BUSINESS AND SEGMENT REPORTING

9 Months Ended

Sep. 30, 2022

BUSINESS AND SEGMENT REPORTING [Abstract]

BUSINESS AND SEGMENT REPORTING

Note 5 — Business and Segment Reporting:

The Company has two reportable segments: Crude Tankers and Product Carriers. The Company’s investments in and equity in income of the joint ventures with two floating storage and offloading service vessels, which were sold on June 7, 2022, are included in the Crude Tankers Segment. Adjusted income/(loss) from vessel operations for segment purposes is defined as income/(loss) from vessel operations before general and administrative expenses, third-party debt modification fees, merger and integration related costs and loss/(gain) on disposal of vessels and other property, including impairments. The accounting policies followed by the reportable segments are the same as those followed in the preparation of the Company’s condensed consolidated financial statements.

Information about the Company’s reportable segments as of and for the three and nine months ended September 30, 2022 and 2021 follows:

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Other		Totals
Three months ended September 30, 2022:
Shipping revenues	$	77,071	$	159,758	$	—	$	236,829
Time charter equivalent revenues		75,192		159,355		(1)		234,546
Depreciation and amortization		15,771		11,931		26		27,728
Loss on disposal of vessels and other assets, including impairments		77		62		—		139
Adjusted income/(loss) from vessel operations		30,993		109,490		(27)		140,456
Equity in loss of affiliated companies		(1)		—		—		(1)
Investments in and advances to affiliated companies at September 30, 2022		16,301		21,808		—		38,109
Adjusted total assets at September 30, 2022		1,356,386		819,768		—		2,176,154
Three months ended September 30, 2021:
Shipping revenues	$	41,760	$	43,056	$	—	$	84,816
Time charter equivalent revenues		34,771		38,197		—		72,968
Depreciation and amortization		15,963		9,828		15		25,806
Gain on disposal of vessels and other property, including impairments		(224)		(8,880)		—		(9,104)
Adjusted loss from vessel operations		(9,682)		(6,994)		(15)		(16,691)
Equity in income of affiliated companies		5,730		—		—		5,730
Investments in and advances to affiliated companies at September 30, 2021		154,921		22,481		—		177,402
Adjusted total assets at September 30, 2021		1,520,767		772,880		—		2,293,647

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Other		Totals
Nine months ended September 30, 2022:
Shipping revenues	$	178,788	$	347,720	$	—	$	526,508
Time charter equivalent revenues		171,124		346,936		—		518,060
Depreciation and amortization		46,109		35,816		59		81,984
Loss/(gain) on disposal of vessels and other assets, including impairments		1,048		(10,387)		—		(9,339)
Adjusted income/(loss) from vessel operations		40,717		194,173		(58)		234,832
Equity in income of affiliated companies		434		—		—		434
Expenditures for vessels and vessel improvements		59,101		28,502		—		87,603
Payments for drydocking		22,086		14,194		—		36,280
Nine months ended September 30, 2021:
Shipping revenues	$	111,818	$	66,058	$	—	$	177,876
Time charter equivalent revenues		101,817		61,038		—		162,855
Depreciation and amortization		42,005		17,578		56		59,639
Loss/(gain) on disposal of vessels and other assets, including impairments		3,791		(8,879)		—		(5,088)
Adjusted loss from vessel operations		(17,697)		(8,692)		(56)		(26,445)
Equity in income of affiliated companies		16,573		—		—		16,573
Expenditures for vessels and vessel improvements		40,791		3,423		—		44,214
Payments for drydocking		16,518		7,298		—		23,816

Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)		2022		2021		2022		2021
Time charter equivalent revenues	$	234,546	$	72,968	$	518,060	$	162,855
Add: Voyage expenses		2,283		11,848		8,448		15,021
Shipping revenues	$	236,829	$	84,816	$	526,508	$	177,876

Consistent with general practice in the shipping industry, the Company uses time charter equivalent revenues, which represent 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, provide 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/(loss) from vessel operations of the segments to loss before income taxes, as reported in the condensed consolidated statements of operations follow:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)		2022		2021		2022		2021
Total adjusted income/(loss) from vessel operations of all segments	$	140,456	$	(16,691)	$	234,832	$	(26,445)
General and administrative expenses		(11,839)		(8,129)		(32,852)		(23,141)
Third-party debt modification fees		(71)		(26)		(1,158)		(26)
Merger and integration related costs		—		(47,079)		—		(47,560)
Gain/(loss) on disposal of vessels and other assets, including impairments		(139)		9,104		9,339		5,088
Consolidated income/(loss) from vessel operations		128,407		(62,821)		210,161		(92,084)
Equity in income/(loss) of affiliated companies		(1)		5,730		434		16,573
Other (expense)/income		360		(113)		(440)		446
Interest expense		(15,332)		(10,639)		(40,630)		(24,925)
Income/(loss) before income taxes	$	113,434	$	(67,843)	$	169,525	$	(99,990)

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

(Dollars in thousands)	September 30, 2022		September 30, 2021
Adjusted total assets of all segments	$	2,176,154	$	2,293,647
Corporate unrestricted cash and cash equivalents		174,465		108,897
Restricted cash		1,060		23,694
Short-term investments		80,000		—
Other unallocated amounts		28,224		15,595
Consolidated total assets	$	2,459,903	$	2,441,833