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. 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.

Positive

• Repurchased 2,415,321 common shares since July 30, 2024, at an average price of $72.45
• Total of 3,813,287 common shares repurchased since April 1, 2024, at an average price of $74.54
• $225.0 million still available for future share repurchases under the program

Negative

• None.

Insights

Financial Analyst

Scorpio Tankers' aggressive share repurchase program signals management's confidence in the company's future prospects and undervaluation. The repurchase of 2,415,321 shares at an average price of $72.45 since July 30 represents a significant 4.76% reduction in outstanding shares. This move is likely to boost earnings per share and potentially drive stock price appreciation.

With $225 million still available for repurchases, STNG maintains substantial firepower to continue this strategy. The average repurchase price of $74.54 since April suggests management sees value below this level. Investors should monitor the impact on liquidity and consider the opportunity cost of capital allocation to buybacks versus potential fleet expansion or debt reduction.

Market Research Analyst

This buyback update reflects a broader trend in the shipping industry, where companies are leveraging strong cash flows to return value to shareholders. The tanker market has been robust, benefiting from geopolitical tensions and shifting trade patterns. Scorpio's aggressive repurchase strategy may indicate:

• Confidence in sustained market strength
• attractive fleet expansion opportunities
• A strategy to support stock price amid market volatility

Investors should consider how this capital allocation aligns with industry cycles and compare STNG's approach to peers. The reduction in float could potentially increase stock volatility and impact liquidity for larger institutional investors.

MONACO, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced that since July 30, 2024, the Company has repurchased 2,415,321 of its common shares in the open market at an average price of $72.45 per share under the Company’s 2023 Securities Repurchase Program.

Since April 1, 2024, the Company has repurchased an aggregate of 3,813,287 of its common shares in the open market at an average price of $74.54 per share. 

As of September 6, 2024, there are 50,760,778 common shares of the Company outstanding and $225.0 million remaining available out of the $400 million authorized under the 2023 Securities Repurchase Program. 

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 102 product tankers (39 LR2 tankers, 49 MR tankers and 14 Handymax tankers) with an average age of 8.4 years. The Company has entered into agreements to sell two of its MR tankers, which are expected to close in the fourth 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 has Scorpio Tankers (STNG) repurchased since July 30, 2024?

Scorpio Tankers (STNG) has repurchased 2,415,321 common shares since July 30, 2024, at an average price of $72.45 per share.

What is the total number of shares repurchased by Scorpio Tankers (STNG) since April 1, 2024?

Scorpio Tankers (STNG) has repurchased a total of 3,813,287 common shares since April 1, 2024, at an average price of $74.54 per share.

How much funding remains available in Scorpio Tankers' (STNG) 2023 Securities Repurchase Program?

As of September 6, 2024, Scorpio Tankers (STNG) has $225.0 million remaining available out of the $400 million authorized under the 2023 Securities Repurchase Program.

What is the current number of outstanding common shares for Scorpio Tankers (STNG)?

As of September 6, 2024, Scorpio Tankers (STNG) has 50,760,778 common shares outstanding.