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New York - 6 August 2025
International Seaways, Inc. (NYSE: INSW) (the "Company," "Seaways," or "INSW"), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, today reported results for the second quarter 2025.
HIGHLIGHTS & RECENT DEVELOPMENTS
Quarterly Results:
• Net income for the second quarter of 2025 was $62 million, or $1.25 per diluted share.
• Adjusted net income (1), defined as net income excluding special items, for the second quarter of 2025 was $50 million, or $1.02 per diluted share, which excludes a gain on vessel sales in connection with the fleet optimization described below.
• Adjusted EBITDA (1) for the second quarter or 2025 was $102 million.
Fleet Optimization Program:
• Sold or agreed to sell six vessels with an average age of 17.5 years. Two 2007-built MRs were sold at the end of the second quarter for proceeds of $28 million, net of fees and commissions. The remaining four vessels, three 2008-built MRs and one 2006-built LR1, are expected to deliver during the third quarter for proceeds of approximately $57 million.
• Agreed to purchase 2020-built scrubber-fitted VLCC for $119 million, delivering during the fourth quarter.
Healthy Balance Sheet:
• Total liquidity was approximately $709 million as of June 30, 2025, including cash of $149 million and $560 million undrawn revolving credit capacity.
• Repaid $36 million in outstanding revolving credit facilities.
• Net loan-to-value remained low at approximately 14% as of June 30, 2025.
• Secured a $240 million financing commitment for our LR1 newbuildings through a Korean export agency-backed structure with DNB Bank and K-SURE. Closing is expected in August 2025, subject to finalization of documentation. Funds to be drawn at each vessel's delivery. The structure includes two tranches, combining for a 20-year amortization profile and a blended margin of 125 basis points over a 12-year stated maturity.
Returns to Shareholders:
• Paid a combined $0.60 per share in regular and supplemental dividends in June 2025.
• Declared a combined dividend of $0.77 per share to be paid in September 2025, representing 75% of adjusted net income (1).
• 23 rd consecutive quarterly dividend and 4th consecutive quarter with a payout ratio of at least 75%.
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Ms. Zabrocky continued, "While the current geopolitical environment continues to create uncertainty for the global economy and tanker markets, we expect oil demand to continue to grow in the near term, supported by production growth from both the Americas and OPEC+. Oil inventories and strategic reserves remain well below their historical levels. We expect these factors to create regional imbalances, growing distances between production, processing and end-user consumption, that support demand for seaborne transportation. Tanker supply may decline as the vessels delivering into the fleet is only 30% of the vessels expected to be removed from the compliant trade."
Jeff Pribor, the Company's CFO stated, "Seaways continues to deliver on its commitment to balanced capital allocation. During the quarter, we sold two older vessels, realizing annualized returns of nearly 50% since acquiring them in 2021. Over the past year, we have returned 75% or more of our adjusted net income to shareholders through dividends. We also secured attractive financing for our LR1 newbuildings that begin delivering in the third quarter. Importantly, we maintain our financial strength and flexibility, with over $560 million of undrawn revolving capacity, to support our growth platform and enable us to navigate through the tanker cycle. With over $700 million in total liquidity, we are positioned to capitalize on strategic opportunities that enhance our fleet while optimizing returns to shareholders."
SECOND QUARTER 2025 RESULTS
Net income for the second quarter of 2025 was $62 million, or $1.25 per diluted share, compared to net income of $145 million, or $2.91 per diluted share, for the second quarter of 2024. The decrease in results was primarily driven by lower TCE revenues(1) from spot earnings of approximately $13,000 per day across the total fleet and lower gains on vessel sales.
Shipping revenues for the second quarter were $196 million, compared to $257 million for the second quarter of 2024. Consolidated TCE revenues(1) for the second quarter were $189 million, compared to $252 million for the second quarter of 2024.
Adjusted EBITDA(1) for the second quarter was $102 million, compared to $167 million for the second quarter of 2024.
Crude Tankers
Shipping revenues for the Crude Tankers segment were $104 million for the second quarter of 2025, compared to $125 million for the second quarter of 2024. TCE revenues(1) were $99 million for the second quarter, compared to $121 million for the second quarter of 2024. This decrease was attributable to average spot earnings of the VLCC, Suezmax and Aframax sectors of approximately $39,300, $36,800 and $30,700 per day, respectively, compared with approximately $46,400, $45,000 and $31,500 per day, respectively, during the second quarter of 2024.
Product Carriers
Shipping revenues for the Product Carriers segment were $92 million for the second quarter of 2025, compared to $132 million for the second quarter of 2024. TCE revenues(1) were $90 million for the second quarter of 2025, compared to $131 million for the second quarter of 2024. The decrease is primarily attributable average spot earnings in the LR1 and MR classes of approximately $32,800 and $18,900 per day, respectively, compared with approximately $53,000, and $35,000 per day, respectively in the second quarter of 2024.
FLEET OPTIMIZATION PROGRAM
During the second quarter of 2025, the Company sold two 2007-built vessels for net proceeds of approximately $28 million. In the third quarter, another four vessels are expected to be sold for aggregate gross proceeds of approximately $57 million.
In August 2025, the Company agreed to purchase a 2020-built, scrubber-fitted VLCC for $119 million that is expected to deliver during the fourth quarter of 2025. The vessel purchase is expected to be funded by proceeds from vessel sales and available liquidity.
In the first quarter of 2025, the Company concluded a vessel swap to exchange two of our oldest VLCCs and $3 million in cash for three 2015-built MRs through a series of individual vessel sales and purchase agreements with the same counterparty. Due to the timing of the transactions, the Company received net proceeds during the first quarter of 2025 of $50 million and paid $53 million in the fourth quarter of 2024.
As of July 1, 2025, the Company has 14 vessels on time charter agreements with an average duration of 1.7 years and total future contracted revenues through expiry of approximately $261 million, excluding any applicable profit share.
The Company has contracts to build six scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels in Korea with K Shipbuilding Co, Ltd at a total price of approximately $359 million. As of June 30, 2025, the Company has approximately $300 million in remaining construction commitments, which are expected to be paid through a combination of long-term financing and available liquidity. The vessels are contracted to be delivered beginning in the third quarter of 2025 through the third quarter of 2026. These vessels are expected to deliver into our niche Panamax International Pool, which has consistently outperformed the market.
BALANCE SHEET ENHANCEMENTS
In the first half of 2025, the Company repaid $117 million on its revolving credit facilities, composed of $69 million, primarily borrowed for timing differences in connection with the vessel swap and $48 million to offset capacity reductions in our revolving credit facilities.
During July 2025, the Company repaid $27 million outstanding on its revolving credit facilities.
In April 2025, the Company tendered an irrevocable notice of its intention to exercise purchase options on its sale leaseback arrangements with Ocean Yield Lease Financing, secured by six VLCCs. The aggregate outstanding will be $258 million at the time of payment in November 2025. While the Company is exploring financing alternatives, it can draw on its $560 million in available revolving credit facilities to fully fund those purchase options. In accordance with applicable accounting guidelines, the Company is required to classify the outstanding balance of the Ocean Yield Lease Financing at June 30, 2025, net of unamortized deferred financing charges, aggregating $267 million, within the current portion of debt.
RETURNING CASH TO SHAREHOLDERS
In June 2025, the Company paid a combined dividend of $0.60 per share of common stock, composed of a regular quarterly dividend of $0.12 per share of common stock and a supplemental dividend of $0.48 per share.
On August 5, 2025, the Company's Board of Directors declared a combined dividend of $0.77 per share of common stock, composed of a regular quarterly dividend of $0.12 per share of common stock and a supplemental dividend of $0.65 per share of common stock. Both dividends will be paid on September 24, 2025, to shareholders with a record date at the close of business on September 10, 2025.
The Company currently has $50 million authorized under its share repurchase program, which expires at the end of 2025.
(1) This is a non-GAAP financial measure used throughout this press release; please refer to the section "Reconciliation to Non-GAAP Financial Information" for explanations of our non-GAAP financial measures and the reconciliations of reported GAAP to non-GAAP financial measures.
CONFERENCE CALL
The Company will host a conference call to discuss its second quarter 2025 results at 9:00 a.m. Eastern Time on Wednesday, August 6, 2025. To access the call, participants should dial (833) 470-1428 for domestic callers and (929) 526-1599 for international callers and entering 323370. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company's website at https://www.intlseas.com.
An audio replay of the conference call will be available until August 13, 2025, by dialing (866) 813-9403 for domestic callers and +44 204 525 0658 for international callers, and entering Access Code 945806.
ABOUT INTERNATIONAL SEAWAYS, INC.
International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 79 vessels, including 11 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 12 LR1s (including six newbuildings), and 38 MR tankers. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at https://www.intlseas.com.
International Seaways, Inc. press release
