International Seaways, Inc.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
INSW$98.02+3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001104659-26-056721
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001104659-26-093061
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 100 current paragraphs.
45 unchanged; 37 reworded; 14 added; 5 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 83 previous and 86 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
During the first half of 2026, income from vessel operations increased by $461.4 million to $589.9 million from $128.5 million in the first half of 2025. Such increase resulted principally from a $384.3 million increase in TCE revenues, a $9.8 million decrease in vessel expenses and $66.9 million in incremental gains on the vessel sales recognized in the first half of 2026.
Current report
The $384.3 million, or 105%, increase in TCE revenuesto $751.4 million in the first half of 2026 compared to TCE revenues of $367.2 million in the first half of 2025 was attributable to(i) an aggregate $424.4 million rates-based increase resulting from higher average daily rates earned across INSW’s fleet sectors, partially offset by (ii) a $41.0 million days-based decline in earnings from our MR, LR1 and VLCC fleets, primarily as a result of sales of older vessels, as further detailed below.
Current report
During the first six months of 2026, TCE revenues for the Crude Tankers segment increased by $254.1 million, or 138%, to $437.6 million from $183.5 million in the first six months of 2025. Such increase principally resulted from (i) an aggregate rates-based increase in the VLCC, Suezmax and Aframax fleets of $256.1 million due to higher average daily blended rates in these sectors, and (ii) a $1.6 million increase in the Crude Tankers Lightering business. Partially offsetting these increases was a $3.5 million days-based decline in the VLCC sector, which reflected the impact of the sales and purchases in the VLCC fleet described above.
Current report
Charter hire expenses increased by $12.3 million period-over-period due to the inclusion of hire due to a third-party participant of TISL, as described above, and incremental charter hire in the Crude Tankers Lightering business, as described above.
Current report
Excluding depreciation and amortization and general and administrative expenses, operating income for the Crude Tankers Lightering business was $5.6 million for both the first half of 2026 and 2025, as increased revenue driven by higher activity levels in the current period was largely offset by higher charter hire expense.
Current report
During the first half of 2026, TCE revenues for the Product Carriers segment increased by $130.2 million, or 71%, to $313.8 million from $183.6 million in the first half of 2025. The growth in TCE revenues was primarily as a result of (i) an aggregate $168.1 million rates-based increase in the LR1 and MR sectors due to higher average daily blended rates earned in the current period, partially offset by (ii) a $31.7 million days-based decrease in the MR sector, which reflects the MR sales described above, partially offset by 424 fewer off-hire days in the current period and the acquisition of two MRs in January 2025 and (iii) a $5.7 million days-based decrease in the LR1 sector, which resulted primarily from a 230-day decrease in time chartered-in days and 147 more off-hire days in the current period, partially offset by the net increases to the LR1 fleet which resulted from the vessel sale and purchase transactions described above.
Current report
Vessel expenses decreased by $11.2 million to $64.8 million in the first six months of 2026 from $76.0 million in the first six months of 2025. Such decrease was principally attributable to the net sales in our MR fleet referenced above, partially offset by the net additions in the LR1 fleet. Charter hire expenses decreased by $8.2 million to $4.1 million in the current period from $12.3 million in the prior year’s period, primarily as a result of the period-over-period decrease in time chartered-in LR1 days described above.
Current report
Other Operating Revenues
Current report
Interest expense increased during the three months ended June 30,026 compared to the corresponding 2025 period as a result of an increase in the average outstanding principal balance outstanding, principally related to draws under the ECA Credit Facility in connection with the delivery of the first 4 LR1 newbuildings.
Current report
On May 11, 2026, we terminated the equity distribution agreement dated December 20, 2023, with Evercore Gorup LLC and Jefferies LLC and entered into an Equity Distribution Agreement (the “Distribution Agreement”) with BTIG, LLC, B. Riley Securities, Inc., Clarksons Securities, Inc. and Fearnleys Securities, Inc., as sales agents, relating to the common shares of International Seaways, Inc. In accordance with the terms of the Distribution Agreement, we may offer and sell common shares having an aggregate offering price of up to $200.0 million from time to time through the sales agents. Sales of shares of our common stock, if any, may be made in privately negotiated transactions, which may include block trades, or transactions that are deemed to be "at the market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”), including sales made directly on the New York Stock Exchange or sales made to or through a market maker other than on an exchange or as otherwise agreed upon by the sales agents and us. We also may sell some or all of the shares in this offering to a sales agent as principal for its own account at a price per share agreed upon at the time of sale.
Current report
We will designate the minimum price per share at which the common shares may be sold and the maximum amount of common shares to be sold through the sales agents during any selling period or otherwise determine such maximum amount together with the sales agents. Each sales agent will receive from us a commission of up to 3.0% of the gross sales price of all common shares sold through it as sales agent under the Distribution Agreement. In connection with the sale of common stock, each of the sales agents may be deemed an "underwriter" within the meaning of the Securities Act, and the compensation paid to the sales agents may be deemed to be underwriting commission.
Current report
The sales agents are not required to sell any specific number or dollar amount of our common shares but will use their commercially reasonable efforts, as our agents and subject to the terms of the Distribution Agreement, to sell the common shares offered, as requested by us.
Current report
We intend to use the net proceeds of any offering, after deducting the sales agents’ commissions and our offering expenses, for general corporate purposes. This may include, among other things, additions to working capital, repayment or refinancing of existing indebtedness or other corporate obligations, financing of capital expenditures, and acquisitions and investment in existing and future projects. As of the date hereof, the Company has neither sold or undertaken to sell any shares pursuant to the Distribution Agreement. The Company has no obligation to sell any shares and may at any time suspend offers under the Distribution Agreement or terminate the Distribution Agreement.
Current report
During 2026, the Company’s Board of Directors declared and paid the following dividends:
Removed paragraphs (5)
Previous report
Other Operating Income
Previous report
Other Operating Expenses
Previous report
See Note 15, “Other Operating Expenses,” to the accompanying condensed consolidated financial statements for additional information on these expenses.
Previous report
On February 25, 2026, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.12 per share of common stock and a supplemental cash dividend of $2.03 per share of common stock. Both dividends totaling $106.4 million in the aggregate were paid on March 30, 2026 to stockholders of record as of March 20, 2026.
Previous report
construction costs, of which approximately $115.6 million is expected to be drawn from the ECA Credit Facility in accordance with the delivery schedule. The remaining two LR1s are expected to be delivered in the third quarter of 2026.
Reworded paragraphs (37)
Previous wording
This Management’s Discussion and Analysis, which should be read in conjunction with our accompanying condensed consolidated financial statements and notes thereto, provides a discussion and analysis of our business, current developments, financial condition, cash flows and results of operations as of March 31, 2026 and for the three months ended March 31, 2026 and 2025. It is organized as follows:
Current wording
This Management’s Discussion and Analysis, which should be read in conjunction with our accompanying condensed consolidated financial statements and notes thereto, provides a discussion and analysis of our business, current developments, financial condition, cash flows and results of operations as of June 30, 2026 and for the three and six months ended June 30, 2026 and 2025. It is organized as follows:
Previous wording
We are a provider of ocean transportation services for crude oil and refined petroleum products. We operate our vessels in the International Flag market. Our business includes two reportable segments: Crude Tankers and Product Carriers. For the three months ended March 31, 2026 and 2025, we derived 58% and 47%, respectively, of our time charter equivalent (“TCE”) revenues from our Crude Tankers segment. Revenues from our Product Carriers segment constituted the balance of our TCE revenues in the 2026 and 2025 periods.
Current wording
We are a provider of ocean transportation services for crude oil and refined petroleum products. We operate our vessels in the International Flag market. Our business includes two reportable segments: Crude Tankers and Product Carriers. For both the three and six months ended June 30, 2026 we derived 58% of our time charter equivalent (“TCE”) revenues from our Crude Tankers segment compared with 52% and 50% for the three and six months ended June 30, 2025, respectively. Revenues from our Product Carriers segment constituted the balance of our TCE revenues in the 2026 and 2025 periods.
Previous wording
As of March 31, 2026, the Company’s operating fleet consisted of 64 wholly-owned or lease financed and time chartered-in vessels aggregating 7.6 million deadweight tons (“dwt”). In addition to our operating fleet of 64 vessels, three LR1 newbuilds are scheduled for delivery to the Company between the second and third quarters of 2026, bringing the total operating and newbuild fleet to 67 vessels. Our fleet includes VLCC, Suezmax and Aframax crude tankers and LR2, LR1 and MR product carriers. In addition to the Company’s operating fleet, Tankers International Suezmax Limited (“TISL”), a variable interest entity that is consolidated by the Company, has one Suezmax tanker time chartered-in from a third-party under its pool participation agreement as of March 31, 2026. See Note 8, “Variable Interest Entities (“VIEs”)” to the accompanying condensed consolidated financial statements for additional information on consolidated and unconsolidated VIEs.
Current wording
As of June 30, 2026, our operating fleet, which includes VLCC, Suezmax and Aframax crude tankers and LR2, LR1 and MR product carriers, consisted of 64 wholly-owned or lease financed vessels aggregating 7.6 million deadweight tons (“dwt”). In addition to our operating fleet of 64 vessels, four LR1 newbuilds are scheduled for delivery to the Company between the third quarter of 2026 and fourth quarter of 2028, bringing the total operating and newbuild fleet to 68 vessels. On July 1, 2026, the Company entered into contracts to build an additional two LR1 vessels, which are expected to be delivered in the second half of 2028. In addition to the Company’s operating fleet, Tankers International Suezmax Limited (“TISL”), a variable interest entity that is consolidated by the Company, has one Suezmax tanker time chartered-in from a third-party under its pool participation agreement as of June 30, 2026. See Note 8, “Variable Interest Entities (“VIEs”)” to the accompanying condensed consolidated financial statements for additional information on consolidated and unconsolidated VIEs.
Previous wording
The outbreak of war in the Middle East between Iran and the U.S. and Israel in late February 2026, and the seizures and attacks on vessels travelling through the Red Sea, the Gulf of Aden and the Arabian Gulf, and the effective closure of the Strait of Hormuz, have caused supply disruptions in the oil and gas markets and significant volatility in energy prices and spot charter hire rates. The sharp increase in oil prices and concerns that the supply of crude oil and petroleum products may be significantly constrained for some period of time has led a number of countries to impose export restrictions on certain oil and petroleum products. Also, while charter rates for crude tankers and product carriers initially increased and remain high following the disruption to shipping in the Middle East areas noted above, it is unlikely that the charter rates will remain at these historically high levels. We also expect the voyage expenses of the commercial pools in which we participate to be high in the near-term due to high bunker costs and being subject to additional war risks insurance premiums when the pool’s vessels transit through or call to any ports or areas or the waters of any country bordering the Arabian Gulf or the Red Sea. To date, these geopolitical developments have not had a material adverse effect on INSW’s operations, financial condition, results of operations or cash flow. The extent of any future impact will depend on how the situation develops, including any continued disruption in the Strait of Hormuz and its effect on global energy markets, including the restoration, and timing thereof, of damage to the existing energy infrastructure.
Current wording
The outbreak of war in the Middle East between Iran and the U.S. and Israel in late February 2026, and the seizures and attacks on vessels travelling through the Red Sea, the Gulf of Aden and the Arabian Gulf, and the effective closure of the Strait of Hormuz, have caused supply disruptions in the oil and gas markets and significant volatility in energy prices and spot charter hire rates. The sharp increase in oil prices and concerns that the supply of crude oil and petroleum products may be significantly constrained for some period of time has led a number of countries to impose export restrictions on certain oil and petroleum products. Also, while charter rates for crude tankers and product carriers initially increased and remain high following the disruption to shipping in the Middle East areas noted above, it is unlikely that the charter rates will remain at these historically high levels. We also expect the voyage expenses of the commercial pools in which we participate to be high in the near-term due to high bunker costs and being subject to additional war risks insurance premiums when the pool’s vessels transit through or call to any ports or areas or the waters of any country bordering the Arabian Gulf or the Red Sea. To date, these geopolitical developments have not had a material adverse effect on INSW’s operations, financial condition, results of operations or cash flow. The extent of any future impact will depend on how the situation develops, including any continued disruption in the Strait of Hormuz and the surrounding region and its effect on global energy markets, including the restoration, and timing thereof, of damage to the existing energy infrastructure.
Previous wording
Our revenues are derived primarily from spot market voyage charters and our vessels are predominantly employed in the spot market via market-leading commercial pools. We derived approximately 82% of our total TCE revenues in the spot market for the three months ended March 31, 2026, compared with 81% for the three months ended March 31, 2025. The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, three Suezmaxes, one Aframax, one LR2, and six MRs, as of March 31, 2026 are as follows:
Current wording
Our revenues are derived primarily from spot market voyage charters and our vessels are predominantly employed in the spot market via market-leading commercial pools. We derived approximately 80% and 81% of our total TCE revenues in the spot market for the three and six months ended June 30, 2026, respectively, compared with 82% and 81% for the three and six months ended June 30, 2025, respectively. The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, three Suezmaxes, one Aframax, one LR2, and five MRs, as of June 30, 2026 are as follows:
Previous wording
The International Energy Agency (“IEA”) estimates global oil consumption for the first quarter of 2026 at 103.4 million barrels per day (“b/d”), up 0.5% from the same quarter in 2025. The estimate for global oil consumption for 2026 is 104.3 million b/d, unchanged from 2025 levels. OECD demand in 2026 is estimated to decrease by 0.4% to 45.7 million b/d, while non-OECD demand is estimated to increase by 0.2% to 58.6 million b/d.
Current wording
The International Energy Agency (“IEA”) estimates global oil consumption for the second quarter of 2026 at 99.1 million barrels per day (“b/d”), down 4.7% from the same quarter in 2025. The estimate for global oil consumption for 2026 is 103.5 million b/d, a decrease of 1.0% from 2025 levels. OECD demand in 2026 is estimated to decrease by 0.9% to 45.5 million b/d, while non-OECD demand is estimated to decrease by 1.0% to 58.0 million b/d.
Previous wording
Global oil production in the first quarter of 2026 was 102.8 million b/d, an increase of 0.1 million b/d from the first quarter of 2025, but sharply down from 107.5 million b/d in the fourth quarter of 2025 due to effects related to the closure of the Strait of Hormuz. OPEC crude oil production averaged 25.9 million b/d in the first quarter of 2025, a decrease of 2.6 million b/d from the fourth quarter of 2025, and a decrease of 0.9 million b/d from the first quarter of 2025. Non-OPEC production increased by 1.2 million b/d to 71.6 million b/d in the first quarter of 2026 compared with the first quarter of 2025. Oil production in the U.S. of 13.2 million b/d in the first quarter of 2026 decreased by 4.5% from the fourth quarter of 2025 but increased by 0.8% from the first quarter of 2025.
Current wording
Global oil production in the second quarter of 2026 was 97.2 million b/d, a decrease of 6.4 million b/d from the second quarter of 2025, and a decrease of 5.9 million b/d from the first quarter of 2026 due to effects related to the closure of the Strait of Hormuz. OPEC crude oil production averaged 20 million b/d in the second quarter of 2026, a decrease of 5.9 million b/d from the first quarter of 2026, and a decrease of 7.0 million b/d from the second quarter of 2025. Non-OPEC production increased by 4.5 million b/d to 75.9 million b/d in the second quarter of 2026 compared with the second quarter of 2025. Oil production in the U.S. of 13.9 million b/d in the second quarter of 2026 increased by 4.7% from the first quarter of 2026 and by 3.5% from the second quarter of 2025.
Previous wording
U.S. refinery throughput increased by 0.6 million b/d to 16.6 million b/d in the first quarter of 2026 compared with the fourth quarter of 2025.
Current wording
U.S. refinery throughput decreased by 0.4 million b/d to 16.2 million b/d in the second quarter of 2026 compared with the first quarter of 2026.
Previous wording
U.S. crude oil imports in the first quarter of 2026 decreased by 2.7% to 6.5 million b/d compared with the first quarter of 2025, with imports from OPEC countries decreasing by 0.1 million b/d and imports from non-OPEC countries decreasing by 0.1 million b/d. China’s crude oil imports in March were 11.8 million b/d, down 2.8% year-over-year. The full impact of the closure of the Strait of Hormuz won’t be seen until the April figures are released, since much of the March imports were already in transit and out of the Arabian Gulf at the time of the closure.
Current wording
U.S. crude oil imports in the second quarter of 2026 increased by 3.7% to 6.3 million b/d compared with the second quarter of 2025, with imports from OPEC countries increasing by 0.3 million b/d and imports from non-OPEC countries remaining flat. China’s crude oil imports in June were estimated to be 6.4 million b/d, a dramatic decrease from earlier levels due to the impact of the closure of the Strait of Hormuz and subsequent usage of local crude stocks to mitigate the decreased imports.
Previous wording
OECD commercial crude inventories in the first quarter of 2026 increased by 4.0%, or 53 million barrels, compared with the fourth quarter of 2025. OECD commercial product inventories in the first quarter of 2026 increased by 2.6%, or 37 million barrels, compared with the fourth quarter of 2025. Inventory levels are expected to decrease during the second quarter of 2026 as the full impact of the closure of the Strait of Hormuz on exports from the Middle East Gulf sets in.
Current wording
OECD commercial crude inventories in the second quarter of 2026 decreased by 3.1%, or 33 million barrels, compared with the first quarter of 2026. OECD commercial product inventories in the second quarter of 2026 decreased by 2.4%, or 36 million barrels, compared with the first quarter of 2026. Additionally, OECD government-controlled crude and product inventories decreased by 11.9%, or 148 million barrels in the aggregate, between the first and second quarters of 2026. These movements in stock levels are largely as a result of the closure of the Strait of Hormuz and the impact this is having on the global oil market.
Previous wording
During the first quarter of 2026, the tanker fleet of vessels over 10,000 dwt increased, net of vessels recycled, by 9.2 million dwt. The crude fleet increased by 6.7 million dwt, with VLCCs, Suezmaxes and Aframaxes increasing by 3.1 million dwt, 1.3 million dwt and 2.3 million dwt, respectively. The product carrier fleet increased by 2.5 million dwt, with LR1s increasing by 0.5 million dwt and MRs increasing by 2.0 million dwt. Year-over-year, the size of the tanker fleet increased by 20.7 million dwt with the increases of 3.7
Current wording
During the second quarter of 2026, the tanker fleet of vessels over 10,000 dwt increased, net of vessels recycled, by 9.2 million dwt. The crude fleet increased by 6.8 million dwt, with VLCCs, Suezmaxes and Aframaxes increasing by 2.2 million dwt, 2.2 million dwt and 2.4 million dwt, respectively. The product carrier fleet increased by 2.4 million dwt, with LR1s increasing by 0.4 million dwt and MRs increasing by 2.0 million dwt. Year-over-year, the size of the tanker fleet increased by 27.2 million dwt with the increases of 5.9
Previous wording
million dwt, 4.1 million dwt, 6.3 million dwt, 0.5 million dwt and 6.1 million dwt in the VLCCs, Suezmax, Aframax, LR1 and MR fleets, respectively.
Current wording
million dwt, 5.3 million dwt, 7.5 million dwt, 1.1 million dwt and 7.4 million dwt in the VLCCs, Suezmax, Aframax, LR1 and MR fleets, respectively.
Previous wording
During the first quarter of 2026, the tanker orderbook increased by 22.5 million dwt from the fourth quarter of 2025. The crude tanker orderbook increased by 23.9 million dwt. The VLCC and Suezmax orderbooks increased by 19.9 million dwt and 5.2 million dwt, respectively, and the Aframax orderbook decreased by 1.1 million dwt. The product carrier orderbook decreased by 1.4 million dwt, with the LR1 orderbook decreasing by 0.6 million dwt and the MR orderbook decreasing by 0.8 million dwt. Year-over-year, the total tanker orderbook increased by 47.0 million dwt, with increases in VLCC and Suezmaxes of 38.5 million dwt and 11.8 million dwt, respectively. The LR1, Aframax and MR orderbooks decreased by 0.6 million dwt, 0.7 million dwt and 1.9 million dwt, respectively.
Current wording
During the second quarter of 2026, the tanker orderbook increased by 19.8 million dwt from the first quarter of 2026. The crude tanker orderbook increased by 19.8 million dwt. The VLCC, Suezmax and Aframax orderbooks increased by 16.6 million dwt, 1.6 million dwt and 1.6 million dwt, respectively. The product carrier orderbook increased by 0.1 million dwt, with the LR1 orderbook decreasing by 0.2 million dwt and the MR orderbook increasing by 0.2 million dwt. Year-over-year, the total tanker orderbook increased by 73.5 million dwt, with increases in VLCC, Suezmaxes and Aframaxes of 57.6 million dwt, 12.4 million dwt and 4.7 million dwt, respectively. The LR1 and MR orderbooks decreased by 0.9 million dwt and 0.3 million dwt, respectively.
Previous wording
Tanker rates were very strong in the first quarter of 2026 compared with the fourth quarter of 2025. January and February saw stronger rates across the board compared with the fourth quarter. March, however, saw a significant increase in rates due primarily to the war among the U.S., Israel and Iran. As conditions normalize, while it is unlikely rates seen in March 2026 are sustainable, we would expect tanker markets to benefit from the rebalancing of trade flows and the replenishment of inventories.
Current wording
Tanker rates continued the strong trend from the first quarter across the board. When and as conditions normalize, while it is unlikely these rates are sustainable, we would expect tanker markets to benefit from the rebalancing of trade flows and the replenishment of inventories.
Previous wording
During the first quarter of 2026, income from vessel operations increased by $229.4 million to $288.6 million from $59.2 million in the first quarter of 2025. Such increase resulted principally from significantly higher TCE revenues, a $78.2 million increase in gains from vessel sales, and decreased general and administrative and vessel expenses in the current quarter.
Current wording
During the second quarter of 2026, income from vessel operations increased by $232.0 million to $301.3 million from $69.4 million in the second quarter of 2025. Such increase resulted principally from significantly higher TCE revenues, partially offset by a $11.3 million decrease in gains from vessel sales, as no vessels were sold during the current quarter.
Previous wording
TCE revenues in the first quarter of 2026 increased by $138.9 million, or 78%, to $317.2 million from $178.3 million in the first quarter of 2025. This increase reflects (i) an aggregate $157.0 million rates-based increase resulting from higher average daily rates earned across the Company’s fleet sectors, partially offset by (ii) a $14.8 million days-based reduction in the MR sector, which reflects the Company selling several of the older vessels in its fleet, as detailed below in the “Product Carriers” discussion.
Current wording
TCE revenues in the second quarter of 2026 increased by $245.4 million, or 130%, to $434.2 million from $188.8 million in the second quarter of 2025. This increase reflects (i) an aggregate $267.6 million rates-based increase resulting from higher average daily rates earned across the Company’s fleet sectors, partially offset by (ii) a $16.8 million days-based reduction in the MR sector, which reflects the Company selling several of the older vessels in its fleet, as detailed below in the “Product Carriers” discussion.
Previous wording
The following table provides a breakdown of TCE rates achieved for the three months ended March 31, 2026 and 2025, between spot and fixed earnings and the related revenue days. The information in this table is based, in part, on information provided by the commercial pools in which the segment’s vessels participate and excludes commercial pool fees/commissions averaging approximately $1,699 and $1,112 per day for the three months ended March 31, 2026 and 2025, respectively, as well as activity in the Crude Tankers Lightering business and revenue and revenue days for which recoveries were recorded by the Company under its loss of hire insurance policies. The fixed earnings rates in the table are net of broker/address commissions.
Current wording
The following tables provide a breakdown of TCE rates achieved for the three and six months ended June 30, 2026 and 2025, between spot and fixed earnings and the related revenue days. The information in this table is based, in part, on information provided by the commercial pools in which the segment’s vessels participate and excludes commercial pool fees/commissions averaging approximately $1,978 and $960 per day for the three months ended June 30, 2026 and 2025, respectively, and $1,828 and $1,036 per day for the six months ended June 30, 2026 and 2025, respectively, as well as activity in the Crude Tankers Lightering business and revenue and revenue days for which recoveries were recorded by the Company under its loss of hire insurance policies. The fixed earnings rates in the table are net of broker/address commissions.
Previous wording
During the first quarter of 2026, TCE revenues for the Crude Tankers segment increased by $99.6 million, or 118%, to $184.3 million from $84.6 million in the first quarter of 2025. Such increase principally resulted from (i) an aggregate rates-based increase in the VLCC, Suezmax and Aframax sectors of $99.4 million which resulted from the very strong rate environment during the current quarter as described in the “Operations and Oil Tanker Markets” section above, and (ii) a $2.8 million days-based increase in the VLCC sector, which reflects 96 fewer off-hire days in the current period and the net impact of the Company’s acquisition of a 2020-built VLCC in November 2025, partially offset by the sales of one 2010-built VLCC and one 2011-built VLCC during the first quarter of 2025 and one 2010-built VLCC and one 2012-built VLCC during the first quarter of 2026. Partially offsetting the TCE revenue increases described above was a $2.2 million decrease in the Crude Tankers Lightering business.
Current wording
During the second quarter of 2026, TCE revenues for the Crude Tankers segment increased by $154.5 million, or 156%, to $253.4 million from $98.9 million in the second quarter of 2025. Such increase principally resulted from (i) an aggregate rates-based increase in the VLCC, Suezmax and Aframax sectors of $157.3 million which resulted from the very strong rate environment during the current quarter as described in the “Operations and Oil Tanker Markets” section above, as well as due to significantly higher profit-sharing results recognized under the VLCC time charters, and (ii) a $3.8 million increase in the Crude Tankers Lightering business. Partially offsetting the TCE revenue increases described above was a $6.8 million days-based decrease in the VLCC sector, which reflects 90 more off-hire days in the current period and a decrease in fleet days relating to the net impact of the sales of one 2010-built VLCC and one 2012-built VLCC during the first quarter of 2026, partially offset by the Company’s acquisition of a 2020-built VLCC in November 2025.
Previous wording
Vessel expenses increased by $2.0 million to $30.4 million in the first quarter of 2026 from $28.4 million in the first quarter of 2025. Such increase was driven principally by increased costs for repairs, lubricating oils and crew. Charter hire expenses increased by $1.7 million quarter-over-quarter primarily due to increased charter hire expense in the Crude Tankers Lightering business, which reflects incremental chartered-in Aframax days for a full-service job completed during the first quarter of 2026 and increased daily rates on a portion of its chartered-in workboat fleet. In addition, charter hire expense for the first quarter of 2026 included hire due to a third party participant of TISL, the Suezmax tankers pool formed in March 2026 (as described in Note 8, “Variable Interest Entities,” to the accompanying condensed consolidated financial statements). Depreciation and amortization increased by $1.3 million to $20.0 million in the current quarter from $18.7 million in the first quarter of 2025, primarily as a result of increased drydock amortization, the timing of the sales of the VLCCs and the acquired VLCC noted above.
Current wording
Charter hire expenses increased by $10.6 million quarter-over-quarter primarily because charter hire expense for the second quarter of 2026 included hire due to a third party participant of TISL, the Suezmax tankers pool formed in March 2026 (as described in Note 8, “Variable Interest Entities,” to the accompanying condensed consolidated financial statements). Additionally, charter hire expense in
Previous wording
Excluding depreciation and amortization and general and administrative expenses, the operating loss for the Crude Tankers Lightering business was $0.3 million for the first quarter of 2026 compared with operating income of $2.8 million for the first quarter of 2025. The decrease reflects a decline in quarter-over-quarter activity levels, with 61 service support-only lightering jobs and one full-service lightering job being performed during the first quarter of 2026 compared with 85 service support-only lighterings during the first quarter of 2025.
Current wording
Excluding depreciation and amortization and general and administrative expenses, operating income for the Crude Tankers Lightering business was $5.9 million for the second quarter of 2026 compared with $2.8 million for the second quarter of 2025. The increase reflects growth in quarter-over-quarter activity levels, with 133 service support-only lighterings and two full-service lightering jobs being performed during the second quarter of 2026 compared with 93 service support-only lighterings and one full-service lightering job being performed during the second quarter of 2025.
Previous wording
The following table provides a breakdown of TCE rates achieved for the three months ended March 31, 2026 and 2025, between spot and fixed earnings and the related revenue days. The information in this table is based, in part, on information provided by the commercial pools in which the segment’s vessels participate and excludes commercial pool fees/commissions averaging approximately $814 and $767 per day for the three months ended March 31, 2026 and 2025, respectively, as well as revenue and revenue days for which recoveries were recorded by the Company under its loss of hire insurance policies. The fixed earnings rates in the table are net of broker/address commissions.
Current wording
The following tables provide a breakdown of TCE rates achieved for the three and six months ended June 30, 2026 and 2025, between spot and fixed earnings and the related revenue days. The information in this table is based, in part, on information provided by the commercial pools in which the segment’s vessels participate and excludes commercial pool fees/commissions averaging approximately $875 and $778 per day for the three months ended June 30, 2026 and 2025, respectively, and $844 and $773 per day for the six months ended June 30, 2026 and 2025, respectively, as well as revenue and revenue days for which recoveries were
Previous wording
During the first quarter of 2026, TCE revenues for the Product Carriers segment increased by $39.3 million, or 42%, to $133.0 million from $93.7 million in the first quarter of 2025. The increase in TCE revenues was primarily as a result of (i) an aggregate $57.6 million rates-based increase in the LR1 and MR sectors due to higher average daily blended rates earned in the current quarter. Such increase was partially offset by (ii) a $14.8 million days-based decrease in the MR sector, which reflects the net impact of the Company’s sale of 13 MRs between June 2025 and March 2026, the acquisition of two MRs in January 2025 and 156 fewer off-hire days in the current quarter, and (iii) a $3.6 million days-based decrease in the LR1 sector, which resulted primarily from a 90-day quarter-over-quarter decrease in time chartered-in LR1 days, and 64 more off-hire days during the current quarter.
Current wording
During the second quarter of 2026, TCE revenues for the Product Carriers segment increased by $91.0 million, or 101%, to $180.8 million from $89.9 million in the second quarter of 2025. The increase in TCE revenues was primarily as a result of an aggregate $110.3 million rates-based increase in the LR1 and MR sectors due to higher average daily blended rates earned in the current quarter. Such increase was partially offset by (i) a $16.8 million days-based decrease in the MR sector, which reflects the net impact of the Company’s sale of 13 MRs between June 2025 and March 2026, and 268 fewer off-hire days in the current quarter, and (ii) a $1.9 million days-based decrease in the LR1 sector, which resulted primarily from a 140-day quarter-over-quarter decrease in time chartered-in LR1 days, 83 more off-hire days during the current quarter, and the sale of two 2006-built LR1s during the third quarter of 2025, substantially offset by the Company taking delivery of four dual-fuel ready LNG newbuild LR1s between September 2025 and April 2026.
Previous wording
Vessel expenses decreased by $8.0 million to $30.6 million in the first quarter of 2026 from $38.6 million in the first quarter of 2025. Such decrease principally reflects the net sales of the MRs referenced above. Charter hire expenses decreased by $3.1 million to $3.2 million in the current quarter from $6.3 million in the first quarter of 2025, primarily as a result of the decrease in time chartered-in LR1s noted above. Depreciation and amortization decreased by $0.4 million to $20.6 million in the current quarter from $21.0 million in the prior year’s quarter. Such decrease resulted primarily from the changes in the MR fleet described above, offset to a large extent by increased depreciation in the LR1 fleet. The increases in the LR1 fleet reflected the Company taking delivery of three dual-fuel ready LNG newbuild LR1s between September 2025 and March 2026, offset by the sale of two 2006-built LR1s in the third quarter of 2025.
Current wording
Vessel expenses decreased by $3.2 million to $34.2 million in the second quarter of 2026 from $37.4 million in the second quarter of 2025. Such decrease principally reflects the sales of the MRs referenced above, partially offset by the net vessel acquisitions in the LR1 fleet detailed above. Charter hire expenses decreased by $5.0 million to $0.9 million in the current quarter from $6.0 million in the second quarter of 2025 as a result of the decrease in time chartered-in LR1s noted above. Depreciation and amortization decreased
Previous wording
Other operating income totaling $1.9 million during the first quarter of 2026 represents fees earned by the Company’s wholly owned subsidiaries – Tankers (UK) Agencies Limited (“TUKA”) and Tankers (UK) Suezmax Agencies Limited (“TUKSA”) for commercial management services rendered to vessel owners participating in the VLCC and Suezmax tanker pools operated by Tankers International Limited (“TIL”) and TISL, respectively. See Note 8, “Variable Interest Entities (“VIEs”),” to the accompanying condensed consolidated financial statements for additional information on consolidated and unconsolidated VIEs.
Current wording
Other operating revenues totaling $2.4 million and $4.3 million during the three and six months ended June 30, 2026, respectively, represents fees earned by the Company’s wholly owned subsidiaries – Tankers (UK) Agencies Limited (“TUKA”) and Tankers (UK) Suezmax Agencies Limited (“TUKSA”) for commercial management services rendered to vessel owners participating in the VLCC and Suezmax tanker pools operated by Tankers International Limited (“TIL”) and TISL, respectively. See Note 8, “Variable Interest Entities (“VIEs”),” to the accompanying condensed consolidated financial statements for additional information on consolidated and unconsolidated VIEs.
Previous wording
During the first quarter of 2026, general and administrative expenses decreased by $3.9 million to $9.3 million from $13.2 million in the first quarter of 2025. The primary driver for the quarter-over-quarter decrease was a $5.8 million decrease in legal fees, which in part reflected the recovery of $4.8 million in damages awarded to the Company by an arbitration tribunal in England in connection with a commercial dispute that arose in 2023. See Note 16, “Contingencies,” to the accompanying condensed consolidated financial statements for additional information. Partially offsetting the decrease was an increase in compensation and benefits costs of $1.4 million, which was primarily driven by the consolidation of the operating expenses of TUKA and TUKSA. The costs incurred by TUKA and TUKSA are substantially recovered by the Company through pool management fees charged to TIL and TISL, as discussed in the “Other Operating Income” section above.
Current wording
For the six months ended June 30, 2026, general and administrative expenses increased by $0.5 million to $25.9 million from $25.4 million for the same period in 2025. The increase reflects the consolidation of the operating expenses of TUKA aggregating $5.4 million and $0.5 million in costs incurred in connection with the adoption of the Second A&R Rights Agreement. Such increases were largely offset by a $5.4 million decrease in legal fees, which in part reflected the recovery of $4.8 million in damages awarded to the Company by an arbitration tribunal in England in connection with a commercial dispute that arose in 2023. See Note 15, “Contingencies,” to the accompanying condensed consolidated financial statements for additional information.
Previous wording
Other income of $2.6 million and $1.8 million for the three months ended March 31, 2026 and 2025, respectively, is primarily comprised of interest income earned on invested cash. The quarter-over-quarter increase in interest income reflects the impact of a higher average balance of invested cash during the three months ended March 31, 2026.
Current wording
Other income, which is primarily comprised of interest income earned on invested cash, was $4.1 million and $6.8 million for the three and six months ended June 30, 2026, respectively, compared with $2.0 million and $3.9 million for the three and six months ended June 30, 2025. The period-over-period increase in interest income reflects the impact of higher average balances of invested cash during the three and six months ended June 30, 2026.
Previous wording
Interest expense decreased during the first quarter of 2026 compared to the first quarter of 2025 as a result of (i) a reduction in the average outstanding principal balance under the Company’s floating rate debt facilities, due to voluntary repayments of certain of such facilities, (ii) the repayment in full of the OCY Lease Financing in November 2025, and (iii) the decline of SOFR rates during the first quarter of 2026 compared to 2025. See Note 10, “Debt,” in the accompanying condensed consolidated financial statements for further information on the Company’s debt facilities.
Current wording
Interest expense decreased during the six months ended June 30, 2026 compared to the corresponding 2025 period as a result of (i) a reduction in the average outstanding principal balance under the Company’s floating rate debt facilities, due to voluntary repayments of certain of such facilities, (ii) the repayment in full of the OCY Lease Financing in November 2025, and (iii) the decline of SOFR rates during the first half of 2026 compared to the first half of 2025. See Note 10, “Debt,” in the accompanying condensed consolidated financial statements for further information on the Company’s debt facilities.
Previous wording
The Company believes it will qualify for an exemption from U.S. federal income taxes under Section 883 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and U.S. Treasury Department regulations for the 2026 calendar year, so long as less than 50 percent of the total value of the Company’s stock is held by one or more shareholders who own 5% or more of the Company’s stock for more than half of the days of 2026. There can be no assurance at this time that INSW will continue to qualify for the Section 883 exemption beyond calendar year 2026. Should the Company not qualify for the exemption in the future, INSW will be subject to U.S. federal income taxation of 4% of its U.S. source shipping income on a gross basis without the benefit of deductions. Shipping income that is attributable to transportation that begins or ends, but that does not both begin and end, in the U.S. will be considered to be 50% derived from sources within the United States. Shipping income attributable to transportation that both begins and ends in the U.S. would be considered to be 100% derived from sources within the United States, but INSW does not and cannot engage in transportation that gives rise to such income, except pursuant to any applicable waiver given by the U.S. government.
Current wording
The Company qualifies for an exemption from U.S. federal income taxes under Section 883 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and U.S. Treasury Department regulations for the 2026 calendar year, as less than 50 percent of the total value of the Company’s stock was held by one or more shareholders who own 5% or more of the Company’s stock for more than half of the days of 2026. There can be no assurance at this time that INSW will continue to qualify for the Section 883 exemption beyond calendar year 2026. Should the Company not qualify for the exemption in the future, INSW will be subject to U.S. federal income taxation of 4% of its U.S. source shipping income on a gross basis without the benefit of deductions. Shipping income that is attributable to transportation that begins or ends, but that does not both begin and end, in the U.S. will be considered to be 50% derived from sources within the United States. Shipping income attributable to transportation that both begins and ends in the U.S. would be considered to be 100% derived from sources within the United States, but INSW does not and cannot engage in transportation that gives rise to such income, except pursuant to any applicable waiver given by the U.S. government.
Previous wording
EBITDA represents net income before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA are presented to provide investors with meaningful additional information that management uses to monitor ongoing operating results and evaluate trends over comparative periods. EBITDA and Adjusted EBITDA do not represent, and should not be considered a substitute for, net income or cash flows from operations determined in accordance with GAAP.
Current wording
EBITDA represents net income before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted for the impact of certain items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA are presented to provide investors with meaningful additional information that management uses to monitor ongoing operating results and evaluate trends over comparative periods. EBITDA and Adjusted EBITDA do not represent, and should not be considered a substitute for, net income or cash flows from operations determined in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results reported under GAAP. Some of the limitations are:
Previous wording
As of March 31, 2026, we had total liquidity on a consolidated basis of $917.9 million comprised of $376.8 million of cash and short-term investments and $541.1 million of undrawn revolver capacity.
Current wording
As of June 30, 2026, we had total liquidity on a consolidated basis of $935.1 million comprised of $409.4 million of cash and short-term investments and $525.7 million of undrawn revolver capacity.
Previous wording
Working capital at March 31, 2026 and December 31, 2025 was $575.7 million and $268.2 million, respectively. Current assets are highly liquid, consisting principally of cash, interest-bearing deposits, and receivables. Current liabilities include current installments of long-term debt of $28.2 million and $25.8 million at March 31, 2026 and December 31, 2025, respectively.
Current wording
Working capital at June 30, 2026 and December 31, 2025 was $651.5 million and $268.2 million, respectively. Current assets are highly liquid, consisting principally of cash, interest-bearing deposits, receivables and inventories. Current liabilities include current installments of long-term debt of $39.2 million and $25.8 million at June 30, 2026 and December 31, 2025, respectively.
Previous wording
The Company’s cash and cash equivalents increased by $24.9 million during the three months ended March 31, 2026. The increase principally reflects the net impact of (i) $141.1 million of cash provided by operating activities; (ii) $222.8 million of proceeds from the disposal of vessels and other assets; (iii) $42.6 million of borrowings under the ECA Credit Facility; (iv) $185 million in net cash invested in short-term investments; (v) $71.0 million in other expenditures for vessels, vessel improvements and other property, of which $69.4 million was construction in progress payments; (vi) $4.5 million cash consideration paid for the purchase of equity method investment, net of cash acquired; (vii) $106.4 million of cash dividends paid to shareholders; and (viii) $6.3 million in regularly scheduled principal amortization of the Company’s lease financing arrangements and ECA Credit Facility.
Current wording
The Company’s cash and cash equivalents increased by $42.5 million during the six months ended June 30, 2026. The increase principally reflects the net impact of (i) $408.7 million of cash provided by operating activities; (ii) $222.4 million of proceeds from the disposal of vessels and other assets; (iii) $85.2 million of borrowings under the ECA Credit Facility; (iv) $8.5 million of net borrowings under the TISL Borrowing Base Facility; (v) $200 million in net cash invested in short-term investments; (vi) $122.9 million in expenditures for vessels, vessel improvements and other property, of which $121.1 million was construction in progress payments; (vii) $4.5 million cash consideration paid for the purchase of equity method investment, net of cash acquired; (viii) $331.8 million of cash dividends paid to shareholders; and (ix) $12.7 million in regularly scheduled principal amortization of the Company’s lease financing arrangements and ECA Credit Facility.
Previous wording
As of March 31, 2026, we had total debt outstanding of $602.1 million (net of deferred financing costs of $12.4 million) and net debt to capital of 9.3%, compared with 16.5% at December 31, 2025.
Current wording
As of June 30, 2026, we had total debt outstanding of $645.6 million (net of deferred financing costs of $13.6 million) and net debt to capital of 9.4%, compared with 16.5% at December 31, 2025.
Previous wording
In addition to future operating cash flows, our other future sources of funds are proceeds from issuances of equity securities, additional borrowings as permitted under our loan agreements and proceeds from the opportunistic sales of our vessels. Our current uses of funds are to fund working capital requirements, maintain the quality of our vessels, purchase vessels, pay newbuilding construction costs, comply with international shipping standards and environmental laws and regulations, repay or repurchase our outstanding loan facilities, pay a regular quarterly cash dividend, and from time to time, repurchase shares of our common stock and pay supplemental cash dividends.
Current wording
In addition to future operating cash flows, our other future sources of funds are proceeds from issuances of equity securities, additional borrowings as permitted under our loan agreements and proceeds from the opportunistic sales of our vessels. Our current uses of funds are to fund working capital requirements, maintain the quality of our vessels, purchase vessels, pay newbuilding construction costs, comply with international shipping standards and environmental laws and regulations, repay or repurchase our outstanding loan facilities, pay a quarterly cash dividend, and from time to time, repurchase shares of our common stock and pay supplemental cash dividends.
Previous wording
The following is a summary of the significant capital allocation and strategic fleet optimization activities we executed so far during 2026 and sources of capital we have at our disposal for future use as well as the Company’s current commitments for future uses of capital:
Current wording
The following is a summary of the significant capital allocation and strategic fleet optimization activities we have executed so far during 2026 and sources of capital we have at our disposal for future use as well as the Company’s current commitments for future uses of capital:
Previous wording
On May 6, 2026, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.12 per share of common stock and a supplemental dividend of $4.43 per share of common stock. Both dividends will be paid on June 26, 2026 to stockholders of record as of June 12, 2026.
Current wording
On August 7, 2026, the Company’s Board of Directors declared cash dividends of $5.05 per share of common stock, payable on September 24, 2026 to stockholders of record as of September 10, 2026.
Previous wording
As of March 31, 2026, the Company has contractual commitments for the construction of three dual-fuel ready LR1s and the purchase and installation of various performance efficiency devices for the fleet. The Company’sdebt service commitments andaggregate purchase commitments for vessel construction and betterments as of March 31, 2026, are presented in the Aggregate Contractual Obligations Table below.
Current wording
As of June 30, 2026, the Company has contractual commitments for the construction of four dual-fuel ready LR1s and the purchase and installation of various performance efficiency devices for the fleet. The Company’sdebt service commitments andaggregate purchase commitments for vessel construction and betterments as of June 30, 2026 (excluding the construction contracts for two of the additional four dual-fuel ready LR1s that were executed in July 2026), are presented in the Aggregate Contractual Obligations Table below.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
the Crude Tankers Lightering business increased by $0.9 million, which reflects incremental chartered-in Aframax days for two full-service jobs completed during the current period and increased daily rates on a portion of its chartered-in workboat fleet.
Current report — wording carried from elsewhere
recorded by the Company under its loss of hire insurance policies. The fixed earnings rates in the table are net of broker/address commissions.
Current report — wording carried from elsewhere
by $1.4 million to $21.2 million in the current quarter from $22.6 million in the prior year’s quarter. Such decrease resulted primarily from the sales in the MR fleet described above, offset to a large extent by increased depreciation in the LR1 fleet resulting from the fleet changes noted above.
Current report — wording carried from elsewhere
During the second quarter of 2026, general and administrative expenses increased by $4.4 million to $16.6 million from $12.2 million in the second quarter of 2025. The primary drivers for the quarter-over-quarter increase were the consolidation of the operating expenses of TUKA and TUKSA aggregating $3.3 million and $0.5 million in costs incurred in connection with the adoption of the Second A&R Rights Agreement. The costs incurred by TUKA and TUKSA are substantially recovered by the Company through pool management fees charged to TIL and TISL, as discussed in the “Other Operating Revenues” section above.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results reported under GAAP. Some of the limitations are: