Aerial photo of an oil tanker at anchor. Stock Photo: Nickeo23/Shutterstock
Deal adds four modern crude tankers as International Seaways reports sharply higher spot earnings entering the fourth quarter.
International Seaways has agreed to acquire Oslo-listed Bruton Limited in a deal valued at approximately $370 million, adding four very large crude carriers (VLCCs) to its fleet as tanker earnings remain elevated.
The New York-based tanker owner announced the agreement Friday, saying the acquisition will expand its fleet of approximately 70 crude oil and product tankers. The deal includes one VLCC already in operation and three newbuildings under construction at China’s New Times Shipyard.
The acquisition comes alongside preliminary financial results showing strong tanker market conditions. International Seaways reported average blended spot earnings of approximately $68,000 per day during the third quarter, more than double the $29,000 per day recorded a year earlier.
Rates have climbed further entering the fourth quarter. The company said it has secured blended spot earnings averaging approximately $180,000 per day for about 37% of its expected fourth-quarter revenue days.
Under the acquisition agreement, International Seaways will initially acquire a 50.5% stake in Bruton through a share exchange with existing shareholders, expected to settle around October 20. The company will then acquire the remaining shares through a cash-and-stock merger.
International Seaways expects to issue approximately 3.12 million shares as part of the transaction, accounting for roughly 96% of the total consideration. The remainder will be paid in cash.
Bruton shareholders are scheduled to vote on the merger around October 30, with the transaction expected to close shortly afterward, subject to customary conditions.
“We’re excited about the opportunity to expand and modernize our fleet through this accretive transaction with Bruton,” said Lois K. Zabrocky, president and CEO of International Seaways. “The transaction underscores our disciplined approach to growth.”
Bruton’s fleet consists of the 300,000-dwt Mount Vision, delivered in July, and three sister vessels scheduled for delivery between November 2026 and October 2027. According to Bruton’s fleet information, Mount Vision is earning $95,000 per day under its existing charter, while the next vessel, Mount Horizon, has secured a charter at $105,700 per day.
Bruton previously controlled a larger VLCC newbuilding program, but spun off eight vessels into OMC Tankers, which began trading in Oslo in August. Those eight newbuildings are not part of the International Seaways acquisition.
International Seaways also expects third-quarter revenue of $480 million to $490 million and net income of $340 million to $350 million, including an approximately $50 million gain from the sale of a 2012-built Suezmax tanker.
The company reported liquidity of approximately $965 million at September 30, including $455 million in cash and short-term investments.
Its full third-quarter financial results are scheduled for release on November 5.
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