International Seaways, Inc.

Hello, everyone, and welcome to the International Seaway Third Quarter 2025 Earnings Conference Call. My name is Carla, and I will be coordinating your call today. During the presentation, you can register 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 will now like to hand you over to your host, the General Counsel James Small. To begin, please go ahead when you're ready.

Thank you, Operator. Good morning, everyone, and welcome to International Seaway's earnings call for the third 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, forecasts 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, new build vessel construction, special purchases and sales, anticipated and recent financing transactions and plans to issue dividends, the effects of ongoing and threatened conflicts around the world, economic, regulatory, and political developments in the United States and globally, including the impact of protectionist trade regulations, the company's ability to achieve its financing and other objectives and its consideration of strategic alternatives, and a 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 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 companies' actual results to differ from expectations include those described in our annual report on Form 10-K for 2024 and our quarterly reports on Form 10-Q for the first three quarters 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 our President and Chief Executive Officer, Lois O'Brien. Lois?

Thank you so much, James. Good morning, everyone. Thank you for joining International Seawaste Earnings Call for the third 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 third quarter was $71 million. or $1.42 per diluted share. Excluding gains on vessel sales, adjusted net income for the third quarter was $57 million or $1.15 per diluted share with adjusted EBITDA, $108 million. Today, we also announced a combined dividend of 86 cents per share to be paid in December, as you can see in the upper right section of the slide. This is our fifth consecutive quarter with a payout ratio of at least 75%. We continue to believe in building on our track record of returning to shareholders as part of our consistent and balanced capital allocation strategy. We also announced the extension of our $50 million share repurchase program to the end of 2026. And we believe repurchasing shares is an option as an addition to our payout ratio. On the lower left part of the page, we took delivery of two of our six LR1 vessels. The Seaways Alacran delivered in the second half of September and the Seaways Balboa delivered October 30th. In connection with the deliveries, we borrowed $82 million, or $41 million per vessel, on our new Korean export agency-backed financing that we put in place during the quarter. On our last call, we announced the ECA financing for up to $240 million with a blended 20-year amortization profile and a margin of 125 basis points with a 12-year maturity. The balance of the financing will be drawn upon delivery of each new building vessel in 2026, and the company has only $30 million of additional liquidity required to complete the program. During the third quarter, we sold five vessels with an average age above 17 and a half years old for proceeds of $67 million. Another three of our oldest MRs with an average age close to 19 years old have been agreed to be sold in the fourth quarter for proceeds of about $37 million. When these transactions close, we expect to record a gain on the sale. Also in the fourth quarter, we expect to date delivery of our 2020 built scrubber fitted VLCC, which we will utilize our available liquidity to pay the remaining $107 million due since making a deposit of $12 million in the third quarter. Overall, in 2025, through the end of October, we sold eight vessels for proceeds of around $100 million, and we'll be purchasing this eco-modern VLCC in the fourth quarter for close to the same amount. Fleet renewal is always part of our strategy, and we expect to execute sales and purchases throughout the tanker cycle. We continue to work through our time charter book as well. While we did not execute any fresh charters this quarter, and even though some have rolled off, we will have over $230 million in future contracted revenue with an average duration of about one and a half years. We continue to work with the market for opportunities as we believe generally a portion of the fleet will remain on fixed charters. On to the balance sheet in the lower right part of the page. We continue to explore and execute options to enhance our capital stack. After executing the ECA facility documents to fund our LR1 new building, the team went back to work on a knock-bond opportunity as an option to pay for our upcoming purchase options that we declared on some of our sale leasebacks. I'm very pleased with the execution to secure a coupon as one of the lowest for first-time issuers in the tanker space. Due to the strength in demand, we increased the size of the bond to $250 million, which is nearly equal to the amount needed to repay the leases. We're very grateful to welcome in our new credit investors and quite proud of the success in the execution of the bond. Due to the timing of the settlement of the bond in the third quarter and repayment of the leases in the fourth quarter, we ended the third quarter with $985 million in total liquidity with $413 million in cash and $572 million in undrawn revolver capacity. Net debt at the end of the quarter was under $400 million, which on over $3 billion in fleet value, our net loan-to-value is a very low 13%. Turning over to slide five, we've updated our standard set of bullets on tanker demand drivers with a subtle green up arrow next to the bullets representing positive for tankers, The black dash representing a neutral impact and a red down arrow meaning the topic is not good for tanker demand. Without reading each bullet individually, we believe demand fundamentals are solid and continue to support a constructive outlook for seaborne transportation. Oil demand growth remains healthy at 1 million barrels per day of growth for this year and next. OPEC Plus is supplementing a million barrels per day of production growth from outside the group with their own production increases that we have not seen the full scope of what could be on the water soon. Some countries in the cartel had penalties for overproduction during the cuts, and others were using some production increase in country for power generation. The fourth quarter looks to be the environment where the increased production is hitting the water. For now, it's much needed after the inventory levels have been near their historic lows, as you can see in the chart on the lower left. We are still monitoring how these increased barrels on the water can affect the tanker markets in the longer term. The geopolitical intensity on tankers remains strong, with port fee discussions, altering trade routes, and working through a multitude of scenarios that could impact our business. On the lower right-hand chart, sanctioned barrels out of Russia and Iran have historically been transported to India and China. Lately, we've been seeing more pressure on those exports on those two specific countries in particular, along with more sanctions put on the tanker fleet. Both effects could be positive for international tanker markets, and we expect more development in time as we have had over the last few years. Moving on to the supply side, on slide six of the presentation, it remains one of the most compelling cases for tanker shipping. Orders have flowed in 2025 following a surge in 2024. As you can see on the lower left-hand chart, tankers on order represent 14% of the fleet that deliver over the next four to five years. Over a 25-year life of a vessel, we would expect as much with a 4% increase per year of removal candidates multiplied by the three to four years it takes to deliver a new ship. In practicality, based on actual ship delivery, there is a significant number of removal candidates that were built in the golden age from 04 to 210. By the time the order book delivers fully in 2029, nearly 50% of the fleet will be over 20 years old and likely excluded from the commercial trade. There is simply not enough tankers to replace the current aging fleet, as we show in the graph on the lower right-hand side. Less than 800 ships are delivering over the next four years, representing one-third of ships likely to face challenges in securing tonnage for the global trade, not to mention further sanctions or environmental regulations. We also highlight it in dark blue as sanctioned vessels in the chart, which currently tops the number of vessels on orders. We believe these fundamentals should translate into a 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, Jeff Pribor, to provide the financial review. Jeff?