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 in Q1 2024, mainly due to lower TCE revenues and spot earnings; adjusted net income excluding vessel sales was $40 million ($0.80 per share).

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

• Maintained strong liquidity of $673 million, including $133 million in cash and $540 million undrawn revolver capacity.

• Declared a $0.60 per share dividend for Q2 2025 (75% of adjusted net income), with $4.00 per share paid over the last twelve months (nearly 10% yield).

• Executed a strategic vessel swap: two older VLCCs and $3 million cash for three MRs, generating $50 million net proceeds and supporting fleet renewal.

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.

• Free cash flow for Q1 2025 was $56 million, supporting ongoing dividends and fleet renewal.

• Gross debt at quarter-end was about $600 million, with net loan-to-value at or below 15%.

• Paid $34–34.5 million in dividends in Q1 2025.

• EBITDA margin for Q1 2025 was approximately 50–55%.

Outlook and guidance

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

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

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

• Six LR1 newbuilds scheduled for delivery through Q3 2026, with $314–315 million in remaining commitments.

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