International Seaways, Inc.

Hello and welcome to the International CUA's first quarter 2025 earnings conference call. My name is Carla and I will be coordinating your call today. During the presentation, you will have the opportunity to ask questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I would now like to hand you over to the General Counsel James Small to begin. James, please go ahead when you're ready.

Thank you, Operator. Good morning, everyone, and welcome to International Seaway's earnings call for the first quarter of 2025. Before we begin, I would like to start off by advising everyone with us on the call 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 and product tanker markets, changes in trading patterns, forecasts of world and regional economic activity and of the demand for and production of oil and petroleum products, the company's strategy and business prospects, expectations about revenues and expenses, including vessel, charter hire, and G&A expenses, estimated future bookings, TCE rates, and capital expenditures, projected dry dock and off-hire days, vessel sales and purchases, do build vessel construction, the effects of ongoing and threatened conflicts around the globe, 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, anticipated financing transactions and plans to issue dividends, and the company's relationships with its stakeholders. Any such forward-looking statements take into account various assumptions made by management based on a number of factors, including management's experience and perception of historical trends, current conditions, expected and future developments, and other factors that management believes are appropriate to consider in the circumstances. Forward-looking statements are subject to risks, uncertainties, and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from those implied or expressed by the statements. 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 2024 and our quarterly report on Form 10-Q for the first quarter of 2025, 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 Mrs. Lois Zabrocki, our President and Chief Executive Officer. Lois?

Thank you very much, Jane. Good morning, everyone. Thank you for joining International Seaway earnings call for the first quarter of 2025. On slide four of the presentation, which you can find in the investor relations section of our website, net income for the first quarter was $50 million, or $1 per diluted share. Excluding gains on vessel sales, adjusted net income for the first quarter was $40 million, or 80 cents per diluted share. An adjusted EBITDA was $91 million, essentially in line with our previous quarter. During the quarter, we saw month-on-month increases in the rate environment that continued into the second quarter, with our weighted average rate at over $30,000 per day on 45% of our revenue days. Compared to our cash break even, of about $13,500 per day as in the bottom left quadrant of the slide four. It looks to us like we're in for another strong quarter. We ended the first quarter with $673 million in total liquidity, which includes almost $550 million of undrawn revolver capacity. We have just over $600 million in gross debt at the end of the first quarter, which is about 15% net loan to value on our March vessel value. On the upper right-hand side, we already mentioned the swap in our last quarter's earnings call. We swapped two older VLCC plus $3 million in cash for three ECO MRs. A majority of the swap was executed in the first quarter, but due to the timing of these transactions, we had net proceeds of $50 million in the first quarter and net cash outflows for deposits in one MR in the prior quarter of $53 million. We also increased our time charter exposure to lock in fixed revenue. In April, we agreed on a one-year time charter on one of our SUIS maxes to reach $295 million in fixed revenue, most of which comes over the next two years. On the lower right, for the third consecutive quarter, we have announced another dividend representing 75% of our adjusted net income. The combined dividends will be paid in June equating to 60 cents per share. We believe in following through on our intentions to return to shareholders as part of our balanced capital allocation strategy. After returning over $300 million to shareholders in consecutive years, we continue to share in our upside And we remain in position to do so today with our healthy balance sheet and strong tanker environment. Referencing the last bullet on slide four, we also have a repurchase program of up to $50 million. On slide five, 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 development is not positive for tanker demand. Without reading these bullets individually, we pull highlights. Oil production in 2025 and in 2026 is expected to increase by over a million barrels per day. Non-sanctioned OPEX Plus continues to reinforce their output increases which is supportive of VLCC trade. As a result, non-OPEC production may continue to increase their output, and yet they are more sensitive to price fluctuations if the market becomes oversupplied and prices decline. Production from non-OPEC is important for ton-mile demand since much of the growth is expected in the Americas region, supportive of long-haul trades. Oil demand should grow in line with its historical growth rate of 1% or about 1 million barrels per day for the next few years. This takes into account forecasts which have recently dropped by as much as a couple hundred thousand barrels per day due to the ongoing geopolitical environment. With much uncertainty about establishment and enforcement of regulations that affect global trade, there may be a lack of investment that slows the global economy. On the other side of that is the increase in changes to tanker routing that is less efficient and longer haul. This is supportive to our industry. In turn, we may see a forward curve in the crude price that incentivizes storage, which is needed, as you can see in the chart at the bottom left of slide five. OECD inventories have drawn 100 million barrels since August of 2024. which has muted the tanker markets in the short term. As the price curve flattens, as is the case today, we could see some restocking, which is positive for the tanker demand. On the lower right side, I don't think we had a page big enough or an update fast enough to cover the intensity of geopolitical environment. Canadian barrels on the West Coast are shifting a bit more toward a longer haul into Asia. The Red Sea remains on edge and ships are still rerouting to avoid the area. The USTR legislation on Chinese vessels is still uncertain but could create more division in the tanker space. It's too early to predict how these events and others not yet in the headlines can impact the tanker markets over the medium term. On slide six, the supply side continues to support a compelling case for tanker shipping. Tankers currently on order represent 14% of the fleet that deliver over the next four years. And by the time those ships deliver, 47% of the fleet will be over 20 years old, which we identified as the age where generally those ships trade in a different environment. Some charters or some ports may not accept vessels of this vintage. The simplest way to summarize this is that there are not enough ships to replace the current aging fleet. We also saw an increase of recycling in the first quarter, the highest volume of ships since the second quarter of 2022. If vessels continue to recycle, and it's hard to say at any pace since not all ship owners are alike, there may be a shortage of vessels on the water for commercial trading. We believe this should translate into a continued upcycle over the next few years, and seaways remain well positioned to continue capitalizing on these market conditions. We'll continue to execute our balanced capital allocation approach to renew our fleet and to adapt to the ever-changing industry conditions with a strong balance sheet while returning to our shareholders. Now, I'd like to turn it over to our CFO, Jeff Pribor, to provide the financial review. Jeff?