BUSINESS AND SEGMENT REPORTING

12 Months Ended

Dec. 31, 2025

BUSINESS AND SEGMENT REPORTING [Abstract]

BUSINESS AND SEGMENT REPORTING

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 Company’s 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 Company’s consolidated financial statements as described in Note 2, “Summary of Significant Accounting Policies.”

The Company’s President and Chief Executive Officer, who is the chief operating decision maker (“CODM”), evaluates segment performance based on adjusted income from vessel operations, which for segment reporting is defined as income from vessel operations before general and administrative expenses, other operating expenses, third-party debt modification fees, and gain on disposal of vessels and other property, net of impairments. These and other centrally managed items such as interest expense, net and taxes, are excluded from the measure of segment profitability reviewed by management. In making resource allocation decisions, the CODM reviews budget-to-actual variances of TCE revenues and vessel expenses (as these are quantitatively the primary drivers of each segment’s adjusted income from vessel operations), short-term and long-term market trends, current and projected vessel values and forecasts.

Information about the Company’s reportable segments as of and for each of the years in the three-year period ended December 31, 2025 follows:

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Other		Totals
2025
Shipping revenues	$	439,611	$	403,691	$	—	$	843,302
Time charter equivalent revenues		423,267		396,347		—		819,614
Vessel expenses		119,290		146,853		—		266,143
Charter hire expenses		14,419		18,842		—		33,261
Depreciation and amortization		76,347		87,239		—		163,586
Gain on disposal of vessels and other assets		(9,833)		(32,704)		—		(42,537)
Adjusted income from vessel operations		213,211		143,413		—		356,624
Adjusted total assets at December 31, 2025		1,411,798		1,064,693		—		2,476,491
Expenditures for vessels and vessel improvements		120,922		219,558		—		340,480
Payments for drydocking		22,781		61,430		—		84,211
2024
Shipping revenues	$	451,351	$	500,262	$	—	$	951,613
Time charter equivalent revenues		437,095		496,008		—		933,103
Vessel expenses		130,107		145,554		—		275,661
Charter hire expenses		14,322		15,517		—		29,839
Depreciation and amortization		80,988		68,452		—		149,440
Loss/(gain) on disposal of vessels and other assets, net of impairments		8,704		(41,361)		—		(32,657)
Adjusted income from vessel operations		211,678		266,485		—		478,163
Adjusted total assets at December 31, 2024		1,437,883		1,005,559		—		2,443,442
Expenditures for vessels and vessel improvements		1,135		277,659		—		278,794
Payments for drydocking		9,893		48,749		—		58,642
2023
Shipping revenues	$	524,006	$	547,769	$	—	$	1,071,775
Time charter equivalent revenues		512,220		543,299		—		1,055,519
Vessel expenses		115,708		143,831		—		259,539
Charter hire expenses		11,870		27,534		—		39,404
Depreciation and amortization		76,877		52,160		1		129,038
Gain on disposal of vessels and other assets		(12)		(35,922)		—		(35,934)
Adjusted income/(loss) from vessel operations		307,764		319,775		(1)		627,538
Adjusted total assets at December 31, 2023		1,523,713		785,778		—		2,309,491
Expenditures for vessels and vessel improvements		184,467		20,692		—		205,159
Payments for drydocking		5,659		28,880		—		34,539

Reconciliations of time charter equivalent revenues of the segments to shipping revenues as reported in the consolidated statements of operations follow:

(Dollars in thousands)		2025		2024		2023
Time charter equivalent revenues	$	819,614	$	933,103	$	1,055,519
Add: Voyage expenses		23,688		18,510		16,256
Shipping revenues	$	843,302	$	951,613	$	1,071,775

Consistent with general practice in the shipping industry, the Company uses time charter equivalent revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance.

Reconciliations of adjusted income from vessel operations of the segments to income before income taxes, as reported in the consolidated statements of operations follow:

(Dollars in thousands)		2025		2024		2023
Total adjusted income from vessel operations of all segments	$	356,624	$	478,163	$	627,538
General and administrative expenses		(50,235)		(52,607)		(47,473)
Other operating expenses		(3,541)		(2,820)		—
Third-party debt modification fees		—		(168)		(568)
Gain on disposal of vessels and other assets, net of impairments		42,537		32,657		35,934
Consolidated income from vessel operations		345,385		455,225		615,431
Other income		6,169		10,118		10,652
Interest expense		(42,704)		(49,703)		(65,759)
Income before income taxes	$	308,850	$	415,640	$	560,324

Reconciliations of adjusted total assets of the segments to amounts included in the consolidated balance sheets follow:

(Dollars in thousands)	December 31, 2025		December 31, 2024
Adjusted total assets of all segments	$	2,476,491	$	2,443,442
Corporate cash and cash equivalents		116,922		157,506
Short-term investments		50,000		—
Other unallocated amounts		25,229		35,449
Consolidated total assets	$	2,668,642	$	2,636,397

Certain additional information about the Company’s operations for each of the years in the three year period ended December 31, 2025 follows:

	Crude		Product
(Dollars in thousands)	Tankers		Carriers			Other	Consolidated
Total vessels, deferred drydock and other property at December 31, 2025	$	1,312,781	$	931,479	$	708	$	2,244,968
Total vessels, deferred drydock and other property at December 31, 2024		1,345,241		831,493		706		2,177,440
Total vessels, deferred drydock and other property at December 31, 2023		1,420,750		575,642		584		1,996,976