REVENUE

12 Months Ended

Dec. 31, 2025

REVENUE [Abstract]

REVENUE

NOTE 13 — REVENUE:

Revenue Recognition

The majority of the Company’s contracts for pool revenues, time and bareboat charter revenues, and voyage charter revenues are accounted for as lease revenue under ASC 842. The Company’s contracts with pools are short term which are cancellable with up to 90 days' notice. As of December 31, 2025, the Company is a party to time charter out contracts with customers on three VLCCs, two Suezmaxes, one Aframax, one LR2, and six MRs with expiry dates ranging from March 2026 to April 2030. The Company’s contracts with customers for voyage charters are short term and vary in length based upon the duration of each voyage. Lease revenue for non-variable lease payments is recognized over the lease term on a straight-line basis and lease revenue for variable lease payments (e.g., demurrage) are recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. See Note 2, “Significant Accounting Policies,” for additional detail on the Company’s accounting policies regarding revenue recognition for leases.

Lightering services provided by the Company’s Crude Tanker Lightering Business and voyage charter contracts that do not meet the definition of a lease are accounted for as service revenues under ASC 606. In accordance with ASC 606, revenue is recognized when a customer obtains control of or consumes promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. See Note 2, “Significant Accounting Policies,” for additional detail on the Company’s accounting policies regarding service revenue recognition and costs to obtain or fulfill a contract.

The following table presents the Company’s revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three years ended December 31, 2025:

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Totals
2025
Revenues from leases
Pool revenues	$	321,595	$	320,190	$	641,785
Time and bareboat charter revenues		81,203		76,377		157,580
Voyage charter revenues from non-variable lease payments		337		7,124		7,461
Revenues from services
Voyage charter revenues from lightering services		36,476		—		36,476
Total shipping revenues	$	439,611	$	403,691	$	843,302
2024
Revenues from leases
Pool revenues	$	314,018	$	435,146	$	749,164
Time and bareboat charter revenues		77,420		59,699		137,119
Voyage charter revenues from non-variable lease payments		4,983		5,417		10,400
Revenues from services
Voyage charter revenues from lightering services		54,930		—		54,930
Total shipping revenues	$	451,351	$	500,262	$	951,613
2023
Revenues from leases
Pool revenues	$	399,904	$	505,904	$	905,808
Time and bareboat charter revenues		67,883		28,661		96,544
Voyage charter revenues from non-variable lease payments		7,860		12,688		20,548
Voyage charter revenues from variable lease payments		66		516		582
Revenues from services
Voyage charter revenues from lightering services		48,293		—		48,293
Total shipping revenues	$	524,006	$	547,769	$	1,071,775

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers, and significant changes in contract assets and liabilities balances, associated with revenue from services accounted for under ASC 606. Balances related to revenues from leases accounted for under ASC 842 are excluded from the table below.

(Dollars in thousands)	Voyage receivables - Billed receivables		Contract assets (Unbilled voyage receivables)		Contract liabilities (Deferred revenues and off hires)
Opening balance as of January 1, 2025	$	4,086	$	258	$	—
Closing balance as of December 31, 2025		2,622		—		—

We receive payments from customers based on the schedule established in our contracts. Contract assets relate to our conditional right to consideration for our completed performance obligations under contracts and decrease when the right to consideration becomes unconditional or payments are received. Contract liabilities include payments received in advance of performance under contracts and are recognized when performance under the respective contract has been completed. Deferred revenues allocated to unsatisfied performance obligations will be recognized over time as the services are performed.

Performance Obligations

All of the Company’s performance obligations, and associated revenue, are generally transferred to customers over time. The expected duration of services is less than one year. There were no material adjustments to revenues from performance obligations satisfied in previous periods recognized during the years ended December 31, 2025, 2024 and 2023.

Costs to Obtain or Fulfill a Contract

As of December 31, 2025, there were no unamortized deferred costs of obtaining or fulfilling a contract.

European Union’s Emissions Trading System

Commencing January 1, 2024, the European Union’s Emissions Trading System (“EU ETS”) was extended to cover Carbon dioxide (“CO2”) emissions from ships over 5,000 gross tons entering EU ports. The EU ETS covers (a) 50% of emissions from voyages either starting in or ending in an EU port, and (b) 100% of emissions from voyages between two EU ports or emissions generated while a ship is within an EU port.

Shipping companies will have to surrender EU ETS emissions allowances (“EUA”) for each ton of reported CO2 emissions in the scope of the EU ETS. There is a phase-in period for the regulations, as allowances will have to be submitted for 40% of 2024 emissions, 70% of 2025 emissions and 100% of emissions for 2026 and subsequent years. Beginning in 2026, the scope of the EU ETS will also be expanded to include Methane (“CH4”) and Nitrous oxide (“N2O”).

EUAs are valued based upon a market approach utilizing prices published on an EUA market index. The value of the EUAs to be provided to the Company pursuant to the terms of its agreements with the charterers of its vessels and the commercial pools in which it participates is included in shipping revenues in the consolidated statements of operations. The value of the EUA obligations incurred by the Company under the EU ETS while its vessels are on-hire is included in voyage expenses, or in vessel expenses while its vessels are off-hire, in the consolidated statements of operations.

EUAs held by the Company are intended to be used to settle its EUA obligations and are accounted for as intangible assets. As of December 31, 2025, the value of EUAs held by the Company relating to 2025 emissions that required to be surrendered to the EU authorities in September 2026 is approximately $1.3 million and is included in other current assets in the consolidated balance sheet. The Company did not hold any EUAs as of December 31,2024.

The following table presents the components of the non-cash revenues and expenses recognized for EUAs earned and incurred during the two years ended December 31, 2025:

(Dollars in thousands)		2025		2024
Pool revenues	$	8,440	$	3,493
Time charter revenues		2,372		1,497
Total shipping revenues	$	10,812	$	4,990
Voyage expenses	$	10,812	$	4,990

The value of EUAs due to the Company from its charterers or commercial pools in which it participates is $8.4 million as of December 31, 2025 and is included in other receivables in the condensed consolidated balance sheet. The value of the EUAs the Company is obligated to surrender to the EU authorities is $9.7 million as of December 31, 2025 and is included in other current liabilities in the consolidated balance sheet.