Capital Link 2026 Corporate Presentation Series - International Seaways, Inc.

Thank you, Paul. I want to thank everyone for joining us at International Seaways on a very bitterly cold January day. I don't think we've ever seen Manhattan like this in years. And it's the perfect setting for us to talk about energy markets and moving oil at sea. International Seaways, we have both crude and product tankers. We just went out with an announcement today about a sale of five vessels and hence we have 69 vessels that we will have proforma thereafter. And International Seaways is distinct in that we consider ourselves the tanker ETF. Why do we say that? We have both crude and product carriers here at International Seaways. And what you're going to see there on the right hand side is that what we've been doing is upscaling our fleet, hygienating it, and we now because we trade our LR1s in dirty, we've very deliberately been constructing our fleet so that now we have more exposure to the crude markets than we do to the products. So that the composition here is 39 vessels trading crude, 30 ships trading products. And the reason that we've done that is that we've been continuously working to modernize our fleet, make it more efficient and bigger. We talk about being a tanker ETF. Right now in both the United States and in South Korea, you can see product margins are spiking. We've had a serious winter in the northern hemisphere. And when you see those product margins spike, the call for crude goes out. And you really see both crude and product markets moving in tandem. Sometimes offset but very often what you'll see is crude markets will breathe, product markets will strengthen and vice versa. So the last five years have been the perfect setting to have this both crude and product, we say, balanced fleet and balanced exposure. So we think that's a key differentiator. Now, one thing that we also just went out with a press release yesterday is that we have purchased fully Tankers International, which is our VLCC pool that we've been participating with for over 25 years. And the reason that we really highlight these pools, and we're going to talk about them in a little bit, is that our fleet of 60 spot vessels has exposure with nearly 200 other spot vessels through these pools, which gives us strength and scalability to be able to capture the markets. You go to the next one, Tom. These are investment highlights and they're definitely worth digging into. We've got a page on each of them. So, I'm just going to pull a couple of highlights here. Right now, INSW, we are in our 10th year independently listed on the New York Stock Exchange, having been spun off from our predecessor that was in business for all of our lifetime. We started under a half a billion dollars and International Seaways with about 30 ships that were close to 13 years old. Today we stand as a $3 billion company with 70 ships and an average of about 10 years old in our fleet, which we think is a great age profile for the company. While we've done this, we've maintained a healthy balance sheet. We've grown the company with a business model that helps to scale up and down with the tanker cycle. And while our growth platform is important, we believe our balance is the key to being successful as a tanker company and for our investors. We have both crude and products. We have both spot and time charter employment. And we're using our free cash flow with very disciplined capital allocation and prioritizing sustainability for the markets. The tanker market has been going from strength to strength and we see this continuing in 2026. Fundamentally, we have consistent oil demand growth and regional imbalances of crude and products. Demand remains firm east of Suez and that's where we see the primary emerging market growth and certainly a lot of cargo particularly crude is moving from the western hemisphere. Tom's going to jump in and share with you how we've been returning to our shareholders and our capital allocation discipline and approach.

Thank you so much, Tom. So, this is one of my favorite charts. And if you look on the left hand side, you'll see the size of our circles represents the size of the investment that International Seaways has done. And when we were newly spun off, you'll see basically the beginnings of our fleet renewal all the way on the left hand side. And then the really large bubble here was at the absolute nadir of the market, the tanker market. You know, everybody that's in the tanker business knows we have to go with the cycles. You don't really want to fight that. So, we were really lucky in our timing in merging with Diamond S. That's that largest bubble there where we came together and more than doubled the size of our fleet acquiring 64 tankers both crude and product. And then that bubble right kind of overlaying it there. Those are our three dual fuel VLCCs that are burning LNG, are on long-term charter to Shell with a very profitable profit sharing. And then these activities set us up for what you can see has just been a very very strong tanker market. If you look on the right hand side, we continue to renew the fleet. That is something that's absolutely critical in the tanker markets is that, you know, you have to make sure that you're hygienating the fleet all the time. The vessels we're right now in the middle of taking our six LR1s. We already have taken delivery of two and we have four more coming. And by doing that, you have some of the most efficient vessels that are in the marketplace. Tom put a little key on here. You'll see on the upper left hand side that I think is really telling about INSW. 92 vessel purchases. That's including that merger and 62 vessel sales plus our joint ventures. You know, what does that mean? We're sailing along with a pretty similar profile. Trying to get bigger, get more modern, and improve our efficiency over the years. At the same time, we're paddling underneath the surface because you can't remain idle in this business. So, we're all about hygienating the fleet, lowering the age, and increasing our efficiency on our journey. I'm going to talk a little bit about our hybrid operating model. So New York City is the nucleus of INSW and then we have very strong long partnerships with outsourced third parties. For example, on the technical side, we have both Anglo Eastern in Singapore and V.Group up in Glasgow that technically manage our vessels. And we find that to be a real strength with these long-term partnerships on board our vessels. Our average officers have been with us well over a decade. You say, 'Well, gee, the company's only a decade old.' When I go on board a vessel, many of these guys have been with us and our predecessor for their entire careers. And that's really critical in a business like ours where safety, safety, safety is foremost in the top of our mind. Commercially speaking, we're showing you, basically the reason that we roll with various pools is that we want to make sure that in times like today where the markets are highly volatile. If you only have one VLCC, it's very possible you could be stuck on the US West Coast when the market goes to $125,000 a day. When you're in the pool, you have more natural tick points all along the curve. And that's what Tom shows us on the lower left hand side there, where you just have many more opportunities to catch the volatility in the market, which is going to show higher time charter equivalents over time. Touching on our financial.

All right. So sustainability. INSW is a leader in sustainability. We remain undeterred in our progression. Transportation shipping is about 3% of the overall carbon footprint in the world and we need to do our part. We also talk about governance which has always been important for not only INSW but OSG our predecessor that was public since 1969. And that is a real emphasis for us and we do a lot with safety and also with social programs. And INSW is every year in the top quartile of Weber's sustainability scorecard, which we take a point of pride in and we work to continuously improve our positioning. And the one thing I'll say here, sustainability is good for business because this morning on the way in I got a report from our sustainability engineer that we have in India who looks at every vessel's consumption every day and just continuously works to, okay why was this auxiliary engine running? How do we measure it? If you measure it and you monitor it, then you can improve it. And this is a daily focus so that every ton of bunkers that we save is going to improve our sustainability and improve our profitability. If we look at the market outlook, we are going from strength to strength as I started this conversation and we just see that continuing and we're going to keep going into that. And one thing I think is really significant behind the scenes. OPEC is generally very bullish on oil demand increases. The EIA we consider the Department of Energy to sort of be the middle guys. Even IEA out of Europe continually is increasing their estimates on oil demand in 2026 and 2027. So they're up over a million barrels a day, which is something that behind the scenes is very constructive for tanker markets. When we look at the global oil complex, I really think the key thing here is on the lower right hand side. Tom really illustrates the deficit that all of Asia has on the tanker markets and you're talking over 30 million barrels a day. So again, certainly now we've had OPEC come back on with more barrels. However, where you've really seen the increased oil production has been in the Americas, Canada, the United States, Guyana, Brazil, and now even Argentina. And that oil is fundamentally moving from the western hemisphere east and adding to ton mile demand. Geopolitics, I don't recall a time in basically my 30-year career where oil tankers were in the market and in the news every day, right? So geopolitics has upended the oil tanker business over the last five years and we look for this to continue on. We have more sanctioned vessels today than essentially there are vessels on order and this is something where we have an overall aging tanker fleet which you can see on the upper right hand side. So when you combine the age of the fleet with these sanctioned vessels that are getting increasingly shoved out of the market, we have a very good construct in the background for oil tanker demand and oil tanker transportation, particularly on companies like INSW that are operating everything legally, everything in the top tier of performance and with the proper counterparties. Tanker supply. If you look at the tanker order book, it has crept up over the last couple of years. Nonetheless, what you essentially have is an order book of about 15%. And you're looking at it being out, those deliveries are spaced over 26, 27, 28, and even into 2029. And you're looking at something like four to 5% a year. That essentially is the amount of natural attrition that you have on our 20 to 25 year assets. So, we're really in a place where the aging of the fleet is going to come home to roost. These sanctioned vessels are going to have to get squeezed out of the market and this is going to continue to be great for International Seaways. With that, I will open it up to questions.

Yeah. No, absolutely. We keep tracking and I didn't even add to my totals the latest batch that came out here in the last week, but we have over 800 tankers that are essentially operating under sanctions at this time. And that includes a heavy amount of VLCCs, which is somewhere around 140. And that's out of, you know, maybe 850, 900 VLCCs in the world. It's just really a very significant amount. And what you're seeing is that the Venezuelan actions the United States has taken has made it so that the sanctioned vessels are no longer comfortable going to Venezuela and now oil traders and of course oil companies have licenses to move barrels legally out of Venezuela. So this has opened up additional barrels for compliant oil tanker companies such as ourselves. So you see that in Venezuela, we see the heightened tensions in Iran and the administration continues to put pressure on Russia and the way that they do that is by working on both India and China who are the biggest consumers of the Russian barrels. So on every front you see the sanctioned barrels and therefore the sanctioned tonnage coming under pressure and it looks to us that that will only continue in 2026.

So Tom mentioned earlier, we still have four new buildings to come from K shipyard in Korea and those are LR1s that are suitable in beam for the old canal in Panama. And those will serve our highest earning sector, our LR1s that essentially are trading both crude and heavy oil in the Americas. And then beyond that, we will consistently look for, okay, the new buildings we've done in our history have been something that's a differentiator like the VLCCs that are actually burning LNG today or the LR1s where there weren't any modern vessels that were in that sector that suited our needs. So, we'll look very carefully at how do we continue to stay young, increase our efficiency, and we will be opportunistic because we think that's how you win as a tanker company. I mean, we've been very pragmatic in how do we get bigger, how do we get younger, how do we become more efficient, whether that's a merger, whether that's secondhand tonnage, whether it's a tonnage swap with other owners, or whether it's new buildings, which is always excellent. The team that's overseeing our new buildings out in Korea, I've worked with the lead supervisor there for 20 years, right? So that's, we look at that as a key component of INSW and yet we're going to be very disciplined on it.

No, absolutely. The vessels that for example we went out with today I think they were on an average of 17 years old right that we were selling and quite honestly you almost hate to sell anything in today's market however you must realize that when you see prices that every one of these MRs that we have sold in the last five years has been at a tremendous gain. So the vessels have more than produced their actual value and we're banking gains on every one of the vessel sales. And the same is true on the VLCCs that we're selling where we just bought a 5-year-old VLCC in the fourth quarter and now what we're doing is selling vessels that are 15 years old. And just continually you want to make sure that we still think the fundamentals are strong. So, we're going to look for those opportunities where we can swap tonnage in a very advantageous way for our shareholders.

Well, we have again, a balanced approach, right? So, we look to lock in, an ideal fixture is a three-year deal at above long-term averages that produces a super return on your assets. That's what we love to do. And then we're opportunistic within that, right? When we see that we can lock in and add value to INSW and our shareholders, we're going to do that, right? But we're careful. So, we waited kind of for this moment and we may look to lock in some more deals while the market is very strong and that's something we'll be looking at in 2026.

No, absolutely. We do continuously and we have a sustainability group and the gentleman that is overseeing our new building program, he was just over in Europe looking at alternative fuels as well as wind propulsion. We haven't done any retrofits at this time but all of this technology just continues to improve. So for example on our LR1s, we did build them with strengthened decks and bigger generators and with a contemplation to convert them to alternative fuel at the first or second survey. So that's something that we believe will continue and for example I mentioned the LNG vessels are burning, I mean our VLCCs are burning LNG so we'll look to add this into our fleet as technologies continue to improve.