LEASES

3 Months Ended

Mar. 31, 2026

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 lease term of 12-months or less; and (iii) short term leases of office and other space.

Contracts under which the Company is a Lessee

The Company currently has two major categories of leases – chartered-in vessel and office space and vessel equipment. The expenses recognized during the three months ended March 31, 2026 and 2025 for the lease component of these leases are as follows:


	Three Months Ended March 31,
(Dollars in thousands)		2026		2025
Operating lease cost
Vessel assets
Charter hire expenses	$	2,370	$	4,725

Office space and vessel equipment
General and administrative		227		227
Voyage expenses		46		15
Vessel expenses		20		—

Short-term lease cost
Vessel assets⁽¹⁾
Charter hire expenses		1,353		1,201
Total lease cost	$	4,016	$	6,168

(1)

Excludes vessels spot chartered-in under operating leases and employed in the Crude Tankers Lightering business for periods of less than one month each, totaling $0.3 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively, including both lease and non-lease components.

Supplemental cash flow information related to leases was as follows:

Supplemental balance sheet information related to leases was as follows:


(Dollars in thousands)	March 31, 2026		December 31, 2025
Operating lease right-of-use assets	$	6,222	$	7,220

Current portion of operating lease liabilities	$	(2,240)	$	(3,182)
Long-term operating lease liabilities		(5,793)		(5,954)
Total operating and finance lease liabilities	$	(8,033)	$	(9,136)

Weighted average remaining lease term - operating leases		6.01 years		5.62 years
Weighted average discount rate - operating leases		4.55%		4.77%

1. Charters-in of vessel assets:

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


(Dollars in thousands)	Amount		Operating Days
2026	$	925	26
Total operating lease liabilities	$	925	26

2. Office space and vessel equipment:

The Company has operating leases for offices, a lightering workboat dock space, and hull cleaning robots. These leases have expiry dates ranging from November 2026 to May 2033.

Payments of lease liabilities for office space and vessel equipment as of March 31, 2026 are as follows:


(Dollars in thousands)		Amount
2026	$	977
2027		1,328
2028		1,155
2029		1,077
2030		1,077
Thereafter		2,602
Total lease payments		8,216
less imputed interest		(1,108)
Total operating lease liabilities	$	7,108

Contracts under which the Company is a Lessor

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

The future minimum contracted revenues, before the deduction of brokerage commissions, expected to be received on non-cancelable time charters for three VLCCs, three Suezmaxes, one Aframax, one LR2, and six MRs, and the related revenue days as of March 31, 2026 are as follows:


(Dollars in thousands)	Amount		Revenue Days
2026	$	77,563	2,464
2027		54,124	1,624
2028		48,770	1,464
2029		35,032	1,122
2030		7,068	228
Future minimum revenues	$	222,556	6,902

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 newbuild 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.

Three Months Ended March 31,

(Dollars in thousands)

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows used for operating leases