International Seaways, one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, today reported results for the third quarter 2025.
HIGHLIGHTS & RECENT DEVELOPMENTS
Quarterly Results:
- Net income for the third quarter of 2025 was $71 million, or $1.42 per diluted share.
- Adjusted net income(1), defined as net income excluding special items, for the third quarter of 2025 was $57 million, or $1.15 per diluted share, which excludes gains on vessel sales in connection with the fleet optimization described below.
- Adjusted EBITDA(1) for the third quarter or 2025 was $108 million.
Fleet Optimization Program:
- Took delivery of the Seaways Alacran, the first of six LR1 newbuildings, in the third quarter. The Seaways Balboa was added in October, with the remaining four LR1 newbuilding vessels scheduled for delivery in 2026.
- Sold five vessels with an average age of 17.7 years for proceeds of approximately $67 million. Agreed to sell three additional 2007-built MRs for proceeds of approximately $37 million; the sales are expected to close in the fourth quarter.
- Agreed to purchase a 2020-built scrubber-fitted VLCC for $119 million, expected to be delivered during the fourth quarter.
Healthy Balance Sheet:
- Successfully placed $250 million of senior unsecured bonds in the Norwegian bond market at a coupon rate of 7.125%. Proceeds from the bonds will be to be used to repay existing sale leaseback arrangements, unencumbering six VLCCs in the fourth quarter.
- Executed a $240 million Korean export agency-backed financing (“the ECA Facility”) for LR1 vessels on order. The Company has drawn $82 million in connection with the deliveries of the first two vessels. The remaining funding will be drawn in connection with the delivery of each of the newbuilding vessels during 2026.
- Total liquidity was $985 million as of September 30, 2025, including cash of $413 million and $572 million undrawn revolving credit capacity. Liquidity is impacted by the timing difference between receipt of bond proceeds and the scheduled $258 million repayment of sale leaseback arrangements in the fourth quarter.
- Net loan-to-value remained low at approximately 13% as of September 30, 2025.
Returns to Shareholders:
- Paid a combined $0.77 per share in regular and supplemental dividends in September 2025.
- Declared a combined dividend of $0.86 per share to be paid in December 2025, representing 75% of adjusted net income(1).
- 24th consecutive quarterly dividend and 5th consecutive quarter with a payout ratio of at least 75%.
- Extended the expiry of the $50 million share repurchase program from the end of 2025 to the end of 2026.
Lois K. Zabrocky, International Seaways President and CEO commented, “Seaways delivered another strong quarter of results, with solid contributions from all our asset classes in both crude and products. We continued to strengthen our platform through consistent shareholder returns, disciplined fleet renewal, and ongoing balance sheet optimization. We sold our oldest vessels, took delivery of two of six LR1 newbuildings, and completed a NOK bond transaction that will ultimately unencumber six vessels and enhance our financial flexibility. As we continue to pull all the levers of capital allocation, we are pleased to deliver a consistent payout ratio of at least 75% of adjusted net income.”
Ms. Zabrocky continued, “Market conditions strengthened late in the third quarter and have remained firm, with forward fixtures well above year-ago levels. Looking ahead, fundamentals point to continued strength in tanker rates in the near term. Tanker demand is supported by oil demand growth of about 1% and oil supply growth from the Americas and OPEC+. There may be some restocking of inventory that should continue to support trade flows following last year’s draws. Geopolitical factors continue to create inefficiencies in the global trade that absorb tonnage, while fleet growth is modest at around 2%. Tanker supply remains constrained and the gap between older ships and the orderbook exceeds three to one.”
Jeff Pribor, the Company’s CFO stated, “During the quarter, we successfully completed a bond offering on attractive terms, marking an important milestone in diversifying our capital structure and broadening our access to new investor markets. The proceeds were used to retire higher-cost debt that had been instrumental in financing the company’s earlier growth. Combined with our low cash break-even under $15,000 per day in 2026 and disciplined balance sheet management, this transaction further enhances our financial flexibility and supports long-term value creation.”