International Seaways Books More Than Half of Fourth-Quarter Days Above $172,000 a Day
Key Facts
International Seaways said on its November 5 earnings call that more than half of its expected fourth-quarter revenue days had been booked at an average spot rate exceeding $172,000 a day across the fleet. The announcement followed the company’s report of net income of $344 million, or $6.90 per diluted share, in the third quarter of 2026. The company compared that with net income of $71 million, or $1.42 per share, in the same period of 2025. Management said: "We have now booked more than half of our expected fourth-quarter revenue days at an average spot rate exceeding $172,000 per day across the entire fleet." It said the reported quarterly rate could change as additional voyages are fixed, making current bookings an interim indicator of fleet performance in the coming period.
Third-quarter shipping revenue rose to $483 million from $196 million a year earlier, while time charter equivalent revenue increased to $443 million from $192 million. The company said the year-over-year improvement in results was driven mainly by an increase of about $38,300 a day in average spot market earnings across the fleet. Profit-sharing results on time charter contracts also contributed about $75 million. These factors reflect the broader impact of stronger rates on operating revenue, along with contributions from contracts that include profit sharing. Reported net income rose alongside these gains, but it is not the same as the adjusted income measure the company announced separately.
Adjusted net income was $291 million, or $5.84 per diluted share, and adjusted earnings before interest, taxes, depreciation and amortization were $345 million. Quarterly free cash flow was $234 million, according to the earnings release. In the crude tanker segment, time charter equivalent revenue rose to $321 million from $93 million in the third quarter of 2025. The company attributed the increase to average spot earnings exceeding $78,000 a day and average time charter earnings of about $274,000 a day. Product tankers recorded time charter equivalent revenue of $121 million, compared with $99 million, as spot earnings rose by about $12,400 a day year over year.
Chief Executive Lois Zabrocky said the tanker market was strong early in the summer before rates rose at the end of the quarter to levels she described as "exceptional." The move places the late-period acceleration in rates among the factors accompanying the company’s year-over-year earnings jump, alongside improved spot market earnings and profit-sharing gains. As of September 30, total liquidity was about $964 million, including $454 million in cash and short-term investments and $510 million in undrawn revolving credit facilities. The loan-to-net-asset-value ratio was also below 6% on that date. These figures show the liquidity and leverage the company reported at quarter-end, alongside its fleet expansion and share repurchase program.
As part of its fleet expansion, the company announced the acquisition of Bruton and four very large crude carriers under construction, in exchange for shares and cash, with settlement expected to be completed around November 11, 2026. The consideration includes about 3 million shares in addition to cash. One of the two very large crude carriers in the deal was already operating under a contract at $95,000 a day through April 2027. The second vessel, scheduled for delivery in November 2026, secured a 12-month time charter at $107,000 a day. The announced contracts provide the two vessels with specified revenue during their contract periods, while completion of settlement is the next step in the deal.
Alongside distributions and vessel additions, the board increased the share repurchase program to $100 million and extended its expiration to the end of 2028, from the previously scheduled end of 2026. In market data recorded by EL7, the company’s shares closed at $98.02 on November 6. The closing price came the day after the earnings announcement, as the company added changes to its buyback program among the capital allocation decisions it disclosed in November. The announced steps center on increasing the capacity for share repurchases, alongside the Bruton deal and contracts tied to its two vessels. The acquisition settlement is expected to be completed around November 11, according to the company’s announced timetable.