International Seaways Reports Q2 2025 Financial Results, Reinforces Strategic Growth and Shareholder Returns
International Seaways,one of the world’s leading tanker companies providing marine transportation of crude oil and petroleum products, has announced its financial results for the second quarter of 2025. The report highlights the company’s continued focus on strategic fleet renewal, robust shareholder returns, and prudent balance sheet management despite a volatile macroeconomic and geopolitical environment.
Second Quarter 2025 Financial Overview
For the second quarter ended June 30, 2025, International Seaways reported a net income of $62 million, translating to $1.25 per diluted share. On an adjusted basis, excluding special items such as gains from vessel sales related to its fleet optimization efforts, the company earned $50 million, or $1.02 per diluted share.
Adjusted EBITDA for the quarter stood at $102 million, reflecting the company’s ability to generate strong cash flows in a somewhat softer rate environment compared to the previous year.
Fleet Renewal and Optimization Strategy
A major highlight of the quarter was Seaways’ active approach to fleet optimization. The company either sold or entered agreements to sell a total of six vessels with an average age of 17.5 years. These transactions reflect Seaways’ broader strategy to modernize its fleet and strengthen its competitive positioning in the global tanker market.
- Two MR tankers, built in 2007, were sold toward the end of the quarter, generating $28 million in net proceeds.
- Four additional vessels – three MRs from 2008 and one LR1 from 2006 – are slated for sale in Q3 2025, expected to yield another $57 million.
Simultaneously, Seaways entered into a contract to acquire a 2020-built scrubber-fitted Very Large Crude Carrier (VLCC) for $119 million, with delivery anticipated in Q4 2025. This acquisition supports the company’s ongoing transition to a younger, more efficient fleet and is expected to be funded through existing liquidity and proceeds from the vessel sales.
Earlier in the year, Seaways completed a fleet transaction that involved the exchange of two of its older VLCCs along with $3 million in cash for three modern MRs built in 2015. This deal was structured through a series of vessel sale and purchase agreements with a single counterparty and was spread across Q4 2024 and Q1 2025.
Robust Liquidity and Capital Position
As of June 30, 2025, International Seaways reported a strong liquidity position of approximately $709 million, comprising:
- $149 million in cash and cash equivalents.
- $560 million in undrawn capacity under its revolving credit facilities.
During the first half of 2025, the company made notable repayments on its revolving credit lines, including $117 million to reduce debt tied to the aforementioned vessel swap and optimize financial flexibility. An additional $27 million was repaid in July 2025.
The company’s net loan-to-value ratio remained low at approximately 14%, reflecting disciplined capital management and a conservative approach to leverage.
To support the construction of its six LR1 newbuilds in Korea, Seaways secured a $240 million financing commitment through a Korean export agency-backed facility, structured with DNB Bank and K-SURE. The financing is expected to close in August 2025 and will be drawn at vessel delivery milestones. The facility offers an attractive 20-year amortization structure with a blended margin of 125 basis points over its 12-year stated maturity.
Continued Shareholder Returns and Dividend Commitment
International Seaways continued to reward shareholders with consistent and meaningful returns:
- In June 2025, the company distributed a total dividend of $0.60 per share, including both regular and supplemental dividends.
- In September 2025, the company will pay a combined dividend of $0.77 per share, representing 75% of adjusted net income for the quarter.
This marks the 23rd consecutive quarterly dividend and the fourth straight quarter with a dividend payout ratio of at least 75%, reinforcing the company’s commitment to returning value to shareholders.
Since initiating its supplemental dividend program in Q4 2022, Seaways has returned a cumulative $15.25 per share, which translates to an annualized yield of nearly 14% based on the company’s market capitalization over that period.
Executive Commentary
Lois K. Zabrocky, President and CEO of International Seaways, commented:
“We continue to execute our disciplined capital allocation strategy by divesting aging assets and investing in modern tonnage. Our strong financial foundation allows us to maintain resilience in volatile markets and pursue strategic growth. With enhanced scale through pool employment and a younger, more fuel-efficient fleet, we are well positioned to generate sustainable long-term value for our shareholders.”
Zabrocky also addressed the broader market environment:
“Despite ongoing geopolitical uncertainty, we anticipate near-term oil demand growth, supported by rising production from the Americas and OPEC+. With inventories and reserves well below historical levels, we expect increased demand for seaborne transportation and longer voyage distances, contributing positively to tanker utilization. Moreover, with new tanker deliveries covering just 30% of expected vessel removals, supply constraints may further support market fundamentals.”
Jeff Pribor, Chief Financial Officer, added:
“We are delivering on our balanced capital allocation framework. The sale of older vessels has yielded exceptional returns, while our continued dividend payouts underline our shareholder-focused approach. We also secured highly favorable financing terms for our LR1 newbuilds, helping us manage risk while preserving future flexibility. With over $700 million in liquidity and minimal leverage, we are in an excellent position to act on future strategic opportunities.”
Segment Performance Highlights – Q2 2025
Crude Tankers
- Revenue: $104 million (down from $125 million in Q2 2024)
- TCE Revenue: $99 million (vs. $121 million in Q2 2024)
- Spot earnings/day:
- VLCC: ~$39,300
- Suezmax: ~$36,800
- Aframax: ~$30,700
(All below 2024 levels of $46,400, $45,000, and $31,500 respectively)
Product Carriers
- Revenue: $92 million (vs. $132 million in Q2 2024)
- TCE Revenue: $90 million (down from $131 million)
- Spot earnings/day:
- LR1: ~$32,800
- MR: ~$18,900
(2024 comps were $53,000 and $35,000 respectively)
These results reflect a normalization in freight rates from the elevated levels experienced in the prior year, driven by macroeconomic and geopolitical developments.
Fleet and Contract Overview
- As of July 1, 2025, Seaways had 14 vessels under time charter contracts, with an average remaining duration of 1.7 years and total contracted revenue of $261 million, excluding profit-sharing components.
- The company’s orderbook includes six dual-fuel, LNG-ready LR1 vessels with K Shipbuilding Co., Ltd., valued at $359 million.
- Delivery is scheduled from Q3 2025 through Q3 2026.
- These vessels will join the Panamax International Pool, which has a history of outperforming market benchmarks.
Debt Management and Lease Repurchase Plans
In April 2025, International Seaways notified Ocean Yield Lease Financing of its intent to exercise purchase options on six VLCCs under sale-leaseback agreements. The anticipated payment in November 2025 will total $258 million.
While the company is evaluating external financing options, its available revolving credit facilities offer sufficient capacity to fully fund these purchases if needed. As of June 30, 2025, the outstanding balance of these lease obligations, net of unamortized fees, stood at $267 million, now classified under current liabilities in accordance with accounting standards.
International Seaways enters the second half of 2025 with a modernizing fleet, strong liquidity, and strategic optionality. While market conditions are expected to remain dynamic, Seaways is well equipped to navigate headwinds and leverage tailwinds across the global tanker market. The company remains focused on enhancing long-term shareholder value through disciplined investment, operational excellence, and sustainable capital returns.