VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY

12 Months Ended

Dec. 31, 2025

VESSELS [Abstract]

VESSELS

NOTE 5 — VESSELS, DEFERRED DRYDOCK AND OTHER PROPERTY:

Vessels and other property consist of the following:

(Dollars in thousands)	December 31, 2025		December 31, 2024
Vessels, at cost	$	2,573,678	$	2,506,606
Accumulated depreciation		(500,534)		(460,623)
Vessels, net		2,073,144		2,045,983
Other property, at cost		10,893		9,961
Accumulated depreciation and amortization		(6,051)		(5,733)
Other property, net		4,842		4,228
Total vessels and other property, net		2,077,986		2,050,211
Construction in Progress		57,725		37,020

The aggregate carrying value of the 38 owned and chartered-in vessels pledged as collateral under the Company’s debt and lease financing facilities (see Note 8, “Debt”) was $1,295.8 million as of December 31, 2025.

A breakdown of the carrying value of the Company’s owned and chartered-in vessels by reportable segment and fleet as of December 31, 2025 and 2024 follows:

					Net		Average	Number of
			Accumulated		Carrying		Vessel Age	Owned
As of December 31, 2025 (Dollars in thousands)	Cost		Depreciation		Value		(by dwt)	Vessels
Crude Tankers
VLCC	$	1,044,795	$	(213,985)	$	830,810	8.5	12
Suezmax		452,307		(98,652)		353,655	11.8	13
Aframax		109,533		(24,087)		85,446	13.8	4
Total Crude Tankers(1)		1,606,635		(336,724)		1,269,911	10.0	29
Product Carriers
LR2		75,162		(31,081)		44,081	11.4	1
LR1		200,499		(21,028)		179,471	10.2	6
MR		691,382		(111,701)		579,681	14.3	33
Total Product Carriers(2)		967,043		(163,810)		803,233	13.3	40
Fleet Total	$	2,573,678	$	(500,534)	$	2,073,144	10.9	69

(1) Includes one VLCC with carrying value of $118.4 million, which the Company believes exceeds its market value of approximately $116.7 million by $1.7 million.

(2) Includes nine MRs with aggregate carrying value of $327.2 million, which the Company believes exceeds their aggregate market values of approximately $283.9 million by $43.3 million.

					Net		Average	Number of
			Accumulated		Carrying		Vessel Age	Owned
As of December 31, 2024 (Dollars in thousands)	Cost		Depreciation		Value		(by dwt)	Vessels
Crude Tankers
VLCC	$	1,055,765	$	(209,650)	$	846,115	8.8	13
Suezmax		451,416		(79,900)		371,516	10.8	13
Aframax		109,306		(18,529)		90,777	12.8	4
Total Crude Tankers		1,616,487		(308,079)		1,308,408	9.7	30
Product Carriers
LR2		75,128		(28,280)		46,848	10.4	1
LR1		118,265		(33,198)		85,067	15.6	6
MR		696,726		(91,066)		605,660	14.2	39
Total Product Carriers		890,119		(152,544)		737,575	14.3	46
Fleet Total	$	2,506,606	$	(460,623)	$	2,045,983	11.0	76

Vessel activity for the three years ended December 31, 2025 is summarized as follows:

(Dollars in thousands)	Vessel Cost		Accumulated Depreciation		Net Book Value
Balance at January 1, 2023	$	2,004,420		(327,321)	$	1,677,099
Purchases and vessel additions		360,822		—
Disposals		(32,176)		3,904
Depreciation		—		(98,859)
Balance at December 31, 2023		2,333,066		(422,276)		1,910,790
Purchases and vessel additions		280,786		—
Disposals		(33,281)		5,681
Depreciation		—		(109,293)
Impairment		(73,965)		65,265
Balance at December 31, 2024		2,506,606		(460,623)		2,045,983
Purchases and vessel additions		327,480		—
Disposals		(260,408)		72,183
Depreciation		—		(112,094)
Balance at December 31, 2025	$	2,573,678	$	(500,534)	$	2,073,144

The total of purchases and vessel additions will differ from expenditures for vessels as shown in the consolidated statements of cash flows because of the timing of when payments were made.

Vessel Impairments

During the year ended December 31, 2025, the Company gave consideration as to whether events or changes in circumstances had occurred since December 31, 2024, that could indicate that the carrying amounts of the vessels in the Company’s fleet may not be recoverable. The Company determined that no held-for-use or held-for-sale impairment indicators existed for the Company’s vessels during the year ended December 31, 2025.

During the year ended December 31, 2024, the Company gave consideration as to whether events or changes in circumstances had occurred since December 31, 2023, that could indicate that the carrying amounts of the vessels in the Company’s fleet may not be recoverable. During the quarter ended December 31, 2024, the Company determined that the contracted sale of one of its 2010-built VLCCs resulted in the recognition of a held-for-use impairment charge of $8.7 million.

During the year ended December 31, 2023, the Company gave consideration as to whether events or changes in circumstances had occurred since December 31, 2022, that could indicate that the carrying amounts of the vessels in the Company’s fleet may not be recoverable. The Company determined that no held-for-use or held-for-sale impairment indicators existed for the Company’s vessels during the year ended December 31, 2023.

Vessel Acquisitions and Construction Commitments

Construction of the Company’s three dual-fuel LNG VLCCs was completed during 2023. All three vessels commenced employment under seven-year time charter contracts with an oil major shortly after being delivered from the shipyard.

Between August 2023 and March 2024, the Company entered into agreements to construct six dual-fuel ready LNG 73,600 dwt LR1 Product Carriers at K Shipbuilding Co., Ltd.’s shipyard for an aggregate cost of approximately $359 million. Between September and October 2025, two of the six LR1s were delivered to the Company. The remaining four LR1s are expected to be delivered by the third quarter of 2026. The remaining commitments on the contracts for the construction of the four LR1 newbuilds as of December 31, 2025 were $188.5 million, which will be paid through a combination of borrowings under the ECA Credit Facility (see Note 8, “Debt”) and available liquidity.

On February 23, 2024, the Company entered into agreements to acquire two 2014-built and four 2015-built MR Product Carriers for an aggregate consideration of approximately $232 million, payable 85% in cash and 15% in shares of common stock of the Company. All six vessels were delivered during the second quarter of 2024 and are Collateral Vessels under the $500 Million Revolving Credit Facility (see Note 8, “Debt”). In total, for the acquisition of the vessels, the Company paid $198.3 million in cash, including $1.1 million for initial stores on board and directly related third-party professional fees, and also issued 623,778 shares of its common stock to the sellers. Such shares had an aggregate value of $36.8 million based upon the closing market price of the Company’s stock on each of the vessel delivery dates.

An automatic shelf registration statement on Form S-3 was filed with the SEC on April 29, 2024 that, in connection with prospectus supplements filed during the second quarter of 2024, registered the aggregate 623,778 shares that were issued in conjunction with these vessel acquisitions and facilitated the seller’s ability to offer and sell or otherwise dispose of the shares of common stock issued to them under this transaction.

In November 2024, the Company entered into memoranda of agreements for the sale of one 2010-built VLCC and one 2011-built VLCC for an aggregate sales price of $116.6 million and the purchase of three 2015-built MRs for an aggregate purchase price of $119.5 million with the same counterparty. The Company closed on all five transactions between December 2024 and February 2025, with net cash outflow of $2.9 million, representing the difference in transaction prices among the five vessels. In conjunction with the agreements, the buyer of each vessel was required to lodge a deposit equal to 10% of the vessel’s purchase price into an escrow account, and to ensure that all five vessel transactions were executed, the seller of each vessel was also required to make an additional security deposit of $2.5 million into an escrow account. These security deposits were refunded to each respective seller after all five vessel transactions were completed in February 2025.

On November 14, 2025, the Company completed the purchase of a 2020-built, scrubber-fitted VLCC for $119.0 million.

Disposal/Sales of Vessel and Other Property

During 2023, the Company recognized a net aggregate gain of $36.1 million on disposal of three 2008-built MRs.

During 2024, the Company recognized a net aggregate gain of $41.3 million on disposal of one 2009-built and two 2008-built MRs.

During 2025, the Company recognized a net aggregate gain of $42.5 million on disposal of one 2010-built VLCC, one 2011-built VLCC, two 2006-built LR1s, five 2007-built MRs, and three 2008-built MRs.

In December 2025, the Company entered into memoranda of agreements for the sale of one 2007-built MR Product Carrier and two 2008-built MR Product Carriers for net proceeds of approximately $44.7 million after fees and commissions. The vessels were delivered to their buyers between January and February 2026.

Between January and February 2026, the Company entered into memoranda of agreements for the sale of one 2010-built VLCC, one 2012-built VLCC and two 2008-built MRs for net proceeds of approximately $171.7 million after fees and commissions. The vessels are expected to be delivered to their buyers in the first quarter of 2026.

Drydocking activity for the three years ended December 31, 2025 is summarized as follows:

(Dollars in thousands)	2025		2024		2023
Balance at January 1	$	90,209	$	70,880	$	65,611
Additions		85,326		61,696		35,117
Sub-total		175,535		132,576		100,728
Drydock amortization		(50,743)		(39,391)		(28,787)
Amount charged to gain or loss on disposal of vessels		(15,535)		(2,976)		(1,061)
Balance at December 31	$	109,257	$	90,209	$	70,880

The total additions above will differ from payments for drydocking as shown in the consolidated statements of cash flows because of the timing of when payments were made.