International Seaways, Inc. Q1 FY2025 earnings call

• Net income for Q1 was $50M ($1 per diluted share), adjusted net income excluding gains on vessel sales was $40M ($0.80 per diluted share), adjusted EBITDA was $91M. - Ended Q1 with $673M total liquidity, including almost $550M undrawn revolver capacity. Gross debt at end of Q1 was ~$600M, ~15% net loan-to-value on March vessel value. - Swapped two older VLCC plus $3M cash for three eco MRs, with net proceeds of $50M in Q1 and net cash outflows for deposits in one MR in prior quarter. - Increased time charter exposure to lock-in fixed revenue, e.g., agreed on a one year time charter on a Suezmax to reach $295M in fixed revenue. - Announced another dividend of 75% of adjusted net income, combined dividend $0.60 per share in June. - Oil production in 2025 - 2026 expected to increase by over 1M bbl/day, non - OPEC+ production important for ton - mile demand. Oil demand expected to grow in line with historical rates. - Supply side: tankers on order represent 14% of fleet delivering over next 4 years, 47% of fleet over 20 years old, increase in recycling in Q1.

Net income for the first quarter was $50 million, or $1 per diluted share. Excluding gains on vessel sales, adjusted net income for the first quarter was $40 million or $0.80 per diluted share. Adjusted EBITDA was $91 million, essentially in line with the previous quarter. The lightering business had over $8 million of revenue in the quarter, combining with vessel expenses, charter hire, and G&A, contributed about $2 million in EBITDA in the first quarter.

• As of today, blended average spot TCE fleetwide is about $31,200 per day, 45% of Q2 expected revenue base. Forward spot breakeven rate is ~$13,500 per day. Expect to generate significant free cash flows in Q2 and continue returning cash to shareholders. - Provided updated guidance for expenses in Q2 and estimates for 2025.

• Forward - looking statements subject to risks, uncertainties and assumptions beyond company's control, including events described in annual report on Form 10 - K for 2024, quarterly report on Form 10 - Q for Q1 2025, and other SEC filings. - Geopolitical conflicts, economic, regulatory and political developments in US and globally could impact results. - Uncertainty around establishment and enforcement of regulations affecting global trade, potential lack of investment slowing global economy.

Q: Omar Nokta with Jefferies asked about financing for six LR1s and refinancing a $250M facility.

A: Jeff Pribor said they're evaluating options, with revolver optionality, and expect savings of several hundred basis points on interest from refinancing.

Q: Sherif Elmaghrabi with BTIG asked about OpEx cost bump and charter conversations.

A: Lois Zabrocky said there's a lag in forward fixing markets, VLCCs picked up but sideways in spot, anticipating increased liftings.

Q: Chris Robertson with Deutsche Bank asked about LR2 market.

A: Lois Zabrocky said they have one LR2, views on LR2 and Afras fleet aging, modern vessels tend to trade clean, older ones dirty.

Q: Liam Burke with B. Riley Securities asked about Suezmax benefit from non - OPEC+ production and fleet age opportunities.

A: Lois Zabrocky said Suezmaxes correlate with VLCCs, low oil prices boosting Russian barrels on legitimate tonnage, and they're always looking for fleet age opportunities.