International Seaways Posts Record Q3 Profit as Q4 Fixtures Reach $172,300 a Day

International Seaways Inc. reported record third-quarter 2026 earnings as strong crude-tanker rates and a vessel-sale gain lifted results, while early fourth-quarter bookings showed spot fixtures running well above the company’s estimated costs. The tanker operator also maintained its record quarterly dividend and continued expanding and renewing its fleet.

The New York-listed company (NYSE: INSW) posted net income of $344.2 million, or $6.90 per share, for the three months ended Sept. 30, up from $70.5 million a year earlier. Adjusted net income was approximately $291 million, or $5.84 per share, compared with $56.9 million in the third quarter of 2025.

Time charter equivalent revenue, a non-GAAP measure calculated as shipping revenue less voyage expenses, increased to $442.6 million from $192.5 million a year earlier. Shipping revenue was $483.2 million, while adjusted EBITDA reached $344.5 million, compared with $107.7 million in the prior-year quarter.

Results included a $52.8 million net gain on vessel disposals. During the quarter, International Seaways sold a 2012-built Suezmax for net proceeds of $74 million, generating a gain of about $53 million.

Crude tankers lead third-quarter performance

The company’s blended average spot rate was $67,700 per day in the third quarter, down from $79,000 in the preceding quarter but well above $29,400 a year earlier. Performance varied significantly by vessel class.

VLCC spot earnings rose to $154,600 per day from $34,800 a year earlier, while Suezmax rates reached $102,500 from $33,300. Aframax earnings were $57,800 per day, compared with $28,500 in the prior-year period.

Product-tanker rates were also above year-earlier levels but declined sequentially. LR1 vessels earned $51,100 per day, versus $34,600 a year earlier and $79,200 in the second quarter. MR rates were $35,400 per day, compared with $25,600 a year earlier and $60,300 in the previous quarter.

Crude-fleet TCE revenue increased to about $321 million from $93 million a year earlier, while product-fleet TCE revenue was approximately $122 million, up from $99 million.

Fourth-quarter fixtures point to elevated spot revenue

As of Oct. 28, International Seaways had fixed 53% of its fourth-quarter spot revenue days at a blended average TCE rate of approximately $172,300 per day. That included 60% of VLCC spot days at $471,600 per day, 47% of Suezmax days at $300,200 and 73% of Aframax and LR2 days at $130,000.

For product tankers, the company had booked 56% of LR1 spot days at $96,300 per day and 50% of MR days at $55,600. The figures exclude profit-sharing components on applicable time charters.

International Seaways estimated an all-in spot break-even rate of $14,975 per day for the next 12 months after accounting for fixed revenue. The estimate includes operating expenses, charter hire, general and administrative costs, interest, principal payments, drydocking and capital expenditures.

The company also had $305 million of contracted time-charter revenue as of Oct. 1, excluding profit sharing and the recently acquired Bruton vessels. The contracts had an average remaining duration of about two years. Existing contracted time-charter revenue is expected to total $148 million to $156 million in 2027, excluding profit sharing.

Fleet renewal continues

International Seaways completed delivery of the final two vessels from its original six-ship LR1 newbuilding program during the third quarter. It also contracted four additional LR1 newbuildings for an aggregate price of $244 million, with delivery scheduled for the second half of 2028.

In the fourth quarter, the company acquired Bruton Limited and its four VLCC newbuildings for consideration consisting of approximately 3 million International Seaways shares and cash. The fleet list indicates that two of those VLCCs were built in 2026 and two are scheduled for 2027.

Management’s 2027 guidance calls for capital expenditures, including drydocking but excluding newbuilding costs, of $109 million to $125 million. Scheduled debt repayments are expected to range from $42 million to $47 million, while cash interest expense is projected at $45 million to $53 million.

Liquidity supports dividends and investment

International Seaways ended September with total liquidity of $964 million, comprising $454 million of cash and short-term investments and $510 million of undrawn revolving-credit capacity. The company reported net loan-to-value below 6%, with 93% of its debt portfolio fixed or hedged.

Third-quarter free cash flow was $234.1 million, compared with $260.7 million in the second quarter and $63.4 million a year earlier. The company said its revolving-credit capacity is scheduled to decline by approximately $15 million per quarter.

The board declared a dividend of $5.05 per share, matching the previous quarter’s record payment and representing more than 85% of third-quarter adjusted net income. It marked the fourth consecutive quarter in which the company returned at least 85% of adjusted net income and its 28th consecutive quarterly dividend. Declared dividends totaled $16.80 per share over the latest 12 months.

Market risks remain significant

International Seaways said geopolitical disruptions to traditional trade routes were supporting tanker rates, while rising non-OPEC production, low OECD inventories and refining margins above five-year averages were among the demand factors highlighted in the presentation.

However, the company cautioned that an extended closure of the Strait of Hormuz could affect oil demand, the global economy and tanker demand. Other uncertainties include oil-service price movements, competitive pressures, vessel acquisitions and disposals, dividend decisions and the ability to retain key employees.

On the supply side, the tanker orderbook represents about 20% of the existing fleet. The company noted that more than 48% of the fleet is expected to be over 20 years old by the end of the current delivery schedule, though the impact on available capacity will depend in part on vessel recycling, environmental rules and sanctions enforcement.