Seaways keeps its big dividend. New ships change the cash math.
International Seaways is paying shareholders generously while renewing its tanker fleet. Its cash-flow figures show how those two priorities fit together.
International Seaways has declared another $5.05-a-share dividend. Behind that payout is a tanker business generating far more cash than a year ago, alongside a fleet renewal program that takes a substantial share of it.
The company's $234.1 million of third-quarter free cash flow excludes $75.7 million paid for new ships. Include that spending, and the cash left from operations after capital investment and scheduled debt payments was $158.4 million. Cash dividends paid during the quarter were $250.1 million.
Where the cash went
Operating cash flow reached $243.0 million, more than triple the year-earlier figure. It was lower than in the second quarter, however, while spending on ships and other property rose.
| Cash movement | Q2 2026 | Q3 2026 |
|---|---|---|
| Operating cash flow | $267.7 | $243.0 |
| Capital spending | $52.3 | $77.1 |
| Scheduled debt principal payments | $6.4 | $7.6 |
| Amount remaining | $209.0 | $158.4 |
| Cash dividends paid | $225.3 | $250.1 |
Seaways also received $74.2 million from asset sales and drew $73.0 million of ship financing during the quarter. Cash and short-term deposits rose to $453.6 million from $409.4 million at the end of June. Those resources help explain how a large dividend can coexist with heavy investment.
The $73 million borrowing was part of an existing plan to fund the final two vessels in a six-ship product-tanker program. Both ships arrived in the third quarter, as planned.
More ships, and stronger bookings
The next investments stretch beyond that completed program. Seaways finished its acquisition of Bruton on November 2, adding one operating crude-oil tanker and three under construction. The remaining construction payments totaled about $279 million as of October 31; the company says the financing agreements it assumed can fund all of them.
Separately, four product tankers already ordered for $244 million are due in the second half of 2028. The dividend declared November 3 matches the previous $5.05 payout and is payable December 23.
Strong earnings provide the backdrop. Third-quarter net income was $344.2 million, within the preliminary range Seaways published in October. Excluding a $52.8 million gain on asset sales, adjusted profit was $291.4 million, over five times the year-earlier amount and slightly below the second quarter.
Bookings point to a strong start to the fourth quarter. As of October 28, Seaways had fixed 53% of expected spot-market revenue days at an average $172,300 per day, excluding profit sharing. That covers only part of the quarter, but gives shareholders a concrete measure to watch as new ships join the fleet.
Our International Seaways company profile tracks the earnings history, dividend and vessel commitments.