International Seaways Inc: Shares of 10%-Yielder Up 52% Since April
August 15, 2025
Why INSW Stock Could Offer 74% Upside
It’s time to take another look at International Seaways Inc (NYSE:INSW) and its stock.
While there is much talk about how the world is being weaned off of oil and gas, the fact of the matter is that our insatiable appetite for crude oil and gas is growing. The Organization of the Petroleum Exporting Countries (OPEC) anticipates that oil demand will rise from 106.3 million barrels of oil per day to 123 million barrels per day by 2050. (Source: “Will Oil Demand Hit 123 Million Barrels Per Day By 2050 As OPEC Says?,” Forbes, July 19, 2025.)
Unfortunately, for many countries, oil and gas are not readily available in their backyards. According to the U.S. Energy Information Administration (EIA), around 77.5 million barrels of oil per day are transported globally through seaborne trade. This accounts for approximately 76% of the world’s petroleum and other liquids. (Source: “World Oil Transit Chokepoints,” U.S. Energy Information Administration, June 25, 2024.)
This reliably growing demand for global crude is great news for midstream oil and gas companies transporting crude oil and other petroleum products, like International Seaways Inc.
The New-York-City-based company owns and operates a large fleet of 84 vessels and operates in two segments: Crude Tankers and Product Carriers. (Source: “Company Presentation May 2025,” International Seaways Inc, May 13, 2025.)
International Seaways’ fleet includes Very Large Crude Carriers (VLCCs) and Suezmax tankers that transport crude oil. The fleet also has smaller vessels that carry refined products, such as Medium Range, Long Range 1, and Long Range 2 tankers.
This shipping company also offers ship-to-ship (STS) lightering, which is essentially a service that helps transfer oil between ships at sea. STS lightering requires special equipment and vessels, which International Seaways also owns.
The company serves independent and state-owned oil companies, oil traders, refineries, and international government entities.
International Seaways Inc Sees Encouraging Results
On May 8, International Seaways reported its financial performance for the first quarter of 2025, ended on March 31.
While the tanker market cooled a bit in the opening months of the year, International Seaways still delivered a solid financial result. (Source: “International Seaways Reports First Quarter 2025 Results,” International Seaways Inc, May 8, 2025.)
First-quarter shipping revenue slipped to $183.0 million, while consolidated time charter equivalent revenue came in at $178.0 million.
International Seaways reported net income of $50.0 million, or $1.00 per diluted share. This was down from $144.0 million, or $2.92 per share, in the same quarter last year. Adjusted net income for the quarter was $40.0 million, or $0.80 per share.
Despite the decline in net income, the company’s balance sheet remains very strong. As of March 31, it had $673.0 million in total liquidity, including $133.0 million in cash and $540.0 million in available credit.
During the quarter, International Seaways strengthened its balance sheet by paying down $80.0 million in debt.
Commenting on the results, Lois K. Zabrocky, the company’s president and chief executive officer, said, “We delivered encouraging results for the first quarter of 2025, which were marked by a gradual strengthening of market conditions each month. Seaways took advantage of our balanced fleet of crude and product tankers to execute our disciplined capital allocation strategy.”
Q1 Dividend of $0.60/Share Declared
INSW stock pays a regular dividend and a supplemental dividend. The former is $0.12 per share and the latter is variable.
After two consecutive years of returning over $300.0 million to shareholders, International Seaways declared a combined first-quarter dividend of $0.70 per share and a second-quarter dividend of $0.60 per share.
This is in line with company’s policy of returning 75% of adjusted net income to INSW shareholders in the form of dividends.
International Seaways Inc’s second-quarter payout of $0.60 per share works out to an annual distribution of $4.00 per share, for a high-yield dividend of around 10%.
Commenting on the dividend payout, Zabrocky added, “With our enhanced scale through pool employment and our healthy balance sheet, we believe we are well positioned to build on our track record of delivering compelling returns and incremental value for shareholders.”
74% Upside Potential with INSW Stock?
The global shipping industry can be very cyclical, with payloads rising and falling on supply and demand and where we are in the economic cycle. This makes shipping stocks extremely volatile. Throw in a potential global trade war and things can become quite unpredictable.
Like the broader market, INSW stock took a hit in early April, after President Donald Trump launched his global trade war. Since then, though, stocks have been climbing steadily higher on the optimism that trade deals will get signed.
Investor optimism is also being juiced by solid consumer spending and decent U.S. job gains. This should help the U.S. avoid a recession.
Since bottoming in early April, INSW has rallied an impressive 52%. The stock is also up almost 10% over the last month and 16.7% year to date. Big gains, but Wall Street thinks even larger gains are ahead, with INSW potentially hitting a new record high.
Analysts have provided a 12-month share price target range of $53.80 to $70.00. This points to potential upside of approximately 34% to 74%. Should the stock hit $70.00 per share, this would put it well above its May 2024 record high of $58.68.
Chart courtesy of StockCharts.com
The Lowdown on International Seaways Inc
International Seaways Inc is a great midstream stock with a strong balance sheet and growing fleet. It reported solid first-quarter results, which included paying down $80.0 million in debt.
Even after strengthening its balance sheet, the company was still able to provide shareholders with a quarterly payout of $0.60 per share, for an ultra-high-yield dividend of around 10%. That big yield does not come as a result of a tanking share price: INSW stock is up almost 17% in 2025.
A strong dividend and significant double-digit upside potential for INSW stock make for great news for shareholders and the 359 institutional holders. Major holders account for 75.43% of all outstanding shares. Three of the biggest holders include BlackRock Inc, The Vanguard Group, and Morgan Stanley. (Source: “Holders,” Yahoo! Finance, last accessed July 31, 2025.)
