Scorpio Tankers Inc. - STNG STOCK NEWS

Scorpio Tankers (NYSE: STNG) has announced plans to conduct fixed income investor calls starting January 13, 2025, potentially leading to a five-year USD denominated senior unsecured bond issue. The company aims to use the proceeds to refinance its existing 7.0% senior unsecured notes due June 30, 2025, which have an outstanding balance of USD 70.6 million, and for general corporate purposes.

The potential new bonds would be offered exclusively to qualified institutional buyers in the United States under Rule 144A of the Securities Act of 1933. The bonds will not be registered under the Securities Act or state securities laws and cannot be sold in the US without registration or applicable exemption.

Scorpio Tankers (NYSE:STNG) has secured commitments for a new $500.0 million Revolving Credit Facility with a seven-year maturity. The facility offers 100% revolving loan capability with flexible draw-down options and bears interest at SOFR plus 1.85% margin, with a 0.74% commitment fee on undrawn amounts. The loan will be secured by 26 product tankers and includes an uncommitted accordion feature of up to $100.0 million. Amortization begins after two years with quarterly installments and a balloon payment at maturity. The facility is expected to close in Q1 2025.

The company currently owns or lease finances 100 product tankers with an average age of 8.7 years and has agreed to sell one MR tanker in Q4 2024.

Scorpio Tankers (NYSE: STNG) reported Q3 2024 net income of $158.7 million ($3.31 basic EPS), including adjusted net income of $87.7 million ($1.83 basic EPS). The company declared a quarterly dividend of $0.40 per share. Q3 performance showed mixed results with TCE revenue decreasing to $258.2 million from $289.2 million year-over-year, primarily due to fleet reduction from 112.1 to 104.8 vessels. The company completed several vessel sales and made strategic investments, including acquiring a 4.9% stake in DHT Holdings for $89.1 million. The company maintained strong liquidity with $220.5 million in unrestricted cash and $288.2 million available under credit facilities.

Scorpio Tankers Inc. (NYSE:STNG) has announced plans to release its third quarter 2024 earnings on Tuesday, October 29, 2024. The company will issue a press release in the morning (Eastern Daylight Time) and host a conference call at 9:00 AM EDT / 2:00 PM CET.

Interested parties can access the conference call through:

• Webcast: Available on the company's website (www.scorpiotankers.com)
• Telephone: US/Canada: 1-833-636-1321, International: 1-412-902-4260

Participants are advised to register for the webcast approximately 10 minutes before it starts and to dial in 10 minutes before the scheduled call time.

Scorpio Tankers Inc. (NYSE:STNG) has announced an agreement to sell its 2019-built LR2 product tanker, STI Lily. The vessel sale is set at a price of $73.5 million and is expected to be finalized within the fourth quarter of 2024. This strategic move by the Monaco-based company represents a significant transaction in the tanker market, potentially impacting the company's fleet composition and financial position.

Scorpio Tankers Inc. (NYSE:STNG) has announced that its President, Robert Bugbee, has made a significant investment in the company's future. Bugbee has purchased call options on 234,300 common shares of the company, equivalent to 2,343 call option contracts, for a total consideration of $1.5 million.

The call options have a strike price of $67.50 and are set to expire in January 2025. This move by the company's president demonstrates confidence in Scorpio Tankers' potential for growth and increased value in the coming years.

Scorpio Tankers Inc. (NYSE:STNG) has provided an update on its 2023 Securities Repurchase Program. Since July 30, 2024, the company has repurchased 2,415,321 common shares at an average price of $72.45 per share. Additionally, since April 1, 2024, Scorpio Tankers has repurchased a total of 3,813,287 common shares at an average price of $74.54 per share.

As of September 6, 2024, the company has 50,760,778 common shares outstanding. The 2023 Securities Repurchase Program, which initially authorized $400 million for repurchases, still has $225.0 million remaining available for future share buybacks.

Scorpio Tankers Inc. (NYSE:STNG) has announced significant developments in its fleet management strategy. The company has entered into agreements to sell two 2014-built scrubber-fitted MR product tankers, STI San Antonio and STI Texas City, for $42.5 million each. These sales are expected to conclude in Q4 2024.

Additionally, Scorpio Tankers has secured a three-year time charter-out agreement for its 2018-built MR product tanker, STI Jardins. The charter, set at $29,550 per day, is with a major oil company and is anticipated to begin in Q3 or Q4 2024. Notably, the STI Jardins is not equipped with a scrubber.

These strategic moves demonstrate Scorpio Tankers' active management of its fleet composition and revenue streams in the dynamic tanker market.

Scorpio Tankers (NYSE: STNG) reported its Q2 2024 results with net income of $227.3 million, up from $132.4 million in Q2 2023. Earnings per share (EPS) increased to $4.54 basic and $4.34 diluted from $2.50 basic and $2.40 diluted in the same period last year. Adjusted net income was $188.4 million, or $3.77 basic and $3.60 diluted EPS. For H1 2024, net income was $441.5 million, with basic EPS of $8.84. The Board declared a $0.40 per share dividend payable on September 13, 2024.

Significant debt reduction was achieved, repaying $399 million and converting a $225 million Credit Facility to a revolving credit line. The company also increased its securities repurchase program to $400 million, repurchasing 1.4 million shares at an average price of $78.16. Vessel sales generated $179.1 million. Future TCE rates for various vessel classes were strong, reflecting robust market conditions.

The company plans further debt repayments and anticipates significant cash inflows, maintaining strong liquidity with $279.5 million in cash and $288.2 million in credit availability as of July 29, 2024.