International Seaways, Inc.

Hello everyone. Thank you for joining us and welcome to the International Seaways second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to James Small, General Counsel. James, please go ahead.

Thank you. Good morning, everyone. Welcome to International Seaway's earnings call covering the second quarter of 2026. 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 Effects of ongoing and threatened conflicts around the world, including in particular in the Middle East 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, 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. Such 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, Thank you so much, James. Good morning everyone.

and welcome to International Seaways Earnings Call for the second quarter of 2026. On slide four of the presentation, which you can find in the investor relations section of our website, our second quarter highlights reflect important milestones Seaways has accomplished. We delivered record adjusted net income of $295 million or $5.91 per share. record EBITDA of $345 million, and record free cash flow for the quarter of $261 million. We're pleased to complement those achievements with another record, declaring our largest quarterly dividend of $5.05 per share. Our commitment to returning at least 85% of adjusted net income reflects the confidence that we have in the company we've built over the last decade. Today's market has certainly created an exceptional backdrop. Our ability to translate these conditions into record shareholder returns is the result of years of disciplined capital allocation, fleet renewal, and balance sheet management. It took us nearly five years to return our first billion dollars to shareholders. and just six months to return another half billion dollars in 2026 alone. That same long-term approach continues to shape our fleet. We recently ordered four additional LR1 new buildings for delivery in the second half of 2028, complementing the six vessels we ordered almost exactly three years ago, with four already on the water. Importantly, we secured these vessels at essentially the same price we paid three years ago, even as new building prices across the industry increased by double digits. These 10 ships will trade in the Panamax International Pool, which has averaged more than $70,000 per day over the last nine months. While today's market is attractive, these investments reflect our disciplined approach to fleet renewal. particularly around businesses where we have demonstrated a durable competitive advantage. These are exactly the kinds of decisions that have shaped the company over the last decade. We're beginning to see the benefits of bringing Tankers International fully into the Seaway family. Expanding into the Suezmax segment marks an important next step in the pool's evolution. and we are excited by the opportunities to deepen customer relationships, attract additional partners, and leverage the combined expertise of both organizations to continue strengthening the commercial unit. Finally, we continue to maintain nearly $1 billion of liquidity alongside low leverage, providing us with significant financial flexibility. that flexibility allows us to continue investing in opportunities that strengthen our platform while maintaining our commitment to returning meaningful capital to shareholders. Combined, these highlights reflect many of the principles that have shaped Seaway's over the past decade and continue to guide us today. Moving 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. Without reading these bullets individually, we believe demand fundamentals are solid and continue to support a constructive outlook for seaborne transportation. The conflict in the Straits of Hormuz has created one of the most significant disruptions to seaborne transportation that we have seen in decades. More recently, the Houthis have added another layer of uncertainty by attempting to disrupt traffic through Bab Al Mandeb. Together, these two waterways have historically handled nearly 25 million barrels per day of crude and oiled petroleum products. The chart on the lower left illustrates just how dramatic that disruption has been. While these events have undoubtedly increased uncertainty, they've also created significant inefficiencies in global trade as cargoes seek alternative routes, increasing ton-mile demand, and supporting tanker markets. The chart on the right explains why oil demand has remained so resilient. Despite disruptions, We've seen relatively stable commercial inventories. At first glance, that might suggest demand has held up remarkably well. But as the two charts illustrate, strategic petroleum reserves have been doing much of the heavy lifting, helping offset supply disruptions and limiting the impact on commercial inventory. Looking ahead, we see two very different paths. If these disruptions begin to ease over the near term, We believe inventory replenishment could become an additional source of tanker demand as governments rebuild strategic reserves that have been substantially drawn down in the months of the conflict. Alternatively, if these disruptions persist for an extended period, the risk shifts to consumption. Sustained disruption of this magnitude could ultimately weigh on the global economy and oil demand. which would have broader implications for the tanker market. For now, however, the market continues to benefit from the combination of elevated ton-mile demand and stable oil consumption. Turning to slide six, let's shift from demand to supply. We're now entering the fifth year of this market upcycle. It is natural to see new orders continue to enter the market, particularly given the attractive financing environment available to many ship owners. While the order book has grown over the last several years, we believe it's equally important to view those deliveries in the context of an aging global fleet. As shown on the right, each year of scheduled deliveries is accompanied by a comparable and in some years even larger group of vessels reaching 20 years of age, where they're increasingly viewed as candidates for removal from the commercial fleet. That dynamic become even more pronounced over time. Today, roughly 30% of the world's tanker fleet is over 20 years old. By 2030, that figure is expected to exceed 50%, highlighting the significant fleet renewal that will be required over the remainder of the decade. We continue to monitor ordering activity and new building pricing very closely. Our LR1 order is a great example of the discipline we apply to capital allocation. We were able to secure attractive pricing, securing construction slots at a quality shipyard that we know well, an increasingly important consideration in today's market. While we believe the industry still has capacity for additional ordering to support the aging fleet, we will continue to evaluate investment opportunities through the lens of long-term supply fundamentals, disciplined capital allocation, and the future needs of seaborne oil transportation. Taken together, demand and supply fundamentals continue to support a constructive outlook for the tanker market. While market conditions will inevitably evolve, the disciplined decisions we've made over the last decade have allowed Seaways to capitalize on opportunities across a range of market environments. We'll continue to execute our balanced capital allocation strategy, renew our fleet, preserving financial flexibility, and return meaningful capital to shareholders. I'll now turn it over to our CFO, Jeff Pribor, to provide the financial review. Jeff?