: The geopolitical intensity on tankers remains strong and we continue to work through a multitude of scenarios that constantly impact our business On the supply side , on slide six of the presentation , we're starting to see the enforcement of sanctions that are affecting our business , which provides support for the compliant fleet When we take into consideration sanctioned vessels , the order book remains well below replacement of the fleet .

Lois Zabrocky: The geopolitical intensity on tankers remains strong, and we continue to work through a multitude of scenarios that constantly impact our business. On the supply side, on slide six of the presentation, we're starting to see the enforcement of sanctions that are affecting our business, which provides support for the compliant fleet. When we take into consideration sanctioned vessels, the order book remains well below replacement of the fleet.

Speaker #3: On the bottom right hand chart , we reflect vessels turning 18 or older by the end of 2029 , when a majority of the order book will have delivered We also layered in currently sanctioned vessels into the dark bars on the chart These removal candidates to the compliant trade remaining of those vessels that are on order As noted in the chart , as the light bars , this remains one of the most compelling cases for tanker shipping , and bottom line is that even with 15% of the fleet on order , there is simply not enough tankers to .

Lois K. Zabrocky: On the bottom right-hand chart, we reflect vessels turning 18 or older by the end of 2029, when a majority of the order book will have delivered. We also layered in currently sanctioned vessels into the dark bars on the chart. These removal candidates to the compliant trade remain a multiple of those vessels that are on order, as noted in the chart as the light bars. This remains one of the most compelling cases for tanker shipping. The bottom line is that even with 15% of the fleet on order, there is simply not enough tankers to cover removal candidates for the compliant trade. We believe these fundamentals should translate into a continued upcycle over the next few years. Seaways remains well positioned to capitalize on these market conditions.

Lois Zabrocky: On the bottom right-hand chart, we reflect vessels turning 18 or older by the end of 2029, when a majority of the order book will have delivered. We also layered in currently sanctioned vessels into the dark bars on the chart. These removal candidates to the compliant trade remain a multiple of those vessels that are on order, as noted in the chart as the light bars. This remains one of the most compelling cases for tanker shipping.

Lois Zabrocky: The bottom line is that even with 15% of the fleet on order, there is simply not enough tankers to cover removal candidates for the compliant trade. We believe these fundamentals should translate into a continued upcycle over the next few years. Seaways remains well positioned to capitalize on these market conditions.

Speaker #3: Cover removal candidates for the compliant trade We believe these fundamentals should translate into a continued upcycle over the next few years and see remains well positioned to capitalize on these market conditions We will continue to execute our balanced capital allocation strategy to renew our fleet , as well as to adapt to industry conditions with a strong balance sheet .

Lois K. Zabrocky: We will continue to execute our balanced capital allocation strategy to renew our fleet, as well as to adapt to industry conditions with a strong balance sheet, while returning to shareholders. I will now turn it over to our CFO, Jeff Pribor, to provide the financial review. Jeff?

Lois Zabrocky: We will continue to execute our balanced capital allocation strategy to renew our fleet, as well as to adapt to industry conditions with a strong balance sheet, while returning to shareholders. I will now turn it over to our CFO, Jeff Pribor, to provide the financial review. Jeff?

Speaker #3: While returning to shareholders I will now turn it over to our CFO , Jeffrey Pribor , to provide the financial review Jeff .

Speaker #4: Thank you . Wallace , and good morning , everyone . On slide eight . Net income for the fourth quarter was approximately $128 million , or $2.56 per diluted share , including special items .

Jeff Pribor: Thanks, Lois. Good morning, everyone. On slide 8, net income for Q4 was approximately $128 million or $2.56 per diluted share. Excluding special items, our net income was $122 million or $2.45 per diluted share. On the upper right chart, adjusted EBITDA for Q4 was $175 million. In the appendix, we provided a reconciliation from reported earnings to adjusted earnings. On the lower left chart, I would point out that our TCE revenues from crude and product have been evenly balanced over the past year, but the crude segment outperformed products in Q4, with the return of VLCCs as the leader in tanker earnings.

Speaker #4: Our net income was $122 million, or $2.45 per diluted share. On the upper right chart, adjusted EBITDA for the fourth quarter was $175 million.

Speaker #4: In the appendix , we provided a reconciliation from reported earnings to adjusted earnings on the lower left chart . I would point out that our TCE revenues from crude and products have been evenly balanced over the past year , but the crude segment outperformed products in Q4 with the return of Vlccs as a leader in tanker earnings , while our revenue and expenses were largely within expectations for the year .

Jeff Pribor: On the lower left chart, I would point out that our TCE revenues from crude and product have been evenly balanced over the past year, but the crude segment outperformed products in Q4, with the return of VLCCs as the leader in tanker earnings.

Jeff Pribor: While our revenue expenses were largely within expectations for the year, Q4 vessel expenses were higher than our guidance due to timing of stores and spares at year-end. Sliding business in Q4 had around $7 million in revenue and expenses. Turning to our cash bridge on slide 9. We began the quarter with total liquidity of $985 million, composed of $413 million in cash and $572 million in undrawn revolving capacity. Following along the chart from left to right on the cash bridge, we had $175 million in adjusted EBITDA for Q4, plus $19 million in debt service and another $23 million of dry dock and capital expenditures. We therefore achieved our definition of free cash flow of about $135 million for Q4.

Speaker #4: Fourth quarter vessel expenses were higher than our guidance due to timing of stores and spares at year end , Lightering business in the fourth quarter had around $7 million in revenue and expenses .

Speaker #4: Turning to our cash bridge on slide nine , we began the quarter with total liquidity of $985 million , composed of $413 million in cash and 572 million in undrawn revolving capacity .

Speaker #4: Following the chart from left to right on the cash bridge , we had $175 million in adjusted EBITDA for the fourth quarter , plus $19 million in debt service and another $23 million in dry dock and capital expenditures .

Jeff Pribor: Following along the chart from left to right on the cash bridge, we had $175 million in adjusted EBITDA for Q4, plus $19 million in debt service and another $23 million of dry dock and capital expenditures. We therefore achieved our definition of free cash flow of about $135 million for Q4.

Speaker #4: We therefore achieved our definition of free cash flow of about $135 million for the fourth quarter . We received $36 million in proceeds from the sale of vessels in Q4 , which offsets the remaining expense of $107 million for the purchase of the seaways .

Jeff Pribor: We received $36 million in proceeds from the sale of vessels in Q4, which offsets the remaining expense of $107 million for the purchase of the Seaways Gibbs Hill 2020-built VLCC, which delivered in Q4. We also paid about $6 million in LR1 newbuilding installments net of financing. As previously announced, we repaid the sale leasebacks on six VLCCs for $258 million, deploying the proceeds from last quarter's bond issuance. The remaining $42 million represents our $0.86 per share dividend that we paid in December. The latter few bars reflect our balanced capital allocation approach, where we utilize all the pillars: fleet renewal, balance sheet optimization, and returns to shareholders. In summary, the results of our activity this quarter yields a net decrease in cash of $261 million.

Speaker #4: Gibbs Hill in 2020 , Vlcc , which delivered in the fourth quarter , we also paid about $6 million in Lr1 new building installments , net of financing .

Speaker #4: As previously announced , we repaid the sale leaseback on six vlccs for $258 million , deploying the proceeds for the last quarter's bond issuance .

Speaker #4: The remaining $42 million represents our $0.86 per share dividend that we paid in December . The latter few bars reflect our balanced capital allocation approach , where we utilize all the pillars , fleet renewal , balance sheet optimization , and returns to shareholders .

Jeff Pribor: The latter few bars reflect our balanced capital allocation approach, where we utilize all the pillars: fleet renewal, balance sheet optimization, and returns to shareholders. In summary, the results of our activity this quarter yields a net decrease in cash of $261 million.

Speaker #4: In summary , the results of our activity this quarter yields a net decrease in cash of $261 million . This equates to ending cash of $167 million , with 557 million in revolvers for total liquidity of nearly $724 million .

Jeff Pribor: This equates to ending cash of $167 million, with $557 million in undrawn revolvers, for total liquidity of nearly $724 million. Moving to slide 10. We have a strong financial position, detailed by the balance sheet on the left-hand side of the page. Our liquidity remains strong at $724 million. We have invested about $2 billion in vessels at cost on the books, which are currently valued at about $3 billion. With under $400 million in net debt at the end of Q4, our net loan to value is approximately 13%. In the lower right-hand table on the page, we have included a summary of our debt profile. Gross debt at the end of 2025 was $578 million.

Speaker #4: Over to slide ten . We have a strong financial position detailed by the balance sheet on the left hand side of the page .

Speaker #4: Our liquidity remains strong at $724 million . We have invested about $2 billion in vessels at cost on the books , which are currently valued at about $3 billion , and with under $400 million in net debt .

Jeff Pribor: We have invested about $2 billion in vessels at cost on the books, which are currently valued at about $3 billion. With under $400 million in net debt at the end of Q4, our net loan to value is approximately 13%. In the lower right-hand table on the page, we have included a summary of our debt profile. Gross debt at the end of 2025 was $578 million.

Speaker #4: At the end of the fourth quarter , our net loan to value is approximately 13% . In the lower right hand table of the page , we have included a summary of our debt profile .

Speaker #4: Gross debt . At the end of 2025 was $578 million . Mandatory debt repayments through the end of 2026 are about 30 million .

Jeff Pribor: Mandatory debt repayments through the end of 2026 are about $30 million. Our debt is 100% fixed or hedged, which contributes to our cost of debt being below 6%. We continue to enhance our balance sheet to maintain the financial flexibility necessary to facilitate growth as well as returns to shareholders. Our nearest maturity in the portfolio isn't until the next decade. We have 31 unencumbered vessels, and we have ample undrawn RCF capacity. We continue to explore ways to lower our breakeven costs even more and share in the upside with substantial returns to shareholders. On the last slide that I'll cover, slide 11 reflects our forward-looking guidance and book-to-date TCE, aligned with our spot cash breakeven rate.

Speaker #4: Our debt is 100% fixed or hedged , which contributes to our cost of debt being below 6% . We continue to enhance our balance sheet to maintain the financial flexibility necessary to facilitate growth , as well as returns to shareholders .

Speaker #4: Our nearest maturity in the portfolio is until next decade . We have 31 unencumbered vessels and we have ample undrawn RCF capacity . We continue to explore ways to lower our break even costs even more , and share in the upside with substantial returns to shareholders .

Jeff Pribor: We continue to explore ways to lower our breakeven costs even more and share in the upside with substantial returns to shareholders. On the last slide that I'll cover, slide 11 reflects our forward-looking guidance and book-to-date TCE, aligned with our spot cash breakeven rate.

Speaker #4: The last slide that I'll cover , slide 11 reflects our forward looking guidance and up to date TCE aligned with our spot cash breakeven rate , starting with TCE fixtures for the first quarter of 2026 .

Jeff Pribor: Starting with TCE fixtures for Q1 2026, I'll remind you that actual TCE during our next earnings call may be different. In the first quarter so far, we are continuing to see the impacts of the elevated rate environment we began to see in H2 2025. We currently have a blended average spot TCE of about $50,900 per day, at 71% of our Q1 expected revenue base. On the right-hand side, our expected 2026 breakeven rate is about $14,800 per day. Based on our spot TCE book-to-date and our spot breakevens, it looks like Seaways can continue to generate significant free cash flows during Q1 and build on our track record of returning cash to shareholders.

Speaker #4: I'll remind you that actual TCE during our next earnings call may be different, but in the first quarter so far, we are continuing to see the impacts of the elevated rate environment.

Speaker #4: We began to see in the second half of 2025 . We currently have a blended average spot TCE of about $50,500 per day on 71% of our first quarter expected revenue base on the right hand side are expected 2026 breakeven rate is about $14,800 per day .

Speaker #4: Based on our spot , TCE book to date and our spot breakevens , it looks like seaways can continue to generate significant free cash flows during the first quarter and build on our track record of returning cash to shareholders on the bottom left hand chart .

Jeff Pribor: Based on our spot TCE book-to-date and our spot breakevens, it looks like Seaways can continue to generate significant free cash flows during Q1 and build on our track record of returning cash to shareholders.

Jeff Pribor: On the bottom left-hand chart, we provide some updated guidance for our expenses in 2026. You'll notice that we've added a few million dollars per quarter to our projected G&A. These increases represent the impact of consolidating Tankers International into INSW's financials. I would also like to note that we've added guidance for what we were referring to as other revenues, which are TI commissions that offset this increase. We also include in the appendix our quarterly expected off-hiring CapEx. I don't plan to read each item line by line, but I encourage you to use these for modeling purposes.

Speaker #4: We provide some updated guidance for our expenses in 2026 . You'll notice that we've added a few million dollars per quarter to our projected G&A .

Speaker #4: These increases represent the impact of consolidating Tankers International in July and S.W. financials. I would also like to note that we've added guidance for what we are referring to as other revenues, which are T-commissions that offset this increase.

Speaker #4: We also include in the appendix our quarterly expected off higher and CapEx . I don't plan to read each item line by line , but I encourage you to use these for modeling purposes .

Jeff Pribor: We also include in the appendix our quarterly expected off-hiring CapEx. I don't plan to read each item line by line, but I encourage you to use these for modeling purposes.That concludes my remarks. I'd like to now turn the call back to Lois for her closing comments.

Speaker #4: That concludes my remarks . I'd like to now turn the call back to Lois for her closing comments .

Sherif Elmaghrabi: That concludes my remarks. I'd like to now turn the call back to Lois for her closing comments.

Speaker #3: Thank you so much , Jeff . On slide 12 , we have provided you with Seaways investment highlights , which we encourage you to read in its entirety , and I will summarize here briefly over the last ten years .

Lois K. Zabrocky: Thank you so much, Jeff. On slide 12, we have provided you with Seaways' investment highlights, which we encourage you to read in its entirety. I will summarize here briefly. Over the last 10 years, International Seaways has built a strong track record of returning cash to shareholders, maintaining a healthy balance sheet, and growing the company. Our total shareholder returns represent over 25% compounded annual return. We continue to renew our fleet so that our average age is about 10 years old, in what we see as a sweet spot for tanker investments and returns. We’ve invested in a range of asset classes to cast a wide net for growth opportunities. To supplement our scale in each class we operate in larger pools, we aim to keep our balance sheet fortified for any downturn in the cycle.

Lois Zabrocky: Thank you so much, Jeff. On slide 12, we have provided you with Seaways' investment highlights, which we encourage you to read in its entirety. I will summarize here briefly. Over the last 10 years, International Seaways has built a strong track record of returning cash to shareholders, maintaining a healthy balance sheet, and growing the company. Our total shareholder returns represent over 25% compounded annual return.

Speaker #3: International Seaways has built a strong track record of returning cash to shareholders , maintaining a healthy balance sheet and growing the company . Our total shareholder returns represent over 25% compounded annual return .

Speaker #3: We continue to renew our fleet so that our average age is about ten years old . In what we see as a sweet spot for tanker investments and returns , we've invested in a range of asset classes to cast a wide net for growth opportunities and to supplement our scale in each class , we operate in larger pools .

Lois Zabrocky: We continue to renew our fleet so that our average age is about 10 years old, in what we see as a sweet spot for tanker investments and returns. We’ve invested in a range of asset classes to cast a wide net for growth opportunities. To supplement our scale in each class we operate in larger pools, we aim to keep our balance sheet fortified for any downturn in the cycle.

Speaker #3: We aim to keep our balance sheet fortified for any downturn in the cycle . We have over $550 million in undrawn credit capacity to support our growth .

Lois K. Zabrocky: We have over $550 million in undrawn credit capacity to support our growth. Our net debt is under 13% of the fleet's current value, and we have 31 vessels that are unencumbered. Lastly, our spot ships only need to earn collectively under $15,000 per day to break even in 2026. At this point in the cycle, we expect to continue generating cash that we will put to work to create value for the company and for our shareholders. Thank you very much, and with that said, operator, we would now like to open up the lines for questions.

Lois Zabrocky: We have over $550 million in undrawn credit capacity to support our growth. Our net debt is under 13% of the fleet's current value, and we have 31 vessels that are unencumbered. Lastly, our spot ships only need to earn collectively under $15,000 per day to break even in 2026. At this point in the cycle, we expect to continue generating cash that we will put to work to create value for the company and for our shareholders. Thank you very much, and with that said, operator, we would now like to open up the lines for questions.

Speaker #3: Our net debt is under 13% of the fleet's current and we have 31 vessels that are unencumbered . And lastly , our spot ships only need to earn collectively under $15,000 per day to break even in 2026 .

Speaker #3: At this point in the cycle , we expect to continue generating cash that we will put to work to create value for the company and for our shareholders .

Speaker #3: Thank you very much . And with that said , operator , we would now like to open up the lines for questions .

Speaker #1: Thank you . If you would like to ask a question , please press star , followed by one on your telephone keypad . If you would like to remove your question , press star followed by two .

Operator: Thank you. If you would like to ask a question, please press star followed by 1 on your telephone keypad. If you would like to remove your question, press star followed by 2. Again, to ask a question, press star 1. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered. Our first question comes from the line of Liam Burke with B. Riley. Liam, your line is now open.

Speaker #1: Again to ask a question , press star one . As a reminder , if you are using a speakerphone , please remember to pick up your handset before asking a question .

Speaker #1: We will pause here as questions registered . Our first question comes from the line of Liam Burke with B Riley . Liam , your line is now open

Speaker #5: Thank you. Good morning, Lois. Good morning, Jeff.

Liam Burke: Thank you. Good morning, Lois. Good morning, Jeff.

Speaker #3: Good morning .

Lois K. Zabrocky: Good morning.

Lois Zabrocky: Good morning.

Speaker #5: Lois , I had a question on your Mr. partial fixtures for the first quarter of 26 . You prepared comments ? You mentioned that the refinery margins are at five year averages , but that doesn't seem that compelling to warrant the type of TCE rates that you've got fixed for .

Liam Burke: Lois, I had a question on your MR partial fixtures for Q1 2026. Your prepared comments, you mentioned that the refinery margins are at 5-year averages, but it doesn't seem that compelling to warrant the type of TCE rates that you've got fixed for Q1. Is there anything out there in the macro that's driving up those rates?

Speaker #5: First quarter . Is there anything out there in the macro that's driving up those rates

Speaker #3: Well , geopolitically , of course , now EU is not going to import refined Russian product . And that had previously been allowed from India .

Lois K. Zabrocky: Well, geopolitically, of course, now EU is not going to import refined Russian product, and that had previously been allowed from India. There's definitely a period of adjustment here that benefits the MRs versus the bigger clean LRs that normally would do that move, right? That helps us logistically. Derek Solon, our Chief Commercial Officer, Derek, maybe talk about diesel spikes or the winter.

Lois Zabrocky: Well, geopolitically, of course, now EU is not going to import refined Russian product, and that had previously been allowed from India. There's definitely a period of adjustment here that benefits the MRs versus the bigger clean LRs that normally would do that move, right? That helps us logistically. Derek Solon, our Chief Commercial Officer, Derek, maybe talk about diesel spikes or the winter.

Speaker #3: And so there's definitely a period of adjustment here that benefits the Mrs. versus the bigger clean LR . That normally would do that move .

Speaker #3: Right . So that helps us logistically . And then Derek Sloan , our chief commercial officer Derek , maybe talk about diesel spikes or the winter

Speaker #4: Thanks , Lois . I guess I would say , you know , firstly your your main geopolitical point seems to be one of the big drivers of , of the MRO rates being as strong as they are .

Derek Solon: Thanks, Lois. I guess I would say, you know, firstly, your main geopolitical point seems to be one of the big drivers of the MR rates being as strong as they are. Like you said, it's less refined product coming in from India that came from Russian crude, so that was previously coming in on bigger product carriers. That's the benefit of the MRs. Also, when you see less refined products coming from Turkey, which was previously refined from Russian crude, that's all coming from Atlantic, a lot of that's coming from Atlantic Basin. That's US Gulf exports back to Europe, which is really helping the MRs. Of course, we've had a pretty challenging winter here in the Northeast, as many of the listeners will know.

Speaker #4: Like you said , it's less refined product coming in from India that came from Russia crude . So that was previously coming in on bigger product carriers .

Speaker #4: So that's the benefit of the Mrs. . And also when you see less refined products coming from Turkey , which was previously refined from Russian crude , that's all coming from Atlantic .

Derek Solon: That's the benefit of the MRs. Also, when you see less refined products coming from Turkey, which was previously refined from Russian crude, that's all coming from Atlantic, a lot of that's coming from Atlantic Basin.

Speaker #4: A lot of that's coming from the Atlantic Basin. So that's US Gulf exports back to Europe, which is really helping the MRs.

Derek Solon: That's US Gulf exports back to Europe, which is really helping the MRs. Of course, we've had a pretty challenging winter here in the Northeast, as many of the listeners will know.When you get these weather delays, you get a lot of ships being disutilized or stuck in port, so that sort of exacerbated the supply issue, which has helped us in.

Speaker #4: And of course , we've had a pretty challenging winter here in the northeast as many of the listeners will know . And so when you get these weather delays , you get a lot of shifts being utilized or stuck in ports .

Derek Solon: When you get these weather delays, you get a lot of ships being disutilized or stuck in port, so that sort of exacerbated the supply issue, which has helped us in.

Speaker #4: So that's sort of exacerbated the supply issue , which has helped us in .

Speaker #5: Great . Thank you . And then Lois , you have been pretty nimble , moving from spot to time charters . It looks like that you're pretty comfortable at rates .

Liam Burke: Great. Thank you. Lois, you have been pretty nimble-

Lois K. Zabrocky: Mm-hmm.

Lois Zabrocky: Mm-hmm.

Liam Burke: moving from spot to time charters. Looks like that you're pretty comfortable that rates, spot rates are going to be healthy for the foreseeable future.

Speaker #5: Spot rates are going to be healthy for the for the foreseeable future

Speaker #3: Oh , yes . Absolutely . You know , the spot market is is just going from strength . This is not to say that we wouldn't layer in some time charters .

Lois K. Zabrocky: Yes, absolutely. You know, the spot market is just going from strength to strength. This is not to say that we wouldn't layer in some time charters, you know, as we just see these outsized numbers, but we're going to be judicious. You know, part of what we hope the value add is to remain open to when you see the high utilization and then the geopolitical laid on top of it, even though we can't control that, to remain open to the possibilities of this market, which has just continued to impress us.

Lois Zabrocky: Yes, absolutely. You know, the spot market is just going from strength to strength. This is not to say that we wouldn't layer in some time charters, you know, as we just see these outsized numbers, but we're going to be judicious. You know, part of what we hope the value add is to remain open to when you see the high utilization and then the geopolitical laid on top of it, even though we can't control that, to remain open to the possibilities of this market, which has just continued to impress us.

Speaker #3: You know , as as we just see these outsized numbers . But we're going to be judicious . We , you know , I mean , part of what we hope the value add is to , to remain open to when you see the high utilization and then the geopolitical late on top of it , even though we can't , to remain open to the possibilities of this market , which has just continued to impress us .

Speaker #5: Great . Thank you . Lois

Liam Burke: Great. Thank you, Lois.

Speaker #3: Thanks , Liam

Lois K. Zabrocky: Thanks, Liam.

Lois Zabrocky: Thanks, Liam.

Speaker #1: Thank you . Our next question comes from the line of Sharif El-maghrabi with Btig Sharif , your line is now open

Operator: Thank you. Our next question comes from the line of Sherif Elmaghrabi with BTIG. Sherif, your line is now open.

Speaker #6: Hey . Good morning . Thank you . The . At this point , the Vlcc fleet is looking pretty modern . And you guys have refreshed a good chunk of your MREs .

Sherif Elmaghrabi: Hey, good morning. Thank you. At this point, the VLCC fleet is looking pretty modern, and you guys have refreshed a good chunk of your MRs. Just looking across your diversified fleet, you know, there's still some older vessels maybe on the Suezmax side. Do we think about that as the, as the next stop on your renewal campaign? Maybe more broadly, where are you seeing the most attractive opportunities right now?

Speaker #6: Just looking across your diversified fleet . You know , there's still some older vessels maybe on the Suez side . Can we think about that as the , as the next stop on your renewal campaign or maybe more broadly , where are you seeing the most attractive opportunities right now

Speaker #3: Yeah I'll I'll flip it over to you , Derrick , in a second . But we've definitely say , you know , of course you see us taking the remaining four of our LR , six LR ones , the first two are already operating in the fleet , and that was just incredibly well timed on that renewal .

Lois K. Zabrocky: Yeah, I'll flip it over to you, Derek, in a second, but we'd definitely say, you know, of course, you see us taking the remaining four of our six LR1s. The first two are already operating in the fleet, and that was just incredibly well-timed on that renewal, really critical sector for us. You know, you saw us bring in a modern VLCC, you know, right before the market went crazy here. We still like the lineup of the big ships and while recognizing that, you know, right now, you know, the market, as I said, is going from strength to strength. I don't know if you want to add anything to that, Derek, or if that cuts it.

Lois Zabrocky: Yeah, I'll flip it over to you, Derek, in a second, but we'd definitely say, you know, of course, you see us taking the remaining four of our six LR1s. The first two are already operating in the fleet, and that was just incredibly well-timed on that renewal, really critical sector for us. You know, you saw us bring in a modern VLCC, you know, right before the market went crazy here.

Speaker #3: Really critical sector for us . And you know , you saw us bring in a modern vlcc , you know , right before the market went crazy here .

Speaker #3: We still like the lineup of the big ships and and while recognizing that , you know , right now , you know , the market as I said , is going from strength to strength .

Lois Zabrocky: We still like the lineup of the big ships and while recognizing that, you know, right now, you know, the market, as I said, is going from strength to strength. I don't know if you want to add anything to that, Derek, or if that cuts it.

Speaker #3: I don't know if you want to add anything to that . Derrick , or if that cuts it .

Speaker #4: No , Lois . Thank you . That's that's the same answer I give .

Jeff Pribor: No, Lois. Thank you. That's the same answer I'd give.

Speaker #3: Thanks very .

Lois K. Zabrocky: Thanks, Reese.

Lois Zabrocky: Thanks, Reese.

Speaker #6: And then one for Jeff . You know , you you guys took the opportunity to exercise some repurchase options and that's all good stuff .

Sherif Elmaghrabi: One for Jeff. You know, you guys took the opportunity to exercise some repurchase options, and that's all good stuff that lowers your cost of debt. Can you remind us just if there are any other repurchase options coming up on your remaining sale leaseback vessels?

Speaker #6: That lowers your cost of debt Can you remind us just if there any other repurchase options coming up on your remaining sale leaseback vessels

Speaker #4: High Street we've got a flexibility on all of the remaining debt that we have that's structured as leases . So we have complete flexibility , but you know , a real theme of 2025 was that we put our balance sheet in a place where we want it to be .

Jeff Pribor: Hi, Reese. We've got flexibility on all of the remaining debt that we have that's structured as leases. We have complete flexibility. You know, a real theme of 2025 was that we put our balance sheet in a place where we want it to be. I don't see us exercising those options, which is essentially additional deleveraging beyond where we are today, because we like where we are, and that allows us maximum flexibility to do things like we did, which was increase our dividend.

Speaker #4: So I don't see us exercising those options , which is essentially additional deleveraging beyond where we are today , because we like where we are , and that allows us maximum flexibility to do things like we did , which was increase our dividends

Speaker #6: Very clear . Thanks everyone .

Sherif Elmaghrabi: Very clear. Thanks, everyone.

Speaker #4: Thanks very Thank you

Jeff Pribor: Thanks, Reese.

Speaker #1: Thank you . Our next question comes from the line of Omar Nokta with Clarkson Securities . Omar , your line is now open

Operator: Thank you. Our next question comes from the line of Omar Nokta with Clarksons Securities. Omar, your line is now open.

Speaker #4: Thank you .

Speaker #7: Hey , guys . Good morning Just a couple of questions . On on the company specifically . Obviously , seeing as low as you were just talking about .

Omar Nokta: Thank you. Hey, guys. Good morning. Just a couple of questions on the company specifically. Obviously, seeing as Lois, you were just talking about, we're seeing rates go from strength to strength. Typically, when VLCCs hit this $200,000 level, it's almost like the culmination of some short squeeze, but it feels like this is a bit stickier. Just wanted to ask in terms of your current VLCC footprint, you have the three VLCCs on contract to Shell that do have a profit share element. Can you just remind us how that profit split works on those ships?

Speaker #7: We're seeing rates go from strength to strength . And typically when Vlccs hit this 200,000 level , it's almost like the culmination of some short squeeze .

Speaker #7: But it feels like this is a bit stickier . I just wanted to ask , in terms of your current vlcc footprint , you have the three .

Speaker #7: The three vlccs on contract to show that are that do have a profit share element . Can you just remind us how that profit split works on those ships

Speaker #3: Absolutely Derrick , why don't you describe how that's rewarding is right now

Lois K. Zabrocky: Absolutely. Derek, why don't you describe how that's rewarding INSW right now?

Lois Zabrocky: Absolutely. Derek, why don't you describe how that's rewarding INSW right now?

Speaker #4: Okay , Omar . Good morning . The profit shares that we have on the shell Vlccs . We have a base rate That we've had since the beginning of the time charter .

Jeff Pribor: Omar, good morning. The profit shares that we have on the Shell VLCCs, we have a base rate that we've had since the beginning of the time charter, then there's a market element that is added to that based on the spot market and the Baltic graph. From there, we split the profits above that base rate, 50/50 with our charterer. In a market like this, it'll be quite beneficial.

Derek Solon: Omar, good morning. The profit shares that we have on the Shell VLCCs, we have a base rate that we've had since the beginning of the time charter, then there's a market element that is added to that based on the spot market and the Baltic graph. From there, we split the profits above that base rate, 50/50 with our charterer. In a market like this, it'll be quite beneficial.

Speaker #4: And then there's a market element that is added to that based on the spot market and the Baltic route . And then from there , we split .

Speaker #4: We split the profits above that base rate , 5050 with our charter . So in a market like this , fairly quite beneficial

Speaker #7: Okay . So there's no full upside . There's no cap at the top in terms of where the spot rate , you know , there's no collar .

Omar Nokta: Okay, full upside, there's no cap at the top in terms of where the spot rate, you know, there's no collar, for instance, on that?

Speaker #7: For instance , on on that .

Speaker #4: Oh great question Omar . Thanks . But no there's there's no cap on top

Jeff Pribor: Oh, great question, Omar. Thanks. No, there's no cap on top.

Derek Solon: Oh, great question, Omar. Thanks. No, there's no cap on top.

Speaker #7: Okay . Thank you . And then maybe I know this is obviously a board decision . You've stepped up the dividend here to that 87% threshold .

Omar Nokta: Okay. Thank you. Maybe I know this is obviously a board decision. You've stepped up the dividend here to that 87% threshold. You know, the past maybe four or five quarters, you were around that 75% level. Is this a new range for us to expect going forward, especially just given, you know, the earnings power and the liquidity and the overall leverage or low leverage you have? Is 87 something we should kind of think about as a new base level going forward?

Speaker #7: You know for the past maybe 4 or 5 quarters you were around that 75 level . Is this a new range for us to expect going forward , especially just given the earnings power and the liquidity and the overall leverage or low leverage you have ?

Speaker #7: Is 87 something we should kind of think about as as a new base level going forward ?

Speaker #3: Omar , I'll , I'll start on that one . And let Jeff that's where he lives . But you know , we're super excited .

Lois K. Zabrocky: Omar, I'll start on that one and let Jeff, that's where he lives. You know, we're super excited. This is our highest dividend return to shareholders, and this follows six quarters of at least 75%. You know, that's testament to the balance sheet. Jeff, do you want to add to that?

Lois Zabrocky: Omar, I'll start on that one and let Jeff, that's where he lives. You know, we're super excited. This is our highest dividend return to shareholders, and this follows six quarters of at least 75%. You know, that's testament to the balance sheet. Jeff, do you want to add to that?

Speaker #3: This is our highest dividend return to shareholders . And this follows six quarters of at least 75% . And you know that's a lot of that's testament to the balance sheet .

Speaker #3: And Jeff do you want to add to that

Speaker #4: Sure .

Speaker #8: Thanks , Lois . Yeah Omar . It's a definition of a high quality problem . Is how to keep dividend providing a really good yield when your stock prices going up steadily .

Jeff Pribor: Sure. Thanks, Lois. Yeah, Omar, it's a definition of a high-quality problem is how to keep dividend providing a really good yield when your stock price is going up steadily. We're super pleased to have this dividend as we know it, to be the one that puts us over the top to over $1 billion in dividends in total. That's number one. Again, I think, you know, because we've talked about it a lot, we really focus on free cash flow, right? What we looked at was, hey, as we said, the balance sheet is in good shape. We don't need to allocate more cash to deleveraging. We had the $30 million of all-at-one payments that Lois mentioned in her remarks, as to what we needed for fleet renewal this quarter.

Speaker #8: So I'm we're super pleased to have this dividend . As we know to be the one that puts us over the top to over dollars in dividends in total .

Speaker #8: That's number one . Again , we .

Speaker #4: I think ,

Speaker #8: You know , we've talked about it a lot . We really focus on free cash flow . Right . And what we looked at was , hey , as we said the balance sheet is in good shape .

Jeff Pribor: What we looked at was, hey, as we said, the balance sheet is in good shape. We don't need to allocate more cash to deleveraging. We had the $30 million of all-at-one payments that Lois mentioned in her remarks, as to what we needed for fleet renewal this quarter.

Speaker #8: We don't need to allocate cash to to deleveraging . We had the $30 million of payments that was mentioned in her remarks . What we needed for fleet renewal this quarter .

Speaker #8: So we were able to direct all the rest of the free cash flow to to a dividend and that sort of worked out to be two , 15 or 87% , you know , again , we focus first on cash and but we know we're always going to lean into increasing the dividend .

Jeff Pribor: We were able to direct all the rest of the free cash flow to a dividend. That sort of worked out to be $2.15 or 87%. You know, again, we focus first on cash, but we know we're always going to lean into increasing the dividend, and we know people want to know how that is as a payout ratio. Yeah, it's the highest yet. It represents a 12%, over 12% yield on an annualized basis. You know, we will, it's part of a pattern. As I said, we'll lean into always being able to share as much as we can with the shareholders.

Speaker #8: And we know people want to know how that is as a payout ratio . So yeah , it's it's it's the highest yet .

Speaker #8: It's represents a 12 over 12% yield on an annualized basis . You know , we will it's part of a pattern . As I said , we'll lean in to always being able to share as much as we can with the shareholders

[Analyst] (Company Unknown): Great. Thank you. Thanks, Jeff. That's helpful. I'll turn it over. Thanks.

Speaker #7: Great . Thank you . Thanks , Jeff . That's helpful . And I'll turn it over . Thanks

Omar Nokta: Great. Thank you. Thanks, Jeff. That's helpful. I'll turn it over. Thanks.

Speaker #3: Thank you . Omar

Lois K. Zabrocky: Thank you, Omar.

Lois Zabrocky: Thank you, Omar.

Speaker #1: Thank you . And as another brief reminder , if you would like to ask a question , you can do so by pressing Star one on your telephone keypad .

Operator: Thank you. As another brief reminder, if you would like to ask a question, you can do so by pressing star one on your telephone keypad. Our next question comes from the line of Chris Robertson with Deutsche Bank. Chris, your line is now open.

Speaker #1: Our next question comes from the line of Chris Robertson with Deutsche Bank . Chris , your line is now open

Speaker #9: Thank you , operator , and good morning , Lois and Jeff

Chris Robertson: Thank you, operator, and good morning, Lois and Jeff.

Speaker #3: Thanks . Good morning .

Lois K. Zabrocky: Thanks. Good morning.

Lois Zabrocky: Thanks. Good morning.

Speaker #9: Morning . Just in terms of the current market strength , what is your assessment around the impact of Synecor Maritime has had on the Vlcc segment in particular ?

Chris Robertson: Morning. Just in terms of the current market strength, you know, what is your assessment around the impact that Sinokor Merchant Marine has had on the VLCC segment in particular? Do you think that this impact is enduring or fleeting?

Speaker #9: And do you think that this impact is enduring or fleeting

Speaker #3: Yeah . So , you know , we only like to opine about ourselves , but without a doubt , the I would call it a restructuring of the ownership base where always tanker owners highly , highly fragmented .

Lois K. Zabrocky: Yeah, you know, we only like to opine about ourselves, but without a doubt, I would call it a restructuring of the ownership base, where all these tanker owners are highly fragmented. The fact that, you know, you now have a major player consolidating legitimate VLCC tonnage is a true strength in our market. That indeed, you know, as we've combined Suezmax is now into Tankers International, that is, offers owners also a footprint to keep that commercial exposure and come into a position of strength. We really are excited about what we're seeing there. It is a fundamental shift in the ownership base, and again, you know, in a highly fragmented market.

Lois Zabrocky: Yeah, you know, we only like to opine about ourselves, but without a doubt, I would call it a restructuring of the ownership base, where all these tanker owners are highly fragmented. The fact that, you know, you now have a major player consolidating legitimate VLCC tonnage is a true strength in our market.

Speaker #3: So the fact that , you know , you now have a major player consolidating legitimate vlcc tonnage is a true strength in our market .

Speaker #3: And that indeed , you know , as we've combined to as Max is now into tankers International , that is offers owners also a footprint to keep that commercial exposure and come into a position of strength .

Lois Zabrocky: That indeed, you know, as we've combined Suezmax is now into Tankers International, that is, offers owners also a footprint to keep that commercial exposure and come into a position of strength. We really are excited about what we're seeing there. It is a fundamental shift in the ownership base, and again, you know, in a highly fragmented market.

Speaker #3: So we really are excited about what we're seeing there . It is a fundamental shift in the ownership base . And again , you know , in a highly , highly fragmented market right now , you've got over 150 Vlccs on the OFAC sanction list .

Lois K. Zabrocky: Right now, you've got over 150 VLCCs on the OFAC sanction list, you know, players that are not maintaining their ships, that are trading rogue barrels, and the fact that in that market that, you know, this owner has recognized, oh, now is the time to gather legitimate, unsanctioned tonnage and really take advantage of the marketplace. It's got staying power, and it's very strong leadership and exciting to all the VLCC owners.

Lois Zabrocky: Right now, you've got over 150 VLCCs on the OFAC sanction list, you know, players that are not maintaining their ships, that are trading rogue barrels, and the fact that in that market that, you know, this owner has recognized, oh, now is the time to gather legitimate, unsanctioned tonnage and really take advantage of the marketplace. It's got staying power, and it's very strong leadership and exciting to all the VLCC owners.

Speaker #3: You know , players that are not maintaining their ships that are trading rogue barrels . And the fact that in that market that , you know , this owner has recognized , oh , now is the time to gather legitimate unsanctioned tonnage and really take advantage of the marketplace .

Speaker #3: It's got staying power and it's very , very strong leadership and exciting to all the vlcc owners

Speaker #9: Yeah , interesting . Lois , thank you for that . Just kind of building on that . Given the impact that it has had and owners are seeing the impact .

Chris Robertson: Yeah, it's interesting, Lois. Thank you for that. Just kind of building on that, given the impact that it has had and owners are seeing impact, what are your thoughts around further consolidation in the industry, either on the crude side or the refined product side? You think we'll see more of it now that, you know, these benefits are pretty clear?

Speaker #9: What are your thoughts around further consolidation in the industry , either on the crude side of the refined product side ? Do you think we'll see more of it now that you know these benefits are are pretty clear

Speaker #3: I think so , and I also would say that , you know , our customer base , you know , recognizes this . These are , you know , you see a shift from the charters , the customers and recognizing and you know , making sure that they have access to tonnage .

Lois K. Zabrocky: I think so, and I also would say that, you know, our customer base, you know, recognizes this. These are, you know, you see a shift from the charterers, the customers into recognizing and, you know, making sure that they have access to tonnage. This just provides more drive and demand for owners, where I think, you know, when the market looks like it is, doesn't have as high a utilization, customers can be more relaxed. You're seeing customers saying, Hey, I need to make sure that I have access to vessels, and all of that structurally is super positive for tanker owners.

Lois Zabrocky: I think so, and I also would say that, you know, our customer base, you know, recognizes this. These are, you know, you see a shift from the charterers, the customers into recognizing and, you know, making sure that they have access to tonnage.

Speaker #3: So, this just provides more drive and demand for owners, where I think, you know, when the market looks like it doesn't have as high a utilization, customers can be more relaxed.

Lois Zabrocky: This just provides more drive and demand for owners, where I think, you know, when the market looks like it is, doesn't have as high a utilization, customers can be more relaxed. You're seeing customers saying, Hey, I need to make sure that I have access to vessels, and all of that structurally is super positive for tanker owners.

Speaker #3: So you're seeing customers saying , hey , I need to make sure that I have access to vessels and all of that structurally is super positive for tanker owners

Speaker #9: Got it . I appreciate the color . Thank you

Chris Robertson: Got it. I appreciate the color. Thank you.

Speaker #1: Thank you . At this time , I would now like to pass the conference back over to Lois for any closing remarks

Operator: Thank you. At this time, I would now like to pass the conference back over to Lois for any closing remarks.

Speaker #3: We just want to thank everyone for joining us . International Seaways , for our Q4 and full year 2025 . And we look forward to talking to you next quarter with strong tanker markets .

Lois K. Zabrocky: We just want to thank everyone, for joining us, International Seaways, for our Q4 and full year 2025, and we look forward to talking to you next quarter with strong tanker markets. Thank you.

Lois Zabrocky: We just want to thank everyone, for joining us, International Seaways, for our Q4 and full year 2025, and we look forward to talking to you next quarter with strong tanker markets. Thank you.

Speaker #3: Thank you

Operator: Thank you. That will conclude today's conference call. Thank you for your participation. You may now disconnect your lines.

Q4 2025 International Seaways Inc Earnings Call

Request a DemoDemo

INSW

International Seaways

Earnings