International Seaways Q2 2025 profit falls on weaker tanker rates

International Seaways has reported a significant drop in earnings for the second quarter of 2025, with both revenue and profit falling sharply from the highs of the previous year. The decline was driven by lower spot market earnings across its tanker fleet.

For the three months ending June 30, the tanker operator posted shipping revenues of $196 million, a decrease from the $257 million recorded in the second quarter of 2024. This led to a net income of $62 million, less than half of the $145 million profit reported in the same period last year. The company did not provide a consolidated figure for outgoings, but the results reflect the impact of reduced charter income on its bottom line.

The fall in revenue was attributed to lower time charter equivalent (TCE) rates. In its Crude Tankers segment, average spot earnings for VLCCs fell to approximately $39,300 per day from $46,400 a year earlier. The Product Carriers segment saw a more pronounced drop, with average spot earnings for LR1 vessels decreasing to around $32,800 per day from $53,000 in the second quarter of 2024.

Despite the market downturn, the company is pushing ahead with strategic initiatives. It has sold or agreed to sell six older vessels and has agreed to purchase a 2020-built, scrubber-fitted VLCC for $119 million.

President and CEO Lois K. Zabrocky commented, “We continue to make meaningful progress in executing our disciplined capital allocation strategy by selling six of our oldest vessels and purchasing modern tonnage, strengthening our balance sheet and returning cash to shareholders.”

Looking forward, Zabrocky noted that while the geopolitical environment creates uncertainty, "we expect oil demand to continue to grow in the near term." The company declared a combined regular and supplemental dividend of $0.77 per share, representing 75 per cent of its adjusted net income for the quarter.