INSW · International Seaways, Inc.

International Seaways delivered its strongest first quarter since Q4 2022, with net income more than quintupling year-over-year to $286 million ($5.75 diluted EPS), driven primarily by elevated spot market earnings — average fleet TCE increased ~$30,000/day — and $88 million in gains from the sale of seven older vessels. Crude Tankers segment TCE surged to $184 million (from $85 million), supported by spot rates exceeding $41,000/day and higher time charter profit-sharing; Product Carriers TCE rose to $133 million (from $94 million), aided by spot rates near $21,000/day. Adjusted EBITDA more than doubled to $244 million, underscoring exceptional underlying cash generation — described by CFO Jeff Pribor as the strongest in the Company’s history excluding working capital impacts. Management explicitly tied the record $4.55 per share dividend — composed of a $0.12 regular and $4.43 supplemental component — to both the 85% payout ratio on adjusted net income and an additional discretionary element reflecting market strength and sustained performance. The dividend declaration follows $2.15 per share paid in March 2026 and brings cumulative shareholder returns to over $1 billion since 2020. With $918 million in total liquidity, a net loan-to-value below 7%, and no near-term debt maturities, the balance sheet remains exceptionally strong, enabling continued capital return while funding fleet renewal: two LR1 newbuildings (Seaways Bonita and Seaways Cristobal) were delivered in Q1 and April, with two more expected by September. CEO Lois Zabrocky emphasized operational resilience amid geopolitical uncertainty in the Strait of Hormuz, noting that while current excess supply and inventories are buffering markets, prolonged disruption would strain global oil logistics — reinforcing the structural value of tanker capacity in volatile trade environments.