Q1 2026 International Seaways Inc Earnings Call

May 7, 2026

Operator: Thank you for standing by. My name is Christina, and I will be your conference operator today. At this time, I would like to welcome everyone to International Seaways Inc. Q1 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, you can press star 1 again. Thank you. I would now like to turn the floor over to James Small, General Counsel. James, the floor is now yours.

Operator: Thank you for standing by. My name is Christina, and I will be your conference operator today. At this time, I would like to welcome everyone to International Seaways Inc. Q1 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by one on your telephone keypad. If you would like to withdraw your question, you can press star 1 again. Thank you. I would now like to turn the floor over to James Small, General Counsel. James, the floor is now yours.

James D. Small III: Thank you. Good morning, everyone. Welcome to International Seaways earnings call for Q1 2026. Before we begin, I would like to start off by advising everyone with us today of the following.

James Small: Thank you. Good morning, everyone. Welcome to International Seaways earnings call for Q1 2026. 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,

James D. Small III: 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, including in particular in the Middle East, the company's strategy and business prospects, expectations around revenues and expenses, including vessel, charter hire, and G&A expenses, 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.

James Small: the effects of ongoing and threatened conflicts around the world, including in particular in the Middle East, the company's strategy and business prospects, expectations around revenues and expenses, including vessel, charter hire, and G&A expenses, 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.

The effects of ongoing and threatened conflicts around the world including in particular in the Middle East.

The company's strategy and business prospects.

Expectations around revenues and expenses including vessel Charter higher and GNA expenses.

Estimated future, bookings, tce rates and capital expenditures?

Projected Dry Dock and off higher 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.

James D. Small III: 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 and uncertainties, 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, in our Form 10-Q for Q1 of 2026, as well as in other filings that we have made or in the future may make with the U.S. Securities and Exchange Commission. Now let me turn the call over to Lois Zabrocky, our President and Chief Executive Officer.

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. Forward-looking statements are subject to risks and uncertainties, 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, in our Form 10-Q for Q1 of 2026, as well as in other filings that we have made or in the future may make with the U.S. Securities and Exchange Commission. Now let me turn the call over to Lois Zabrocky, our President and Chief Executive Officer. Lois?

And the company's relationships with its stakeholders.

Forward-looking statements taken to account and assumptions made by management. Based on various factors, including Management's, experience and perception of historical trends,

current conditions expected in future developments.

And other factors the management believes are appropriate to consider in the circumstances.

Forward-looking statements are subject to risks and uncertainties, 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. 10K for 2025,

In our form, 10 Q for the first quarter of 2026.

As well as his other filings that we have made or in the future may make with the US Securities and Exchange Commission.

James D. Small III: Lois?

Lois K. Zabrocky: Thank you very much, James. Good morning, everyone. Thank you for joining International Seaways earnings call for Q1 2026. On slide 4 of the presentation, which you can find in the investor relations section of our website, net income for Q1 was a record $286 million or $5.75 per diluted share. Excluding special items, adjusted net income for the quarter was $194 million or $3.90 per diluted share, and adjusted EBITDA was $244 million. Today, we also announced another record with the declaration of our largest quarterly combined dividend of $4.55 per share, more than doubling last quarter's record of $2.15 per share. The declared dividend is comprised of 2 main elements.

Lois Zabrocky: Thank you very much, James. Good morning, everyone. Thank you for joining International Seaways earnings call for Q1 2026. On slide 4 of the presentation, which you can find in the investor relations section of our website, net income for Q1 was a record $286 million or $5.75 per diluted share. Excluding special items, adjusted net income for the quarter was $194 million or $3.90 per diluted share, and adjusted EBITDA was $244 million. Today, we also announced another record with the declaration of our largest quarterly combined dividend of $4.55 per share, more than doubling last quarter's record of $2.15 per share. The declared dividend is comprised of 2 main elements.

Now, let me turn the call over to Louis the brocki, our president and chief executive officer Louis.

Thank you very much, Jane. Good morning everyone. Thank you for joining International seaways earnings call for the first quarter of 2026.

On slide 4 of the presentation, which you can find in the investor relations section of our website.

Net income for the first quarter was a record 286 million or 5 dollars, 75 cents per diluted share.

Excluding special items and just at net income, for the quarter was 194 million or 3.90 per diluted share.

And adjusted eida was 244 million.

Today.

we also announced another record with the Declaration of our largest quarterly combined dividends

For dollars, 555 cents per share.

More than doubling last quarter's record of $2.15 per share.

We declared dividends.

Lois K. Zabrocky: One, a new payout ratio of 85%, which you can expect from us going forward as a practice. Secondarily, a discretionary amount this quarter that we added due to the outstanding performance of the company and current market conditions, as you can see in the upper right section of the slide. We are very proud to have passed the milestone back in March of $1 billion returned to shareholders since 2020. We are even more proud that we will reach more than 20% of that mark when we pay our dividend in June. It took 6 years to achieve the $1 billion in returns and 1 quarter to get to $1.3 billion. 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: One, a new payout ratio of 85%, which you can expect from us going forward as a practice. Secondarily, a discretionary amount this quarter that we added due to the outstanding performance of the company and current market conditions, as you can see in the upper right section of the slide. We are very proud to have passed the milestone back in March of $1 billion returned to shareholders since 2020. We are even more proud that we will reach more than 20% of that mark when we pay our dividend in June. It took 6 years to achieve the $1 billion in returns and 1 quarter to get to $1.3 billion. We continue to believe in building on our track record of returning to shareholders as part of our consistent and balanced capital allocation strategy.

Is comprised of 2, main elements.

1, a new payout ratio of 85%.

which you can expect from us going forward as a practice,

Secondarily a discretionary amount this quarter that we added to the outstanding performance of the company and current market conditions. As you can see in the upper right section of the slides.

We are very proud to have passed the Milestone back in March of 1 billion, dollars returned to shareholders since 2020.

We are even more proud that we will reach more than 20% of that Mark when we pay our dividend in June.

It took 6 years.

To achieve the 1 billion in returns and 1 quarter to get to 1.3 billion.

Lois K. Zabrocky: On the lower left part of the page, we sold 7 vessels with an average age of 17 years for $216 million as part of our ongoing fleet optimization. We have consistently demonstrated throughout our 10-year history. We actively upgrade the portfolio throughout the cycle. Standing still in this business is effectively moving backward. These transactions enhance our flexibility. You should expect us to continue redeploying capital in a disciplined manner, including reinvestment in our fleet in line again with our balanced capital allocation strategy. Our LR1 new buildings continue to join our fleet with 2 deliveries thus far in 2026 and the remaining 2 coming in the Q3. From our prior call, Tankers International continues to enhance its status as not only a leading VLCC pool but has expanded into Suezmaxes.

Lois Zabrocky: On the lower left part of the page, we sold 7 vessels with an average age of 17 years for $216 million as part of our ongoing fleet optimization. We have consistently demonstrated throughout our 10-year history. We actively upgrade the portfolio throughout the cycle. Standing still in this business is effectively moving backward. These transactions enhance our flexibility. You should expect us to continue redeploying capital in a disciplined manner, including reinvestment in our fleet in line again with our balanced capital allocation strategy. Our LR1 new buildings continue to join our fleet with 2 deliveries thus far in 2026 and the remaining 2 coming in the Q3. From our prior call, Tankers International continues to enhance its status as not only a leading VLCC pool but has expanded into Suezmaxes.

We continue to believe in building on our track records of returning to shareholders as part of our consistent and balanced Capital allocation strategy.

On the lower left, part of the page. We've sold 7 vessels with an average age of 17 years.

For 216 million as part of our ongoing Fleet optimization.

We have consistently demonstrated throughout our 10 year history.

We actively upgrade the portfolio throughout the cycle.

Standing still in this business is effectively moving backwards.

These transactions enhance our flexibility, and you should expect us to continue redeploying capital.

In our disciplined manner, including reinvestment, in our Fleet, in line.

Again, with our balanced Capital allocation strategy.

Our lr1 new buildings, continue to join our Fleet.

With 2 deliveries, thus far in 2026.

And the remaining 2 coming in the third quarter.

Lois K. Zabrocky: As our ships continue to integrate into the Suezmax pool, we have also gained a new pool participant. We are quite excited about the opportunities in front of us as sole owners of Tankers International. One last comment in this section relates to our time charter coverage. We added another Suezmax onto our list for the next 3 years at $40,000 per day, which is great, and we like to have profitable long-term charters. We continue to work the time charter market with a keen eye towards the longer-term rate environment. This market opens and closes like any other arbitrage opportunity. We have $918 million in total liquidity, which includes almost $380 million in cash and $540 million in undrawn revolver capacity.

Lois Zabrocky: As our ships continue to integrate into the Suezmax pool, we have also gained a new pool participant. We are quite excited about the opportunities in front of us as sole owners of Tankers International. One last comment in this section relates to our time charter coverage. We added another Suezmax onto our list for the next 3 years at $40,000 per day, which is great, and we like to have profitable long-term charters. We continue to work the time charter market with a keen eye towards the longer-term rate environment. This market opens and closes like any other arbitrage opportunity. We have $918 million in total liquidity, which includes almost $380 million in cash and $540 million in undrawn revolver capacity.

from our prior call Tinkers International continue to enhance its status as not only a leading blcc pool, but has expanded into sewers, Maxes

As our ships continue to integrate into the sewers Max pool. We have also gained a new pool participant.

We are quite excited about the opportunities in front of us and sole owners of tankers International.

1 last comment in this section relates to our time Charter coverage. We added another Sue Max onto our list for the next 3 years at 40,000 per day which is great and we like to have profitable long-term tires.

Work the time charter market with a keen eye towards the longer-term rate environments.

This Market opens and closes, like any other Arbitrage opportunities?

Lois K. Zabrocky: Jeff's going to walk you through the cash flows of the quarter, but our vessel sales, the market environment, and our disciplined balance sheet management over the last two years have all combined to put INSW where we are today. Turning over to slide 5, we've updated our standard set of bullets on tanker demand drivers with the subtle green up arrows next to the bullet represented as good for tankers, the black dash representing a neutral impact, and a red down arrow meaning the topic is not good for tanker demand. I won't read those bullets individually, but we believe demand fundamentals are solid and continue to support a constructive outlook for seaborne transportation. The current tanker market is as volatile as it has been in some time, particularly in reaction to the conflict in the Strait of Hormuz.

Lois Zabrocky: Jeff's going to walk you through the cash flows of the quarter, but our vessel sales, the market environment, and our disciplined balance sheet management over the last two years have all combined to put INSW where we are today. Turning over to slide 5, we've updated our standard set of bullets on tanker demand drivers with the subtle green up arrows next to the bullet represented as good for tankers, the black dash representing a neutral impact, and a red down arrow meaning the topic is not good for tanker demand. I won't read those bullets individually, but we believe demand fundamentals are solid and continue to support a constructive outlook for seaborne transportation. The current tanker market is as volatile as it has been in some time, particularly in reaction to the conflict in the Strait of Hormuz.

We have 918 million in total liquidity, which includes almost 380 million in cash and 540 million in undrawn revolver capacity.

Just going to walk you through the cash flows of the quarter, but our vessel sale, the market environment and our disciplined balance sheet management. Over the last 2 years, have all combined to put insw where we are today.

Turning over to slide 5. We've updated our standard set of bullets on tanker. Demand drivers with the subtle green up arrows next to the bullet represented as good for tankers.

The black Dash representing a neutral impact and a red down arrow. Meaning, the topic is not good for tanker, demand.

I won't read those bullets individually, but we believe demand, fundamentals are solid and continue to support a constructive outlook for seaborne transportation.

Lois K. Zabrocky: Over the past few months, the market has been adapting to a new status quo, similar to what we saw during the Red Sea disruption and following Russia's invasion of Ukraine. This situation, however, is even more significant. As shown in the lower left chart, roughly 15 million barrels per day of crude, nearly 40% of seaborne volume, transits through the Strait. Some of this disruption has been offset by alternative flows, including increased Red Sea exports as Saudi barrels move west to Yanbu, draws from inventories, and the release of Russian barrels that had accumulated on the water. That said, these sources have not fully replaced the volume typically moving through the Strait. In the near term, the market is benefiting as it works to adjust to this dislocation.

Lois Zabrocky: Over the past few months, the market has been adapting to a new status quo, similar to what we saw during the Red Sea disruption and following Russia's invasion of Ukraine. This situation, however, is even more significant. As shown in the lower left chart, roughly 15 million barrels per day of crude, nearly 40% of seaborne volume, transits through the Strait. Some of this disruption has been offset by alternative flows, including increased Red Sea exports as Saudi barrels move west to Yanbu, draws from inventories, and the release of Russian barrels that had accumulated on the water. That said, these sources have not fully replaced the volume typically moving through the Strait. In the near term, the market is benefiting as it works to adjust to this dislocation.

The current tanker Market is as volatile as it has been in some time, particularly in reaction to the conflict in the state of hormones.

Over the past few months, the market has been adapting to a new status quo similar to what we saw during the Red Sea, disruption and following Russia's invasion of Ukraine this situation. However, is even more significant as shown in the lower left chart roughly 15 million barrels per day. Of crude nearly 40% of seaborne. Volumes transits through the straight.

Some of this disruption has been offset by alternative flows, including increased Red, Sea exports as Saudi barrels move, west to Yen, boo draws from inventories, and the release of Russian barrels that had accumulated on the water.

That said, these sources have not fully replaced. The volume typically, moving through the streets,

Lois K. Zabrocky: However, as the Strait remains closed for an extended period, it could have broader implications for global energy markets until a resolution is reached. As you can see on the lower right, Western markets' earnings strengthened meaningfully after the onset of the conflict. Much so that MR and VLCC rates can now be shown on the same scale. Quite an exception. Looking ahead, we believe that the longer the disruption persists, the more meaningful the eventual rebalancing could be once conditions stabilize, particularly if inventories continue to draw, which could support tanker demand and earnings in the future. On the supply side, on slide six of the presentation, with the aging of the world fleet and the sustained strength in tanker earnings, it is natural to see that the order book is creeping up.

Lois Zabrocky: However, as the Strait remains closed for an extended period, it could have broader implications for global energy markets until a resolution is reached. As you can see on the lower right, Western markets' earnings strengthened meaningfully after the onset of the conflict. Much so that MR and VLCC rates can now be shown on the same scale. Quite an exception. Looking ahead, we believe that the longer the disruption persists, the more meaningful the eventual rebalancing could be once conditions stabilize, particularly if inventories continue to draw, which could support tanker demand and earnings in the future. On the supply side, on slide six of the presentation, with the aging of the world fleet and the sustained strength in tanker earnings, it is natural to see that the order book is creeping up.

In the near term, the market is benefiting as it works to adjust to this dislocation.

However, as the straight remains closed for an extended period, it could have broader implications for Global energy markets. Until a resolution is reached

As you can see on the lower right Western markets, earnings strengthen meaningfully after the onset of the conflict so much. So that, Mrs. And vlcc rates can now be shown on the same scale.

Quite an exception.

Looking ahead, we believe that the longer the disruption, persists, the more meaningful, the eventual rebalancing could be once conditioned stabilized.

Particularly if inventories, continue to draw which could support tanker, demand and earnings in the future.

On the supply side on slide 6 of the presentation.

Lois K. Zabrocky: In the graph on the left, the order book has grown since the end of 2023, rising to about 16% of today's fleet. The industry needs even more. If you look at the chart on the right-hand side that shows the ratio of removal candidates, which are 18 years or older by the time the order book is fully delivered, at 3 times the size of those vessels entering the fleet over the next few years. This continues to be the largest story for tanker shipping and is likely to look this way in the near term. These fundamentals should translate into continued upcycle over the next few years, and Seaways remains well-positioned to capitalize on these market conditions. We will continue to execute our balanced capital allocation approach to renew our fleet and to adapt to industry conditions with a strong balance sheet while returning to shareholders.

Lois Zabrocky: In the graph on the left, the order book has grown since the end of 2023, rising to about 16% of today's fleet. The industry needs even more. If you look at the chart on the right-hand side that shows the ratio of removal candidates, which are 18 years or older by the time the order book is fully delivered, at 3 times the size of those vessels entering the fleet over the next few years. This continues to be the largest story for tanker shipping and is likely to look this way in the near term.

With the Aging of the world Fleet and these sustained strength and tanker earnings. It is natural to see that the order book is creeping up.

in the graph, on the left, the order book has grown since the end of 2023 rising to about 16% of today's Fleet,

The industry needs even more. If you look at the chart on the right hand side that shows the ratio of removal candidates which are 18 years or older. By the time, the order book is fully delivered.

At 3 times the size of those vessels entering the fleet over the next few years.

Lois Zabrocky: These fundamentals should translate into continued upcycle over the next few years, and Seaways remains well-positioned to capitalize on these market conditions. We will continue to execute our balanced capital allocation approach to renew our fleet and to adapt to industry conditions with a strong balance sheet while returning to shareholders. I'm now going to turn it over to our CFO, Jeffrey Pribor, to provide the financial review. Jeffrey?

This continues to be the largest story for tanker, shipping and is likely to look this way in the near term.

These fundamentals should translate into continued upcycle over the next few years and see ways remains well positioned to capitalize on these market conditions.

Lois K. Zabrocky: I'm now going to turn it over to our CFO, Jeffrey Pribor, to provide the financial review. Jeffrey?

We will continue to execute our balanced Capital allocation approach to renew our Fleet and to adapt to Industry conditions with a strong balance sheet while returning to shareholders.

Jeffrey D. Pribor: Thanks, Lois. Good morning, everyone. On slide 8, net income for Q1 was approximately $286 million, or $5.75 per diluted share. Excluding special items, our net income was $194 million or $3.90 per diluted share. On the upper right chart, adjusted EBITDA for Q1 was $244 million. In the appendix, we provided a reconciliation from reported earnings to adjusted earnings. While our revenue and expenses were largely within expectations, our G&A expenses were reduced by about $5 million in the quarter due to a commercial settlement where we were reimbursed for legal expenses incurred over the last 2 years. The lightering business in Q1 had around $6 million in revenue and expenses.

Jeff Pribor: Thanks, Lois. Good morning, everyone. On slide 8, net income for Q1 was approximately $286 million, or $5.75 per diluted share. Excluding special items, our net income was $194 million or $3.90 per diluted share. On the upper right chart, adjusted EBITDA for Q1 was $244 million. In the appendix, we provided a reconciliation from reported earnings to adjusted earnings. While our revenue and expenses were largely within expectations, our G&A expenses were reduced by about $5 million in the quarter due to a commercial settlement where we were reimbursed for legal expenses incurred over the last 2 years. The lightering business in Q1 had around $6 million in revenue and expenses.

I'm now going to turn it over to our CFO. Jeff, poor to provide the financial review, Jeff.

Thanks, Lois and good morning everyone.

On slide 8.

Net income, for the first quarter, was approximately 286 million or 5 dollars 75 cents per diluted share.

Excluding special items, our net income was $194 million, or $3.90 per diluted share.

On the upper right chart.

Adjusted via for the first quarter was 244 million.

In the appendix, we provided a Reconciliation for reported earnings to adjustment.

Expectation.

Our GNA expenses were reduced by about 5 million dollars in the quarter due to a commercial settlement where we were reimbursed for legal expenses, incurred over the last few years.

Providing business. And first quarter, had around 6 million dollars in revenue and expenses.

Jeffrey D. Pribor: Turning to our cash bridge on slide 9, we began the quarter with total liquidity of $724 million, composed of $160 million in cash and $557 million in undrawn revolving capacity. Following along the chart from left to right on the cash bridge, we first add $244 million in adjusted EBITDA for Q1, plus $14 million in debt service, another $15 million of dry dock and capital expenditures, as well as an $81 million use of working capital. We therefore achieved our definition of free cash flows of about $133 million for Q1.

Jeff Pribor: Turning to our cash bridge on slide 9, we began the quarter with total liquidity of $724 million, composed of $160 million in cash and $557 million in undrawn revolving capacity. Following along the chart from left to right on the cash bridge, we first add $244 million in adjusted EBITDA for Q1, plus $14 million in debt service, another $15 million of dry dock and capital expenditures, as well as an $81 million use of working capital. We therefore achieved our definition of free cash flows of about $133 million for Q1.

Turning to our cash bridge on slide 9.

We began the quarter with total liquidity of 724 million.

Composed of $16 million in cash.

$50.057 million in undrawn revolving capacity.

Following along the chart from left to right on the Cash Bridge.

We first had 244 million in adjusted demand for the first quarter plus 14 million dollars in debt service.

Another $15 million of dry dock at capital expenditures, as well as an $81 million use of working capital.

Jeffrey D. Pribor: We received $223 million in net proceeds from the sale of seven vessels in Q1, of which, about $6 million is paid to the pool for positioning of one of our VLCCs. We spent $28 million in LR1 newbuilding installments, including financing proceeds and costs, and $5 million to acquire the remaining ownership stake in TI. The remaining $106 million represents our second-largest-ever dividend of $2.15 per share paid in March and topping the $1 billion milestone in returns to shareholders. In summary, the result of our activity this quarter yields a net increase in cash of $210 million, roughly in line with the proceeds from our vessel sale.

Jeff Pribor: We received $223 million in net proceeds from the sale of seven vessels in Q1, of which, about $6 million is paid to the pool for positioning of one of our VLCCs. We spent $28 million in LR1 newbuilding installments, including financing proceeds and costs, and $5 million to acquire the remaining ownership stake in TI. The remaining $106 million represents our second-largest-ever dividend of $2.15 per share paid in March and topping the $1 billion milestone in returns to shareholders. In summary, the result of our activity this quarter yields a net increase in cash of $210 million, roughly in line with the proceeds from our vessel sale.

We therefore achieved our definition of free cash flows of about 133 million for the first quarter.

We received 223 million dollars in net proceeds from the sale of 7 vessels in the first quarter.

of which

about 6 million dollars is paid to the pool for positioning of 1 of our bcc's.

We spent 28 million in lr1 new building installments, including financing proceeds and costs and 5 million to acquire the remaining ownership stake in TI.

The remaining $106 million represents our second-largest ever dividend of $2.15 per share.

Paid in March and Topping the 1 million milestone in returns to share.

in summary, the result of our activity, this quarter yields a net increase in cash of 210 million

Jeffrey D. Pribor: This equates to ending cash of $377 million with $541 million in undrawn revolvers for total liquidity of about $918 million. Moving now to slide 10, we have a strong financial position detailed by the balance sheet you see on the left-hand side of the page. Liquidity is strong at $918 million. We've invested about $2 million in vessels at cost on the books, which are currently valued at nearly $4 billion. With approximately $225 million in net debt combined with rising asset values, our net loan to value is below 7% at the end of Q1. In the lower right-hand table, we have included a summary debt profile. Gross debt at the end of Q1 was $615 million.

Jeff Pribor: This equates to ending cash of $377 million with $541 million in undrawn revolvers for total liquidity of about $918 million. Moving now to slide 10, we have a strong financial position detailed by the balance sheet you see on the left-hand side of the page. Liquidity is strong at $918 million. We've invested about $2 million in vessels at cost on the books, which are currently valued at nearly $4 billion. With approximately $225 million in net debt combined with rising asset values, our net loan to value is below 7% at the end of Q1. In the lower right-hand table, we have included a summary debt profile. Gross debt at the end of Q1 was $615 million.

roughly in line with the proceeds for our vessel sails.

This equation ending in cash of 377 million with 541 million.

In on drop revolvers for total liquidity of about 918 million dollars.

Moving now to slide 10.

We have a strong financial position detailed by the balance sheet. You see, on the left hand side of the page?

Liquidity is strong at 918 million.

We've invested about 2 billion dollars in debt with the cost of the books, which are currently valued at nearly 4 billion.

And with approximately 225 million in net debt, debt combined with Rising asset values.

Our net loan to value is below 7% at the end of the first quarter.

In the lower right hand table.

We have included a summary debt profile.

Jeffrey D. Pribor: Mandatory debt repayments through the end of 2026 are about $21 million. Our debt is almost entirely fixed-rate hedged, which contributes to our total cost of debt 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 25 unencumbered vessels, and we have ample undrawn RCF capacity. We continue to explore ways to lower our breakeven cost even more and share the upside with substantial returns to shareholders. On the last slide that I'll cover, slide 11 reflects our forward-looking guidance at book-to-date TCE aligned with our spot cash breakeven rate. Starting with TCE fixtures for the Q2 of 2026, I'll remind you that actual TCE during our next earnings call may be different.

Jeff Pribor: Mandatory debt repayments through the end of 2026 are about $21 million. Our debt is almost entirely fixed-rate hedged, which contributes to our total cost of debt 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 25 unencumbered vessels, and we have ample undrawn RCF capacity. We continue to explore ways to lower our breakeven cost even more and share the upside with substantial returns to shareholders. On the last slide that I'll cover, slide 11 reflects our forward-looking guidance at book-to-date TCE aligned with our spot cash breakeven rate. Starting with TCE fixtures for the Q2 of 2026, I'll remind you that actual TCE during our next earnings call may be different.

Gross debt. At the end of the first quarter was 615 million.

mandatory debt repayments through the end of 2026, are about 21 million,

Our debt is almost entirely fixed, our heads.

Contribute to our total cost of debt 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 25 un income vessels.

And we have ample, undrawn RCS capacity.

We continue to explore ways to lower our break, even costs even more and share the upside with substantial returns to shareholders.

On the last slide that I'll cover slide 11 reflective book today. Tce aligned with our spot cash Break Even rate.

Jeffrey D. Pribor: In the Q2 so far, we currently have a blended average spot TCE of over $100,000 per day fleet-wide on about 45% of our Q2 expected revenue days. On the right-hand side, our expected breakeven for the next 12 months is about $14,900 per day. Based on our spot TCE book to date and our spot breakeven, it looks as though Seaways can continue to generate significant free cash flow during the Q2 and build on our track record of returning cash to shareholders. On the bottom left-hand chart, we provide 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 ISW's financials.

Jeff Pribor: In the Q2 so far, we currently have a blended average spot TCE of over $100,000 per day fleet-wide on about 45% of our Q2 expected revenue days. On the right-hand side, our expected breakeven for the next 12 months is about $14,900 per day. Based on our spot TCE book to date and our spot breakeven, it looks as though Seaways can continue to generate significant free cash flow during the Q2 and build on our track record of returning cash to shareholders. On the bottom left-hand chart, we provide 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 ISW's financials.

Starting with tce fixtures for the second quarter of 2026. I'll remind you that actual CC during our next earnings call may be different

But in the second quarter so far.

We currently have a blended average spot tce of over 100,000 dollars per day sleep wise.

On about 45% of our second quarter expected Revenue.

On the right hand side, our expected break evens, for the next 12 months is about 14,900 per day.

So based on our spot TC book today and our spot Break, Even it looks as though seaways continue to generate significant free, cash flows during the second quarter.

Build on our track record of returning, cash to shareholders.

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 GNA,

Jeffrey D. Pribor: I would also like to note that we've added guidance for what we refer to as other revenues, which are TI commissions that offset this increase. We also included in the appendix our quarterly expected offshore and CapEx. I don't plan to read each item line by line. I'd encourage you to use these for modeling purposes. That concludes my remarks. I'd like to turn the call back to Lois for her closing comments.

Jeff Pribor: I would also like to note that we've added guidance for what we refer to as other revenues, which are TI commissions that offset this increase. We also included in the appendix our quarterly expected offshore and CapEx. I don't plan to read each item line by line. I'd encourage you to use these for modeling purposes. That concludes my remarks. I'd like to turn the call back to Lois for her closing comments.

these increases represent the impact of consolidating tankers International into insw financials.

I would also like to note that we've added,

Guidance for what we refer to as other revenues.

Which are ti commissions that offset this increase.

We also included the appendix are quarterly expected off higher and capex.

Item line by line and encourage you to use these for modeling purposes.

now that concludes my remarks, I'd like,

Lois K. Zabrocky: Thanks so much, Jeff. On slide 12, we have provided you with Seaways investment highlights and encourage you to read them in their entirety. Summarizing briefly, over the last almost 10 years, International Seaways has built a track record of returning cash to shareholders, maintaining a healthy balance sheet, and growing the company. Our total shareholder return represents over 28% compounded annual return. We continue to renew our fleet so that our average age is about 10 years old, and what we see as the sweet spot for tanker investments and returns. We've invested in a range of asset classes to cast a wider net for growth opportunities and to supplement our scale in each class by operating in larger pools. We aim to keep our balance sheet fortified for any down cycle. We have nearly $1 billion in total liquidity to support our growth.

Lois Zabrocky: Thanks so much, Jeff. On slide 12, we have provided you with Seaways investment highlights and encourage you to read them in their entirety. Summarizing briefly, over the last almost 10 years, International Seaways has built a track record of returning cash to shareholders, maintaining a healthy balance sheet, and growing the company. Our total shareholder return represents over 28% compounded annual return. We continue to renew our fleet so that our average age is about 10 years old, and what we see as the sweet spot for tanker investments and returns. We've invested in a range of asset classes to cast a wider net for growth opportunities and to supplement our scale in each class by operating in larger pools. We aim to keep our balance sheet fortified for any down cycle. We have nearly $1 billion in total liquidity to support our growth.

To turn the call back to Louis for closing comments.

Thanks so much Jeff.

On slide 12 we have provided you with seaways investment highlights and encourage you to read them in their entirety.

Summarizing briefly.

Over the last almost 10 years. International seaways has built. A track record of returning cash to shareholders.

Maintaining a healthy balance sheet and growing the company.

Our total shareholder return represents over a 28% compounded annual return.

We continue to renew our Fleet so that our average age is about 10 years old. And what we see is the sweet spot for tanker Investments and returns.

We've invested in a range of asset classes to cast a wider, net for growth opportunities. And to supplement our scale in each class by operating in larger pools,

we aim to keep our balance sheet fortified for any down cycle.

Lois K. Zabrocky: Our net debt is under 7% of the fleet's current value, and we have about 40% of the fleet that is unencumbered. We only need our spot ships to earn less than $15,000 per day collectively to break even in 2026. At this point in the cycle, we expect to continue generating cash that we will put to work creating value for the company and for our shareholders. We thank you very much for joining us. With that said, operator, we would like to open the lines for questions.

Lois Zabrocky: Our net debt is under 7% of the fleet's current value, and we have about 40% of the fleet that is unencumbered. We only need our spot ships to earn less than $15,000 per day collectively to break even in 2026. At this point in the cycle, we expect to continue generating cash that we will put to work creating value for the company and for our shareholders. We thank you very much for joining us. With that said, operator, we would like to open the lines for questions.

We have nearly a billion in total liquidity to support our growth.

Our net debt is under 7% of the fleet's, current value.

And we have about 40% of the fleet that is unencumbered.

We only need our spot shifts to earn less than 15,000 per day. Collectively to break even in 2026.

At this point, in the cycle, we expect to continue generating cash that we will put to work creating value for the company. And for our shareholders, we thank you very much for joining us. And with that said, operator, we would like to open the lines for questions.

Operator: Thank you. At this time, I would like to remind everyone in order to ask a question, press star then the number 1 on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Thank you. Your first question comes from the line of Liam Burke from B. Riley Securities. Your line is open.

Thank you at this time. I would like to remind everyone in order to ask a question. Press star, then the number 1 on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.

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

Lois K. Zabrocky: Good morning.

Lois Zabrocky: Good morning.

Thank you. And your first question comes from the line of Liam Burke from B, Riley Securities. Your line is open. Thank you. Good morning, Louis. Good morning, Jeff.

Liam Burke: Lois, you have some older MRs in the fleet. There's significant demand. Are you seeing charters willing to charter the older vessels, or are you looking at elevated asset values to maybe divest them?

Good morning.

Um Louis you have some older Mrs in the fleet um, and there's significant demand. Are you seeing Charters uh, willing to Charter? The older vessels or are you looking at elevated asset values to maybe divest them?

Lois K. Zabrocky: Well, you know, I would say that we have had great success in clearing out our oldest MRs. You know, I was thinking about you, and I was noodling out, you know, if you're able to earn the types of rates that we are locking in, for example, in Q2, your free cash flow thrown off per MR in that quarter is gonna be over $5 million. We are constantly looking at high grading, and we've had great success on that front. You know, having available ships and prop positions, moving oil today is worth a lot of money.

Lois Zabrocky: Well, you know, I would say that we have had great success in clearing out our oldest MRs. You know, I was thinking about you, and I was noodling out, you know, if you're able to earn the types of rates that we are locking in, for example, in Q2, your free cash flow thrown off per MR in that quarter is gonna be over $5 million. We are constantly looking at high grading, and we've had great success on that front. You know, having available ships and prop positions, moving oil today is worth a lot of money.

Well, you know, um, I would say that we have had great success in, um, clearing out our oldest MRs. And, you know, I—while I was, I was thinking about you and, and I was noodling out, you know, if you're able, um, to earn the types of rates that we are lacking in—for example, in the second quarter, your free cash flow thrown off per MR in that quarter is going to be over $5 million. Um, so we are constantly looking at high grading and we've had great success on that front end. You know, having available ships?

And, uh, prompt positions moving oil today is worth a lot of money.

Liam Burke: Fair enough. If you look at spot rates, obviously they're elevated rates, to put it mildly. How much thought have you given to moving some and locking in on the time charter front?

Fair enough.

and if you look at spot rates, obviously, they're they're having, uh, they're

Elevated rates, just put a mile away how much thought have you given to moving some and locking in on the time Charter front.

Lois K. Zabrocky: You know, I can, I'll start that, and I'll flip it over to Derek, you know. What we're seeing is that everybody that has a time charter now is certainly eager to hold onto it. Then you know, you can get a healthy rate for a shorter period, but as you go longer, I think the volatility starts to come in and people are a little bit anxious to fix three-year deals. What do you think, Derek?

Lois Zabrocky: You know, I can, I'll start that, and I'll flip it over to Derek, you know. What we're seeing is that everybody that has a time charter now is certainly eager to hold onto it. Then you know, you can get a healthy rate for a shorter period, but as you go longer, I think the volatility starts to come in and people are a little bit anxious to fix three-year deals. What do you think, Derek?

You know, uh I I can uh I'll start that and I'll I'll flip it over to Derek, you know? And um, what we're seeing is that everybody that has a Time Charter now is, is certainly eager to hold on to it. And and then you, you know, you you can get a a healthy rate for a shorter period. But as you go longer, um, I think the volatility starts to come in and and

Derek Solon: Lois, I agree with you. I think, you know, Liam, like Lois said in her remarks, we're eager to look for longer-term charters, you know, longer than a year certainly, in this kind of spot environment. You know, the 2 or 3-year numbers are considerably lower than what we're seeing for the 1-year number and in the spot market. Our preference, you know, until we see stronger rates in the longer run, would be to stay where we are in the spot for a while.

People are a little bit anxious to fix 3 year deals. But what do you think Derek?

well, I agree with you, I think um,

You know, Liam like Louis said, in her remarks or eager to look for longer term Charters, you know, longer than a year certainly uh in this kind of spot environment. And so you know the the the 2 or 3 year numbers are considerably lower than what we're seeing. Uh

Liam Burke: Great.

Derek Solon: When we do see, you know, outside the MRs, when we do see rates that we like for longer term, like Lois mentioned in her remarks, put a Suezmax away for 3 years at a pretty healthy number.

For the 1 year number and in the, in the stock market. So our preference, you know, until we see stronger rates in the longer run, would be to stay where we are in the spot for a while.

Great, but when we do see, you know, outside the Mrs. When we do see rates that we like for longer term, like Louis mentioned in her remarks, but as soon as Max will wait for 3 years at a pretty healthy number,

Liam Burke: Great. Thank you.

Lois K. Zabrocky: Thank you, Liam.

Lois Zabrocky: Thank you, Liam.

Great. Thank you.

Thank you, Liam.

Operator: Your next question comes from the line of Gregory Lewis from BTIG.

Gregory Lewis: Yes. Hi, good morning, thanks for taking my questions. Hey, great quarter. You know, I did wanna talk a little bit about the dividend. I mean, that was eye-popping. You know, Lois Zabrocky and Jeff Pribor, over the last couple years, you've done a good job of, you know, the balance sheet looks great. You know, we've sold some older vessels. We've kind of positioned the company very well. I'm realizing that we're definitely gonna keep part of the special dividend as part of the return to cash to shareholders. Are we looking or have we thought about maybe potentially increasing the, you know, the kind of the small, I don't know, I guess we refer to it as the permanent dividend?

Greg Lewis: Yes. Hi, good morning, thanks for taking my questions. Hey, great quarter. You know, I did wanna talk a little bit about the dividend. I mean, that was eye-popping. You know, Lois Zabrocky and Jeff Pribor, over the last couple years, you've done a good job of, you know, the balance sheet looks great. You know, we've sold some older vessels. We've kind of positioned the company very well. I'm realizing that we're definitely gonna keep part of the special dividend as part of the return to cash to shareholders.

And your next question comes from the line of Greg Lewis from btig. Your line is open.

Hey, great, great quarter. Um, you know, I I did want to talk a little bit about the dividend I mean that that was I popping um, you know, Louis and Jeff over the last couple years, you've done a good job of you know the balance sheet looks great.

Greg Lewis: Are we looking or have we thought about maybe potentially increasing the, you know, the kind of the small, I don't know, I guess we refer to it as the permanent dividend? Has there been thoughts with the board about potentially raising that up just given the fact that we've kind of put the fleet on a much, I don't know, firmer or better footing?

Gregory Lewis: Has there been thoughts with the board about potentially raising that up just given the fact that we've kind of put the fleet on a much, I don't know, firmer or better footing?

Uh, you know, we've sold some older vessels. We've kind of positioned the company very well. Um, realizing that we're definitely going to keep part of the special dividend as as part of the return. The cash, the shareholders, are we looking or have we thought about maybe potentially increasing the the, uh, you know, the, the kind of the, the, the, the the small. I don't know, I guess we refer to it as the the permanent dividend is is there been Thoughts with the board about potentially raising that up? Just given the fact that we've kind of put the fleet on a much

I don't know, firmer or better footing.

Jeffrey D. Pribor: Yeah. Hey, Greg. It's Jeff. We were just reflecting the other day as we got ready for this release and call that dividend started at $0.06 a quarter, then we raised it to $0.12. You know, that was in an era where there wasn't much net income. We said, let's put out an amount that is, as you say, permanent, that we're confident through the cycle. We've had a fortunate circumstance of being in the market that's allowed us to pay, you know, a lot more than that. What we've really focused on is the variable component, where we wanted to be consistent and consistently raising it.

Jeff Pribor: Yeah. Hey, Greg. It's Jeff. We were just reflecting the other day as we got ready for this release and call that dividend started at $0.06 a quarter, then we raised it to $0.12. You know, that was in an era where there wasn't much net income. We said, let's put out an amount that is, as you say, permanent, that we're confident through the cycle. We've had a fortunate circumstance of being in the market that's allowed us to pay, you know, a lot more than that. What we've really focused on is the variable component, where we wanted to be consistent and consistently raising it.

Jeffrey D. Pribor: You know, what you saw this time is a message that we are at 85% net income, you know, on a 25-year basis. Anecdotally, that's probably close to 100% on a 20-year depreciation basis. We're at 85% on a 25-year basis, and you should expect that. Now, I think you raise a good point. That $0.12, no one's really thinking about it right now when you have such a high amount of net income. The 85% is way more than that, right? I mean, obviously.

Jeff Pribor: You know, what you saw this time is a message that we are at 85% net income, you know, on a 25-year basis. Anecdotally, that's probably close to 100% on a 20-year depreciation basis. We're at 85% on a 25-year basis, and you should expect that. Now, I think you raise a good point. That $0.12, no one's really thinking about it right now when you have such a high amount of net income. The 85% is way more than that, right? I mean, obviously.

Yeah. Hey Greg, uh, this is Jeff. Uh, we were just reflecting the other day as we got ready for this uh, release and call that, that that that dividend started at 6 at the quarter, and then we raised it to 12 cents, you know, and that was in an era where there wasn't much net income. But we said, let's, let's put out a an amount that is, as you say permanent that we're confident through the cycle. And then we've had a fortunate circumstance of of the, the, uh, being in the market. That's allowed us to pay, you know, a lot more than that. And what we really focused on on, is the variable component, where we wanted to be consistent, but, and cons

Gregory Lewis: Right

Greg Lewis: Right

Jeffrey D. Pribor: 455 right now. Over time, I think that's something we'll look at as the company gets bigger and we feel that the what we can afford permanently. You know, 'cause there will eventually be a down cycle, right?

Jeff Pribor: 455 right now. Over time, I think that's something we'll look at as the company gets bigger and we feel that the what we can afford permanently. You know, 'cause there will eventually be a down cycle, right?

Gregory Lewis: Yeah

Greg Lewis: Yeah

Jeffrey D. Pribor: You know, I think you raised a good point. It is something we think about. This quarter we didn't want to confuse the message.

Jeff Pribor: You know, I think you raised a good point. It is something we think about. This quarter we didn't want to confuse the message.

Lois K. Zabrocky: Right.

Lois Zabrocky: Right.

Jeffrey D. Pribor: You know, we wanted to stay on message. 85%.

Jeff Pribor: You know, we wanted to stay on message. 85%.

Lois K. Zabrocky: There you go.

Lois Zabrocky: There you go.

Jeffrey D. Pribor: is the expectation. Because of market conditions and because of our strong balance sheet, thank you for mentioning it, and then the liquidity that we have, we had the ability to pay some more. We thought, you know, this is a market where you should share with your owners. We didn't want to go away from the 85%. We want to be consistent there. The expectation is clear. Because we're in good market conditions and excellent balance sheet, excellent liquidity, we added on a discretionary amount. Your point's valid. All stuff we think about.

Jeff Pribor: is the expectation. Because of market conditions and because of our strong balance sheet, thank you for mentioning it, and then the liquidity that we have, we had the ability to pay some more. We thought, you know, this is a market where you should share with your owners. We didn't want to go away from the 85%. We want to be consistent there. The expectation is clear. Because we're in good market conditions and excellent balance sheet, excellent liquidity, we added on a discretionary amount. Your point's valid. All stuff we think about.

System of erasing it. And, you know, when you saw this time is a message that, uh, we are at 85% of the income, you know, on a 25 year basis and it totally. That's probably close to 100% on a 20 year depreciation basis, but we're at 85% on a, on a, on a 25 year basis and you should expect that. Now, I think you raised a good point, uh, that 12 cents. No 1's, really thinking about it right now, when when you have such a high amount of income that 85% is, is way more than that, right? I mean, obviously write 4.55 right now, but but over time I think that's something we'll look at as the company gets bigger and we feel that the, the the, what we can afford permanently, you know, because there will eventually be a down cycle, right? So, yeah, you know, I think I think you got you raised a good point, is something we think about, but this quarter, we didn't want to confuse the message, right? You know, we wanted to stay on message. 85% is the expectation.

Gregory Lewis: Okay, great. Then Lois, maybe on the market, I mean, clearly the market's good, or great. I was kind of curious though around kind of maybe what you're hearing or seeing regarding the dark fleet, right? You know, I know that the US removed or temporarily lifted a ban on some sanctions of like the vessels that I guess were previously in the dark fleet. Is there any way to kinda track or think about those vessels, in terms of, I guess a couple things.

Greg Lewis: Okay, great. Then Lois, maybe on the market, I mean, clearly the market's good, or great. I was kind of curious though around kind of maybe what you're hearing or seeing regarding the dark fleet, right? You know, I know that the US removed or temporarily lifted a ban on some sanctions of like the vessels that I guess were previously in the dark fleet. Is there any way to kinda track or think about those vessels, in terms of, I guess a couple things.

But because of market conditions, and because of our strong biology, thank you for mentioning it. And then the liquidity that we have, we have the ability to pay some more. So we thought, you know, this is a market where you should share it with with your, with your owners. So we want to, we didn't want to go away from the 85% 1, the consistent there, the expectation is clear, but because we're, we're in, good good, good marketing conditions at x and balance. The Excel liquidity, we added on a discretionary right now, so but your point is valid all stuff. We think about

Gregory Lewis: One is, you know, as the Iran war has happened and maybe some of these vessels sanctions are lifting, have those vessels Have we-- I mean, have there been maybe better utilization or efficiency of those vessels? Maybe it's still too early to be talking about this, but in a, you know, eventually this war will be resolved, and when this war is resolved, you know, just given the fact that the waived sanctions, has there been any thoughts around what happens to those vessels that have been, you know, consistently in the dark fleet?

Greg Lewis: One is, you know, as the Iran war has happened and maybe some of these vessels sanctions are lifting, have those vessels Have we-- I mean, have there been maybe better utilization or efficiency of those vessels? Maybe it's still too early to be talking about this, but in a, you know, eventually this war will be resolved, and when this war is resolved, you know, just given the fact that the waived sanctions, has there been any thoughts around what happens to those vessels that have been, you know, consistently in the dark fleet?

Okay, great. And then, and then Louis, may maybe on the market. I, I mean, clearly the Market's good, um, are great. Um, I I was kind of curious though around kind of maybe what you're hearing or seeing regarding the the dark Fleet, right? I, you know, I know that the US removed or temporarily lifted a ban on some sanctions of like vessels that, I guess were previously in in the dark Fleet is, is there any way to kind of, kind of track or or or think about those vessels? Um, in terms of I guess a couple things 1 is, you know, as the Iran wars happened and maybe some of these vessels sanctions of lifting. Have those vessels have? We I mean and have have there been maybe better utilization or efficiency of those vessels and and in a um and maybe it's still too early to be talking about this but in a, you know, in a eventually this war will be resolved and when this war is

Lois K. Zabrocky: I'm gonna start that reply, and then I'll have Derek jump in.

Resolved, you know, just given the fact that the wave sanctions has. There been any thoughts around what happens to those vessels that have been you know, consistently in the dark Fleet

Lois Zabrocky: I'm gonna start that reply, and then I'll have Derek jump in.

Gregory Lewis: Great.

Greg Lewis: Great.

Lois K. Zabrocky: For sure, we put a lot of thought into the dark fleet and getting them to go away, right, from the markets entirely. You know, you're certainly seeing heightened interest from our administration on the dark fleet. I think this temporary relief to deliver cargoes to reduce the impacts of the Hormuz closure is very temporary. We still think there's a very high inefficiency rate on the dark fleet. Derek, correct me if I'm wrong, but most of the VLCCs, of which there's more than 150 now that are sanctioned, which are largely due to the Iranian situation, are over 20 years.

Lois Zabrocky: For sure, we put a lot of thought into the dark fleet and getting them to go away, right, from the markets entirely. You know, you're certainly seeing heightened interest from our administration on the dark fleet. I think this temporary relief to deliver cargoes to reduce the impacts of the Hormuz closure is very temporary. We still think there's a very high inefficiency rate on the dark fleet. Derek, correct me if I'm wrong, but most of the VLCCs, of which there's more than 150 now that are sanctioned, which are largely due to the Iranian situation, are over 20 years.

So, I'm gonna I'm gonna start, um, that reply and then I'll have Derek jump in. So for sure, we put a lot of thought into the dark Fleet and uh, and getting them to go away, right? From the markets entirely. Um, you know, you're, you're certainly seeing a heightened interest from our Administration on the dark Fleet. And, and I think this temporary

relief to deliver cargos to, um,

Redo.

uh, the impacts of

The hormones closure is very temporary.

Derek Solon: A good portion of them, Lois, are over 20 years. To your question on are we seeing increased utilization of the dark fleet, that answer is still no, right? One, like Lois just said, they're a lot older, so their efficiency rate, their utilization rate is quite low. Two, now there's increased pressure from the US administration on these ships, so they're not getting a lot, even before the Iran war. We haven't seen them. They're active, but they're not running at the utilization that, say, Tankers International is, right? What happens to them long term? It's an easy way to say, you know, they'll all quickly find their way to be recycled. That will probably take some time, but they'll run out of work, right?

Which there's more than 150. Um, now that are sanctioned uh which are are largely uh, due to the Iranian situation are over 20 years

a good portion of the laws are over 20 years, so,

uh,

to your question on. Are we seeing increased utilization of the of the dark Fleet that answer is still no.

Like low. As you said, there are a lot older. So they're, they're efficiency rate. Uh, they're utilizing rate is quite low and 2. Now, there's increased pressure from

The US administration on these ships, so they're not getting a lot even before the—uh—even before the Iran War. So,

We haven't seen them.

So they're active, but they're not running at the utilization that they tankers International is.

Right. And then what happens to them, long term.

Derek Solon: If, if the sanctions bite harder, the US administration pays more attention to them on the VLCCs or if the EU pays more attention to sanction ships in some of the smaller fleets, smaller segments of the fleet, they'll run out of work to do. You know, where they enter us on a competitive basis will be, will have less impact on our markets for sure.

It's an easy way to say, you know, they'll I'll quickly find their way to be recycled. That will probably take some time, but they'll run out of work.

Right. If, um, if the sanctions bite harder, the US Administration, pays more attention to them on the blc's or if the EU pays more attention to sanction shifts and some of the smaller smaller segments of

they'll run out of work to do so, you know, from a

Where they enter us in a competitive basis will be uh we'll have less impact on our markets.

Gregory Lewis: Super helpful. Thank you very much.

Greg Lewis: Super helpful. Thank you very much.

Lois K. Zabrocky: Thank you.

Lois Zabrocky: Thank you.

Super helpful. Thank you very much.

Derek Solon: Thanks, Greg.

Thank you.

Thanks Greg.

Operator: Your next question comes from the line of Christopher Robertson from Deutsche Bank. Your line is open.

Christopher Robertson: Thank you, operator. Good morning, Lois and Jeff. Thank you for taking my questions.

Chris Robertson: Thank you, operator. Good morning, Lois and Jeff. Thank you for taking my questions.

And your next question comes from the line of Chris Robertson from Deutsche Bank. Your line is open

Lois K. Zabrocky: Thank you. Good morning.

Lois Zabrocky: Thank you. Good morning.

Thank you, operator. Good morning, Louis and Jeff. Thank you for taking my questions.

Christopher Robertson: Just have a question around as ships reposition and ballast from the Mid East over to the US Gulf to load some cargoes here, especially the larger ships, the VLCCs and such, what's your view around your own lightering business and activity, prospects there? Just general thoughts about lightering operations, that could be impacted here as a lot of ships come over this way, and what types of inefficiencies could be brought into the system because of that?

Chris Robertson: Just have a question around as ships reposition and ballast from the Mid East over to the US Gulf to load some cargoes here, especially the larger ships, the VLCCs and such, what's your view around your own lightering business and activity, prospects there? Just general thoughts about lightering operations, that could be impacted here as a lot of ships come over this way, and what types of inefficiencies could be brought into the system because of that?

Thank you. Good morning.

I'm just have a question around as ships, reposition and, and ballots from the Middle East, over the US Gulf to load, some carros here, especially the the larger ships, the vcc's, and such. What's your view around your own lightering business and activity uh prospects there. But just general thoughts about lightering operations. Um that could be impacted here as as a lot of ships, come over this way. And what types of inefficiencies could be brought into the system because of that

Lois K. Zabrocky: Chris, you know, I'll flip to Derek on that. You know, I would say, Q1 was, you know, somewhat negatively impacted by the incredible volatility and changing in the scramble for where's the crude gonna go, what ship is it gonna go on? We're seeing that change into Q2.

Lois Zabrocky: Chris, you know, I'll flip to Derek on that. You know, I would say, Q1 was, you know, somewhat negatively impacted by the incredible volatility and changing in the scramble for where's the crude gonna go, what ship is it gonna go on? We're seeing that change into Q2.

Chris, you know, um, I'll flip to Derek on that, you know, I would say, um, q1 was, you know, somewhat negatively impacted by the incredible volatility and changing in the Scramble, for what? What kind of, where's the crude going to go? What ship is it going to go on and we're seeing that change into Q2?

Derek Solon: Yeah, Lois, that's right. Chris, at the start of the kickoff of the Iran war in March, there was this scramble for barrels, right, to replace everything that was coming out of Hormuz. STS activity in the Gulf actually suffered a little bit because the charters wanted to get oil as fast as they could onto any hull that they could. This concept of trying to line up several Aframaxes and a VLCC for lightering, for instance, there was no time for that in the immediate aftermath of the war. Just like you said, hard to say they've calmed down, right? As we're starting to get a new sense of normal in this war, in this current war, now you're starting to see the lightering line up.

Yeah. Louis, that's right. So Chris, um, at the start of the, the kickoff of the, uh,

Iran War in March. Um, there was this Scramble for barrels, right to replace everything. That was coming out of foremost. So

STS activity in the Gulf actually, suffered a little bit because

You wanted to your charterers wanted to get.

Oil as fast as they could onto any hole that they could. So this concept of trying to line up several apps in a PLC for lightering, for instance, there was no time for that in the immediate aftermath of the war, but just like you said, as things

Hard to say they've come down. Right. But um, as we're starting to get a new sense of normal in this War, uh, in this current War.

Derek Solon: You know, in Q2, it's early May, we already have more jobs booked for Q2 than we had for Q1, right? We still have more than half a quarter to go. Exactly to your point, we're seeing a lot more lightering inquiry and a lot more work for our Lightering LLC subsidiary.

Now, you're starting to see the lightering line up. You know, in Q2, it's early May—we already have more jobs booked for T2 than we had for Q1, right? And we still have more than half a quarter to go. So, exactly to your point, we're seeing a lot.

A lot more lightering inquiry and a lot more work for our uh lightering LLC subsidiary.

Christopher Robertson: Got it. That's helpful. Do you have any thoughts just around, you know, we're always talking about barrel substitution obviously as a starting point, but there's also congestion that happens in the system and ton mile impacts, all these types of things. On this front, as there's more lightering business and as these larger ships get lined up and there has to be this process, what does that do in terms of removing some effective capacity from the larger system?

Chris Robertson: Got it. That's helpful. Do you have any thoughts just around, you know, we're always talking about barrel substitution obviously as a starting point, but there's also congestion that happens in the system and ton mile impacts, all these types of things. On this front, as there's more lightering business and as these larger ships get lined up and there has to be this process, what does that do in terms of removing some effective capacity from the larger system?

Got it. That's that's helpful. And then, do you have any thoughts just around? Um, you know, we're always talking about Barrel substitution obviously as a starting point but um, there's also congestion that happens in the system and and time Mi impacts, all these types of things. So on this front as there's more lightering business. And as these larger ships, get lined up and and there has to be this process. What does that do in terms of removing some effective capacity from the larger system?

Derek Solon: That's a great question. Thank you. I, you know, when we, when we start to line things up in terms of logistics and STS, you don't want it to become too efficient or that whole process, it doesn't make sense, right? We're seeing delays on other, in other ways, though, not necessarily just not through STS right now, but just as you said, general port congestion. We're seeing that now, but when we're in terms of loading ports, when we're really gonna see it in terms of congestion and suffer utilization is when Hormuz opens, and a lot of those ships that are laden with oil make their way to Asia. That will be ultimately a good thing for the economy and for the world. It's gonna take a long time for all those ships to discharge.

That's a great question. Thank you. So I you know,

when we, when we start to align things up in terms of logistics and FTS, you don't want it to

Derek Solon: We're seeing that now, but when we're in terms of loading ports, when we're really gonna see it in terms of congestion and suffer utilization is when Hormuz opens, and a lot of those ships that are laden with oil make their way to Asia. That will be ultimately a good thing for the economy and for the world. It's gonna take a long time for all those ships to discharge. That inefficiency that you're speaking about, I think we'll see actually a lot more post-port than we're seeing today.

To become too efficient or, or that, that whole process, it doesn't, it doesn't make sense, right? Um, we're seeing delays on other on other ways, though. Not necessarily just do not do STS right now, but just, as you said, General Port congestion, and we're seeing that now, but when we're in terms of loading ports, when we're really going to see it,

Suggestion and a tougher utilization.

Is when hormones opens and a lot.

Of ships that are Laden with.

Oil makes its way to Asia.

That will ultimately be a good thing for the economy, and for the world.

Derek Solon: That inefficiency that you're speaking about, I think we'll see actually a lot more post-port than we're seeing today.

But it's going to take a long time for all those ships to discharge. So that that inefficiency that you're speaking about, I think we'll see actually a lot more postport that we're seeing today.

Christopher Robertson: That's helpful. Thank you. I'll turn it over.

Chris Robertson: That's helpful. Thank you. I'll turn it over.

That's all helpful. Thank you. I'll turn it over.

Operator: Your next question comes from the line of Omar Nokta from Clarksons Securities. Your line is open.

Omar Nokta: Thank you. Hi, Lois and Jeff, and Derek. You know, perhaps maybe to you, Derek, on this 'cause you brought up that point about a reopening scenario. I did wanna ask maybe just on that, how do you think in a potential reopening, I guess it's probably not so simple to assume we'll go back to how things were, at least not initially. As we kind of think about a reopening scenario for Hormuz and your fleet makeup, you know, how do you see the segments kind of getting affected? Is there a clear winner in terms of vessel class? Then how do you prepare for that?

And your next question comes from the line of Omar NACA from Clarkson Securities. Your line is open.

Thank you. Hi, Lois and Jeff. Um, and Derek maybe just

Perhaps maybe to you Derek on this kind of you brought up that point about a reopening scenario. I did want to ask maybe just on that. How do you think in a in a potential reopening? And I guess it's probably not so simple to assume, we'll go back to how things were at least, not initially. But as we kind of think about a reopening scenario for home hormones and your Fleet makeup. How do you see the the segments kind of getting affected? Um, is there a clear winner in terms of vessel class? Um, and then how do you prepare for that?

Derek Solon: That's a great question. If I were to start, Omar, you know, I'd say the start of this war has impacted every vessel class separately, right? It started on the VLCCs running up massively as soon as Hormuz closed, as anybody in the Atlantic was or anybody outside of the AG was getting any barrel that they could. Then the scramble went down to the smaller crude segments where you saw the Afras in the Suez really start to run because nobody wanted to wait for a 2 million barrel stem. Then it really hit the MRs really well, and you see the kind of numbers that the MR market and that International Seaways is putting up. As Hormuz starts to open, you know, I think we'll see, I think we'll see a little bit of a saddle, right?

Oh, that's a great question. So um,

If I were to start Omar, you know, I'd say the start of this war has impacted every vessel class separately, right? It it started on the vcc's.

Running up massively. As soon as Hormuz was closed, anybody in the Atlantic was getting, or anybody outside of the AG, was getting any barrel that they could. Then the scramble went down to the smaller crude segments, where you saw the Aers in the suez, really start to run because nobody wanted to wait for a 2 million barrel stem.

and then,

It really hit the Mrs. Really, really well. And you see the, the kind of numbers that, that the Mr market, and that International seaways is putting up as horror movies starts to open

You know, I think we'll see.

Derek Solon: Right now we're in the high part of it. If, you know, as Hormuz stays closed and we start to see pure Atlantic basin barrels, you know, that could start to trend down. When it opens back up, Omar, I think that's gonna be really good for us. You've got more ships able to call AG. You've got a lot more barrels flowing out of there. That's a good thing. You've got this sort of inefficiency when all the ships start to get to Asia like that we just talked about on the previous question. Prior to the war, the kind of thing hanging over the tanker market was heavy stocks. We've eaten into those stock levels now because of the Hormuz closure.

I think we'll see, uh, a little bit of a saddle, right? So right now we're in the high part of it. Um,

and then if you know, that's where most stays closed and we start to see fewer Atlantic Basin barrels, you know that could start to Trend down, but when it opens back up Omar, I think that's going to be really good for us. You've got more ships, able to call Ajay, uh, you got a lot more barrels, going out of there. That's a good thing. You've got this sort of inefficiency when all the ships start to get to Asia like that we just talked about on the, on the previous question and

Derek Solon: Prior to the war, the kind of thing hanging over the tanker market was heavy stocks. We've eaten into those stock levels now because of the Hormuz closure. You know, given this push for supply chain resiliency, I think we'll start to see people build up stocks quickly. I think that'll benefit the crude market most in the beginning once Hormuz opens.

Derek Solon: You know, given this push for supply chain resiliency, I think we'll start to see people build up stocks quickly. I think that'll benefit the crude market most in the beginning once Hormuz opens.

The prior to the war, the kind of thing, hanging over the tanker Market was Heavy stocks. We've eaten into that stock NOW into those stock levels now, because of, because of a, uh, the former disclosure and

you know, given this this, um,

push for supply chain resiliency. I think we'll start to see people build up stocks quickly. So I think that'll benefit, uh, the crude Market most in the beginning, once more is open.

Omar Nokta: Thanks, Derek. I appreciate that. I know it's a very complicated dynamic, but it seemingly makes, you know, that makes sense. I guess we could think about, you know, could the Middle East then be offering a premium, right, to drag those ships away from the Atlantic? I guess the other question I had is kind of on the operational or commercial performance. The MRs especially look very strong at $76,000 here in Q2 for the first 43%. It's a bit better than what we have seen, I guess, in terms of, say, peer averages or market indexes. What would you chalk that up to? Is that a result of some kind of triangulation? Is it actually possible to triangulate in this market? Is it how your fleet's deployed?

Thanks, Derek. I appreciate that. I know, it's a very complicated Dynamic, but it seemingly makes, you know, that that makes sense. And I guess we could think about, you know, could the Middle East, then be offering a, a premium right to drag those ships away from the Atlantic? Uh, I guess the other question I had is kind of on the operational or commercial performance. Uh, the Mrs, especially look very strong at 76,000 here in the second quarter for the first 43%. It's a bit better than what we have seen. I guess in terms of say, peer averages or or Market indexes, uh,

Omar Nokta: Any kind of color you can give on such a strong result so far on the MRs?

Lois K. Zabrocky: I mean, you know, Omar, it's, you know, where were you available? Where do you concentrate your trading? We were advantageously positioned.

Lois Zabrocky: I mean, you know, Omar, it's, you know, where were you available? Where do you concentrate your trading? We were advantageously positioned.

I would—what would you chalk that up to? Is that a result of some kind of trade triangulation? Is it actually possible to triangulate in this market? Is it how your fleet's deployed? But any kind of color you can give on such a strong, uh, result so far on the MRs.

I mean, you know, Omar, it's um, were you where were you available? Where do you? Um, concentrate your trade and, and we were advantageously positioned.

Derek Solon: That's right, Lois. I think a lot of it in the kickoff of the war was where were you when it started and when did you load? With our MR pools, one of them is heavily focused on the Americas trade, that was very beneficial post-Iran war to be in the Americas where the markets completely skyrocketed. I mean, we had fixtures with Demurrage at over $150,000 a day for an MR tanker, right? The Americas is where it started on the MR side. That brought up the European trade as well. You know, funny enough, even now, Asia is starting to come up on the MR market, which we kind of thought would just be a sync of product. Now, China has approved some exports.

That's right. Louis, I think um,

A lot of it in the, the kickoff of the war was where were you? Uh, when it started. And when did you load? Um,

With our mrr pools, 1 of them is heavily focused on the America's trade and that was very beneficial. Uh, close to random work to be in in the Americas where uh the markets completely skyrocketed. I mean we had

Derek Solon: You know, funny enough, even now, Asia is starting to come up on the MR market, which we kind of thought would just be a sync of product. Now, China has approved some exports. From an MR market standpoint, a lot of the ships left Asia to come over to the Americas, so now they're undersupplied in tonnage. Having a strong base starting in the Americas was very, very beneficial for us. I think having that diversification in our other pool will be beneficial as the months tick on.

In trade as well. And you know, uh, funny enough even now

Derek Solon: From an MR market standpoint, a lot of the ships left Asia to come over to the Americas, so now they're undersupplied in tonnage. Having a strong base starting in the Americas was very, very beneficial for us. I think having that diversification in our other pool will be beneficial as the months tick on.

Europe. Uh, sorry. Asia is starting to come up on the Mr Market. Which we kind of thought would just be a sink of product now, China's has approved some exports and from an mrr Market standpoint, a lot of the ships left Asia to come over to the Americas. So now they're under Supply in punish

So having a strong base starting in the Americas was very, very beneficial for us. I think having that diversification, uh, in our other pool will be beneficial as the months take on.

Omar Nokta: Yeah. Thank you. Very helpful. Appreciate the color. I'll turn it back.

Why?

Thank you. That was very helpful. I appreciate the color. I'll turn it back.

Operator: Thank you. And once again, if you do have a question, please press star one on your telephone keypad. Your next question comes from the line of Stephanie Moore from Jefferies. Your line is open.

Thank you. And once again, if you do have a question, please press star 1 on your telephone keypad. Your next question comes from the line of Stephanie Moore from Jeffrey's. Your line is open.

Stephanie Moore: Hi. Thank you for the question. I appreciate the color on the dividend and your priorities here. Maybe taking a step back and looking at general capital allocation priorities, would love to get your thoughts in terms of appetite for buybacks here and then also, you know, any thoughts on M&A. There's, you know, some movements in the space or rumored movements, just curious, you know, general appetite as well. Thank you.

Hi, thank you for the question.

Jeffrey D. Pribor: Well, first, Stephanie, Lois and I and the team would like to welcome you to the research coverage universe for International Seaways. Happy to have you on board.

Jeff Pribor: Well, first, Stephanie, Lois and I and the team would like to welcome you to the research coverage universe for International Seaways. Happy to have you on board.

I want I appreciate the the color on on the dividend and your priorities here, but maybe taking a step back and and looking at General Capital, allocation prior priorities would love to get your your thoughts in terms of appetite for for BuyBacks here. And then also, you know, any thoughts on m&a, this, you know some movements in the space or rumored movements so just curious, you know General appetite as well. Thank you.

Stephanie Moore: Thank you.

Well first Stephanie uh we'd like wellis and I and the team would like to welcome you to the research coverage Universe uh for international Seaway. So happy to have you on board.

Jeffrey D. Pribor: No pun intended. Capital allocation, our favorite topic. Yeah, I mean, you know, we are to recap, we have over the course of this good market period, delevered as much as we want to delever. You know, ship values keep going up, so even without paying down additional debt, we delever a little more. Now, we are taking on some really high quality debt this year with the ECA financing for LR1, so we'll probably tick up a little bit. That's one of the reasons we were able to have such a high dividend, including the discretionary piece this quarter, was that we're levered enough. We also found ourselves with the other pillar of capital allocation is fleet renewal.

Jeff Pribor: No pun intended. Capital allocation, our favorite topic. Yeah, I mean, you know, we are to recap, we have over the course of this good market period, delevered as much as we want to delever. You know, ship values keep going up, so even without paying down additional debt, we delever a little more. Now, we are taking on some really high quality debt this year with the ECA financing for LR1, so we'll probably tick up a little bit. That's one of the reasons we were able to have such a high dividend, including the discretionary piece this quarter, was that we're levered enough. We also found ourselves with the other pillar of capital allocation is fleet renewal.

Thank you.

Pun intended.

Um,

Jeffrey D. Pribor: That the principal pillar of fleet renewal for us in 2026 is the LR1, the 4 LR1s out of the 6 LR1 program, delivering this year. As mentioned, they're really well-financed. The capital allocation in Q2 that we need for that is only $6 million. Therefore, we were able to think about and to announce today additional returns to shareholders on top of that consistent 85% that we're telling the market to expect. Did we look at share repurchases as well? Yes, we have a share repurchase program. We use it from time to time.

Jeff Pribor: That the principal pillar of fleet renewal for us in 2026 is the LR1, the 4 LR1s out of the 6 LR1 program, delivering this year. As mentioned, they're really well-financed. The capital allocation in Q2 that we need for that is only $6 million. Therefore, we were able to think about and to announce today additional returns to shareholders on top of that consistent 85% that we're telling the market to expect. Did we look at share repurchases as well? Yes, we have a share repurchase program. We use it from time to time.

So, Capital allocation our favorite topic. Yeah, I mean, uh, we have, you know, we, we are to to recap we have over the course of the, this good Market period de-lever as much as we want to deliver, uh, you know, ship values keep going up. So even without paying down additional debt, we deliver a little more. Now, we are taking on some really high quality debt this year with with the, uh, ECA financing for lr1. So we'll probably tick up a little bit, but that's 1 of the reasons. We were able to have such a, a high dividend quiz, the discretionary, uh, piece. This this quarter was that we're deliberate enough. We also found ourselves, looking with the other pillar of capital allocation is Fleet renewal, um, that the principal pillar of Fleet and rule for us in. 2026 is the lr1. The 41's are the 6, LR 1 program, uh, delivering this year. But, uh, as mentioned, they're they're, they're really well financed. Uh, and

So the, the the capital, allocation in the second quarter that we need for that is only million dollars.

So therefore we were able to uh think about and to announce today additional returns to shareholders on top of that, consistent 85%, that we're that we're uh, telling the market to expect. Um,

Jeffrey D. Pribor: You know, I would say that at the levels of share price where we are, NAV keeps moving up, but we're grateful that our share price is moving up with it and beyond, perhaps beyond it. I think that I know that we when we looked at a discretionary additional return, we leaned into more dividend rather than share repurchase, although the tool was always there. I think for right now, that's what we see is probably the consistent payout ratio.

Jeff Pribor: You know, I would say that at the levels of share price where we are, NAV keeps moving up, but we're grateful that our share price is moving up with it and beyond, perhaps beyond it. I think that I know that we when we looked at a discretionary additional return, we leaned into more dividend rather than share repurchase, although the tool was always there. I think for right now, that's what we see is probably the consistent payout ratio.

Did we look at Sherry purchases as well? Yes, we have a share of a purchase program. Uh, we use it from time to time, you know, I would say that at the, the, the levels of of share price Where We Are

Jeffrey D. Pribor: With additional cash, it's optionality or a high returning, you know, if there's a return on that cash in terms of a growth, whether you call it M&A or ship purchases that meets our criteria, that's one option. You know, or other return, additional returns to shareholders. Now, I don't know if you just want to talk about M&A generally. Always looking for good M&A, Stephanie, but.

Jeff Pribor: With additional cash, it's optionality or a high returning, you know, if there's a return on that cash in terms of a growth, whether you call it M&A or ship purchases that meets our criteria, that's one option. You know, or other return, additional returns to shareholders. Now, I don't know if you just want to talk about M&A generally. Always looking for good M&A, Stephanie, but.

Nav keeps moving up, but but we're grateful that our share price is moving up with it and and the perhaps Beyond it. So, I think that, uh, I know that we, when we looked at our discretionary additional return, we we we leaned into to, to more dividend rather than share our purchase. Although the tool was always there. So, I think as for the foreseeable for right now, uh, that that's what we we see is probably the consistent payout ratio. And, uh, with with additional cash, it's it's it's optionality for a high returning. Um, you know, if there's a a return on that cash in, in terms of, uh, uh, a growth, whether you call it m&a, or or or ship purchases, that that meets our criteria, that's when option, you know, or other return additional returns to shareholders. Now, I don't know if you just want somebody to m&a generally,

always looking for good m&a, Stephanie but

Stephanie Moore: Got it. Well, appreciate the additional color. Good to be on the call, and I'll leave it at that. Thanks, everybody.

Jeffrey D. Pribor: Thank you.

Lois Zabrocky: Thank you.

Well, appreciate the additional color. Um it's good to be on the call and I'll leave it at that. Thanks everybody.

Thank you.

Operator: Thank you. With no further questions, I will turn the call back over to Lois K. Zabrocky.

Lois K. Zabrocky: We want to thank everybody for joining International Seaways call today. I'm just going to conclude with, you know, in our ten-year history, you know, our first major focus during leaner market times was getting bigger, getting more modern. We paid down debt along our journey and focusing on that. All of that has brought us to today where we're declaring $4.55 per share for our shareholders. We really appreciate everybody for sticking with us. Thank you so much.

Lois Zabrocky: We want to thank everybody for joining International Seaways call today. I'm just going to conclude with, you know, in our ten-year history, you know, our first major focus during leaner market times was getting bigger, getting more modern. We paid down debt along our journey and focusing on that. All of that has brought us to today where we're declaring $4.55 per share for our shareholders. We really appreciate everybody for sticking with us. Thank you so much.

Thank you and with no further questions, I'll turn the call back over to lowest Iraqi.

We really appreciate everybody for sticking with us. Thank you so much.

Operator: Thank you. This does conclude today's conference call. You may now disconnect. Have a great day.

Thank you. And this test concludes today's conference call. You may now disconnect. Have a great day.