International Seaways Adds to VLCC Fleet with $370 Million Bruton Deal

International Seaways is buying Bruton Limited, an Oslo-listed tanker company, for approximately $370 million. The transaction expands and modernizes International Seaways’ fleet of about 70 crude-oil and product tankers. It matters because the company is adding large crude carriers while tanker earnings remain unusually strong.

Bruton owns four VLCCs. One, the 300,000-dwt Mount Vision, entered service in July. Three sister vessels are being built at China’s New Times Shipyard. International Seaways will first acquire 50.5% of Bruton through a share exchange, then buy the rest through a cash-and-stock merger.

The company expects to issue about 3.12 million shares, representing roughly 96% of the purchase consideration. The remaining amount will be paid in cash. Bruton shareholders are expected to vote around October 30, with closing shortly afterward if customary conditions are met.

VLCC stands for very large crude carrier. It is a tanker built to transport enormous cargoes of crude oil. Bruton’s Mount Vision is described as a 300,000-dwt vessel. Deadweight tonnage measures the weight a ship can safely carry, including its cargo and operating supplies.

VLCCs are important because one ship can move a very large crude shipment between exporting and importing regions. That capacity supports the global crude-oil trade and can make large-volume ocean transport more efficient. The article identifies four such vessels in Bruton’s fleet, including Mount Vision and three sister ships.

VLCC ownership can become especially valuable when tanker rates rise. Mount Vision is earning $95,000 per day under its charter, while Mount Horizon has a $105,700 daily charter. The article does not quantify broader VLCC demand, but International Seaways is adding these ships as spot earnings remain elevated.

The acquisition expands International Seaways’ fleet by four very large crude carriers. That is a direct addition to a company operating approximately 70 crude-oil and product tankers. The fleet growth also supports the company’s stated goal of expanding and modernizing its vessels.

One of Bruton’s four ships is already operating. The 300,000-dwt Mount Vision was delivered in July. The other three are newbuildings under construction at China’s New Times Shipyard. They are scheduled for delivery between November 2026 and October 2027.

This timing means the deal provides current operating capacity plus future growth. Mount Vision already earns $95,000 per day under an existing charter. Mount Horizon, the next vessel, has a charter at $105,700 per day. The article does not provide charter terms for the remaining two vessels.

International Seaways’ blended spot earnings rose from about $29,000 per day in last year’s third quarter to approximately $68,000 per day this year. They then climbed further entering the fourth quarter, with booked earnings averaging roughly $180,000 per day for part of the expected period. Higher rates mean stronger revenue for ships operating in the spot market.

The article links the increase to strong or elevated tanker-market conditions. It does not identify specific causes such as changes in oil production, trade routes, fleet supply, or port congestion. The figures therefore show the market outcome, rather than explaining every underlying driver.

The $180,000 average covers about 37% of expected fourth-quarter revenue days, not the entire quarter. International Seaways also expects third-quarter revenue of $480 million to $490 million and net income of $340 million to $350 million, including a gain from selling a Suezmax tanker.

International Seaways is using mostly stock rather than cash to acquire Bruton. It expects to issue approximately 3.12 million shares, equal to roughly 96% of the total consideration. The remaining portion will be paid in cash. The first 50.5% stake is planned through a share exchange, followed by a cash-and-stock merger for the remainder.

Issuing new shares increases the number of shares outstanding. Existing shareholders will therefore own a smaller percentage of the combined company unless they receive or buy additional shares. Future earnings and voting influence will be spread across more shares. The article does not provide the exact dilution percentage or per-share impact.

The arrangement preserves much of International Seaways’ cash and helps fund a fleet expansion during strong tanker conditions. Investors will weigh that benefit against dilution. The transaction remains subject to shareholder approval and customary closing conditions, with a vote expected around October 30.

Adding four VLCCs gives International Seaways more ships capable of earning revenue. One is already operating, and three more are scheduled to arrive from late 2026 through 2027. More vessels can increase total revenue, especially if crude-shipping rates stay strong. The expansion also modernizes the fleet.

There are already visible revenue examples. Mount Vision earns $95,000 per day under its existing charter. Mount Horizon has secured a charter at $105,700 per day. The key mechanism is simple: each available ship can generate charter or spot income, while the company must pay the costs of owning and operating it.

The article does not state the new vessels’ purchase-level costs, operating expenses, financing costs, or profit margins. High rates could improve returns, but weaker rates would reduce revenue potential. International Seaways had approximately $965 million of liquidity at September 30, including $455 million in cash and short-term investments.

Global crude-oil trade creates demand for VLCCs by requiring large volumes of oil to move between exporting and importing regions. A VLCC can carry a very large crude cargo in one voyage. The article supports this scale with Bruton’s 300,000-dwt Mount Vision, but it does not describe specific trade routes or global demand levels.

A VLCC is profitable when the money earned from charters or spot voyages exceeds operating, maintenance, crew, insurance, financing, and other ownership costs. Utilization also matters. A ship earns more when it is carrying cargo or covered by a strong charter, and less when idle or waiting. These cost factors are established shipping principles, not figures supplied by the article.

The current market is favorable in the figures reported. International Seaways averaged about $68,000 per day in the third quarter and had booked roughly $180,000 for 37% of fourth-quarter revenue days. Sustained rates could support stronger returns, while falling rates would pressure them.