International Seaways, a New York-based tanker owner, has signed an agreement worth approximately $370 million to acquire Bruton Limited. This agreement includes the addition of four very large crude carriers (VLCCs) to the company's fleet and comes amid a tanker market where revenues have significantly increased.
Details of the Agreement and Financial Impacts
With this agreement, International Seaways' fleet will significantly expand to approximately 70 crude and product tankers. The agreement includes one VLCC currently in operation and three new tankers under construction at the New Times shipyard in China. According to the company, average tanker revenues in the third quarter have reached about $68,000 per day, more than double the $29,000 per day from last year.
Read more: Seaspan Corporation Enters the Newcastlemax Tanker Segment
Rates continue to rise, and International Seaways has announced that average tanker revenues for about 37% of the expected revenue days in the fourth quarter have reached approximately $180,000 per day. These figures indicate the strong current market for tankers.
Acquisition Phases and Timeline
Under the agreement, International Seaways will initially acquire 50.5% of Bruton’s shares through a stock exchange with current shareholders, expected to occur around October 20. Subsequently, the company will purchase the remaining shares through a cash and stock merger. The company expects to issue about 3.12 million shares as part of this deal, which constitutes nearly 96% of the total amount.
Bruton shareholders are set to vote on the merger around October 30, and the transaction is expected to close soon thereafter, subject to customary conditions. Louis K. Zabrocki, President and CEO of International Seaways, stated, "We are excited about the opportunity to expand and modernize our fleet through this profitable deal with Bruton."
Bruton's fleet includes the Mount Vision tanker with a capacity of 300,000 tons and three sister tankers, with deliveries scheduled between November 2026 and October 2027. According to Bruton fleet data, Mount Vision currently generates $95,000 per day, and the next tanker, Mount Horizon, has secured its charter at a rate of $105,700 per day.
International Seaways also expects third-quarter revenues to reach $480 to $490 million and net income to be between $340 and $350 million, which includes approximately $50 million in profit from the sale of a Suezmax tanker built in 2012.
The company reported liquidity of approximately $965 million as of September 30, which includes $455 million in cash and short-term investments. Full third-quarter financial results will be released on November 5.
Read more: Reach Subsea Extends Deep Cygnus Subsea Vessel Charter Until 2028 · Sale of New Tanker Capital Axis Maritime for $90 Million
