New York-listed tanker company International Seaways embarked on a purchasing spree to expand the company’s fleet portfolio. At the same time, the shipowner sold two MRs and agreed to sell another four vessels for aggregate gross proceeds of approximately $57m.
The tanker company agreed to purchase in August a 2020-built, scrubber-fitted VLCC for $119m, with delivery expected during the fourth quarter of 2025.
The vessel purchase is expected to be funded by proceeds from vessel sales and available liquidity, the company said in its reported financial results for the second quarter 2025.
Meanwhile, two 2007-built MRs were sold at the end of the second quarter for proceeds of $28m, net of fees and commissions. In the third quarter, another four vessels, three 2008-built MRs and one 2006-built LR1, are expected to be sold for aggregate gross proceeds of approximately $57m.
In the first quarter of 2025, the company also concluded a vessel swap to exchange two of its oldest VLCCs and $3m in cash for three 2015-built MRs through a series of individual vessel sales and purchase agreements with the same counterparty. Due to the timing of the transactions, the company said that it received net proceeds during the first quarter of 2025 of $50m and paid $53m in the fourth quarter of 2024.
As of July 1, 2025, the company has 14 vessels on time charter agreements with an average duration of 1.7 years and total future contracted revenues through expiry of approximately $261m, excluding any applicable profit share.
Furthermore, the shipowner has contracts to build six scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels in Korea with K Shipbuilding Co, Ltd at a total price of approximately $359m.
“As of June 30, 2025, the company has approximately $300m in remaining construction commitments, which are expected to be paid through a combination of long-term financing and available liquidity,” International Seaways said in its financial report.
The vessels are contracted to be delivered beginning in the third quarter of 2025 through the third quarter of 2026. These vessels are expected to deliver into the company’s niche Panamax International Pool.
International Seaways owns and operates a fleet of 79 vessels, including 11 VLCCs, 13 suezmaxes, five aframaxes/LR2s, 12 LR1s (including six newbuildings), and 38 MR tankers.
Jeff Pribor, the company’s CFO stated, “During the quarter, we sold two older vessels, realizing annualized returns of nearly 50% since acquiring them in 2021. Over the past year, we have returned 75% or more of our adjusted net income to shareholders through dividends. We also secured attractive financing for our LR1 newbuildings that begin delivering in the third quarter.”
