International Seaways, Inc.

International Seaways reported second-quarter 2026 adjusted net income of $295 million, or $5.91 per diluted share, adjusted EBITDA of $345 million, and record free cash flow of $261 million. Blended spot TCEs weighted by revenue days were $79,000 per day, versus $27,500 per day a year ago and $55,600 in the first quarter. Crude tanker revenues were $253 million, including $51 million of profit sharing from time charters; those profit-sharing arrangements lifted blended VLCC earnings across spot and time charter vessels to more than $150,000 per day. The company ended the quarter with $409 million of cash and $526 million of undrawn revolver capacity, or about $935 million of liquidity, and gross debt of $651 million; net debt was about $250 million and net loan-to-value was about 6%. For Q3 to date, it has booked approximately 48% of expected revenue days at a blended spot TCE of about $61,000 per day. Management also said fleet-wide spot cash breakeven remains below $14,500 per day over the next year.

Lois Zabrocky emphasized that the quarter demonstrated the benefits of disciplined capital allocation, fleet renewal, and balance sheet management, pointing to record shareholder returns and the largest quarterly dividend in company history. She said the tanker market is being supported by disrupted trade flows, especially through the Strait of Hormuz and Bab-el-Mandeb, which are increasing ton-mile demand. Her tone was confident and strategic, with repeated emphasis on flexibility, a strong balance sheet, and staying focused on the core oil tanker business.

Jeffrey Pribor detailed the financial bridge from adjusted EBITDA of $345 million to record free cash flow of $261 million, after $15 million of debt service, $20 million of dry dock and capital expenditures, and about $49 million of working capital use. He noted the company paid about $225 million in dividends during the quarter, reflecting the then-record $4.55 per share dividend, and ended with $409 million in cash plus $526 million of undrawn revolving capacity. He also highlighted strong balance sheet metrics, including about $2 billion invested at cost in vessels now valued at nearly $4 billion, gross debt of $651 million, mandatory second-half 2026 repayments of about $15 million, and a total cost of debt around 5.5%.

Analysts asked about Atlantic Basin production shifts, reroutes, and the impact on Suezmax and LR1 rates; management said the market is seeing significant size substitution and overlap, and that LR1s were standout performers because of dislocation that pulled larger ships east. They also asked about product tankers, and management said U.S. product exports remain strong, China has returned as an exporter in July, and MR rates in the Western Hemisphere remain around $35,000 per day. Other questions focused on growth beyond oil tankers, Hormuz bypass projects, and VLCC time charters; management said it is sticking to the oil tanker space, has not seen long-term fixtures tied to new bypass routes, and believes current VLCC earnings should be assessed on a blended worldwide-route basis.