Financial Analysis

NOTE 18 CONTINGENCIES: INSWs policy for recording legal costs related to contingencies is to expense such legal costs as incurred. Spin-Off Related Agreements On November 30, 2016, INSW was spun off from OSG as a separate publicly traded company. In connection with the spin-off, INSW and OSG entered into several agreements, including a separation and distribution agreement, an employee matters agreement and a transition services agreement. While most of the obligations under those agreements were subsequently fulfilled, certain provisions (including in particular mutual indemnification provisions under the separation and distribution agreement and the employee matters agreement) continue in force. Legal Proceedings Arising in the Ordinary Course of Business The Company is a party, as plaintiff or defendant, to various suits in the ordinary course of business for monetary relief arising principally from personal injuries, wrongful death, collision or other casualty and to claims arising under charter parties and other contract disputes. A substantial majority of such personal injury, wrongful death, collision or other casualty claims against the Company are covered by insurance (subject to deductibles not material in amount). Each of the claims involves an amount which, in the opinion of management, should not be material to the Companys financial position, results of operations and cash flows. In March 2025, an arbitration tribunal in England awarded the Company monetary dama …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8 DEBT: The Company is party to a number of sale and leaseback transactions. The Companys obligations under these transactions are secured by, among other things, assignments of earnings and insurances and stock pledges and account charges in respect of the subject vessels. The arrangements also contain customary events of default, including cross-default provisions as well as subjective acceleration clauses under which the lessor could cancel the lease in the event of a material adverse change in the Companys business. For each arrangement, the Company evaluated whether, in substance, these transactions are leases or merely a form of financing. As a result of this evaluation, we concluded that each agreement was a form of financing on the basis that each transaction was a sale and leaseback transaction that did not meet the criteria for a sale under ASC 842 and ASC 606 due to the fixed price seller repurchase options and/or mandatory seller repurchase obligations terms included in the arrangements. Accordingly, the cash received in the transactions has been accounted for as a liability, and such arrangements have been recorded at amortized cost using the effective interest method, with the corresponding vessels remaining on the consolidated balance sheet at cost, less accumulated depreciation. The balances in the following table reflect the amounts due under the Companys secured debt facilities and secured lease financing arrangements, net of any unamortized deferred fi …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three years ended December 31, 202 5 : Crude Product (Dollars in thousands) Tankers Carriers Totals 2025 Revenues from leases Pool revenues $ 321,595 $ 320,190 $ 641,785 Time and bareboat charter revenues 81,203 76,377 157,580 Voyage charter revenues from non-variable lease payments 337 7,124 7,461 Revenues from services Voyage charter revenues from lightering services 36,476 36,476 Total shipping revenues $ 439,611 $ 403,691 $ 843,302 2024 Revenues from leases Pool revenues $ 314,018 $ 435,146 $ 749,164 Time and bareboat charter revenues 77,420 59,699 137,119 Voyage charter revenues from non-variable lease payments 4,983 5,417 10,400 Revenues from services Voyage charter revenues from lightering services 54,930 54,930 Total shipping revenues $ 451,351 $ 500,262 $ 951,613 2023 Revenues from leases Pool revenues $ 399,904 $ 505,904 $ 905,808 Time and bareboat charter revenues 67,883 28,661 96,544 Voyage charter revenues from non-variable lease payments 7,860 12,688 20,548 Voyage charter revenues from variable lease payments 66 516 582 Revenues from services Voyage charter revenues from lightering services 48,293 48,293 Total shipping revenues $ 524,006 $ 547,769 $ 1,071,775 …

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NOTE 7 FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES: The estimated fair values of the Companys financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, at December 31, 2025 and 2024 are as follows: (Dollars in thousands) December 31, 2025 December 31, 2024 Fair Value Level Cash and cash equivalents $ 116,922 $ 157,506 Level 1 Short-term investments (1) 50,000 Level 1 2030 Bonds (249,748) Level 1 ECA Credit Facility (81,494) Level 2 $500 Million Revolving Credit Facility (2) (144,581) Level 2 Ocean Yield Lease Financing (2) (282,627) Level 2 BoComm Lease Financing (3) (174,713) (188,370) Level 2 Toshin Lease Financing (3) (10,151) (11,662) Level 2 Hyuga Lease Financing (3) (10,164) (11,776) Level 2 Kaiyo Lease Financing (3) (9,485) (10,554) Level 2 Kaisha Lease Financing (3) (8,921) (10,656) Level 2 (1) Short-term investments consist of time deposits with original maturities of between 91 and 180 days. (2) Floating rate debt the fair value of floating rate debt has been determined using level 2 inputs and is considered to be equal to the carrying value since it bears a variable interest rate, which is reset every three months. (3) Fixed rate debt the fair value of fixed rate debt has been determined using level 2 inputs by discounting the expected cash flows of the outstanding debt. Derivatives The Company uses interest rate caps, collars and swaps for …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"NOTE 10 TAXES: Income taxes are provided for using the asset and liability method, such that income taxes are recorded based on amounts refundable or payable in the current year and include the results of any differences in the basis of assets and liabilities between U.S. GAAP and tax reporting. The Company derives substantially all of its gross income from the use and operation of vessels in international commerce. A substantial portion of income earned by INSW is not subject to income tax, and no deferred taxes are provided on the temporary differences between the tax and financial statement basis of the underlying assets and liabilities for those subsidiaries not subject to income tax in their respective countries of incorporation. Prior to September 2025, INSWs subsidiaries that own and operate vessels were primarily domiciled in the Marshall Islands and Liberia, which do not impose income tax on offshore shipping operations. Beginning in September 2025, in an effort to maximize future operational and strategic flexibility while maintaining compliance with evolving global tax reform regulations that are focused on the alignment of the jurisdictions in which an entitys commercial or strategic management are performed with where its profits are realized, the Company began the process of changing the domicile of its international shipping income generating vessel-owning subsidiaries and various intermediate parent holding companies under International Seaways, Inc. (the Ber …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

16. Recently issued accounting standards The Financial Accounting Standards Board (FASB) Accounting Standards Codification is the sole source of authoritative GAAP other than United States Securities and Exchange Commission (SEC) issued rules and regulations that apply only to SEC registrants. The FASB issues Accounting Standards Updates (ASU) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. ASUs not referenced below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses . This guidance will require additional disclosures and disaggregation of certain costs and expenses presented on the face of the income statement. The amendments are effective for annual reporting periods beginning after December 31, 2026 and interim reporting periods within fiscal years beginning after December 31, 2027 with early adoption permitted. We are currently evaluating the impact of this new guidance on the disclosures to our consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal - Use Software (ASC 350-40): Targeted Improvements to the Accounting for Internal - Use Software . This new guidance is intended to eliminate the use of project stages and introduces a principles-based framew …

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NOTE 15 PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS: Defined Benefit Pension Plan In September 2024, the Company contributed $3.6 million into the OSG Ship Management (UK) Ltd. Retirement Benefits Plan (the Plan) to allow the Trustee of the Plan to purchase a $21.0 million insurance contract tailored to match the full value of future Plan benefits payable from the Plan. In this arrangement, the Companys pension benefit obligation and related risks and rewards are not transferred to the insurance company, and as a result, the Company continues to be responsible for paying the benefits. However, this arrangement generally constitutes an economic settlement of the liability by eliminating relevant risks associated with changes to the obligation, including investment, interest rate and longevity risk. The contract is accounted for as a plan asset in the accompanying consolidated balance sheets as of December 31, 2025 and 2024. As this arrangement does not qualify for settlement accounting under ASC 715, Compensation Retirement Benefits, the corresponding obligation is netted against the plan asset in the accompanying consolidated balance sheet. The Company expects the benefits due to the participants under the Plan to be transferred to the insurance company after the completion of their standard review of the Plans underlying data in approximately twenty-four months (i.e., December 2027) with minimal or no additional cost to the Company. At such time, the Company believes the …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 13 REVENUE: Revenue Recognition The majority of the Companys contracts for pool revenues, time and bareboat charter revenues, and voyage charter revenues are accounted for as lease revenue under ASC 842. The Companys contracts with pools are short term which are cancellable with up to 90 days' notice. As of December 31, 2025, the Company is a party to time charter out contracts with customers on three VLCCs, two Suezmaxes, one Aframax, one LR2, and six MRs with expiry dates ranging from March 2026 to April 2030. The Companys contracts with customers for voyage charters are short term and vary in length based upon the duration of each voyage. Lease revenue for non-variable lease payments is recognized over the lease term on a straight-line basis and lease revenue for variable lease payments (e.g., demurrage) are recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. See Note 2, Significant Accounting Policies, for additional detail on the Companys accounting policies regarding revenue recognition for leases. Lightering services provided by the Companys Crude Tanker Lightering Business and voyage charter contracts that do not meet the definition of a lease are accounted for as service revenues under ASC 606. In accordance with ASC 606, revenue is recognized when a customer obtains control of or consumes promised services. The amount of revenue recognized reflects the consideration to which the Company …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 4 BUSINESS AND SEGMENT REPORTING: The Company is engaged primarily in the ocean transportation of crude oil and petroleum products in the international market through the ownership and operation of a diversified fleet of vessels. The shipping industry has many distinct market segments based, in large part, on the size and design configuration of vessels required and, in some cases, on the flag of registry. Rates in each market segment are determined by a variety of factors affecting the supply and demand for vessels to move cargoes in the trades for which they are suited. Tankers are not bound to specific ports or schedules and therefore can respond to market opportunities by moving between trades and geographical areas. The Company charters its vessels to commercial shippers and foreign governments and governmental agencies primarily on voyage charters and on time charters. The Company has two reportable segments: Crude Tankers and Product Carriers. The Crude Tankers segment aggregates the Companys VLCC, Suezmax, Aframax, and Lightering operating segments. The Product Carriers segment aggregates LR2, LR1, and MR operating segments. The accounting policies followed by the reportable segments are the same as those followed in the preparation of the Companys consolidated financial statements as described in Note 2, Summary of Significant Accounting Policies. The Companys President and Chief Executive Officer, who is the chief operating decision maker (CODM), evaluates segm …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing