Summary of International Seaways Q2 2026 Earnings Call

1Key Financial Results and Metrics

Adjusted Net Income: $295 million, or $5.91 per share (record high).

Adjusted EBITDA: $345 million (record).

Free Cash Flow: $261 million (record).

Blended Spot TCE Rates: $79,000 per day, significantly up from $27,500 a year ago and $55,600 in Q1 2026.

Crude Tanker Revenues: $253 million, including $51 million from profit-sharing arrangements.

Quarterly Dividend: Increased to $5.05 per share, reflecting a commitment to return at least 85% of adjusted net income to shareholders.

2Strategic Updates and Business Highlights

Fleet Expansion: Ordered 4 additional LR1 newbuildings for delivery in late 2028, complementing previous orders and maintaining competitive pricing despite industry-wide increases.

Market Positioning: Successfully integrated Tankers International into Seaways, expanding into the Suezmax segment and enhancing commercial capabilities.

Financial Flexibility: Maintained nearly $1 billion in liquidity with low leverage (net debt around 6% of fleet value), allowing for continued investment and shareholder returns.

3Forward Guidance and Outlook

Tanker Demand: Solid fundamentals with potential for increased demand due to geopolitical disruptions, particularly in the Strait of Hormuz and Bab-el-Mandeb.

TCE Rates: Approximately 48% of expected Q3 revenue days booked at a blended spot TCE of $61,000 per day, indicating a positive outlook for continued strong earnings.

Expense Management: Guidance provided on expected expenses for the remainder of 2026, with a focus on maintaining profitability amidst evolving market conditions.

4Bad News, Challenges, or Points of Concern

Geopolitical Risks: Ongoing conflicts, particularly in the Middle East, create uncertainty and potential long-term impacts on oil demand and tanker markets.

Supply Chain Disruptions: Increased ton-mile demand due to cargo rerouting could lead to inefficiencies in global trade.

Market Volatility: While current market conditions are favorable, sustained disruptions could negatively impact global economic stability and oil consumption.

5Notable Q&A Insights

Market Dynamics: Management noted significant dislocation and substitution among tanker sizes, with LR1s performing particularly well due to larger vessels being pulled east.

Product Tanker Outlook: While rates remain elevated, there are signs of normalization. The U.S. continues to export significant volumes of diesel and gasoline, supporting demand.

Growth Opportunities: While there is strong liquidity for potential growth, management emphasized a focus on core oil tanker operations rather than diversifying into other sectors.

Long-Term Fixtures: No immediate long-term fixtures linked to new bypass projects in the Middle East have been observed, despite ongoing capital investments in infrastructure. This summary encapsulates the key points from International Seaways' Q2 2026 earnings call, highlighting both the company's strong performance and the challenges it faces in the current market environment.