International Seaways, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total shipping revenues of $195.6 million, down 24% from $257.4 million in the same period last year. The company's net income also fell to $61.6 million, a decrease of 57% compared to $144.7 million in the prior year. For the first half of 2025, revenues totaled $379.0 million, down 29% from $531.8 million in the first half of 2024, while net income decreased to $111.2 million from $289.2 million.
The decline in revenue and profitability was attributed to several factors, including lower average daily rates across the fleet, a decrease in the number of vessels in operation, and reduced lightering revenues. Time charter equivalent (TCE) revenues dropped by 25% to $188.8 million in the second quarter, primarily due to a rates-based decline of $72.8 million. The company also experienced a decrease in vessel sales gains, which contributed to the overall decline in income from vessel operations, which fell to $69.4 million from $154.8 million year-over-year.
Operationally, International Seaways maintained a fleet of 75 vessels as of June 30, 2025, with six new LR1 product carriers scheduled for delivery between late 2025 and 2026. The company reported a working capital deficit of $17.9 million, a significant drop from a positive balance of $245.4 million at the end of 2024. The decrease in cash and cash equivalents was primarily due to net loan repayments, cash dividends paid, and capital expenditures for vessel improvements.
In terms of strategic developments, the company has been active in fleet optimization, including the sale of older vessels and the acquisition of newer models. Notably, International Seaways completed the sale of two VLCCs and is in the process of selling additional MR product carriers. The company also plans to exercise purchase options on six VLCCs currently under lease, with an estimated purchase price of $257.7 million, which will be funded through available liquidity and long-term financing.
Looking ahead, International Seaways expressed a cautious but optimistic outlook, emphasizing its strong balance sheet and liquidity position, which includes $148.8 million in cash and $560.4 million in undrawn revolver capacity. The company aims to continue its disciplined capital allocation strategy, focusing on fleet renewal, debt reduction, and shareholder returns while navigating the challenges posed by market volatility and changing economic conditions.
About International Seaways, Inc.
International Seaways, Inc. owns and operates a fleet of oceangoing crude oil tankers and petroleum product carriers. Its core business involves transporting energy commodities globally through segments of crude tankers and product carriers. The company provides flexible shipping services to major oil companies, traders, and refineries, utilizing spot and time charters. It emphasizes safety, environmental sustainability, and strategic fleet management to maximize returns and shareholder value.
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