| BUSINESS AND SEGMENT REPORTING |
Note 5 — Business and Segment Reporting: The Company has two reportable segments: Crude Tankers and Product Carriers. Adjusted income from vessel operations for segment purposes is defined as income from vessel operations before other operating revenues, general and administrative expenses, other operating expenses, and gain on disposal of vessels and assets, net. 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, 2026 and 2025 follows: | | | | | | | | | | | | Crude | | Product | | | | (Dollars in thousands) | | Tankers | | Carriers | | Totals | Three months ended September 30, 2026: | | | | | | | | | | Shipping revenues | | $ | 358,931 | | $ | 124,271 | | $ | 483,202 | Time charter equivalent revenues | | | 321,147 | | | 121,410 | | | 442,557 | Vessel expenses | | | 30,421 | | | 33,630 | | | 64,051 | Charter hire expenses | | | 21,202 | | | 12 | | | 21,214 | Depreciation and amortization | | | 19,297 | | | 21,986 | | | 41,283 | Gain on disposal of vessels and other assets, net | | | (52,817) | | | — | | | (52,817) | Adjusted income from vessel operations | | | 250,227 | | | 65,782 | | | 316,009 | Adjusted total assets at September 30, 2026 | | | 1,445,309 | | | 1,252,803 | | | 2,698,112 | | | | | | | | | | | Three months ended September 30, 2025: | | | | | | | | | | Shipping revenues | | $ | 96,466 | | $ | 99,922 | | $ | 196,388 | Time charter equivalent revenues | | | 92,997 | | | 99,471 | | | 192,468 | Vessel expenses | | | 29,840 | | | 35,975 | | | 65,815 | Charter hire expenses | | | 3,830 | | | 3,304 | | | 7,134 | Depreciation and amortization | | | 18,903 | | | 22,267 | | | 41,170 | Loss/(gain) on disposal of vessels and other assets, net | | | 9 | | | (13,667) | | | (13,658) | Adjusted income from vessel operations | | | 40,425 | | | 37,924 | | | 78,349 | Adjusted total assets at September 30, 2025 | | | 1,294,587 | | | 1,061,252 | | | 2,355,839 |
| | | | | | | | | | | | Crude | | Product | | | | (Dollars in thousands) | | Tankers | | Carriers | | Totals | Nine months ended September 30, 2026: | | | | | | | | | | Shipping revenues | | $ | 835,443 | | $ | 440,522 | | $ | 1,275,965 | Time charter equivalent revenues | | | 758,786 | | | 435,203 | | | 1,193,989 | Vessel expenses | | | 90,252 | | | 98,469 | | | 188,721 | Charter hire expenses | | | 39,975 | | | 4,121 | | | 44,096 | Depreciation and amortization | | | 57,769 | | | 63,770 | | | 121,539 | Gain on disposal of vessels and other assets, net | | | (105,399) | | | (35,546) | | | (140,945) | Adjusted income from vessel operations | | | 570,790 | | | 268,843 | | | 839,633 | Adjusted total assets at September 30, 2026 | | | 1,445,309 | | | 1,252,803 | | | 2,698,112 | Expenditures for vessels and vessel improvements | | | 809 | | | 198,500 | | | 199,309 | Payments for drydocking | | | 40,376 | | | 21,343 | | | 61,719 | | | | | | | | | | | Nine months ended September 30, 2025: | | | | | | | | | | Shipping revenues | | $ | 288,268 | | $ | 287,155 | | $ | 575,423 | Time charter equivalent revenues | | | 276,534 | | | 283,098 | | | 559,632 | Vessel expenses | | | 88,273 | | | 111,991 | | | 200,264 | Charter hire expenses | | | 10,339 | | | 15,567 | | | 25,906 | Depreciation and amortization | | | 56,351 | | | 65,873 | | | 122,224 | Gain on disposal of vessels and other assets, net | | | (9,871) | | | (25,037) | | | (34,908) | Adjusted income from vessel operations | | | 121,571 | | | 89,667 | | | 211,238 | Expenditures for vessels and vessel improvements | | | 13,524 | | | 175,022 | | | 188,546 | Payments for drydocking | | | 6,547 | | | 56,634 | | | 63,181 |
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) | | | 2026 | | | 2025 | | | 2026 | | | 2025 | Shipping revenues | | $ | 483,202 | | $ | 196,388 | | $ | 1,275,965 | | $ | 575,423 | Less: Voyage expenses | | | (40,645) | | | (3,920) | | | (81,976) | | | (15,791) | Time charter equivalent revenues | | $ | 442,557 | | $ | 192,468 | | $ | 1,193,989 | | $ | 559,632 |
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, provides 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 total adjusted income from vessel operations of the segments to income 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) | | | 2026 | | | 2025 | | | 2026 | | | 2025 | Total adjusted income from vessel operations of all segments | | $ | 316,009 | | $ | 78,349 | | $ | 839,633 | | $ | 211,238 | Other operating revenues | | | 2,247 | | | — | | | 6,590 | | | — | General and administrative expenses | | | (19,639) | | | (11,804) | | | (45,554) | | | (37,186) | Other operating expenses | | | (106) | | | (1,520) | | | (373) | | | (1,737) | Gain on disposal of vessels and other assets, net | | | 52,817 | | | 13,658 | | | 140,945 | | | 34,908 | Consolidated income from vessel operations | | | 351,328 | | | 78,683 | | | 941,241 | | | 207,223 | Holding gain on previously held equity interest | | | — | | | — | | | 3,919 | | | — | Other income | | | 4,752 | | | 1,486 | | | 11,507 | | | 5,370 | Interest expense | | | (11,396) | | | (9,623) | | | (30,916) | | | (30,836) | Income before income taxes | | $ | 344,684 | | $ | 70,546 | | $ | 925,751 | | $ | 181,757 |
Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow: | | | | | | | (Dollars in thousands) | | September 30, 2026 | | September 30, 2025 | Adjusted total assets of all segments | | $ | 2,698,112 | | $ | 2,355,839 | Cash and cash equivalents | | | 163,627 | | | 412,569 | Short-term investments | | | 290,000 | | | — | Other unallocated amounts | | | 21,073 | | | 21,170 | Consolidated total assets | | $ | 3,172,812 | | $ | 2,789,578 |
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