International Seaways Declares Record Dividend on Blowout Quarter

NEW YORK, NY – May 07, 2026 – International Seaways, Inc. (NYSE: INSW) today announced staggering first-quarter financial results that significantly surpassed Wall Street expectations, punctuating the news with the declaration of the largest quarterly dividend in its history. The performance underscores the tanker company’s ability to capitalize on a volatile but highly profitable global shipping market, driven by geopolitical tensions and strategic fleet management.

The New York-based company reported a net income of $286 million, or $5.75 per diluted share, for the first quarter of 2026. This represents a monumental 472% increase from the $50 million, or $1.00 per share, recorded in the same period last year. On an adjusted basis, which removes the impact of vessel sales, net income stood at an impressive $194 million, or $3.90 per share, crushing analyst consensus estimates that had hovered around the $2.60 mark.

A Windfall for Shareholders

The standout announcement was a record-breaking combined quarterly dividend of $4.55 per share, more than doubling the previous quarter’s payout. This decision was fueled by the company’s decision to increase its payout ratio to 85% of adjusted net income, supplemented by a discretionary component reflecting the exceptional market conditions.

“We delivered an excellent first quarter, our strongest since the fourth quarter of 2022, with meaningful contributions from both our crude and product tankers,” said Lois K. Zabrocky, President and CEO of International Seaways. “Following the highest dividend in our history last quarter, we more than doubled our dividend this quarter.”

This latest dividend brings the total cash returned to shareholders to over $1 billion since 2020, a significant milestone that has contributed to a total shareholder return of over 74% year-to-date. The company’s ability to sustain such generous returns is underpinned by a formidable balance sheet. As of March 31, 2026, International Seaways boasted total liquidity of approximately $918 million, including $377 million in cash, and an exceptionally low net loan-to-value ratio below 7%.

Jeff Pribor, the company’s CFO, noted that the robust cash generation, bolstered by proceeds from vessel sales, supported the aggressive dividend policy. “This supported our decision to increase the minimum payout ratio to 85% and include a discretionary component in the dividend for this quarter, reinforcing our commitment to returning capital to shareholders,” he stated.

Strategic Fleet Modernization Pays Off

The company's blockbuster earnings are not merely the result of a favorable market but also the product of a deliberate and well-executed fleet optimization strategy. During the first quarter, International Seaways sold seven of its older vessels—five MR tankers and two VLCCs with an average age of 17 years—for net proceeds of approximately $216 million. The sales generated a gain of $88 million and served to lower the fleet's average age while freeing up capital.

Simultaneously, the company is investing heavily in modernization. It recently took delivery of Seaways Bonita and Seaways Cristobal, the third and fourth of six newbuild LR1 (Long Range 1) product tankers. These modern, scrubber-fitted, and dual-fuel ready vessels enhance fuel efficiency and environmental performance, positioning the fleet for a future with stricter emissions regulations. The remaining two newbuilds are expected to be delivered by the third quarter of 2026.

Further strengthening its market position, International Seaways acquired sole ownership of Tankers International, a leading commercial pool for modern VLCCs (Very Large Crude Carriers), in January. This move provides greater strategic control over its largest vessels and has been followed by an expansion of its commercial management into the Suezmax class, diversifying its operational footprint. This combination of divesting older assets while acquiring modern ships and strategic commercial platforms appears to be a key driver of its current success.

Navigating Geopolitical Hotspots and Market Volatility

The backdrop to Seaways' financial success is a global tanker market characterized by high demand and significant disruption. Geopolitical events have rerouted trade flows, increasing voyage distances (ton-miles) and tightening the supply of available vessels, which in turn has sent freight rates soaring.

Average spot earnings for the company's fleet surged by approximately $30,000 per day compared to the prior year. The crude tanker segment was particularly strong, with VLCCs earning a remarkable average of $86,693 per day on the spot market, and Suezmaxes pulling in $68,027 per day.

In her comments, CEO Lois K. Zabrocky directly addressed the impact of global instability, particularly the situation in the Strait of Hormuz, a critical chokepoint for global oil supply. “Geopolitics are a constant in our business and typically create inefficiencies as markets adjust to new trading patterns,” she said. “The situation in the Strait of Hormuz, however, is more significant, as the world cannot substitute more than 20 million barrels per day of oil and refined product.”

While hoping for a peaceful resolution, Zabrocky acknowledged that a prolonged disruption could strain global markets. In the near term, these very inefficiencies, combined with an aging global tanker fleet and a significant number of vessels tied up in sanctioned trades, create a favorable supply-demand dynamic for compliant, modern operators like International Seaways. The company's balanced exposure to both the crude and product tanker markets provides a unique advantage, allowing it to capture upside across different segments of the energy transportation industry. With a strong start to the second quarter already reported, International Seaways appears well-positioned to continue navigating these turbulent but profitable waters.