International Seaways, Inc. (INSW)

International Seaways agreed on 16 October 2026 to buy Bruton Limited, an Oslo-listed owner of four very large crude carriers (VLCCs, the biggest class of oil tanker), in a deal of about $370 million 12. On 20 and 21 October it swapped 1,624,036 of its own shares for the stake of holders owning about 50.5 percent of Bruton 3. The rest is to follow by merger, about 96 percent paid in shares 1.

The same day it gave early third-quarter figures: revenue of about $480 million to $490 million 1. Net income was about $340 million to $350 million, including a gain of about $50 million on a 2012-built Suezmax it sold 1. Its ships earned a blended spot average, the rate for single voyages, of about $68,000 a day, against $29,000 a year earlier 1.

The cause is the war that began in late February 2026 and the effective closure of the Strait of Hormuz, which pushed tanker hire to historic highs 5. Early in the fourth quarter the company had fixed about $180,000 a day on about 37 percent of its expected days 1. The company itself calls it unlikely that rates stay at these levels, and Bruton's holders vote on the merger on or about 30 October 51.

International Seaways was incorporated in the Marshall Islands in 1999 and belonged to its former parent, OSG, until the spin-off 6. It became a separate public company when OSG spun it off on 30 November 2016 6. Lois Zabrocky has been chief executive since that day 19.

The first years were hard because tanker rates were weak: shipping revenue fell from $398 million in 2016 to $270 million in 2018 17. Management used the slump to renew the fleet, selling 13 old ships and buying six VLCCs from Euronav in 2018 for $434 million, debt included 17. The fleet's average age fell from 11.5 years to 8.7 years over those two years 17.

Revenue rose to $421.6 million in 2020, but $103.0 million of impairment charges, write-downs of ships' book values, cut income from vessel operations to $39.9 million 16. That year it also refinanced its costliest debt with $390 million of new bank loans 16.

The turning point was the all-share merger with Diamond S Shipping on 16 July 2021, which added 64 vessels and much of its product tanker fleet 15. It issued 22,536,647 shares to pay for it 15. Weak rates and $50.7 million of merger costs left a loss from vessel operations of $112.1 million that year 15.

Russia's invasion of Ukraine then rerouted oil and fuel over longer voyages, which raised demand for ships 6. In 2022 shipping revenue reached $864.7 million and income from vessel operations $442.7 million, its best year since 2016 14. Product carriers, the ships that carry refined fuels, earned 62 percent of time charter equivalent revenue, revenue after voyage costs 14.

That spring Famatown Finance, a company indirectly controlled by trusts John Fredriksen settled, built a stake of more than 16 percent 18. The board answered on 9 May 2022 with a shareholder rights plan, a device that makes buying control in the market costly 18.

In 2023 income from vessel operations rose to $615.4 million, dividends reached $308.2 million and three LNG-fuelled VLCCs began seven-year charters with Shell 13. Lower rates then cut that income to $455.2 million in 2024 12. It fell again to $345.4 million in 2025, mainly because product carriers earned less a day 6.

In 2025 it sold 12 older ships, bought a 2020-built VLCC for $119.0 million and issued $250 million of bonds paying 7.125 percent until 2030 6. With the dividend declared in February 2026, it counts over $1.0 billion returned to shareholders since 2020 6.

How the business earns

International Seaways owns and runs oceangoing tankers that carry crude oil and refined fuels for oil majors, state oil companies, traders and refiners 6. Most ships earn in the spot market through pools, groups of similar ships run by one commercial manager that share the earnings 6. Spot voyages made 82 percent of time charter equivalent revenue in 2025, and fixed-rate time charters the rest 6.

At the end of 2025 it ran 70 vessels of 8.4 million deadweight tons, the weight a ship can carry, with four newbuildings on order 6. Its staff numbered 2,763, of whom 2,697 were seafarers and 66 worked ashore 6.

Crude tankers

The crude segment runs VLCCs, Suezmaxes and Aframaxes, the three crude tanker sizes from largest to smallest 6. It also does lightering, moving cargo ship to ship off the U.S. Gulf and elsewhere for tankers too large to enter some ports 6. In the second quarter of 2026 the segment's shipping revenue was $285 million, against $104 million a year before 4.

Its VLCCs trade in the Tankers International pool, whose manager it fully owns since 27 January 2026 after buying out CMB.Tech 46. That pool opened a Suezmax pool in March 4. Bruton adds Mount Vision, delivered in July, and three sister VLCCs under construction at China's New Times Shipyard 2021.

Product carriers

Product carriers move refined fuels such as gasoline, diesel and jet fuel from refineries to consuming markets 6. The fleet is mostly MRs, mid-sized tankers, plus LR1 and LR2 ships, larger long-range carriers; the LR1s often carry crude in the Panamax International pool 6. Product carrier shipping revenue was $182 million in the second quarter of 2026, against $92 million a year before 4.

Six LR1 newbuildings ordered in Korea cost about $359 million in all, and four had arrived by the second quarter of 2026 4. In 2026 it also sold seven of its oldest ships, five MRs and two VLCCs, for about $216 million, with gains of about $88 million 4.

Time charters and the money it returns

On 1 July 2026, 13 ships were on time charters averaging 1.5 years, with about $240 million of contracted revenue still to come 4. The second quarter brought record net income of $295 million 4. The company pays out at least 85 percent of adjusted net income, and declared $5.05 a share in August 4.

People and rivals

Lois Zabrocky leads as president and chief executive, and Jeff Pribor is finance chief 4. Third-party technical managers run the ships day to day, and the seafarers are all under collective bargaining agreements 6. Rivals include independent owners, oil companies, state fleets and traders, in a market the company calls highly competitive and fragmented 6.

Problems and risks

The Hormuz closure lifted rates but also raised fuel and insurance costs and the risk of attack on ships in the region 5. An English tribunal awarded the company about $25 million in March 2025, but it says collecting most of it remains uncertain 6. The Energy Information Administration found Middle East to Asia VLCC rates in March 2026 the highest since at least November 2005 22.

The umbrella, in words

The annual report's subsidiaries exhibit names mainly one company per ship, mostly in Bermuda 23. International Seaways Operating Corporation, a Bermuda company, is the direct subsidiary that signed the Bruton exchanges 2. Diamond S Shipping Ltd. survives as a subsidiary, beside a ship management company in Delaware 23.

It owns 100 percent of Tankers (UK) Agencies, manager of the Tankers International pool, and, since 21 October, about 50.5 percent of Bruton 63.

It owns no plants or land and leases about 13,100 square feet of offices in New York 6. Famatown Finance, a member of the Seatankers group held through trusts John Fredriksen settled, reported 13.54 percent in October and is the largest holder 819. The proxy also lists BlackRock at 12.3 percent, FMR at 9.5 percent, Vanguard at 8.9 percent and Dimensional at 6.5 percent 19.

A rights plan, extended on 9 April 2026 to April 2029, makes a holder crossing 20 percent costly unless it pays a premium to all 9. Holders ratified it on 8 June 2026 by 27,238,846 votes to 14,456,177 10.

Bruton's holders vote on the merger on or about 30 October, and the company expects it to close promptly after 1. The agreement lets either side walk away if it has not closed by 15 November 2026 2. The company plans its full third-quarter results on 5 November 2026 1.

Bruton's second ship, Mount Horizon, is due in November 2026 with a charter at $105,700 a day, gCaptain and Baird Maritime reported 2021. Mount Frontier and Mount Summit follow in August and October 2027 21.

The last two of the six Korean LR1s were expected in the third quarter of 2026, paid from an export-credit loan 4. Four more LR1s, ordered from K Shipbuilding for $244 million, are due in the second half of 2028 4. The company expects all ten to trade in the Panamax International pool it owns jointly 4.

Its stated policy is to return at least 85 percent of adjusted net income each quarter 4. A $50 million buyback authority runs to the end of 2026 4. Since 11 May 2026 it may also sell up to $200 million of new shares in the market through four agents, and none had been sold then 11.

Its strategy, the annual report says, is to manage the fleet's size and age through the cycle, keep a strong balance sheet and pursue value-creating transactions 6. On the market, the company warns that rates are unlikely to stay at today's historically high levels 5. Chief executive Lois Zabrocky said the world cannot replace more than 20 million barrels a day through Hormuz 7.

She also said that once conditions normalize the company expects tanker markets to gain from rebalanced trade and refilled inventories 7. The war's course is the open question the company itself names 5.