International Seaways, Inc. (NYSE:INSW) stock traded higher in Friday’s premarket session after the oil tanker operator announced a $370 million acquisition of Bruton Limited to expand its fleet and released preliminary third-quarter results showing a sharp increase in year-over-year shipping rates.
International Seaways Expands Fleet With $370 Million Bruton Deal
International Seaways agreed to acquire Bruton in a series of transactions that will add four VLCC vessels, including newbuildings, to its fleet of 70 vessels.
The company will first acquire about 50.5% of Bruton’s outstanding shares in exchange for 0.0519 INSW shares for each Bruton share. The exchange is expected to settle on or about Oct. 20.
International Seaways will then acquire the remaining Bruton shares through a cash-and-stock merger.
The company expects to issue ~3.12 million INSW shares across the transactions, representing about 96% of total consideration, with the balance paid in cash.
Preliminary Q3 Results Highlight Stronger Year-Over-Year Rates
Alongside the acquisition, International Seaways said it expects third-quarter shipping and other operating revenue of ~$480 million to $490 million and net income of ~$340 million to $350 million.
Net income includes an ~$50 million gain from the sale of a 2012-built Suezmax.
The company reported blended spot earnings of ~$68,000 per day in the third quarter, compared with $79,000 in the second quarter and $29,000 in the year-ago period.
International Seaways also entered the fourth quarter with stronger spot-rate bookings.
During the first three weeks of the quarter, the company fixed blended spot earnings of ~$180,000 per day on about 37% of expected fourth-quarter revenue days.
Liquidity stood at ~$965 million as of Sept. 30, including $455 million in cash and short-term investments and $510 million of undrawn revolving credit capacity.
President and CEO Lois K. Zabrocky said the acquisition supports the company’s fleet expansion strategy.
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Earnings and Analyst Outlook
International Seaways will release its third-quarter 2026 financial results before the market opens on Nov. 5, 2026.
Wall Street expects EPS of $3.63, up from $1.15 a year earlier, and revenue of $315.75 million, compared with $196.39 million in the prior-year period.
The stock trades at a P/E ratio of 7.2 times.
INSW carries a Buy consensus rating with an average analyst price forecast of $94, ranging from $108 to $140 across five analysts. Recent analyst actions include:
- B. Riley Securities: Buy, price target raised to $140 on Oct. 5
- BTIG: Buy, price target raised to $130 on Sept. 18
- Jefferies: Buy, price target raised to $108 on Aug. 13
INSW Stock Price Activity: International Seaways shares traded 1.59% higher at $114.90 in premarket trading on Friday, according to Benzinga Pro data.
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