Seaways Sets Record Net Income on Tanker Rate Spike

The Tip Desk · November 6, 2026 · 4 min read

Net income reached $344 million, or $6.90 a share, as crude time-charter profit sharing lifted TCE to $443 million.

International Seaways (INSW), one of the largest tanker companies worldwide, reported record net income of $344 million, or $6.90 a share, for the third quarter of 2026, up from $295 million, or $5.91 a share, in the second quarter. The result included a $53 million gain on the sale of a 2012-built Suezmax.

Adjusted net income was $291 million, or $5.84 a share, slightly below the second-quarter record of $295 million. Adjusted EBITDA held at $345 million, matching the prior quarter’s record.

Shipping revenues were $483 million, compared with $467 million in the second quarter. Consolidated time-charter-equivalent revenues rose to $443 million from $434 million. The company said the increase was driven primarily by higher TCE from spot earnings that rose an average of about $38,300 a day across the fleet and by higher profit-sharing results on applicable time charters of about $75 million.

Crude Tankers carried the quarter. Segment shipping revenues were $359 million, and TCE revenues were $321 million. Average spot earnings on crude vessels were over $78,000 a day, versus over $64,500 a day in the second quarter. Average time-charter earnings were approximately $274,000 a day, versus approximately $75,700 a day, reflecting higher profit-sharing results.

Product Carriers shipping revenues were $124 million and TCE revenues were $121 million, with spot earnings of approximately $12,400 a day.

Revenue days for the three months ended September 30, 2026 totaled 5,840, compared with 6,245 a year earlier. Spot VLCC average TCE was $154,597 a day, versus $34,809 a year earlier; fixed VLCC TCE was $315,258 a day, versus $41,552.

President and Chief Executive Officer Lois K. Zabrocky said the company delivered record quarterly net income reflecting exceptional tanker market conditions and the benefits of long-term fleet investment and capital allocation, and that rates surged toward the end of the quarter after already being strong earlier in the summer.

During the quarter the company took delivery of Seaways Magellan and Seaways Delgada, completing a six-vessel LR1 newbuilding program at an aggregate contract price of about $359 million. It drew about $73 million under a Korean export-agency-backed facility in connection with those deliveries. Four additional scrubber-fitted, dual-fuel LR1 vessels are contracted for delivery in the second half of 2028 at an aggregate price of $244 million; all ten vessels are expected to trade in the Panamax International Pool.

The company sold the 2012-built Suezmax for $74 million, net of commissions and fees. In the nine months ended September 30, 2026, it sold eight vessels for about $290 million of proceeds, net of positioning, commissions and fees, and recognized gains of about $141 million.

In the fourth quarter the company executed transactions to acquire Bruton Limited and its four newbuilding VLCCs for approximately three million shares and cash. Bruton has one 2026-built, scrubber-fitted, dual-fuel VLCC on the water, contracted at $95,000 a day through April 2027, and three VLCC newbuildings scheduled for delivery in November 2026, August 2027 and October 2027. A second dual-fuel VLCC due in November 2026 has a 12-month time charter at $107,000 a day. Remaining construction installments totaled $279 million as of October 31, 2026, with sale-leaseback financing in place for up to 90% of construction price and gross debt of about $170 million under those agreements.

Free cash flow was $234 million, down from a record $261 million in the second quarter.

The board declared a $5.05 a share dividend, matching the record set in the previous quarter, for a fourth consecutive quarter with a payout ratio of at least 85% of adjusted net income. Declared dividends of $16.80 a share over the last twelve months represent a 22% yield. In November the board increased the share-repurchase program to $100 million and extended expiry to the end of 2028.

Total liquidity was approximately $964 million as of September 30, 2026, including $454 million of cash and short-term investments and $510 million of undrawn revolving credit capacity. Net loan-to-value was less than 6%. As of October 1, 2026, 11 vessels were on time charters with an average duration of 2.0 years and future contracted revenues through expiry of about $305 million, excluding profit share.