International Seaways, Inc. (INSW): Business Model Canvas [Dec-2025 Updated]

You're looking for the hard numbers behind International Seaways, Inc.'s strategy heading into late 2025, and honestly, the picture is quite compelling. This isn't just another tanker operator; they've built a fortress with a fleet of 75 vessels, boasting $985 million in liquidity as of Q3 2025, all while keeping their net loan-to-value remarkably low at about 13%. They are balancing the volatile crude market with steady product transport while actively future-proofing the fleet with dual-fuel ready newbuildings. It's a de facto energy transportation ETF, really. So, dig into the nine blocks below to see exactly how International Seaways, Inc. structures its partnerships, manages its costs, and captures revenue from its global operations.

International Seaways, Inc. (INSW) - Canvas Business Model: Key Partnerships

You're looking at the core relationships International Seaways, Inc. relies on to run its fleet and finance growth. These aren't just vendors; they are critical enablers for their strategy as of late 2025.

Technical and Crew Management

The relationship with V.Group is deep, covering the majority of the fleet. This partnership extends to managing the most modern assets coming online.

• V.Ships UK already manages 44 vessels in the International Seaways, Inc. fleet.
• V.Group secured full technical and crew management for six new scrubber-fitted, dual-fuel (LNG) ready LR1 vessels.
• Deliveries for these six LR1s are scheduled to start in the third quarter of 2025 over a 12-month timeframe.

Commercial Tanker Pool Participation

International Seaways, Inc. uses commercial pools to enhance market reach and utilization for specific vessel classes. The new LR1s are earmarked for a specific pool.

The new six LR1 newbuildings are expected to join the niche Panamax International Pool upon delivery. As of January 2025, the company noted its spot market profile was supplemented by pools, taking the total profile up to almost 200 ships.

Newbuilding Construction Partnership

The fleet renewal hinges on the relationship with the Korean shipyard for the advanced LR1 vessels.

International Seaways, Inc. has contracts with K Shipbuilding Co., Ltd. for six LR1 product carrier newbuildings. The aggregate contract price for these six vessels was approximately $359 million as of June 30, 2025. The first vessel delivery occurred in September 2025, with the remaining five scheduled for sequential delivery over the next year.

Financing Facility Partners

The financing for the new LR1 program is structured through a specific ECA (Export Credit Agency) backed facility involving DNB Bank ASA and K-SURE.

International Seaways, Inc. secured a credit agreement, the ECA Credit Facility, entered into on August 20, 2025, with DNB Bank ASA, New York Branch, and K-SURE. The total commitment for the six LR1 newbuildings is up to $331.6 million.

The facility breakdown is as follows:

• Term Loan Facility: Up to $239.7 million.
• Revolving Credit Facility: Up to $91.9 million.

The structure includes specific margin rates:

The Term Loan Facility has a 12-year amortization profile, with the combined structure providing an effective 20-year amortization profile. As of the August 2025 agreement, there were no amounts drawn on the Facilities, with the first draw expected when the first newbuilding delivered in late 2025.

International Seaways, Inc. (INSW) - Canvas Business Model: Key Activities

You're looking at the core actions International Seaways, Inc. (INSW) takes to run its business, based on their late 2025 operational snapshot. These aren't just vague goals; they are backed by real dollars and vessel counts.

Global crude oil and petroleum product transportation

International Seaways, Inc. is one of the largest tanker companies worldwide, focusing on moving crude oil and petroleum products under International Flag markets. This is the fundamental service they provide.

Here's a look at the revenue generated from this core activity through the first three quarters of 2025:

Spot market earnings provide a real-time measure of operational performance. For instance, in the third quarter of 2025, the Suezmax sector averaged approximately $33,300 per day in spot earnings. For the Product Carriers, the LR1 class averaged about $34,600 per day, while the MR class averaged approximately $25,600 per day during the same period.

Strategic fleet optimization (buying modern, selling older vessels)

This activity is about constantly refreshing the fleet to maintain efficiency and meet environmental standards. International Seaways, Inc. is actively buying newer, high-specification vessels while disposing of older tonnage.

As of the third quarter 2025 report, the fleet size and recent transactions show this in action:

• Total fleet size owned and operated: 75 vessels as of late 2025.
• Fleet composition includes 11 VLCCs, 13 Suezmaxes, five Aframaxes/LR2s, 11 LR1s (including five newbuildings), and 35 MR tankers.
• The company took delivery of the Seaways Alacran, the first of six LR1 newbuildings, in the third quarter.
• They sold five vessels in Q3 2025 with an average age of 17.7 years for proceeds of approximately $67 million.
• They agreed to sell three additional 2007-built MRs for proceeds of approximately $37 million, expected to close in the fourth quarter.
• They agreed to purchase a 2020-built, scrubber-fitted VLCC for $119 million, with expected delivery in the fourth quarter. They paid $12 million toward this agreement in Q3 2025.

The strategic swap concluded in Q1 2025 involved exchanging two of the oldest VLCCs and $3 million in cash for three 2015-built MRs. This series of transactions generated net proceeds of $50 million in the first quarter.

Commercial management of vessels in tanker pools

International Seaways, Inc. uses a hybrid model, placing vessels on time charters and also managing others within commercial tanker pools to maximize utilization and secure better charter rates. This helps provide more solutions to customers.

Contracted revenue visibility as of late 2025 is significant:

• As of October 1, 2025, 14 vessels were on time charter agreements.
• The average duration for these time charters was 1.5 years.
• Total future contracted revenues through expiry were approximately $229 million, excluding any profit share.
• The pools they run in can take their profile up to a total of almost 200 ships when combined with their spot market vessels.
• The company has committed to building six LR1 newbuildings at a total price of approximately $359 million, with remaining construction commitments around $300 million as of June 30, 2025. These are expected to deliver into their niche Panamax International Pool.

Maintaining high operational efficiency and safety standards

Keeping the fleet running safely and efficiently directly impacts profitability, as seen in their Adjusted EBITDA figures and low break-even rates. The company reports a commitment to the very best operating practices.

Key financial indicators reflecting operational health as of late 2025:

The forward estimated spot break-even rate for the next 12 months, as of Q1 2025, was approximately $13,485 per day. The company also secured a $240 million Korean export agency-backed financing facility for the LR1 newbuildings.

International Seaways, Inc. (INSW) - Canvas Business Model: Key Resources

You're looking at the core assets International Seaways, Inc. (INSW) relies on to run its energy transportation business as of late 2025. These aren't just ships; they are the physical and financial foundation supporting their market position.

The owned fleet is the primary physical resource, a mix of crude and product tankers designed for different trade routes and cargo sizes. The composition is detailed below, reflecting the ongoing fleet renewal strategy.

Financial strength is a critical, non-physical resource that allows International Seaways, Inc. (INSW) to act decisively on market opportunities and manage near-term obligations. This liquidity position is quite strong heading into the end of 2025.

• Total liquidity stood at $985 million as of September 30, 2025.
• This total liquidity comprised $413 million in cash and $572 million in undrawn revolving credit capacity.
• Net debt at the end of the quarter was under $400 million, resulting in a net loan-to-value ratio of a very low 13% against over $3 billion in fleet value.

Future compliance and operational flexibility are secured through strategic capital expenditure on new vessels. International Seaways, Inc. (INSW) is actively integrating assets designed for evolving environmental standards.

• International Seaways, Inc. (INSW) has 6 scrubber-fitted, dual-fuel (LNG) ready LR1 vessels under construction at K Shipbuilding Co., Ltd.
• The first of these newbuilds, the Seaways Alacran, was delivered in the third quarter of 2025, with the Seaways Balboa added in October 2025.
• The remaining 4 LR1 newbuilding vessels are scheduled for delivery in 2026.
• The company also has 3 prior dual-fuel (LNG) VLCCs employed on time charter with Shell, which beat the 2025 Phase III EEDI target by about 8%.

The expertise to manage this complex, high-value fleet is another key resource. While International Seaways, Inc. (INSW) utilizes external partners for significant portions of its operations, the in-house team sets the strategy and maintains oversight.

• International Seaways, Inc. (INSW) has an experienced team committed to the highest levels of customer service and operational efficiency.
• A significant portion of the fleet management, specifically 44 vessels spanning VLCCs, Suezmax, Aframax, Panamax (LR1), and MR vessels, is managed by V. Ships UK under a long-standing partnership.

International Seaways, Inc. (INSW) - Canvas Business Model: Value Propositions

You're looking at the core promises International Seaways, Inc. (INSW) makes to its customers and the market as of late 2025. These aren't just vague statements; they are backed by concrete financial and fleet positioning data from the third quarter of 2025.

Balanced exposure to both crude and product tanker markets (a de facto ETF)

International Seaways, Inc. offers investors and charterers a way to play the entire energy logistics chain, not just one segment. This balance means you aren't entirely dependent on a single market cycle. For instance, looking at the third quarter of 2025, the revenue streams were nearly split between the two main operations.

This split shows a deliberate strategy to capture value across the spectrum of refined products and unrefined crude oil movements. It's a key part of why some see International Seaways, Inc. as a broad-market exposure vehicle.

Modernizing fleet with dual-fuel ready vessels for environmental compliance

The commitment to environmental, social, and governance (ESG) targets is built into the fleet renewal program. International Seaways, Inc. isn't just waiting for regulations; they are proactively building cleaner capacity. You see this in the newbuild orders and deliveries.

Here's what's coming online or has recently joined:

• Took delivery of two of six LR1 vessels in Q3 2025.
• These six LR1 newbuilds are scrubber-fitted and dual-fuel (LNG) ready.
• An eco-modern VLCC delivery was expected in the fourth quarter of 2025.
• The company previously took delivery of three dual-fuel LNG VLCCs in 2023.

These vessels are designed to beat the 2025 Phase III Energy Efficiency Design Index (EEDI) target by about 8%, which helps future-proof the assets against tightening emissions rules. That's a tangible benefit for charterers concerned with compliance.

Reliable, high-capacity global energy transportation services

Reliability is supported by substantial financial backing and contracted revenue visibility. Even with a dynamic spot market, International Seaways, Inc. has secured a significant portion of its future earnings.

As of October 1, 2025, the company had over $230 million in contracted charter revenue remaining, with an average duration of 1.5 years across 14 vessels on time charter agreements. Plus, the operational backbone is large and managed by experienced partners; V.Ships UK manages 44 vessels in the International Seaways, Inc. fleet, covering VLCCs, Suezmax, Aframax, LR1, and MR classes.

The financial strength underpinning this service capability is clear from the Q3 2025 liquidity position. Total liquidity stood at $985 million, which included $413 million in cash and $572 million in undrawn revolving credit capacity. That's a lot of dry powder for operations or opportunistic moves.

Low net loan-to-value of approximately 13% as of Q3 2025

This is perhaps the most direct statement of financial health. As of September 30, 2025, International Seaways, Inc. reported a net loan-to-value ratio of approximately 13%. This low leverage is calculated against a fleet value exceeding $3 billion, with net debt reported as under $400 million at the quarter's end. That low leverage gives the company significant flexibility to weather market downturns or fund capital expenditures without undue stress. Finance: draft 13-week cash view by Friday.

International Seaways, Inc. (INSW) - Canvas Business Model: Customer Relationships

You're looking at how International Seaways, Inc. locks in business and keeps its major energy clients satisfied. The focus here is on securing revenue streams through specific contract structures and dedicated service offerings.

Long-term time charters for contracted revenue stability

International Seaways, Inc. uses time charters to secure a baseline of revenue, which helps manage the volatility inherent in the spot tanker market. This strategy provides a predictable cash flow component to the overall business model. As of September 30, 2025, the company had 14 vessels committed under time charter agreements. The average remaining duration on these contracts stood at 1.5 years. These contracts represent total future contracted revenues through expiry of approximately $229 million, not counting any profit share arrangements. To give you a comparison point, as of July 1, 2025, 14 vessels were on time charter with an average duration of 1.7 years, totaling about $261 million in future contracted revenue.

Direct, relationship-based engagement with major oil companies

The core of International Seaways, Inc.'s business involves providing energy transportation services for crude oil and petroleum products to major players. The company's fleet composition as of January 2025 included 13 VLCCs, 13 Suezmaxes, and 14 LR1s (including 6 newbuildings). Management emphasizes that geopolitical shifts, like changes in sanctioned barrel trade routes to India and China, directly impact the demand International Seaways, Inc. sees.

Commercial pool participation for consistent customer solutions

Participation in commercial pools is a key way International Seaways, Inc. offers consistent solutions to customers, especially for its smaller crude and product carriers. Each of the company's LR1 vessels participated in the Panamax International Pool during the 2025 period, exclusively transporting crude oil cargoes. New LR1 vessels are slated to deliver into this niche pool, which management notes has consistently outperformed the market. The cost of this arrangement is reflected in pool fees; for the three months ended June 30, 2025, commercial pool fees/commissions averaged approximately $847 per day.

• LR1s exclusively transported crude oil cargoes in the Panamax International Pool during 2025.
• New LR1s are expected to join the Panamax International Pool.
• Commercial pool fees averaged $847 per day for Q2 2025.

High-touch service for specialized lightering business

International Seaways, Inc. provides specialized lightering services, which are excluded from standard revenue day calculations, suggesting a distinct, service-intensive offering. For the third quarter of 2025, this lightering business segment generated revenue of approximately $9 million. The company maintains an experienced team committed to the highest levels of customer service and operational efficiency across its entire fleet.

International Seaways, Inc. (INSW) - Canvas Business Model: Channels

You're looking at how International Seaways, Inc. (INSW) gets its services-tanker capacity-to the market as of late 2025. It's a mix of locking in revenue for stability and playing the spot market for upside. Honestly, the balance between these two is what drives the day-to-day commercial strategy.

Direct time charter agreements with customers

A core channel is locking in capacity directly with customers through time charters. This provides revenue visibility, which is key for managing debt service and capital expenditures. As of the close of the third quarter, International Seaways, Inc. had a solid foundation of contracted revenue.

Here's the quick math on that contracted book as of October 1, 2025:

• 14 vessels were committed on time charter agreements.
• The average remaining duration on these contracts stood at 1.5 years.
• Total future contracted revenues, excluding any profit share mechanisms, were approximately $229 million.

Spot market fixtures via shipbrokers and commercial pools

When vessels aren't tied up on time charters, International Seaways, Inc. uses shipbrokers to secure fixtures in the volatile spot market. This exposes the company to immediate rate fluctuations but allows them to capitalize quickly on market spikes. The commercial pools act as an extension of this spot channel, pooling vessels for more efficient employment.

For context on the spot market environment International Seaways, Inc. navigated in Q3 2025, look at the average spot time charter equivalent (TCE) rates achieved:

To be fair, the overall fleet average spot earnings in the third quarter of 2025 were only about $3,300 per day, reflecting a mix of vessel types and employment. Still, forward bookings showed strength, with MR rates reaching $29,000 per day for days booked in the fourth quarter of 2025.

Panamax International Pool for LR1 vessel employment

A specific and important channel for the LR1 fleet segment is the Panamax International Pool. International Seaways, Inc. strategically directs its LR1 vessels into this pool for employment, primarily transporting crude oil cargoes. This is a key part of their product/crude mix strategy.

• Each of the Company's LR1s participated in the Panamax International Pool during both the 2025 and 2024 periods.
• The six LR1 newbuildings under construction are expected to deliver directly into this niche pool.
• The aggregate contract price for these six scrubber-fitted, dual-fuel ready LR1 vessels is approximately $359 million.

Investor Relations for capital market communication

Investor Relations serves as the critical channel for communicating financial performance, strategic direction, and capital allocation decisions to the investment community. This communication directly impacts the company's access to capital and its valuation. The Q3 2025 results provide a clear snapshot of the financial outcomes communicated through this channel.

Key financial metrics reported for the third quarter of 2025 include:

Capital market activities supporting this channel included the successful placement of $250 million of senior unsecured bonds in the third quarter of 2025, carrying a coupon rate of 7.125%. Furthermore, the commitment to shareholder returns is a key message, evidenced by the declared combined dividend of $0.86 per share for December 2025, representing a 75% payout ratio of adjusted net income. The $50 million share repurchase program was also extended through the end of 2026. Finance: draft 13-week cash view by Friday.

International Seaways, Inc. (INSW) - Canvas Business Model: Customer Segments

International Seaways, Inc. serves a diverse set of energy transportation clients, primarily those involved in the movement of crude oil and refined petroleum products across international flag markets. The company's customer base is generally understood to include the entities that charter their vessels, which are categorized based on the cargo type and vessel size required for the voyage.

The core customer types that charter International Seaways, Inc. vessels include:

• Independent and state-owned oil companies
• Global oil traders and refinery operators
• International government entities and national oil companies

The demand from these segments directly translates into the utilization of International Seaways, Inc.'s specific vessel classes, which are split between crude and product carriers. As of the third quarter of 2025, the company operated a fleet that was actively serving these distinct needs.

Here is a look at the fleet composition and the associated revenue generation by segment for the three months ended September 30, 2025:

The customer base requiring charterers needing crude (VLCC, Suezmax) and clean product (MR, LR1) transport is served by this balanced fleet. For instance, the crude segment, which includes 11 VLCCs and 13 Suezmaxes as of Q3 2025, generated $93 million in Time Charter Equivalent (TCE) revenues for that quarter.

The clean product side, heavily weighted toward MR tankers, saw its charterers drive $99 million in TCE revenues in the third quarter of 2025. The deployment strategy also involves commercial pools; the new LR1 vessels are expected to deliver into the niche Panamax International Pool.

The operational model shows a significant reliance on the spot market for vessel deployment, which is a direct reflection of how these customers secure capacity:

• Approximately 20% of the fleet was on time charter as of January 2025.
• The remaining capacity was available for spot market chartering to meet immediate customer needs.

Furthermore, International Seaways, Inc. utilizes its wholly owned subsidiary, Lightering LLC, to serve specific logistics requirements, focusing on commercial management of crude/DPP vessels and Ship-to-Ship (STS) operations for clients.

International Seaways, Inc. (INSW) - Canvas Business Model: Cost Structure

When you look at the Cost Structure for International Seaways, Inc. (INSW), you see a business heavily influenced by fixed asset costs-the ships themselves-and the ongoing operational needs to keep them running and financed. It's a capital-intensive model, so managing these costs directly impacts your bottom line, especially when charter rates fluctuate.

One of the most reassuring figures for managing short-term risk is the low operational hurdle. As of the Q2 2025 reporting period, the forward spot breakeven rate was reported at about $13,000 per day. This means that for the spot market fleet, the daily revenue needed just to cover operating costs and debt service is relatively low, giving International Seaways, Inc. (INSW) a good cushion when the market softens. To be fair, the expected 2026 breakeven rate was cited slightly higher, around $13,100 per day, following the delivery of new vessels and financing changes, but the core cost base remains lean.

The core operating costs are significant, as you'd expect with a large fleet. Vessel operating expenses (OpEx) and depreciation are major components. You have to keep the machinery running, crewed, and insured, plus account for the steady, non-cash charge of depreciation.

Here's a breakdown of some key recurring and non-recurring costs from the mid-to-late 2025 reporting period:

Servicing the debt load is a critical cash outflow. As of the end of Q2 2025, the gross debt stood at $553 million. By the end of Q3 2025, after issuing new bonds and drawing on new facilities, the net debt figure improved to under $400 million, with a net loan-to-value ratio sitting at a conservative 13% on a fleet valued over $3 billion. The actual cash outlay for debt servicing was $22 million in both Q2 and Q3 2025.

Then there's the capital expenditure side, specifically the fleet renewal program. International Seaways, Inc. (INSW) is investing heavily in modern, dual-fuel-ready tonnage. The total contracted price for the six LR1 newbuildings being built in Korea is approximately $359 million. You can see the commitment in the payments made:

• Total price for six LR1 newbuildings: approximately $359 million.
• Remaining construction commitments as of Q2 2025: approximately $300 million.
• Installments paid in Q3 2025: about $36 million.
• Financing secured for these vessels: up to $240 million.

This investment is designed to lower future OpEx and meet environmental standards, but it requires significant upfront and scheduled cash deployment, which you must factor into your cost-of-doing-business analysis.

International Seaways, Inc. (INSW) - Canvas Business Model: Revenue Streams

You're looking at the core ways International Seaways, Inc. (INSW) brings in cash as of late 2025. Honestly, it's a mix of immediate market exposure and locked-in future income, which is typical for a major tanker operator.

The first major component is the Time Charter Equivalent (TCE) earnings from spot market voyages. This revenue fluctuates directly with the daily charter rates you see in the crude and product tanker markets. For the third quarter of 2025, consolidated TCE revenues were reported at $192 million, down from $220 million in the third quarter of 2024. This was partly due to fewer revenue days and average spot earnings across the fleet being lower compared to the prior year's third quarter.

Next, you have the more predictable income stream: fixed-rate revenue from time charter contracts. This locks in a daily rate for a set period, insulating a portion of the fleet from spot rate volatility. As of October 1, 2025, International Seaways, Inc. (INSW) had 14 vessels on time charter agreements, representing an average duration of 1.5 years. The total future contracted revenue from these agreements, excluding any profit share, was approximately $229 million. To give you context on the book, as of April 1, 2025, the company had total future contracted revenues through expiry of approximately $283 million.

The overall top-line performance is captured by the Total revenue (TTM Sep 2025) figure. For the trailing twelve months ending September 30, 2025, International Seaways, Inc. (INSW) recorded total revenue of $770.04 million. This compares to an annual revenue of $951.61 million for the full year 2024.

Finally, a key part of the capital strategy involves generating cash through the proceeds from the sale of older vessels in the fleet optimization program. This is a recurring source of non-operating revenue as International Seaways, Inc. (INSW) modernizes its fleet by selling older tonnage and acquiring newer, more efficient vessels.

Here's a breakdown of the reported vessel sale proceeds throughout 2025, which directly feeds into the cash available for reinvestment and shareholder returns:

The company's revenue streams are supported by active management of its asset base, as shown by the ongoing fleet renewal activities. You can see the impact of these sales on the balance sheet, which also includes cash generated from operations and financing activities.

To summarize the key financial metrics related to revenue streams as of late 2025:

• Trailing Twelve Months Revenue (TTM Sep 2025): $770.04 million.
• Q3 2025 Consolidated TCE Revenues: $192 million.
• Future Contracted Revenue (as of Oct 1, 2025): Approximately $229 million over an average of 1.5 years.
• Total Proceeds from Vessel Sales (Jan-Sep 2025): Approximately $145 million from completed/agreed sales.
• Total Liquidity (as of Sep 30, 2025): $985 million.

Finance: draft 13-week cash view by Friday.