International Seaways orders LNG-ready tanker duo
Written by Nick Blenkey
New York City headquartered tanker giant International Seaways Inc. (NYSE: INSW) has entered into contracts to build two, scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels in Korea at K Shipbuilding Co, Ltd. The vessels are expected to be delivered in the second half of 2025 at a contracted price of approximately $115 million in aggregate.
The company announced the contracts as it released a second quarter report that saw its second quarter net income reach $154 million, compared $69 million in the second quarter of 2022.
“We generated strong earnings for the fifth consecutive quarter, built on our track record of returning substantial capital to shareholders, and took steps to further enhance our balance sheet during the second quarter,” said president and CEO Lois K. Zabrocky. “With the combined dividend of $1.62 per share and $14 million in share repurchases in the second quarter, cumulative returns to shareholders represent over $190 million in the first half of the year. We are pleased to announce another combined dividend of $1.42 per share and increase to our share buyback authorization. We plan to continue executing our balanced capital allocation strategy to maximize long-term shareholder value.”
“We continue to take advantage of the strong market, as evidenced by healthy third quarter bookings to-date,” she added. “Our optimism is fueled by attractive supply and demand fundamentals, underpinned by trends in the global energy trade, as Russian oil displacement has resulted in increases in ton-mile demand and tanker utilization. Economic activity has remained strong, and oil demand forecasts signal a pickup in the second half of the year. These factors, combined with an historically low orderbook and an aging global fleet, drive our expectation for strong tanker earnings for the foreseeable future.”
