International Seaways (INSW) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $50 million ($1.00 per diluted share), down from $144 million ($2.92 per share) in Q1 2024, mainly due to lower TCE revenues and spot earnings.

• Adjusted net income was $40 million ($0.80 per share), excluding a $10 million gain on vessel sales from a strategic swap of two older VLCCs and $3 million for three MRs.

• Adjusted EBITDA for Q1 2025 was $91 million, compared to $191 million in Q1 2024.

• Declared a $0.60 per share dividend for Q2 2025, maintaining a 75% payout ratio of adjusted net income for three consecutive quarters; $4.00 per share paid over the last twelve months.

• Continued disciplined capital allocation, with over $300 million returned to shareholders over two years and a $50 million share repurchase program authorized.

Financial highlights

• Q1 2025 shipping revenues were $183 million, down from $274 million in Q1 2024; consolidated TCE revenues were $178 million, compared to $271 million a year ago.

• Adjusted EBITDA was $91 million, and free cash flow for Q1 was $56 million, supporting ongoing dividends and fleet renewal.

• Total liquidity as of March 31, 2025, was $673 million, including $133 million in cash and $540 million undrawn revolving credit.

• Net loan-to-value remained low at approximately 15%.

• Paid $34 million in dividends ($0.70 per share) in March 2025 and declared $0.60 per share for June 2025.

Outlook and guidance

• Management expects oil demand growth to continue, with depleted inventories requiring replenishment, supporting tanker demand.

• Modest fleet growth and elevated vessel recycling are expected to help absorb new capacity.

• Q2 2025 guidance: 45% of revenue days fixed at a blended average spot TCE of $31,200/day; spot cash break-even rate remains below $13,500/day.

• FY 2025 revenue expected at $270–280 million, with vessel expenses $68–74 million and capex (including drydock) $70–80 million.

• Six LR1 newbuilds scheduled for delivery through Q3 2026, with $315 million in remaining commitments.