International Seaways, Inc. Q4 FY2025 earnings call

• Declared largest ever quarterly dividend of $2.15 per share to be paid in March, having paid over $1 billion in returns to shareholders since 2020. - Consolidating Tankers International by acquiring remaining 50% interest and expanding with Suez Max platform, took delivery of Seaways Gibbs Hill and disposed of older vessels. - In 2026, sold seven older vessels for $216 million, remaining four LR1s to deliver completing new build program. - $50 million share repurchase program in place until end of 2026. - Review capital allocation strategy quarterly with board, liquidity $724 million including nearly $170 million in cash and $560 million in undrawn revolver capacity. - Repaid leases of about $258 million, followed by bond issuance for $250 million. - Net loan to value below 13%, spot cash breakeven rate less than $15,000 per day. - Tanker demand fundamentals solid, oil demand growth healthy, OPEC Plus supplementing production increases, market structure backwardated, geopolitical environment impacts business. - Supply side, enforcement of sanctions supports compliant fleet, order book well below replacement, not enough tankers to cover removal candidates for compliant trade.

Fourth quarter net income was $128 million or $2.56 per diluted share. Excluding special items, adjusted net income was $122 million or $2.45 per diluted share. Adjusted EBITDA was $175 million. TCE revenues from crude and product have been evenly balanced over the past year, with crude segment outperforming products in Q4. In 2026, sold seven older vessels for proceeds of $216 million, remaining four LR1s will deliver completing new build program. Dividend is $2.15 per share, payout ratio 87% of fourth quarter adjusted net income, sixth consecutive quarter with payout ratio at least 75%.

• First quarter 2026 blended average spot TCE about $50,900 per day, 71% of first quarter expected revenue gains. - 2026 breakeven rate about $14,800 per day. - Added a few million dollars per quarter to projected G&A due to consolidating Anchors International, offset by TI commissions as other revenues. - Included quarterly expected off-hire and cap debts for modeling purposes.

• Forward-looking statements subject to risks, uncertainties, and assumptions beyond company's control, could cause actual results to differ materially. - Factors include those described in annual report on Form 10-K for 2025 and other SEC filings. - Geopolitical environment with ongoing and threatened conflicts impacts business. - Enforcement of sanctions affects business, but supports compliant fleet.

Q: William Burke asked about MR partial fixtures for first quarter of 2026, geopolitical factors like EU not importing refined Russian product from India benefiting MRs, logistical factors like less refined products from Turkey and winter weather exacerbating supply issue helping MRs.

A: Lois and Derek Salone responded.

Q: Sharif Al Maghrabi asked about diversified fleet and renewal campaign, and repurchase options on remaining stale leaseback vessels.

A: Lois and Jeff responded.

Q: Omar Nocta asked about VLCC footprint profit share on shell VLCCs and dividend going forward.

A: Derek and Lois, Jeff responded.

Q: Chris Robertson asked about impact of sign-to-court maritime on VLCC segment and further consolidation in industry.

A: Lois responded