International Seaways, Inc.

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, 2025 and for the three months ended March 31, 2025 and 2024. 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, 2025 and for the three and six months ended June 30, 2025 and 2024. 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, 2025 and 2024, we derived 53% and 54%, respectively, of our TCE revenues from our Product Carriers segment. Revenues from our Crude Tankers segment constituted the balance of our TCE revenues in the 2025 and 2024 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 the three and six months ended June 30, 2025 we derived 52% and 50%, respectively, of our TCE revenues from our Crude Tankers segment compared with 48% and 47% for the three and six months ended June 30, 2024, respectively. Revenues from our Product Carriers segment constituted the balance of our TCE revenues in the 2025 and 2024 periods.

Previous wording

As of March 31, 2025, the Company’s operating fleet consisted of 78 wholly-owned or lease financed and time chartered-in vessels aggregating 8.6 million deadweight tons (“dwt”). In addition to our operating fleet of 78 vessels, six LR1 newbuilds are scheduled for delivery to the Company between the second half of 2025 and third quarter of 2026, bringing the total operating and newbuild fleet to 84 vessels. Our fleet includes VLCC, Suezmax and Aframax crude tankers and LR2, LR1 and MR product carriers.

Current wording

As of June 30, 2025, the Company’s operating fleet consisted of 75 wholly-owned or lease financed and time chartered-in vessels aggregating 8.4 million deadweight tons (“dwt”). In addition to our operating fleet of 75 vessels, six LR1 newbuilds are scheduled for delivery to the Company between the third quarter of 2025 and third quarter of 2026, bringing the total operating and newbuild fleet to 81 vessels. Our fleet includes VLCC, Suezmax and Aframax crude tankers and LR2, LR1 and MR product carriers.

Previous wording

months ended March 31, 2025 compared with 89% for the three months ended March 31, 2024. The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, one Aframax, one LR2, and eight MRs, as of March 31, 2025 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 82% and 81% of our total TCE revenues in the spot market for the three and six months ended June 30, 2025, respectively, compared with 88% and 89% for the three and six months ended June 30, 2024, respectively. The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, one Suezmax, one Aframax, one LR2, and eight MRs, as of June 30, 2025 are as follows:

Previous wording

The International Energy Agency (“IEA”) estimates global oil consumption for the first quarter of 2025 at 102.4 million barrels per day (“b/d”), up 1.2% from the same quarter in 2024. The estimate for global oil consumption for 2025 is 103.8 million b/d, an increase of 0.7% over the 2024 estimate of 102.8 million b/d. OECD demand in 2025 is estimated to decrease by 0.4% to 45.5 million b/d, while non-OECD demand is estimated to increase by 1.6% to 58.1 million b/d.

Current wording

The International Energy Agency (“IEA”) estimates global oil consumption for the second quarter of 2025 at 103.4 million barrels per day (“b/d”), up 0.5% from the same quarter in 2024. The estimate for global oil consumption for 2025 is 103.7 million b/d, an increase

Previous wording

Global oil production in the first quarter of 2025 was 102.5 million b/d, an increase of 1.1 million b/d from the first quarter of 2024. OPEC crude oil production averaged 26.8 million b/d in the first quarter of 2025, up 0.1 million b/d from the fourth quarter of 2024, and an increase of 0.3 million b/d from the first quarter of 2024. Non-OPEC production increased by 0.7 million b/d to 70.1 million b/d in the first quarter of 2025 compared with the first quarter of 2024. Oil production in the U.S. of 13.1 million b/d in the first quarter of 2025 decreased by 2.3% from the fourth quarter of 2024 but increased by 4.7% from the first quarter of 2024.

Current wording

Global oil production in the second quarter of 2025 was 104.0 million b/d, an increase of 1.5 million b/d from the second quarter of 2024. OPEC crude oil production averaged 27.0 million b/d in the second quarter of 2025, up 0.2 million b/d from the first quarter of 2025, and an increase of 0.4 million b/d from the second quarter of 2024. Non-OPEC production increased by 1.1 million b/d to 71.4 million b/d in the second quarter of 2025 compared with the second quarter of 2024. Oil production in the U.S. of 13.5 million b/d in the second quarter of 2025 increased by 2.5% from the first quarter of 2025 and by 1.7% from the second quarter of 2024.

Previous wording

U.S. refinery throughput decreased by 0.5 million b/d to 16.0 million b/d in the first quarter of 2025 compared with the fourth quarter of 2024.

Current wording

U.S. refinery throughput increased by 0.4 million b/d to 16.4 million b/d in the second quarter of 2025 compared with the first quarter of 2025.

Previous wording

U.S. crude oil imports in the first quarter of 2025 increased by 0.3% to 6.6 million b/d compared with the first quarter of 2024, with imports from OPEC countries increasing by 0.2 million b/d and imports from non-OPEC countries decreasing by 0.2 million b/d.

Current wording

U.S. crude oil imports in the second quarter of 2025 decreased by 8.3% to 6.0 million b/d compared with the second quarter of 2024, with imports from OPEC countries decreasing by 0.3 million b/d and imports from non-OPEC countries decreasing by 0.2 million b/d. China’s crude oil imports in June were 12.1 million b/d, the highest since August 2023. Year-to-date, imports are up 1.4% compared with the corresponding period in 2024.

Previous wording

OECD commercial crude inventories in the first quarter of 2025 decreased by 3.3%, or 45 million barrels, compared with the fourth quarter of 2024. OECD commercial product inventories in the first quarter of 2025 increased by 1.1%, or 16 million barrels, compared with the fourth quarter of 2024.

Current wording

OECD commercial crude inventories in the second quarter of 2025 decreased by 2.2%, or 31 million barrels, compared with the first quarter of 2025. OECD commercial product inventories in the second quarter of 2025 decreased by 3.0%, or 44 million barrels, compared with the first quarter of 2025.

Previous wording

During the first quarter of 2025, the tanker fleet of vessels over 10,000 dwt increased, net of vessels recycled, by 2.8 million dwt. The crude fleet increased by 1.9 million dwt, with VLCCs decreasing by 0.3 million dwt and Suezmaxes and Aframaxes increasing by 0.6 million dwt and 1.5 million dwt, respectively. The product carrier fleet increased by 0.9 million dwt, with LR1s decreasing by 0.1 million dwt and MRs increasing by 1.0 million dwt. Year-over-year, the size of the tanker fleet increased by 6.5 million dwt with the VLCCs and LR1s decreasing by 0.9 million dwt and 0.1 million dwt, respectively and Suezmaxes, Aframaxes, and MRs increasing by 1.7 million dwt, 2.9 million dwt, and 2.8 million dwt, respectively.

Current wording

During the second quarter of 2025, the tanker fleet of vessels over 10,000 dwt increased, net of vessels recycled, by 3.7 million dwt. The crude fleet increased by 2.9 million dwt, with VLCCs, Suezmaxes and Aframaxes increasing by 0.3 million dwt, 1.1 million dwt and 1.5 million dwt, respectively. The product carrier fleet increased by 0.8 million dwt, with LR1s decreasing by 0.1 million dwt and MRs increasing by 0.9 million dwt. Year-over-year, the size of the tanker fleet increased by 9.6 million dwt with the VLCCs and LR1s decreasing by 0.3 million dwt and 0.2 million dwt, respectively and Suezmaxes, Aframaxes, and MRs increasing by 2.8 million dwt, 3.9 million dwt, and 3.4 million dwt, respectively.

Previous wording

During the first quarter of 2025, the tanker orderbook decreased by 1.2 million dwt overall. The crude tanker orderbook decreased by 0.9 million dwt. The VLCC orderbook decreased by 0.3 million dwt, the Suezmax orderbook increased by 0.6 million dwt and the Aframax orderbook decreased by 1.3 million dwt. The product carrier orderbook decreased by 0.3 million dwt, with LR1s increasing by 0.1 million dwt and MRs decreased by 0.4 million dwt. Year-over-year, the total tanker orderbook increased by 30.1 million dwt, with increases in VLCC, Suezmaxes, Aframaxes, LR1s and MRs of 12.5 million dwt, 2.1 million dwt, 5.3 million dwt, 2.5 million dwt and 7.7 million dwt, respectively.

Current wording

During the second quarter of 2025, the tanker orderbook increased by 1.4 million dwt overall. The crude tanker orderbook increased by 2.2 million dwt. The VLCC and Suezmax orderbooks increased by 1.9 million dwt and 2.2 million dwt, respectively, while the Aframax orderbook decreased by 1.8 million dwt. The product carrier orderbook decreased by 0.8 million dwt, all in the MR segment. Year-over-year, the total tanker orderbook increased by 15.1 million dwt, with increases in VLCC, Suezmaxes, LR1s and MRs of 10.4 million dwt, 3.6 million dwt, 1.0 million dwt, and 1.7 million dwt, respectively. The Aframax orderbook decreased by 1.7 million dwt.

Previous wording

Tanker rates in general held steady in the first quarter of 2025 compared with the fourth quarter of 2024. Global economic turmoil stemming from fluctuating announcements of trade barriers has created uncertainty for tanker demand. Generally, trade disruptions are positive for shipping, however, trade barriers can lead to demand destruction, which would be negative. Currently, rates remain significantly over cash breakeven levels.

Current wording

Tanker rates showed modest to strong gains in the second quarter of 2025 compared with the first quarter of 2025. Global economic turmoil stemming from fluctuating announcements of trade barriers has created uncertainty for tanker demand. Generally, trade disruptions are positive for shipping, however, trade barriers can lead to demand destruction, which would be negative. Currently, rates remain significantly over cash breakeven levels.

Previous wording

Note 2, “Summary of Significant Accounting Policies,” to the Company’s consolidated financial statements as of and for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K. See Note 2, “Significant Accounting Policies,” to the accompanying condensed consolidated financial statements for any changes or updates to the Company’s critical accounting policies for the current period.

Current wording

The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States, which require the Company to make estimates in the application of its accounting policies based on the best assumptions, judgments and opinions of management. For a description of all of the Company’s material accounting policies, see Note 2, “Summary of Significant Accounting Policies,” to the Company’s consolidated financial statements as of and for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K. See Note 2, “Significant Accounting Policies,” to the accompanying condensed consolidated financial statements for any changes or updates to the Company’s critical accounting policies for the current period.

Previous wording

During the first quarter of 2025, income from vessel operations decreased by $95.3 million to $59.2 million from $154.4 million in the first quarter of 2024. Such decrease resulted principally from lower TCE revenues and increased depreciation and amortization and vessel expenses in the current quarter, partially offset by a $10.0 million net gain on the vessel sales recognized in the current quarter.

Current wording

During the second quarter of 2025, income from vessel operations decreased by $85.4 million to $69.4 million from $154.8 million in the second quarter of 2024. Such decrease resulted principally from lower TCE revenues, increased depreciation and amortization and $16.6 million in incremental gains on the vessel sales recognized in the prior year’s quarter.

Previous wording

TCE revenues in the first quarter of 2025 decreased by $92.6 million, or 34%, to $178.3 million from $270.9 million in the first quarter of 2024. This decrease reflects (i) an aggregate $102.4 million rates-based decline resulting from lower average daily rates earned in each of INSW’s fleet sectors, (ii) a $9.0 million days-based decline in the VLCC fleet primarily due to the sale of two vessels during the current quarter and (iii) a $5.6 million decline in Lightering revenues. These decreases were partially offset by a $23.1 million aggregate days-based increase in the MR and LR1 sectors, driven by the net addition of six MRs between April 2024 and January 2025 and 89 incremental LR1 chartered-in days in the current quarter.

Current wording

TCE revenues in the second quarter of 2025 decreased by $63.0 million, or 25%, to $188.8 million from $251.8 million in the second quarter of 2024. This decrease reflects (i) an aggregate $72.8 million rates-based decline resulting from lower average daily rates earned in each of INSW’s fleet sectors, (ii) a $5.3 million days-based decline in the VLCC fleet primarily due to the sale of two vessels during the first quarter of 2025 and (iii) a $4.6 million decline in Lightering revenues. These decreases were partially offset by a $16.4 million aggregate days-based increase in the MR and LR1 sectors, driven by the net addition of four MRs between April 2024 and January 2025, 75 additional LR1 chartered-in days and 120 fewer LR1 off-hire days in the current quarter.

Previous wording

The following table provides a breakdown of TCE rates achieved for the three months ended March 31, 2025 and 2024, 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 $1,112 and $1,232 per day for the three months ended March 31, 2025 and 2024, 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, 2025 and 2024, 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 $960 and $794 per day for the three months ended June 30, 2025 and 2024, respectively, and $1,036 and $1,016 per day for the six months ended June 30, 2025 and 2024, 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 2025, TCE revenues for the Crude Tankers segment decreased by $39.3 million, or 32%, to $84.6 million from $124.0 million in the first quarter of 2024. Such decrease principally resulted from (i) an aggregate rates-based decrease in the VLCC, Suezmax and Aframax fleets of $26.0 million due to lower average daily blended rates in these sectors, (ii) a $9.0 million days-based decline in the VLCC sector, which reflected the sales of one 2010-built VLCC and one 2011-built VLCC and 77 more off-hire days during the current quarter, and (iii) a $5.6 million decrease in the Crude Tankers Lightering business.

Current wording

During the second quarter of 2025, TCE revenues for the Crude Tankers segment decreased by $21.9 million, or 18%, to $98.9 million from $120.9 million in the second quarter of 2024. Such decrease principally resulted from (i) an aggregate rates-based decrease in the VLCC, Suezmax and Aframax fleets of $13.5 million due to lower average daily blended rates in these sectors, (ii) a $5.3 million days-based decline in the VLCC sector, which reflected the sales of one 2010-built VLCC and one 2011-built VLCC during the first quarter of 2025 partially offset by 59 fewer off-hire days during the current quarter, and (iii) a $4.6 million decrease in the Crude Tankers Lightering business.

Previous wording

​Vessel expenses decreased by $2.1 million to $28.4 million in the first quarter of 2025 from $30.5 million in the first quarter of 2024. Such decrease was driven principally by the sales of the two VLCCs noted above. Charter hire expenses decreased by $0.7 million quarter-over-quarter due to decreased charter hire expense in the Crude Tankers Lightering business, which primarily reflects charter hire incurred in conjunction with a full-service lightering job during the prior year’s quarter and incremental off-hire time during the current quarter associated with the workboats being chartered-in by the Company. Depreciation and amortization decreased by $1.3 million to $18.7 million in the current quarter from $20.0 million in the first quarter of 2024, primarily as a result of the sales of the two VLCCs noted above.

Current wording

​Vessel expenses decreased by $2.0 million to $58.4 million in the first half of 2025 from $60.4 million in the first half of 2024. Such decrease was primarily as a result of the sales of the two VLCCs noted above. Charter hire expenses decreased by $0.8 million period-over-period due to decreased charter hire expense in the Crude Tankers Lightering business, which primarily reflects incremental chartered-in Aframax days for full-service jobs during the prior year’s period and incremental off-hire time during the current period associated with the workboats being chartered-in by the Company. Depreciation and amortization decreased by $2.6 million to $37.4 million in the six months ended June 30, 2025 from $40.0 million in the prior year’s comparable period principally due to the VLCC sales noted above.

Previous wording

Excluding depreciation and amortization and general and administrative expenses, operating income for the Crude Tankers Lightering business was $2.8 million for the first quarter of 2025 compared with $7.8 million for the first quarter of 2024. The decrease reflects a decline in period-over-period activity levels, with 85 service support only lighterings and no full-service lightering jobs being performed during the first quarter of 2025 compared with 128 service support only lighterings and one full-service lightering job that was in progress during the first quarter of 2024.

Current wording

Excluding depreciation and amortization and general and administrative expenses, operating income for the Crude Tankers Lightering business was $5.6 million for the first half of 2025 compared with $15.0 million for the first half of 2024. Consistent with the discussion of the quarter-over-quarter decline above, the decrease reflects a decline in period-over-period activity levels, with 178 service support only lighterings and one full-service lightering job being performed during the 2025 period compared with 262 service support only lighterings and three full-service lightering jobs during the comparable 2024 period.

Previous wording

The following table provides a breakdown of TCE rates achieved for the three months ended March 31, 2025 and 2024, 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 $767 and $898 per day for the three months ended March 31, 2025 and 2024, 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, 2025 and 2024, 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 $778 and $900 per day for the three months ended June 30, 2025 and 2024, respectively, and $773 and $899 per day for the six months ended June 30, 2025 and 2024, respectively, as well as revenue and revenue days for which recoveries were

Previous wording

During the first quarter of 2025, TCE revenues for the Product Carriers segment decreased by $53.3 million, or 36%, to $93.7 million from $147.0 million in the first quarter of 2024. The reduction in TCE revenues was primarily as a result of (i) an aggregate $76.4 million rates-based decrease in the LR2, LR1 and MR sectors due to lower average daily blended rates earned in the current quarter, which were partially offset by (ii) a $14.9 million days-based increase in the MR sector, which reflects the Company’s acquisition of nine MRs between April 2024 and January 2025, partially offset by the sale of three MRs between April 2024 and July 2024, and (iii) a $8.3 million days-based increase in the LR1 sector, which resulted primarily from a 89-day increase in time chartered-in days in the current quarter.

Current wording

During the second quarter of 2025, TCE revenues for the Product Carriers segment decreased by $41.1 million, or 31%, to $89.9 million from $131.0 million in the second quarter of 2024. The reduction in TCE revenues was primarily as a result of (i) an aggregate $59.3 million rates-based decrease in the LR2, LR1 and MR sectors due to lower average daily blended rates earned in the current quarter, which was partially offset by (ii) a $6.2 million days-based increase in the MR sector, which reflects the Company’s acquisition of nine MRs between April 2024 and January 2025, partially offset by the sale of five MRs between April 2024 and June 2025, and (iii) a $10.2 million days-based increase in the LR1 sector, which resulted primarily from a 75-day increase in time chartered-in days and 120 fewer off-hire days in the current quarter.

Previous wording

Vessel expenses increased by $5.7 million to $38.6 million in the first quarter of 2025 from $32.9 million in the first quarter of 2024. Such increase principally reflects the impact of the increase in our MR fleet referenced above. Charter hire expenses increased by $3.2 million to $6.3 million in the current quarter from $3.1 million in the first quarter of 2024, primarily as a result of the quarter-over-quarter increase in time chartered-in LR1 days described above. Depreciation and amortization increased by $6.9 million to $21.0 million in the current quarter from $14.1 million in the prior year’s quarter. Such increase resulted primarily from increased drydock amortization and the MR purchases and sales referenced above.

Current wording

Vessel expenses increased by $5.2 million to $76.0 million in the first six months of 2025 from $70.8 million in the first six months of 2024. Such increase was principally attributable to the net additions in our MR fleet referenced above. Charter hire expenses increased by $6.0 million to $12.3 million in the current period from $6.3 million in the prior year’s period, primarily as a result of the period-over-period increase in time chartered-in LR1 days described above. Depreciation and amortization increased by $13.0 million to $43.6 million in the first half of 2025 from $30.6 million in the first half of 2024. The drivers of such increase were consistent with those noted above in relation to the quarter-over-quarter increase.

Previous wording

Other income of $1.8 million and $3.0 million for the three months ended March 31, 2025 and 2024, respectively, is primarily comprised of interest income earned on invested cash. The quarter-over-quarter decrease in interest income reflects the impact of a lower average balance of invested cash during the three months ended March 31, 2025 as well as a decrease in interest rates offered on cash deposits.

Current wording

Other income was $2.0 million and $3.9 million for the three and six months ended June 30, 2025, respectively, compared with $2.4 million and $5.3 million of other income for the three and six months ended June 30, 2024. Other income is primarily comprised of interest income earned on invested cash. The period-over-period decrease in interest income reflects the impact of a lower average balance of invested cash during the three and six months ended June 30, 2025 as well as a decrease in interest rates offered on cash deposits.

Previous wording

since April 2024, (ii) the repayment in full of the ING Credit Facility in April 2024, and (iii) the decline of SOFR rates during the first quarter of 2025 compared to 2024. See Note 8, “Debt,” in the accompanying condensed consolidated financial statements for further information on the Company’s debt facilities.

Current wording

Interest expense decreased during the 2025 periods compared to the corresponding 2024 periods 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 such facilities since April 2024, (ii) the repayment in full of the ING Credit Facility in April 2024, and (iii) the decline of SOFR rates during the first half of 2025 compared to the first half of 2024. See Note 8, “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 2025 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 2025. There can be no assurance at this time that INSW will continue to qualify for the Section 883 exemption beyond calendar year 2025. 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.

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 2025 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 2025. There can be no assurance at this time that INSW will continue to qualify for the Section 883 exemption beyond calendar year 2025. 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.

Previous wording

As of March 31, 2025, we had total liquidity on a consolidated basis of $673.2 million comprised of $132.8 million of cash and $540.4 million of undrawn revolver capacity.

Current wording

As of June 30, 2025, we had total liquidity on a consolidated basis of $709.2 million comprised of $148.8 million of cash and $560.4 million of undrawn revolver capacity.

Previous wording

Working capital at March 31, 2025 and December 31, 2024 was $208.2 million and $245.4 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 $50.2 million and $50.1 million at March 31, 2025 and December 31, 2024, respectively.

Current wording

Working capital at June 30, 2025 was a deficit of $17.9 million compared to a positive balance of $245.4 million at December 31, 2024. Current assets are highly liquid, consisting principally of cash, interest-bearing deposits, and receivables. Current liabilities at June 30, 2025 include the $266.2 million outstanding principal balance payable, net of unamortized deferred finance costs, under the Ocean Yield Lease Financing facility, which will terminate in November 2025, upon our exercise of purchase options. See Note 8, “Debt,” in the accompanying condensed consolidated financial statements for further information on the accounting guidance requiring the balance sheet classification of this obligation, which is expected to be refinanced with long-term debt, as a current liability as of June 30, 2025.

Previous wording

The Company’s cash and cash equivalents decreased by $24.7 million during the three months ended March 31, 2025. The decrease principally reflects the net impact of (i) $81.6 million of net loan repayments under the $500 Million Revolving Credit Facility; (ii) $34.5 million of cash dividends paid to shareholders; (iii) $12.2 million in regularly scheduled principal amortization of the Company’s lease financing arrangements; (iv) $69.9 million of cash provided by operating activities; (v) $48.4 million in returned security deposits and net proceeds from the sale of two VLCCs and purchase of two MRs; and (vi) $11.4 million in other expenditures for vessels, vessel improvements and other property, of which $8.8 million was construction in progress payments.

Current wording

The Company’s cash and cash equivalents decreased by $8.7 million during the six months ended June 30, 2025. The decrease principally reflects: the net impact of (i) $117.2 million of net loan repayments under the $500 Million Revolving Credit Facility; (ii) $64.1 million of cash dividends paid to shareholders; (iii) $24.6 million in regularly scheduled principal amortization of the Company’s lease financing arrangements; (iv) $155.7 million of cash provided by operating activities; (v) $74.3 million in returned security deposits and net proceeds from the sale of two VLCCs and two MRs, net of the purchase of two MRs; and (vi) $27.6 million in other expenditures for vessels, vessel improvements and other property, of which $25.7 million was construction in progress payments.

Previous wording

As of March 31, 2025, we had total debt outstanding (net of original issue discount and deferred financing costs of $6.1 million) of $594.9 million and net debt to capital of 19.8%, compared with 22.2% at December 31, 2024.

Current wording

As of June 30, 2025, we had total debt outstanding (net of original issue discount and deferred financing costs of $5.7 million) of $547.3 million and net debt to capital of 17.3%, compared with 22.2% at December 31, 2024.

Previous wording

On May 7, 2025, 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 $0.48 per share of common stock. Both dividends will be paid on June 26, 2025 to stockholders of record as of June 12, 2025.

Current wording

On August 5, 2025, 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 $0.65 per share of common stock. Both dividends will be paid on September 24, 2025 to stockholders of record as of September 10, 2025.

Previous wording

As of March 31, 2025, the Company has contractual commitments for the construction of six dual-fuel ready LR1s, and the purchase and installation of one ballast water treatment system and four mewis ducts, and 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, 2025, are presented in the Aggregate Contractual Obligations Table below.

Current wording

As of June 30, 2025, the Company has contractual commitments for the construction of six dual-fuel ready LR1s, and the purchase and installation of one ballast water treatment system and two mewis ducts, and 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, 2025, are presented in the Aggregate Contractual Obligations Table below.

Previous wording

Our strong balance sheet, as evidenced by a substantial level of liquidity, 34 unencumbered vessels (excluding the six LR1s under construction) as of March 31, 2025, and diversified financing sources with debt maturities spread out between 2030 and 2031, positions us to support our operations over the next twelve months as we continue to advance our vessel employment strategy, which seeks to achieve an optimal mix of spot (voyage charter) and long-term (time charter) charters. Our balance sheet strength and balanced fleet position us to continue pursuing our disciplined capital allocation strategy of fleet renewal, incremental debt reduction and returns to shareholders and pursue potential strategic opportunities that may arise within the diverse sectors in which we operate.

Current wording

Our strong balance sheet, as evidenced by a substantial level of liquidity, 32 unencumbered vessels (excluding the six LR1s under construction) as of June 30, 2025, and diversified financing sources with debt maturities spread out between 2030 and 2031, positions us to support our operations over the next twelve months as we continue to advance our vessel employment strategy, which seeks to achieve an optimal mix of spot (voyage charter) and long-term (time charter) charters. Our balance sheet strength and balanced fleet position us to continue pursuing our disciplined capital allocation strategy of fleet renewal, incremental debt reduction and returns to shareholders and pursue potential strategic opportunities that may arise within the diverse sectors in which we operate.

Previous wording

The Company is exposed to market risk from changes in interest rates, which could impact its results of operations and financial condition. The Company manages this exposure to market risk through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. To manage its interest rate risk exposure associated with changes in variable interest rate payments due on its credit facilities in a cost-effective manner, the Company, from time-to-time, enters into interest rate swap, collar or cap agreements, in which it agrees to exchange various combinations of fixed and variable interest rates based on agreed upon notional amounts or to receive payments if floating interest rates rise above a specified cap rate. The Company uses such derivative financial instruments as risk management tools and not for speculative or trading purposes. In

Current wording

deemed appropriate, through the use of derivative financial instruments. To manage its interest rate risk exposure associated with changes in variable interest rate payments due on its credit facilities in a cost-effective manner, the Company, from time-to-time, enters into interest rate swap, collar or cap agreements, in which it agrees to exchange various combinations of fixed and variable interest rates based on agreed upon notional amounts or to receive payments if floating interest rates rise above a specified cap rate. The Company uses such derivative financial instruments as risk management tools and not for speculative or trading purposes. In addition, derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage exposure to nonperformance on such instruments by the counterparties.