International Seaways, one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, reported results for the third quarter 2026.
HIGHLIGHTS & RECENT DEVELOPMENTS
Strategic Fleet Expansion:
- Acquired Bruton Limited (“Bruton”) and its four newbuilding VLCCs primarily for total consideration of approximately three million shares and cash.
- Took delivery of two LR1 newbuilds with the remaining four on order expected to deliver in the second half of 2028.
- Sold a 2012-built Suezmax for proceeds, net of commissions and fees, of $74 million, recognizing a gain of $53 million.
Quarterly Results:
- Record net income of $344 million, or $6.90 per diluted share, including $53 million gain on sale.
- Near-record adjusted net income(1) of $291 million, or $5.84 per diluted share, and adjusted EBITDA(1) of $345 million.
- Strong quarterly free cash flow(1) of $234 million.
Returns to Shareholders:
- Declared dividend of $5.05 per share, matching record set in the previous quarter.
- Fourth consecutive quarter with a payout ratio of at least 85% of adjusted net income.
- Declared dividends of $16.80 per share over the last twelve months represent a 22% yield.
Healthy Balance Sheet:
- Total liquidity was approximately $964 million as of September 30, 2026, including cash and short-term investments of $454 million and $510 million undrawn revolving credit capacity.
- Net loan-to-value(1) less than 6% as of September 30, 2026.
Lois K. Zabrocky, International Seaways President and CEO commented, “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. While tanker markets were already strong earlier in the summer, rates surged to remarkable levels toward the end of the quarter. Our ability to capitalize on this extraordinary market reflects more than just favorable conditions; it is the result of years of disciplined capital allocation, fleet renewal and growth, all while strengthening our financial position and returning substantial capital to our shareholders. As we approach our tenth anniversary, we could not have predicted the extent of the disruptions that have created such a powerful earnings environment, but we have always focused on positioning Seaways to capture opportunities throughout the cycle. We continue to execute that strategy every day by optimizing our fleet across crude and product tanker markets, maintaining a healthy balance sheet and sharing the upside with our shareholders, while preserving the flexibility to pursue future growth and create long-term value.”
Jeff Pribor, the Company’s CFO stated, “Our strong cash generation and financial position provide Seaways with considerable optionality in capital allocation. The completion of the Bruton transaction demonstrates our disciplined approach to deploying capital, using our shares as currency for growth while maintaining significant financial resources for future investments. Importantly, our financial position allows us pursue additional investment opportunities while sustaining substantial returns to shareholders.”