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

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...

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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.

Bruton shareholders are scheduled to vote on the merger around October 30, with the transaction expected to close shortly afterward, subject to customary conditions.