International Seaways, Inc.

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

Thank you and good morning, everyone. Welcome to International Seatways Earnings Call for the fourth quarter of full year 2025. Before we begin, I would like to start off by advising everyone with us today of the following. During this call and in the accompanying presentation, management may make forward looking statements regarding the company or the industry in which it operates, which may address without limitation the following topics. outlooks for the crude tanker and product tanker markets, changing trading patterns, forecasts of world and regional economic activity, forecasts covering the production of and demand for oil and petroleum products, the effects of ongoing and threatened conflicts around the world, the company's strategy and business prospects, expectations about revenues and expenses, including vessel, charter hire, and G&A expenses, estimated future bookings, TCE rates, and capital expenditures, projected dry dock and off-fire 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. Overlooking statements take into account assumptions made by management based on various factors, including management's experience and perception of historical trends, current conditions, expected and future developments, and other factors that management believes are appropriate to consider in the circumstances. Forward-looking statements are subject to risks, uncertainties, and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from those implied or expressed by the statements. Factors, risks, and uncertainties that could cause the company's actual results to differ from expectations include those described in our annual report on Form 10-K for 2025, as well as in other filings that we have made or in the future may make with the U.S. Securities and Exchange Commission. Now let me turn the call over to Lois Labrocki, our President and Chief Executive Officer. Lois?

Thank you very much, James. Good morning, everyone. Thank you for joining International Seaway's earnings call for the fourth quarter and full year of 2025. On slide four of the presentation, which you can find in the investor relations section of our website, net income for the fourth quarter was $128 million or $2.56 per diluted share. Excluding special items, adjusted net income for the fourth quarter was $122 million or $2.45 per diluted share. An adjusted EBITDA was $175 million. Today, we also announced the declaration of our largest ever quarterly dividend, which is a combined $2.15 per share to be paid in March. After this payment, Seaway's will have paid over $1 billion in returns to our shareholders since 2020, a milestone that we are very proud of. As you can see in the upper right section of the slide, the dividend represents a payout ratio of 87% of our fourth quarter adjusted net income and is our sixth 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 have our $50 million share repurchase program in place until the end of 2026 as share repurchases remain an option for seaways as an addendum to our payout ratio. On the lower part of the page, we are consolidating Tankers International, the leading VLCC pool by acquiring the remaining 50% interest and expanding Tankers International with a Suez Max platform. We took delivery of the Seaways Gibbs Hill and she delivered into Tankers International at the end of December. We paid $119 million for this high spec scrubber fitted VLCC after disposing of 10 older vessels with an average age of 18 years for proceeds of $131 million. So far in 2026, we've continued this trend by selling another seven older vessels for proceeds of $216 million. Our remaining four LR1s will deliver in 2026, completing our new build program, which is fully financed. These two fundamental reasons are why we were able to extend our dividend beyond our seven 100% payout ratio. With only $30 million of Seaway's cash needed to take delivery of the LR1s, as well as the impeccable state of our balance sheet, which you can see on the lower right hand of the page, we believe this dividend provided great returns for our shareholders. We review our capital allocation strategy quarterly with our board, and we remain steadfast in our commitment to shareholders. We have $724 million in total liquidity, which includes nearly $170 million in cash and $560 million in undrawn revolver capacity. During the fourth quarter, we repaid our leases, as previously announced, of about $258 million. This was then followed by the third quarter's bond issuance for $250 million, which unencumbered six VLCCs and lowered our cost of debt. Our net loan to value is below 13% and our spot cash breakeven rate is less than $15,000 per day. Turning to slide five, we've updated our standard set of bullets on tanker demand drivers with subtle green up arrows next to the bullet representing positive influences for tankers. The black dash representing a neutral impact and read down arrows, meaning the topic is not positive for tanker demand. Without reading these bullets individually, we believe demand fundamentals are solid and continue to support a constructive outlook for seaborne tanker transportation. Oil demand growth remains healthy at more than 1 million barrels per day of growth projected for both 2026 and 2027. OPEC Plus is supplementing the million barrels per day of non-OPEC production increases by unwinding their own previous cuts. In the lower left-hand chart, both the EIA and the IEA are forecasting supply to exceed demand in 2026. We experienced some of this during the fourth quarter where there was a substantial amount of oil on the water. much of which we understand to have done sanctioned barrels. However, as we look ahead, the market has not reacted to this projected oversupply. You would expect a contangled structure market or at least a drop in the absolute price of oil. However, as you can see in the middle bottom chart, the market structure remains backwardated and absolute prices remain elevated. We believe China, to be stocking up as they have built substantial storage capacity as seen in the lower right-hand chart. Another element driving the oil market dynamics is the geopolitical environment. The U.S.-Iran tensions remain elevated. The Russia-Ukraine conflict has not been resolved. The United States started the year with upheaval of the Venezuelan government and their oil production. The geopolitical intensity on tankers remains strong, and we continue to work through a multitude of scenarios that constantly impact our business. On the supply side, on slide six of the presentation, we're starting to see the enforcement of sanctions that are affecting our business, which provides support for the compliant fleet. When we take into consideration sanctioned vessels, the order book remains well below replacement of the fleet. On the bottom right-hand chart, we reflect vessels turning 18 or older by the end of 2029 when a majority of the order book will have delivered. We also layered in currently sanctioned vessels into the dark bars on the chart. These removal candidates to the compliant trade remaining multiple of those vessels that are on order, as noted in the chart as the light bars. This remains one of the most compelling cases for tanker shipping, and the bottom line is that even with 15% of the fleet on order, there is simply not enough tankers to cover removal candidates for the compliant trade. We believe these fundamentals should translate into a continued up cycle over the next few years and Seaways remains well positioned to capitalize on these market conditions. We will continue to execute a balanced capital allocation strategy to renew our fleet, as well as to adapt to industry conditions with a strong balance sheet while returning to shareholders. I will now turn it over to our CFO, Jeff Prebor, to provide the financial review. Jeff?