International Seaways, Inc.

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. 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 in 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 the first quarter 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 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 first quarter of 2026. 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 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 two main elements. 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'll reach more than 20% of that mark when we pay our dividend in June. It took six years to achieve the $1 billion in returns and one 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. On the lower left part of the page, we sold seven 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 two deliveries thus far in 2026 and the remaining two coming in the third quarter. From our prior call, Anchors International continues to enhance its status as not only a leading VLCC pool, but has expanded into SUISMEXs. As our ships continue to integrate into the SUISMEX pool, we have also gained a new pool participant. We are quite excited about the opportunities in front of us as sole owners of Anchors International. One last comment in this section relates to our time charter coverage. We added another Suez Max onto our list for the next three years at $40,000 per day, which is great, and we like to have profitable long-term tires. We continue to work the time charter market with a keen eye toward 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. 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 few years have all combined to put INSW where we are today. Turning over to 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 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. 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 straits. Some of this disruption has been offset by alternative flows, including increased Red Sea exports as soy 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. 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, so 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 as 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's fleet and the sustained strength in 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 three 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. I'm now going to turn it over to our CFO, Jeff Pribor, to provide the financial review. Jeff?

Thanks, Lois, and good morning, everyone. On slide eight, net income for the first quarter 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 the first quarter was $244 million. In the appendix, we provided a reconciliation for reported earnings to adjusted earnings. While our revenue and expenses were largely within expectation, our G&A expenses were reduced by about $5 million in the quarter to a commercial settlement where we were reimbursed for legal expenses incurred over the last two years the library business in the first quarter had around six million dollars in revenue and expenses turning to our cash bridge on slide nine we began the quarter with total liquidity of 724 million dollars composed of 160 million cash and 557 million on drop revolving capacity Following along the chart from left to right on the cash bridge, we first had $244 million in adjusted EBITDA for the first quarter, plus $14 million of 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 the first quarter. We received $223 million in net proceeds the sale of seven vessels in the first quarter, of which about $6 million is paid to the pool for positioning of one of our VOCCs. 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 topping the $1 million milestone of returns to ship. 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 sales. 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 billion in vessels and costs by the books, which are currently valued at nearly $4 billion. And with approximately $225 million in net 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. Growth debt at the end of the first quarter was $617 million. Mandatory debt repayments through the end of 2026 are about $21 million. Our debt is almost entirely fixed or 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 RCS capacity. We continue to explore ways to lower our break-even costs even more and share in the upside with substantial returns to shareholders. On the last slide that I'll cover, slide 11 reflects our forward-looking guide to set book-to-date TCE aligned with our spot cash breaking rate. Starting with TCE fixtures for the second quarter of 2026, I'll remind you that actual TCE 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 per day fleet-wide, 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-to-date and our SPOT break-even, it looks as though Seaways can continue to generate significant free cash flows during the second quarter 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 INSW's 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 in the appendix our quarterly expected off-hire and CapEx. I don't plan to read each item line by line. I encourage you to use these for modeling purposes. Now that concludes my remarks. I'd like to turn the call back to Lois for closing comments.