Scorpio Tankers Inc. Announces an Update to its Securities Repurchase Program

Rhea-AI Summary

Scorpio Tankers Inc. (NYSE:STNG) has provided an update on its 2023 Securities Repurchase Program. The company recently repurchased 756,312 common shares in the open market at an average price of $78.07 per share. Since June 1, 2024, Scorpio Tankers has repurchased a total of 1,397,966 common shares at an average price of $78.16 per share. As of July 12, 2024, there is $140.7 million remaining available under the repurchase program.

Positive

• Repurchased 756,312 common shares at an average price of $78.07
• Total of 1,397,966 shares repurchased since June 1, 2024
• $140.7 million still available under the repurchase program

Negative

• None.

Insights

Financial Analyst

The recent announcement by Scorpio Tankers Inc. regarding their ongoing securities repurchase program is significant. For investors, it's important to examine both the financial health and strategic intentions behind such actions. The company repurchased 756,312 shares at an average price of $78.07 each, implying confidence in the company’s current valuation. Share buybacks can indicate that the company believes its shares are undervalued, or it may wish to return value to shareholders by reducing the number of shares outstanding, thereby increasing earnings per share (EPS).

One positive aspect is the reduction in outstanding shares, which can boost EPS and potentially the stock price. However, investors should be cautious about the source of funds used for buybacks. If the company is repurchasing shares using debt, it could increase financial leverage and future risk. As of July 12, 2024, $140.7 million remains available under the 2023 Securities Repurchase Program, suggesting the company is committed to further buybacks.

In the short term, such actions are likely to support the stock price, reflecting management's positive outlook. In the long term, the actual benefit to shareholders will depend on overall company performance and how these buybacks align with broader strategic goals.

MONACO, July 15, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced that it recently repurchased 756,312 of its common shares in the open market at an average price of $78.07 per share under the 2023 Securities Repurchase Program. Since June 1, 2024, the Company has repurchased an aggregate of 1,397,966 of its common shares in the open market at an average price of $78.16 per share. There is $140.7 million available under the 2023 Securities Repurchase Program as of July 12, 2024.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns or lease finances 107 product tankers (39 LR2 tankers, 54 MR tankers and 14 Handymax tankers) with an average age of 8.3 years. The Company has entered into agreements to sell five of its MR tankers, which are expected to close in the third quarter of 2024. Additional information about the Company is available at the Company’s website www.scorpiotankers.com, which is not a part of this press release.

Forward-Looking Statements

Matters discussed in this press release may constitute forward‐looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward‐looking statements in order to encourage companies to provide prospective information about their business. Forward‐looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “target,” “project,” “likely,” “may,” “will,” “would,” “could” and similar expressions identify forward‐looking statements.

The forward‐looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward‐looking statements include unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies in response to epidemics and other public health concerns including any effect on demand for petroleum products and the transportation thereof, expansion and growth of the Company’s operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including the impact of the conflict in Ukraine and the developments in the Middle East, including the armed conflict between Israel and Hamas, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off‐hires, and other factors. Please see the Company’s filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

Contact Information

Scorpio Tankers Inc.
James Doyle – Head of Corporate Development & Investor Relations
Tel: +1 646-432-1678
Email: investor.relations@scorpiotankers.com

FAQ

How many shares did Scorpio Tankers (STNG) recently repurchase?

Scorpio Tankers (STNG) recently repurchased 756,312 common shares in the open market.

What was the average price per share for STNG's recent stock repurchase?

The average price per share for Scorpio Tankers' recent stock repurchase was $78.07.

How many shares has STNG repurchased since June 1, 2024?

Since June 1, 2024, Scorpio Tankers (STNG) has repurchased a total of 1,397,966 common shares.

What is the remaining amount available under STNG's 2023 Securities Repurchase Program?

As of July 12, 2024, there is $140.7 million available under Scorpio Tankers' 2023 Securities Repurchase Program.