LEASES

12 Months Ended

Dec. 31, 2025

LEASES [Abstract]

LEASES

NOTE 14 — LEASES:

As permitted under ASC 842, the Company has elected not to apply the provisions of ASC 842 to short term leases, which include: (i) tanker vessels chartered-in where the duration of the charter was one year or less at inception; (ii) workboats employed in the Crude Tankers Lightering business which have a noncancelable lease term of 12-months or less; and (iii) short term leases of office space.

Contracts under which the Company is a Lessee

The Company currently has two major categories of leases – chartered-in vessels and leased office space. The expenses recognized during the three years ended December 31, 2025 for the lease component of these leases are as follows:

(Dollars in thousands)		2025		2024		2023
Operating lease cost
Vessel assets
Charter hire expenses	$	14,180	$	11,977	$	6,192
Finance lease cost
Vessel assets
Amortization of right-of-use assets		—		—		731
Interest on lease liabilities		—		—		124
Office space
General and administrative		908		904		869
Voyage expenses		122		180		180
Short-term lease cost
Vessel assets (1)
Charter hire expenses		5,144		4,784		18,679
Total lease cost	$	20,354	$	17,845	$	26,775

(1) Excludes vessels and workboats spot chartered-in under operating leases and employed in the Crude Tankers Lightering business for periods of less than one month each, totaling $1.5 million, $4.0 million and $2.1 million for the years ended December 31, 2025, 2024 and 2023, respectively, including both lease and non-lease components.

Supplemental cash flow information related to leases was as follows:

(Dollars in thousands)		2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	15,394	$	13,240	$	6,028
Finance cash flows used for finance leases		—		—		42,284

Supplemental balance sheet information related to leases was as follows:

(Dollars in thousands)	December 31, 2025		December 31, 2024
Operating lease right-of-use assets	$	7,220	$	21,229
Current portion of operating lease liabilities	$	(3,182)	$	(14,617)
Long-term operating lease liabilities		(5,954)		(8,715)
Total operating lease liabilities	$	(9,136)	$	(23,332)
Weighted average remaining lease term - operating leases		5.62 years		3.37 years
Weighted average discount rate - operating leases		4.77%		5.51%

1. Charters-in of vessel assets:

As of December 31, 2025, the Company has a commitment to time charter-in one LR1 through March 2026. The minimum lease liabilities and related number of operating days under this operating lease as of December 31, 2025 are as follows:

Time Charters-in

(Dollars in thousands)	Amount		Operating Days
2026	$	1,948	72
Total lease payments (lease component only)		1,948	72
less imputed interest		(6)
Total operating lease liabilities	$	1,942

2. Office space:

The Company has operating leases for office space. These leases have expiry dates ranging from November 2026 to May 2033.

Payments of lease liabilities for office space as of December 31, 2025 are as follows:

(Dollars in thousands)		Amount
2026	$	1,297
2027		1,250
2028		1,077
2029		1,077
2030		1,077
Thereafter		2,602
Total lease payments		8,380
less imputed interest		(1,186)
Total operating lease liabilities	$	7,194

Contracts under which the Company is a Lessor

See Note 13, “Revenue,” for discussion on the Company’s revenues from operating leases accounted for under ASC 842.

The future minimum revenues, before reduction for brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, two Suezmaxes, one Aframax, one LR2, and six MRs and the related revenue days as of December 31, 2025 are as follows:

(Dollars in thousands)	Amount		Revenue Days
2026	$	95,129	3,120
2027		39,433	1,259
2028		34,038	1,098
2029		33,945	1,095
2030		7,068	228
Future minimum revenues	$	209,612	6,800

Future minimum contracted revenues do not include the Company’s share of time charters entered into by the pools in which it participates or profit-sharing above the base rate on the dual-fuel LNG VLCCs. Revenues from a time charter are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the minimum

future charter revenues, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future.