International Seaways posts record earnings amid tanker market surge

International Seaways reported record quarterly earnings for the third quarter of 2026, supported by a sharp increase in crude oil tanker freight rates and stronger returns across its fleet. The New York-based tanker owner also continued its fleet expansion programme, adding new LR1 vessels and advancing its acquisition of Bruton Limited.

Net income reached US$344.2 million for the three months ended September 30, compared with US$70.5 million in the corresponding period of 2025. The result included a gain of approximately US$53 million from the sale of a Suezmax tanker, while adjusted net income, excluding vessel disposal gains, increased to US$291.4 million from US$56.9 million a year earlier.

Shipping revenues rose to US$483.2 million from US$196.4 million, while time charter equivalent (TCE) revenues increased to US$442.6 million from US$192.5 million. Adjusted EBITDA reached US$344.5 million, compared with US$107.7 million in the previous year, reflecting the substantial improvement in tanker market conditions.

The company’s crude tanker segment accounted for most of the earnings growth, generating TCE revenues of US$321 million, compared with US$93 million in the third quarter of 2025. Product carriers also recorded an improvement, with TCE revenues increasing to US$121 million from US$99 million.

Crude tanker rates drive earnings growth

International Seaways benefited from particularly strong spot market conditions across its larger crude oil carriers. Average VLCC spot TCE earnings reached US$154,597 per day during the quarter, compared with US$34,809 a year earlier, while Suezmax spot earnings increased to US$102,501 from US$33,310 per day.

Aframax crude tankers achieved average spot earnings of US$57,832 per day, compared with US$28,457 in the previous year. The company’s product tanker operations also benefited from stronger freight markets, with LR1 spot earnings rising to US$51,060 per day and MR spot earnings reaching US$35,415 per day.

The results were additionally supported by profit-sharing arrangements on certain time charters, which contributed to higher contracted vessel earnings during the quarter.

“We delivered record quarterly net income, reflecting both exceptional tanker market conditions and the benefits of our long-term approach to fleet investment and capital allocation,” said Lois K. Zabrocky, President and Chief Executive Officer of International Seaways.

Zabrocky noted that tanker rates had strengthened significantly towards the end of the quarter, while the company’s fleet renewal and financial strategy had positioned it to benefit from the market environment.

Fleet expansion and newbuilding investments

International Seaways continued its fleet development activities during the reporting period, taking delivery of the Seaways Magellan and Seaways Delgada. The two LR1 tankers completed a six-vessel newbuilding programme with an aggregate contract price of approximately US$359 million.

The company has also contracted four additional scrubber-fitted, LNG dual-fuel-ready LR1 vessels, scheduled for delivery during the second half of 2028. The newbuildings have a combined contract value of US$244 million and are expected to operate in the Panamax International Pool.

Following the end of the quarter, International Seaways advanced its acquisition of Bruton Limited, a transaction involving one operating VLCC and three additional VLCC newbuildings. The acquisition consideration consists primarily of approximately three million International Seaways shares and cash, with settlement to Bruton shareholders expected around November 11, 2026.

Bruton’s operating vessel is a 2026-built, scrubber-fitted LNG dual-fuel VLCC, employed under a charter at US$95,000 per day until April 2027. Another VLCC, scheduled for delivery in November 2026, has secured a 12-month time charter at US$107,000 per day, while the remaining two vessels are scheduled for delivery in August and October 2027.

The company also continued disposing of older tonnage. During the third quarter, it sold a 2012-built Suezmax tanker for net proceeds of US$74 million, recognising a gain of approximately US$53 million. Across the first nine months of 2026, International Seaways sold eight vessels for approximately US$290 million, generating total disposal gains of around US$141 million.

Shareholder returns and financial position

International Seaways declared a quarterly dividend of US$5.05 per share, matching the distribution announced for the previous quarter. The latest dividend is scheduled for payment on December 23, 2026, to shareholders of record on December 9.

The company also increased its authorised share repurchase programme to US$100 million and extended its expiration to the end of 2028. These measures form part of its capital allocation strategy, which combines fleet investment with shareholder distributions.

At September 30, International Seaways reported total liquidity of approximately US$964 million, including US$454 million in cash and short-term investments and US$510 million in undrawn revolving credit capacity. Its net loan-to-value ratio remained below 6%, while quarterly free cash flow reached US$234 million.

For the first nine months of 2026, the company recorded net income of US$925.3 million, compared with US$181.8 million in the corresponding period of 2025. Shipping revenues increased to US$1.28 billion from US$575.4 million, reflecting the stronger tanker market environment throughout the year.

International Seaways entered the final quarter of 2026 with substantial liquidity, additional tanker capacity under construction and increased exposure to the crude oil transportation market through its Bruton acquisition. Its subsequent performance will remain closely linked to tanker freight rates, vessel deployment and the completion of its ongoing fleet investment programme.