International Seaways, Inc. (NYSE: INSW) has sold five of its oldest vessels—three 18‑year‑old MR tankers and two 15‑year‑old VLCCs—for a net aggregate of approximately $185 million, after commissions and fees. The company expects to record a gain of about $65 million on the sales, a figure that will be reflected in its forthcoming financial statements.
The divestiture is part of a broader fleet renewal program that has already seen the sale of eight older vessels in 2025 and the acquisition of newer, more fuel‑efficient tonnage. By shedding the oldest ships, International Seaways is reducing its average fleet age from 12.3 to roughly 10.5 years, which in turn lowers daily cash breakevens and improves operational leverage. The proceeds will be deployed to finance newbuilds and to strengthen the balance sheet, supporting the company’s commitment to return value to shareholders.
Financially, the sale comes after a strong third‑quarter 2025 performance, in which the company reported net income of $71 million ($1.42 per diluted share) and adjusted net income of $57 million ($1.15 per diluted share). The $185 million in proceeds will add liquidity to a balance sheet that already boasts a current ratio of 1.75 and a debt‑to‑equity ratio of 0.42, reinforcing the firm’s ability to weather market volatility and pursue growth opportunities.
CEO Lois Zabrocky emphasized that the transaction underscores International Seaways’ disciplined approach to capital allocation. “Our balance sheet is strong enough to support continued fleet renewal while delivering long‑term shareholder value,” she said. Zabrocky added that the company remains well positioned to capitalize on favorable market conditions and to maintain a high payout ratio of at least 75 % of adjusted net income.
The tanker market is currently experiencing a tightening of supply and a shift toward more environmentally compliant vessels. International Seaways’ focus on modernizing its fleet aligns with industry trends toward lower emissions and higher fuel efficiency, positioning the company to capture premium freight rates in the coming years. The sale also frees up capital that can be used to pursue newbuilds, including dual‑fuel ready LR1 vessels, further enhancing the fleet’s operational flexibility.
By reducing fleet age and strengthening its balance sheet, International Seaways is better equipped to invest in growth, support dividend policy, and maintain a competitive edge in a market that rewards efficiency and reliability. The transaction signals a continued commitment to strategic asset management and shareholder returns.
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