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Scorpio Tankers Inc. Announces Financial Results for the Third Quarter of 2024 and the Declaration of a Dividend

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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 (NYSE: STNG) ha riportato un utile netto per il terzo trimestre del 2024 di 158,7 milioni di dollari (3,31 dollari di EPS base), compreso un utile netto rettificato di 87,7 milioni di dollari (1,83 dollari di EPS base). L'azienda ha dichiarato un dividendo trimestrale di 0,40 dollari per azione. Le performance del terzo trimestre hanno mostrato risultati misti, con i ricavi TCE che sono diminuiti a 258,2 milioni di dollari rispetto ai 289,2 milioni di dollari dell'anno precedente, principalmente a causa della riduzione della flotta da 112,1 a 104,8 navi. L'azienda ha completato diverse vendite di navi e ha effettuato investimenti strategici, inclusa l'acquisizione di una quota del 4,9% in DHT Holdings per 89,1 milioni di dollari. L'azienda ha mantenuto una solida liquidità con 220,5 milioni di dollari in contante non vincolato e 288,2 milioni di dollari disponibili attraverso linee di credito.

Scorpio Tankers (NYSE: STNG) reportó una ganancia neta del tercer trimestre de 2024 de 158,7 millones de dólares (3,31 dólares de EPS básico), incluyendo una ganancia neta ajustada de 87,7 millones de dólares (1,83 dólares de EPS básico). La empresa declaró un dividendo trimestral de 0,40 dólares por acción. El rendimiento del tercer trimestre mostró resultados mixtos, con ingresos TCE disminuyendo a 258,2 millones de dólares desde 289,2 millones de dólares en el mismo período del año pasado, principalmente debido a la reducción de la flota de 112,1 a 104,8 buques. La compañía completó varias ventas de barcos y realizó inversiones estratégicas, incluida la adquisición de una participación del 4,9% en DHT Holdings por 89,1 millones de dólares. La empresa mantuvo una sólida liquidez con 220,5 millones de dólares en efectivo no restringido y 288,2 millones de dólares disponibles a través de líneas de crédito.

스코르피오 탱커스 (NYSE: STNG)는 2024년 3분기 순이익이 1억 5,870만 달러(기본 주당순이익 3.31달러)에 달하며, 조정된 순이익은 8,770만 달러(기본 주당순이익 1.83달러)를 포함한다고 보고했습니다. 회사는 주당 0.40달러의 분기 배당금을 선언했습니다. 3분기 실적은 혼합된 결과를 보여주었으며, TCE 수익은 전년 동기 2억 8,920만 달러에서 2억 5,820만 달러로 감소했습니다. 이는 112.1척에서 104.8척으로 줄어든 선대의 영향입니다. 회사는 여러 척의 선박 판매를 완료하고, DHT 홀딩스의 4.9% 지분을 8,910만 달러에 인수하는 등 전략적 투자를 진행했습니다. 또한 회사는 제한 없는 현금 2억 2,050만 달러와 신용 시설 하에 2억 8,820만 달러를 보유하여 강력한 유동성을 유지했습니다.

Scorpio Tankers (NYSE: STNG) a annoncé un bénéfice net pour le troisième trimestre 2024 de 158,7 millions de dollars (3,31 dollars de BPA de base), incluant un bénéfice net ajusté de 87,7 millions de dollars (1,83 dollars de BPA de base). La société a déclaré un dividende trimestriel de 0,40 dollar par action. Les performances du troisième trimestre ont montré des résultats mitigés, avec des revenus TCE diminuant à 258,2 millions de dollars contre 289,2 millions de dollars d'une année sur l'autre, principalement en raison de la réduction de la flotte de 112,1 à 104,8 navires. La société a réalisé plusieurs ventes de navires et a effectué des investissements stratégiques, notamment l'acquisition d'une participation de 4,9 % dans DHT Holdings pour 89,1 millions de dollars. La société a maintenu une solide liquidité avec 220,5 millions de dollars en espèces non restreints et 288,2 millions de dollars disponibles dans le cadre de lignes de crédit.

Scorpio Tankers (NYSE: STNG) meldete einen Nettogewinn im dritten Quartal 2024 von 158,7 Millionen Dollar (3,31 Dollar Grund-EPS), einschließlich eines bereinigten Nettogewinns von 87,7 Millionen Dollar (1,83 Dollar Grund-EPS). Das Unternehmen erklärte eine vierteljährliche Dividende von 0,40 Dollar pro Aktie. Die Leistung im dritten Quartal zeigte gemischte Ergebnisse, wobei die TCE-Einnahmen auf 258,2 Millionen Dollar von 289,2 Millionen Dollar im Vorjahr fielen, hauptsächlich aufgrund der Reduzierung der Flotte von 112,1 auf 104,8 Schiffe. Das Unternehmen schloss mehrere Schiffverkäufe ab und tätigte strategische Investitionen, einschließlich des Erwerbs eines Anteils von 4,9 % an DHT Holdings für 89,1 Millionen Dollar. Das Unternehmen hielt eine starke Liquidität mit 220,5 Millionen Dollar an unbeschränkten Mitteln und 288,2 Millionen Dollar, die unter Kreditfazilitäten zur Verfügung standen.

Positive
  • Net income increased to $158.7 million in Q3 2024 from $100.4 million in Q3 2023
  • Average daily TCE revenue increased to $28,488 per vessel from $28,313 year-over-year
  • Strong liquidity position with $220.5 million in unrestricted cash
  • Strategic vessel sales generating significant proceeds ($73.5 million for STI Lily, $42.5 million each for STI San Antonio and STI Texas City)
Negative
  • TCE revenue decreased to $258.2 million from $289.2 million year-over-year
  • Fleet reduction from 112.1 to 104.8 vessels
  • Quarterly dividend decreased to $0.40 per share

Insights

Scorpio Tankers delivered a strong Q3 2024 with $158.7M net income ($3.31 EPS), up 58% from Q3 2023's $100.4M. Adjusted net income was $87.7M excluding vessel sales gains. The company maintains robust liquidity with $220.5M cash and $288.2M credit availability.

Strategic fleet optimization continues with planned sales of three vessels totaling $158.5M. Notable is the $89.1M investment in DHT Holdings, acquiring 4.9% stake, indicating confidence in the crude tanker sector. The $0.40 quarterly dividend and ongoing share repurchases ($208.9M remaining authorization) demonstrate strong shareholder returns focus.

Q3 performance reflects evolving market dynamics with TCE revenue at $258.2M, down from $289.2M YoY primarily due to fleet reduction (104.8 vs 112.1 vessels). Market pressures from increased crude tanker competition in clean trades and seasonal factors impacted rates, though LR2 rates showed improvement over Q3 2023.

The strategic vessel sales and DHT investment position STNG well for market cycles. The conversion of the $225M credit facility to revolving structure enhances financial flexibility. Strong liquidity and reduced debt levels ($895.9M gross debt) provide resilience amid market fluctuations.

MONACO, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three and nine months ended September 30, 2024. The Company also announced that its board of directors (the "Board of Directors") has declared a quarterly cash dividend on its common shares of $0.40 per share.

Results for the three months ended September 30, 2024 and 2023

For the three months ended September 30, 2024, the Company had net income of $158.7 million, or $3.31 basic and $3.16 diluted earnings per share.

For the three months ended September 30, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $87.7 million, or $1.83 basic and $1.75 diluted earnings per share, which excludes from net income (i) a $69.3 million, or $1.45 per basic and $1.38 per diluted share, gain on sales of vessels, (ii) a $2.8 million, or $0.06 per basic and diluted share, gain on sale of a vessel within a joint venture, and (iii) a $1.1 million, or $0.02 per basic and diluted share, fair value loss on financial assets measured at fair value.

For the three months ended September 30, 2023, the Company had net income of $100.4 million, or $2.01 basic and $1.93 diluted earnings per share.

For the three months ended September 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $99.2 million, or $1.99 basic and $1.91 diluted earnings per share, which excludes from net income (i) a $6.0 million, or $0.12 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs, and (ii) a $7.1 million, or $0.14 per basic and diluted share, gain on the sale of a vessel.

Results for the nine months ended September 30, 2024 and 2023

For the nine months ended September 30, 2024, the Company had net income of $600.2 million, or $12.18 basic and $11.62 diluted earnings per share.

For the nine months ended September 30, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $482.6 million, or $9.79 basic and $9.34 diluted earnings per share, which excludes from net income (i) a $124.0 million, or $2.52 per basic and $2.40 per diluted share, gain on sales of vessels, (ii) a $2.8 million, or $0.06 per basic and $0.05 per diluted share, gain on sale of a vessel within a joint venture, (iii) a $1.1 million, or $0.02 per basic and diluted share, fair value loss on financial assets measured at fair value, and (iv) a $8.1 million, or $0.16 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees related to unscheduled debt and lease payments and debt extinguishment costs on certain lease financing obligations.

For the nine months ended September 30, 2023, the Company had net income of $426.0 million, or $8.00 basic and $7.68 diluted earnings per share.

For the nine months ended September 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $428.1 million, or $8.04 basic and $7.72 diluted earnings per share, which excludes from net income (i) a $9.3 million, or $0.17 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs, and (ii) a $7.1 million, or $0.13 per basic and diluted share, gain on the sale of a vessel.

Declaration of Dividend

On October 28, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of December 13, 2024 to all shareholders of record as of November 22, 2024 (the record date). As of October 28, 2024, there were 50,525,001 common shares of the Company outstanding.

Summary of Third Quarter 2024 and Other Recent Significant Events

  • Below is a summary of the average daily Time Charter Equivalent ("TCE") revenue (see Non-IFRS Measures section below) and duration of contracted voyages and time charters for the Company's vessels (both in the pools and outside of the pools) thus far in the fourth quarter of 2024 as of the date hereof (See footnotes to "Other operating data" table below for the definition of daily TCE revenue):
 Pool and Spot Market Time Charters Out of the Pool
 Average Daily TCE RevenueExpected Revenue Days (1)% of Days Average Daily TCE RevenueExpected Revenue Days (1)% of Days
LR2$31,6002,45035% $30,750910100%
MR$20,8003,75035% $22,500500100%
Handymax$13,0001,15034%  N/AN/AN/A
 
(1) Expected Revenue Days are the total number of calendar days in the quarter for each vessel, less the total number of expected off-hire days during the period associated with major repairs or drydockings. Consequently, Expected Revenue Days represent the total number of days the vessel is expected to be available to earn revenue. Idle days, which are days when a vessel is available to earn revenue, yet is not employed, are included in revenue days. The Company uses revenue days to show changes in net vessel revenues between periods.
 
  • Below is a summary of the average daily TCE revenue earned by the Company's vessels during the third quarter of 2024:
 Average Daily TCE Revenue
Vessel classPool / SpotTime Charters
LR2$38,011$30,872 
MR$25,146$21,824 
Handymax$19,605N/A
    
  • In October 2024, the Company entered into an agreement to sell its 2019 built scrubber fitted LR2 product tanker, STI Lily for $73.5 million. The sale is expected to close within the fourth quarter of 2024. This vessel was collateralized under the 2023 $1.0 Billion Credit Facility and the Company recently repaid $22.9 million of debt on this facility in anticipation of the closing of the sale. This debt repayment did not impact the undrawn amount of $288.2 million that is currently available under the revolving portion of this facility.
  • During the third quarter of 2024, the Company entered into agreements to sell two 2014 built scrubber fitted MR product tankers, STI San Antonio and STI Texas City, for $42.5 million per vessel. These sales are expected to close within the fourth quarter of 2024. There will be no debt repayments as a result of these sales as (i) STI San Antonio was recently replaced by STI Memphis as collateral on the 2023 $225.0 million Credit Facility and (ii) STI Texas City was released from the collateral package on the 2023 $117.4 Million Credit Facility given the sufficient headroom under the leverage covenant with the six remaining collateralized vessels under the facility.
  • During the third quarter of 2024, the Company invested $89.1 million for a passive, minority interest in DHT Holdings Inc. (“DHT”), a publicly traded crude tanker shipping company which owns a fleet of 28 Very Large Crude Carriers. The Company purchased 7,982,480 common shares in DHT, or 4.9% of the outstanding shares, in the open market at an average price of $11.17 per share during this period. This investment reflects the Company's constructive outlook in this sector.
  • During the third quarter of 2024, the Company entered into a three-year time charter-out agreement for the 2018 built MR product tanker, STI Jardins, for $29,550 per day. This vessel is not scrubber-fitted and the time charter commenced in October 2024.
  • On July 29, 2024, the Company’s Board of Directors replenished and increased the 2023 Securities Repurchase Program to purchase up to an aggregate of $400 million of the Company’s securities which, in addition to its common shares also consist of its Unsecured Senior Notes Due 2025 (NYSE: SBBA).  
  • In July 2024, the Company executed an agreement with the lenders on its 2023 $225.0 Million Credit Facility to convert the then $174.2 million outstanding balance on this facility from a term loan to a revolving credit facility. While the repayment schedule remains unchanged, this amendment gives the Company the flexibility to make unscheduled repayments that can be re-drawn in the future subject to a quarterly amortization profile.
  • In September 2024, the Company repaid the outstanding balance of $64.2 million on its BNPP Sinosure Credit Facility. The facility was collateralized by five vessels and bore interest at SOFR plus a blended margin (between the Commercial and Sinosure facilities) of 2.91% per annum.
  • During the third quarter of 2024, the Company closed on the sales of six MR product tankers. The 2012 built vessels, STI Garnet, STI Onyx, STI Ruby, and STI Topaz, were sold for $142.5 million in aggregate to three separate buyers. The 2013 built vessel, STI Beryl (which is not scrubber fitted), was sold for $36.6 million and the 2015 built MR product tanker, STI Manhattan, was sold for $40.8 million. The Company did not make any debt repayments as a result of these sales as STI Garnet, STI Onyx, STI Ruby, STI Topaz, and STI Beryl were unencumbered at the time of the sales and STI Manhattan was replaced by STI Notting Hill as collateral for the 2023 $1.0 Billion Credit Facility.

Securities Repurchase Program

From July 1, 2024 through October 28, 2024, the Company repurchased 3,362,410 of its common shares in the open market at an average price of $73.34 per share under the 2023 Securities Repurchase Program. Since April 1, 2024, the Company has repurchased an aggregate of 4,049,064 of its common shares in the open market at an average price of $74.17 per share.

There is $208.9 million available under the 2023 Securities Repurchase Program as of October 28, 2024.

Diluted Weighted Number of Shares

The computation of earnings per share is determined by taking into consideration the potentially dilutive shares arising from the Company’s equity incentive plan. These potentially dilutive shares are excluded from the computation of earnings per share to the extent they are anti-dilutive.

For the three and nine months ended September 30, 2024, the Company’s basic weighted average number of shares outstanding were 47,941,734 and 49,285,618, respectively. For the three and nine months ended September 30, 2024, the Company’s diluted weighted average number of shares outstanding were 50,150,721 and 51,644,038, respectively, which included the potentially dilutive impact of restricted shares issued under the Company’s equity incentive plan.

Conference Call

Title: Scorpio Tankers Inc. Third Quarter 2024 Conference Call

Date: Tuesday October 29, 2024

Time: 9:00 AM Eastern Daylight Time and 2:00 PM Central European Time

The conference call will be available over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com and the webcast link:

https://edge.media-server.com/mmc/p/bcz8upph

Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

The conference will also be available telephonically:

US/CANADA Dial-In Number: 1-833-636-1321

International Dial-In Number: 1-412-902-4260

Please ask to join the Scorpio Tankers Inc. call.

Participants should dial into the call 10 minutes before the scheduled time.

Current Liquidity

As of October 25, 2024, the Company had $220.5 million in unrestricted cash and cash equivalents and $288.2 million of availability under the revolving portion of the 2023 $1.0 Billion Credit Facility. The sale of STI Lily is expected to close within the next two weeks. The sale price is $73.5 million and the debt related to this vessel of $22.9 million has already been repaid in anticipation of closing.   The sales of STI Texas City and STI San Antonio are expected to close within the fourth quarter of 2024 for $42.5 million per vessel. There is no debt repayment associated with these sales.

Debt

The following table sets forth the unscheduled debt repayments that the Company recently completed.

FacilityRepayment datePrincipal balance repaid (in millions)Vessels
BNPP Sinosure Credit FacilitySept-24$64.2 STI Park, STI Orchard, STI Elysees, STI Fulham, STI Hackney
Total unscheduled repayments - Q3 2024$64.2  
    
2023 $1.0 Billion Credit FacilityOct-24$22.9 STI Lily
Total unscheduled repayments - Q4 2024$22.9  
 

Set forth below is a summary of the principal balances of the Company’s outstanding indebtedness as of the dates presented:

   In thousands of U.S. Dollars Outstanding Principal as of June 30, 2024  Outstanding Principal as of September 30, 2024  Outstanding Principal as of October 25, 2024 
  1BNPP Sinosure Credit Facility (1)$64,212 $ $ 
  22023 $225.0 Million Credit Facility (2) 182,625  174,150  174,150 
  32023 $49.1 Million Credit Facility 43,318  42,164  42,164 
  42023 $117.4 Million Credit Facility 100,386  96,134  96,134 
  52023 $1.0 Billion Credit Facility (3) 374,128  374,128  351,213 
  62023 $94.0 Million Credit Facility 88,075  85,658  85,658 
  7Ocean Yield Lease Financing 23,871  23,095  22,830 
  82021 Ocean Yield Lease Financing 55,166  53,691  53,194 
  9Unsecured Senior Notes Due 2025 70,571  70,571  70,571 
   Gross debt outstanding 1,002,352  919,591  895,914 
   Cash and cash equivalents 224,649  201,001  220,527 
   Net debt$777,703 $718,590 $675,387 
    
 (1) Refer to the preceding table for a description of unscheduled payment activity that has recently occurred.
 (2) In July 2024, the Company amended its 2023 $225.0 Million Credit Facility to convert this credit facility from a term loan to a revolving credit facility. The amendment gives the Company the flexibility to make unscheduled repayments on this facility that can be re-drawn in the future. As of October 25, 2024 there is $174.2 million outstanding on this facility and under the amendment, the outstanding and/or availability of the revolving credit facility will continue to amortize quarterly under the same schedule as the original term loan.
 (3) In October 2024, the Company gave notice on the 2023 $1.0 Billion Credit Facility to prepay $22.9 million of debt related to STI Lily in anticipation of the closing of the sale of the vessel. This debt repayment did not impact the undrawn amount of $288.2 million that is currently available under the revolving portion of this facility.
    
    

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of September 30, 2024, which includes principal amounts due under the Company's secured credit facilities, lease financing arrangements and Unsecured Senior Notes Due 2025 (which also include actual scheduled payments made from October 1, 2024 through October 25, 2024):

     
  In millions of U.S. dollars Repayments/
maturities of unsecured debt
Vessel financings - maturities in 2024
and 2025, including announced prepayments
(2)
Vessel financings - scheduled repayments, in addition to
maturities in 2026 and thereafter
Total (1)
 October 1, 2024 to October 25, 2024 $ $22.9 $0.8 $23.7 
 Remaining Q4 2024      17.8  17.8 
 Q1 2025      18.5  18.5 
 Q2 2025  70.6    14.6  85.2 
 Q3 2025      14.6  14.6 
 Q4 2025      14.7  14.7 
 2026 and thereafter      745.1  745.1 
   $70.6 $22.9 $826.1 $919.6 
 
(1)  Amounts represent the principal payments due on the Company’s outstanding indebtedness as of September 30, 2024.
(2)  Reflects the October 2024 prepayment of the 2023 $1.0 Billion Credit Facility in anticipation of the sale of STI Lily.
 

Drydock Update

Set forth below is a table summarizing the drydock activity that occurred during the third quarter of 2024 and the estimated expected payments to be made, and off-hire days that are expected to be incurred, for the Company's drydocks through 2024 and 2025:

   Number of (3)
 Aggregate costs in millions of USD (1)Aggregate off-hire days (2)LR2sMRsHandymax 
       
Q3 2024 - actual$30.4481495 
Q4 2024 - estimated 43.3356486 
Q1 2025 - estimated 8.1176330 
Q2 2025 - estimated 12.7180450 
Q3 2025 - estimated 7.1100230 
Q4 2025 - estimated 1.620100 
 
(1)  These costs include estimated cash payments for drydocks. These amounts may include costs incurred for previous projects for which payments may not be due until subsequent quarters, or payments that are due in advance of the scheduled service and may be scheduled to occur in quarters prior to the actual drydocks. The timing of the payments set forth are estimates only and may vary as the timing of the related drydocks finalize.
(2)  Represents the total estimated off-hire days during the period for drydockings or major repairs, including vessels that commenced work in a previous period.
(3)  Represents the number of vessels scheduled to commence drydock. It does not include vessels that commenced work in prior periods but will be completed in the subsequent period. Additionally, the timing set forth in these tables may vary as drydock times are finalized.
 

Explanation of Variances on the Third Quarter of 2024 Financial Results Compared to the Third Quarter of 2023

For the three months ended September 30, 2024, the Company recorded net income of $158.7 million compared to net income of $100.4 million for the three months ended September 30, 2023. The following were the significant changes between the two periods:

  • TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot voyages, time charters, and pool charters), and it provides useful information to investors and management. The following table sets forth TCE revenue for the three months ended September 30, 2024, and 2023:
   For the three months ended September 30,
In thousands of U.S. dollars  2024   2023 
 Vessel revenue $267,986  $291,179 
 Voyage expenses  (9,785)   (1,985) 
 TCE revenue $258,201  $289,194 
  
  • TCE revenue for the three months ended September 30, 2024 decreased by $31.0 million to $258.2 million, from $289.2 million for the three months ended September 30, 2023. Overall, the average daily TCE revenue increased to $28,488 per vessel during the three months ended September 30, 2024, from $28,313 per vessel during the three months ended September 30, 2023. The average number of vessels was 104.8 during the three months ended September 30, 2024 as compared to 112.1 during the three months ended September 30, 2023.
    • TCE revenue for the three months ended September 30, 2024 declined as compared to the same period in the previous year. This was mainly attributable to a decrease in the average number of vessels in the Company's fleet during each period. Additionally, a combination of seasonality, reduced product exports in certain regions, and competition from crude tankers added pressure to daily spot TCE rates during the third quarter of 2024. During the first half of 2024, daily spot TCE rates for the Company’s LR2 vessels benefited from strong global distillate demand and increasing ton miles as vessels re-routed around the Cape of Good Hope due to conditions in the Red Sea. The resultant spike in daily spot TCE rates on this route, coupled with weak demand for crude oil tankers, drew the attention of larger crude tanker owners (VLCCs and Suezmaxes) who underwent the costly process to clean the cargo tanks of their vessels and temporarily enter the clean trade. While LR2 daily TCE rates have improved as compared to the third quarter of 2023, the entry of crude vessels into the LR2 trade captured longer ton-mile clean tanker demand that would have otherwise gone to LR2s, consequently suppressing daily spot TCE rates for the Company’s LR2 vessels as compared to the second quarter of 2024. Additionally, seasonality and reduced refinery throughput attributable to lower refining margins led to decreased volumes from Asia and Europe, which had a negative impact on daily spot TCE rates earned by the Company's MR and Handymax vessels.
    • TCE revenue for the three months ended September 30, 2023 was impacted by extended refinery maintenance, lower refining margins, and a reduction in arbitrage opportunities, which all led to reduced refinery throughput and decreased volumes from major export regions. These conditions improved in the latter part of the quarter and daily TCE rates strengthened as a result. On a seasonally adjusted basis, demand for the Company's vessels during the third quarter of 2023 was supported by growing underlying consumption for refined petroleum products against the backdrop of low inventory levels and a modest newbuilding orderbook.
  • Vessel operating costs for the three months ended September 30, 2024 increased by $1.8 million to $80.9 million, from $79.1 million for the three months ended September 30, 2023. Overall, the average daily vessel operating costs increased to $8,395 per vessel for the three months ended September 30, 2024 from $7,669 per vessel for the three months ended September 30, 2023. The increase was seen across all vessel classes, with the LR2 segment having the largest increase, which was driven by higher repairs and maintenance and spare parts costs, coupled with disruptions in trading patterns that have impacted the costs of sourcing and transporting spare parts.
  • Depreciation expense – owned or sale leaseback vessels for the three months ended September 30, 2024 decreased by $1.5 million to $45.5 million, from $47.0 million for the three months ended September 30, 2023. Depreciation - right of use assets also decreased by $4.1 million over the same period. This combined decrease was primarily attributable to a decrease in the average number of owned vessels, which was 104.8 during the three months ended September 30, 2024 as compared to 112.1 during the three months ended September 30, 2023.
  • General and administrative expenses for the three months ended September 30, 2024 increased by $5.3 million to $30.0 million, from $24.6 million for the three months ended September 30, 2023 due to an increase in non-cash restricted stock amortization resulting primarily from grants made in the second quarter of 2024. The stock price on the dates of the grants is used as the fair value for the accounting of the awards under IFRS. The awards granted to employees vest ratably in years three, four and five following the initial grant.
  • Financial expenses for the three months ended September 30, 2024 decreased by $28.8 million to $20.9 million, from $49.7 million for the three months ended September 30, 2023. This decrease was primarily attributable to the overall reduction in interest expense on debt and sale leaseback arrangements due to the Company's deleveraging efforts over the past twelve months. The Company's average indebtedness decreased to $1.0 billion during the three months ended September 30, 2024, as compared to $2.0 billion during the three months ended September 30, 2023. Additionally:
    • The Company recorded nominal debt extinguishment related costs during the three months ended September 30, 2024, as compared to $6.0 million during the three months ended September 30, 2023.
    • The amortization of deferred financing fees was $2.0 million during the three months ended September 30, 2024, as compared to $1.9 million during the three months ended September 30, 2023.
  • Dividend income and fair value loss on financial assets measured at fair value through profit or loss, net includes $2.0 million of dividends received and an unrealized loss of $1.1 million for the three months ended September 30, 2024 related to the investment in DHT. During the third quarter of 2024, the Company invested $89.1 million for a passive, minority interest in DHT, a publicly traded crude tanker shipping company which owns a fleet of 28 Very Large Crude Carriers. The Company purchased 7,982,480 common shares in DHT, or 4.9% of the outstanding shares, in the open market at an average price of $11.17 per share during this period.
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(unaudited)
  
  For the three months ended September 30, For the nine months ended September 30,
In thousands of U.S. dollars except per share and share data 2024   2023   2024   2023 
Revenue       
 Vessel revenue$267,986  $291,179  $1,039,982  $1,004,909 
         
Operating expenses       
 Vessel operating costs (80,943)  (79,113)  (238,335)  (231,645)
 Voyage expenses (9,785)  (1,985)  (18,547)  (10,998)
 Depreciation - owned or sale leaseback vessels (45,512)  (47,016)  (140,099)  (129,704)
 Depreciation - right of use assets    (4,136)     (22,139)
 General and administrative expenses (29,991)  (24,647)  (97,188)  (74,127)
 Gain on sales of vessels 69,306   7,127   123,961   7,127 
 Total operating expenses (96,925)  (149,770)  (370,208)  (461,486)
Operating income  171,061   141,409   669,774   543,423 
Other (expenses) and income, net       
 Financial expenses (20,883)  (49,698)  (91,204)  (136,950)
 Financial income 2,859   6,071   12,977   14,615 
 Share of income from dual fuel tanker joint venture 3,706   2,544   6,552   4,940 
 Dividend income and fair value loss on financial assets measured at fair value through profit or loss, net 957      957    
 Other income and (expenses), net 1,005   42   1,161   (20)
 Total other expense, net (12,356)  (41,041)  (69,557)  (117,415)
Net income$158,705  $100,368  $600,217  $426,008 
         
Earnings per share       
         
 Basic$3.31  $2.01  $12.18  $8.00 
 Diluted$3.16  $1.93  $11.62  $7.68 
 Basic weighted average shares outstanding 47,941,734   49,906,783   49,285,618   53,235,165 
 Diluted weighted average shares outstanding (1) 50,150,721   51,943,617   51,644,038   55,482,321 
                 
(1) The computation of diluted earnings per share for the three and nine months ended September 30, 2024 and 2023, includes the effect of potentially dilutive unvested shares of restricted stock.
                 


Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
 
 As of
In thousands of U.S. dollarsSeptember 30, 2024 December 31, 2023
Assets   
Current assets   
Cash and cash equivalents$201,001  $355,551 
Financial assets measured at fair value through profit or loss 88,047    
Accounts receivable 169,893   203,500 
Prepaid expenses and other current assets 11,632   10,213 
Inventories 8,578   7,816 
Assets held for sale 56,464    
Total current assets 535,615   577,080 
Non-current assets   
Vessels and drydock 3,244,876   3,577,935 
Other assets 59,485   65,440 
Goodwill 8,197   8,197 
Total non-current assets 3,312,558   3,651,572 
Total assets$3,848,173  $4,228,652 
Current liabilities   
Current portion of long-term debt$126,422  $220,965 
Lease liability - sale and leaseback vessels 8,543   206,757 
Accounts payable 32,553   10,004 
Accrued expenses and other liabilities 74,441   72,678 
Total current liabilities 241,959   510,404 
Non-current liabilities   
Long-term debt 699,537   939,188 
Lease liability - sale and leaseback vessels 66,921   221,380 
Other long-term liabilities    3,974 
Total non-current liabilities 766,458   1,164,542 
Total liabilities 1,008,417   1,674,946 
Shareholders' equity   
Issued, authorized and fully paid-in share capital:   
Share capital 760   745 
Additional paid-in capital 3,143,101   3,097,054 
Treasury shares (1,427,942)  (1,131,225)
Retained earnings 1,123,837   587,132 
Total shareholders' equity 2,839,756   2,553,706 
Total liabilities and shareholders' equity$3,848,173  $4,228,652 


Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(unaudited)
 
 For the nine months ended September 30,
In thousands of U.S. dollars 2024   2023 
Operating activities   
Net income$600,217  $426,008 
Depreciation - owned or sale leaseback vessels 140,099   129,704 
Depreciation - right of use assets    22,139 
Equity settled share based compensation expense 46,062   28,838 
Amortization of deferred financing fees 7,714   4,491 
Non-cash debt extinguishment costs 3,010   6,126 
Net gain on sales of vessels (123,961)  (7,127)
Accretion of fair value measurement on debt assumed in business combinations 62   956 
Fair value loss on financial assets measured at fair value through profit or loss 1,091    
Share of income and gain on sale of vessel from dual fuel tanker joint venture (6,552)  (4,940)
Dividend from DHT Holdings, Inc. (2,047)   
  665,695   606,195 
Changes in assets and liabilities:   
(Increase) / decrease in inventories (762)  6,640 
Decrease in accounts receivable 36,407   84,153 
Increase in prepaid expenses and other current assets (1,419)  (1,214)
Decrease in other assets 1,600   2,549 
Increase / (decrease) in accounts payable 16,733   (5,658)
Decrease in accrued expenses (6,312)  (12,998)
  46,247   73,472 
Net cash inflow from operating activities 711,942   679,667 
Investing activities   
Net proceeds from sales of vessels 324,844   32,186 
Distributions from dual fuel tanker joint venture 7,816   1,489 
Investment in dual fuel tanker joint venture (1,937)   
Investment in DHT Holdings, Inc. (89,137)   
Dividend from DHT Holdings, Inc. 2,047    
Drydock, scrubber, ballast water treatment system and other vessel related payments (owned and leased financed vessels) (54,324)  (17,101)
Net cash inflow from investing activities 189,309   16,574 
Financing activities   
Debt repayments (794,232)  (774,892)
Issuance of debt 99,000   1,011,632 
Debt issuance costs (340)  (28,742)
Principal repayments on lease liability - IFRS 16    (399,485)
Dividends paid (63,512)  (39,072)
Repurchase of common stock (296,717)  (477,644)
Net cash outflow from financing activities (1,055,801)  (708,203)
Decrease in cash and cash equivalents (154,550)  (11,962)
Cash and cash equivalents at January 1, 355,551   376,870 
Cash and cash equivalents at September 30,$201,001  $364,908 
 


Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three and nine months ended September 30, 2024 and 2023
(unaudited)
 
   For the three months ended September 30,  For the nine months ended September 30,
    2024  2023  2024  2023 
 Adjusted EBITDA(1) (in thousands of U.S. dollars except Fleet Data) $166,080 $200,284 $736,866 $721,897 
          
 Average Daily Results        
 Fleet        
 TCE per revenue day (2) $28,488 $28,313 $35,822 $32,631 
 Vessel operating costs per day (3) $8,395 $7,669 $8,047 $7,529 
 Average number of vessels  104.8  112.1  108.1  112.7 
          
 LR2        
 TCE per revenue day (2) $36,288 $29,856 $44,751 $37,509 
 Vessel operating costs per day (3) $9,043 $8,129 $8,860 $7,901 
 Average number of vessels  39.0  39.0  39.0  39.0 
          
 MR        
 TCE per revenue day (2) $24,823 $28,587 $31,665 $30,218 
 Vessel operating costs per day (3) $8,092 $7,393 $7,639 $7,356 
 Average number of vessels  51.8  59.1  55.1  59.7 
          
 Handymax        
 TCE per revenue day (2) $19,605 $22,875 $26,904 $29,292 
 Vessel operating costs per day (3) $7,705 $7,568 $7,380 $7,246 
 Average number of vessels  14.0  14.0  14.0  14.0 
          
 Capital Expenditures        
 Drydock, scrubber, ballast water treatment system and other vessel related payments (in thousands of U.S. dollars) $30,448 $3,556 $54,324 $17,101 
  
(1)See Non-IFRS Measures section below.
(2)Freight rates are commonly measured in the shipping industry in terms of time charter equivalent per day (or TCE per day), which is calculated by subtracting voyage expenses, including bunkers and port charges, from vessel revenue and dividing the net amount (time charter equivalent revenues) by the number of revenue days in the period. Revenue days are the number of days vessels are part of the fleet less the number of days vessels are off-hire for drydock and repairs.
(3)Vessel operating costs per day represent vessel operating costs divided by the number of operating days during the period. Operating days are the total number of available days in a period with respect to vessels that are owned, operating under a lease financing arrangement, or bareboat chartered-in, before deducting available days due to off-hire days and days in drydock. Operating days is a measurement that is only applicable to vessels that are owned, operating under a lease financing arrangement, or bareboat chartered-in, not time chartered-in vessels.


Fleet list as of October 29, 2024
 
 Vessel Name Year Built DWT Ice class Employment Vessel type Scrubber 
 Owned and sale leaseback vessels         
1STI Brixton 2014 38,734 1A SHTP (1) Handymax N/A 
2STI Comandante 2014 38,734 1A SHTP (1) Handymax N/A 
3STI Pimlico 2014 38,734 1A SHTP (1) Handymax N/A 
4STI Hackney 2014 38,734 1A SHTP (1) Handymax N/A 
5STI Acton 2014 38,734 1A SHTP (1) Handymax N/A 
6STI Fulham 2014 38,734 1A SHTP (1) Handymax N/A 
7STI Camden 2014 38,734 1A SHTP (1) Handymax N/A 
8STI Battersea 2014 38,734 1A SHTP (1) Handymax N/A 
9STI Wembley 2014 38,734 1A SHTP (1) Handymax N/A 
10STI Finchley 2014 38,734 1A SHTP (1) Handymax N/A 
11STI Clapham 2014 38,734 1A SHTP (1) Handymax N/A 
12STI Poplar 2014 38,734 1A SHTP (1) Handymax N/A 
13STI Hammersmith 2015 38,734 1A SHTP (1) Handymax N/A 
14STI Rotherhithe 2015 38,734 1A SHTP (1) Handymax N/A 
15STI Duchessa 2014 49,990  Time Charter (5) MR No 
16STI Opera 2014 49,990  SMRP (2) MR No 
17STI Texas City 2014 49,990  SMRP (2) (7) MR Yes 
18STI Meraux 2014 49,990  SMRP (2) MR Yes 
19STI San Antonio 2014 49,990  SMRP (2) (7) MR Yes 
20STI Venere 2014 49,990  SMRP (2) MR Yes 
21STI Virtus 2014 49,990  SMRP (2) MR Yes 
22STI Aqua 2014 49,990  SMRP (2) MR Yes 
23STI Dama 2014 49,990  SMRP (2) MR Yes 
24STI Regina 2014 49,990  SMRP (2) MR Yes 
25STI St. Charles 2014 49,990  SMRP (2) MR Yes 
26STI Mayfair 2014 49,990  SMRP (2) MR Yes 
27STI Yorkville 2014 49,990  SMRP (2) MR Yes 
28STI Milwaukee 2014 49,990  SMRP (2) MR Yes 
29STI Battery 2014 49,990  SMRP (2) MR Yes 
30STI Soho 2014 49,990  SMRP (2) MR Yes 
31STI Memphis 2014 49,990  Time Charter (6) MR Yes 
32STI Gramercy 2015 49,990  SMRP (2) MR Yes 
33STI Bronx 2015 49,990  SMRP (2) MR Yes 
34STI Pontiac 2015 49,990  SMRP (2) MR Yes 
35STI Queens 2015 49,990  SMRP (2) MR Yes 
36STI Osceola 2015 49,990  SMRP (2) MR Yes 
37STI Notting Hill 2015 49,687 1B SMRP (2) MR Yes 
38STI Seneca 2015 49,990  SMRP (2) MR Yes 
39STI Westminster 2015 49,687 1B SMRP (2) MR Yes 
40STI Brooklyn 2015 49,990  SMRP (2) MR Yes 
41STI Black Hawk 2015 49,990  SMRP (2) MR Yes 
42STI Galata 2017 49,990  SMRP (2) MR Yes 
43STI Bosphorus 2017 49,990  SMRP (2) MR No 
44STI Leblon 2017 49,990  SMRP (2) MR Yes 
45STI La Boca 2017 49,990  SMRP (2) MR Yes 
46STI San Telmo 2017 49,990 1B SMRP (2) MR No 
47STI Donald C Trauscht 2017 49,990 1B SMRP (2) MR No 
48STI Esles II 2018 49,990 1B SMRP (2) MR No 
49STI Jardins 2018 49,990 1B Time Charter (8) MR No 
50STI Magic 2019 50,000  SMRP (2) MR Yes 
51STI Mystery 2019 50,000  SMRP (2) MR Yes 
52STI Marvel 2019 50,000  SMRP (2) MR Yes 
53STI Magnetic 2019 50,000  Time Charter (9) MR Yes 
54STI Millennia 2019 50,000  SMRP (2) MR Yes 
55STI Magister 2019 50,000  SMRP (2) MR Yes 
56STI Mythic 2019 50,000  SMRP (2) MR Yes 
57STI Marshall 2019 50,000  Time Charter (10) MR Yes 
58STI Modest 2019 50,000  SMRP (2) MR Yes 
59STI Maverick 2019 50,000  SMRP (2) MR Yes 
60STI Miracle 2020 50,000  Time Charter (11) MR Yes 
61STI Maestro 2020 50,000  SMRP (2) MR Yes 
62STI Mighty 2020 50,000  SMRP (2) MR Yes 
63STI Maximus 2020 50,000  SMRP (2) MR Yes 
64STI Elysees 2014 109,999  SLR2P (3) LR2 Yes 
65STI Madison 2014 109,999  SLR2P (3) LR2 Yes 
66STI Park 2014 109,999  SLR2P (3) LR2 Yes 
67STI Orchard 2014 109,999  SLR2P (3) LR2 Yes 
68STI Sloane 2014 109,999  SLR2P (3) LR2 Yes 
69STI Broadway 2014 109,999  SLR2P (3) LR2 Yes 
70STI Condotti 2014 109,999  SLR2P (3) LR2 Yes 
71STI Rose 2015 109,999  SLR2P (3) LR2 Yes 
72STI Veneto 2015 109,999  SLR2P (3) LR2 Yes 
73STI Alexis 2015 109,999  MPL (4) LR2 Yes 
74STI Winnie 2015 109,999  SLR2P (3) LR2 Yes 
75STI Oxford 2015 109,999  SLR2P (3) LR2 Yes 
76STI Lauren 2015 109,999  SLR2P (3) LR2 Yes 
77STI Connaught 2015 109,999  Time Charter (12) LR2 Yes 
78STI Spiga 2015 109,999  MPL (4) LR2 Yes 
79STI Kingsway 2015 109,999  SLR2P (3) LR2 Yes 
80STI Solidarity 2015 109,999  SLR2P (3) LR2 Yes 
81STI Lombard 2015 109,999  Time Charter (13) LR2 Yes 
82STI Grace 2016 109,999  Time Charter (14) LR2 Yes 
83STI Jermyn 2016 109,999  Time Charter (15) LR2 Yes 
84STI Sanctity 2016 109,999  SLR2P (3) LR2 Yes 
85STI Solace 2016 109,999  SLR2P (3) LR2 Yes 
86STI Stability 2016 109,999  SLR2P (3) LR2 Yes 
87STI Steadfast 2016 109,999  SLR2P (3) LR2 Yes 
88STI Supreme 2016 109,999  SLR2P (3) LR2 Yes 
89STI Symphony 2016 109,999  SLR2P (3) LR2 Yes 
90STI Gallantry 2016 113,000  SLR2P (3) LR2 Yes 
91STI Goal 2016 113,000  SLR2P (3) LR2 Yes 
92STI Guard 2016 113,000  Time Charter (16) LR2 Yes 
93STI Guide 2016 113,000  Time Charter (17) LR2 Yes 
94STI Selatar 2017 109,999  SLR2P (3) LR2 Yes 
95STI Rambla 2017 109,999  SLR2P (3) LR2 Yes 
96STI Gauntlet 2017 113,000  Time Charter (18) LR2 Yes 
97STI Gladiator 2017 113,000  Time Charter (17) LR2 Yes 
98STI Gratitude 2017 113,000  Time Charter (19) LR2 Yes 
99STI Lobelia 2019 110,000  SLR2P (3) LR2 Yes 
100STI Lotus 2019 110,000  SLR2P (3) LR2 Yes 
101STI Lily 2019 110,000  SLR2P (3) (7) LR2 Yes 
102STI Lavender 2019 110,000  Time Charter (20) LR2 Yes 
               
 Total Fleet DWT   7,302,292         
               


(1) This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP. SHTP is operated by Scorpio Commercial Management S.A.M. (SCM). SHTP and SCM are related parties to the Company.
(2) This vessel operates in the Scorpio MR Pool, or SMRP. SMRP is operated by SCM. SMRP and SCM are related parties to the Company.
(3) This vessel operates in the Scorpio LR2 Pool, or SLR2P. SLR2P is operated by SCM. SLR2P and SCM are related parties to the Company.
(4) This vessel operates in the Mercury Pool Limited, or MPL. MPL is operated by SCM. MPL and SCM are related parties to the Company.
(5) This vessel commenced a time charter in October 2022 for three years at an average rate of $25,000 per day.
(6) This vessel commenced a time charter in June 2022 for three years at an average rate of $21,000 per day. The daily rate is the average rate over the three-year period, which is payable during the first six months at $30,000 per day, the next six months are payable at $20,000 per day, and years two and three are payable at $19,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $22,500 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $24,000 per day.
(7) The Company has entered into an agreement to sell this vessel which is expected to close in the fourth quarter of 2024.
(8) This vessel commenced a time charter in October 2024 for three years at a rate of $29,550 per day.
(9) This vessel commenced a time charter in July 2022 for three years at an average rate of $23,000 per day. The daily rate is the average rate over the three-year period, which is payable in years one, two, and three at $30,000 per day, $20,000 per day, and $19,000 per day, respectively. The charterers have the option to extend the term of this agreement for an additional year at $24,500 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $26,000 per day.
(10) This vessel commenced a time charter in July 2022 for three years at a rate of $23,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $24,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $25,000 per day. If this second option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $26,000 per day.
(11) This vessel commenced a time charter in August 2022 for three years at a rate of $21,000 per day. The daily rate is the average rate over the three-year period, which is payable during the first six months at $30,000 per day, the next six months are payable at $20,000 per day, and years two and three are payable at $19,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $22,500 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $24,000 per day.
(12) In April 2023, STI Connaught replaced STI Goal on a time charter which initially commenced in August 2022 for three years at a rate of $30,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $32,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $34,000 per day.
(13) This vessel commenced a time charter in September 2022 for three years at an average rate of $32,750 per day. The charterer has the option to extend the term of this agreement for an additional year at $34,750 per day. If this option is declared, the charterer has the option to further extend the term of this agreement for an additional year at $36,750 per day.
(14) This vessel commenced a time charter in December 2022 for three years at an average rate of $37,500 per day. The daily rate is the average rate over the three-year period, which is payable during the first six months at $47,000 per day, the next 6 months are payable at $28,000 per day, and years two and three are payable at $37,500 per day.
(15) This vessel commenced a time charter in April 2023 for three years at a rate of $40,000 per day. The charterer has the option to extend the term of this agreement for an additional year at $42,500 per day.
(16) This vessel commenced a time charter in July 2022 for five years at a rate of $28,000 per day.
(17) This vessel commenced a time charter in July 2022 for three years at an average rate of $28,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $31,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $33,000 per day.
(18) This vessel commenced a time charter in November 2022 for three years at an average rate of $32,750 per day.
(19) This vessel commenced a time charter in May 2022 for three years at an average rate of $28,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $31,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $33,000 per day.
(20) This vessel commenced a time charter in December 2022 for three years at an average rate of $35,000 per day.
   

Dividend Policy

The declaration and payment of dividends is subject at all times to the discretion of the Company's Board of Directors. The timing and the amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

The Company's dividends paid during 2023 and 2024 were as follows:

 Date paidDividend per common
share
 
 March 2023$0.20 
 June 2023$0.25 
 September 2023$0.25 
 December 2023$0.35 
 March 2024$0.40 
 June 2024$0.40 
 September 2024$0.40 
    

On October 28, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of December 13, 2024 to all shareholders of record as of November 22, 2024 (the record date). As of October 28, 2024, there were 50,525,001 common shares of the Company outstanding.

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 8.6 years. The Company has entered into agreements to sell three of its vessels (two MR tankers and an LR2 tanker), 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. Information on the Company’s website does not constitute a part of and is not incorporated by reference into this press release.

Non-IFRS Measures

Reconciliation of IFRS Financial Information to Non-IFRS Financial Information

This press release describes time charter equivalent revenue, or TCE revenue, adjusted net income or loss, and adjusted EBITDA, which are not measures prepared in accordance with IFRS ("Non-IFRS" measures). The Non-IFRS measures are presented in this press release as we believe that they provide investors and other users of our financial statements, such as our lenders, with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-IFRS measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

The Company believes that the presentation of TCE revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA are useful to investors or other users of our financial statements, such as our lenders, because they facilitate the comparability and the evaluation of companies in the Company’s industry. In addition, the Company believes that TCE revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA are useful in evaluating its operating performance compared to that of other companies in the Company’s industry. The Company’s definitions of TCE revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries.

TCE revenue, on a historical basis, is reconciled above in the section entitled "Explanation of Variances on the Third Quarter of 2024 Financial Results Compared to the Third Quarter of 2023". The Company has not provided a reconciliation of forward-looking TCE revenue because the most directly comparable IFRS measure on a forward-looking basis is not available to the Company without unreasonable effort.

Reconciliation of Net Income to Adjusted Net Income

   For the three months ended September 30, 2024 
     Per share Per share 
In thousands of U.S. dollars except per share data Amount  basic  diluted  
 Net income $158,705  $3.31  $3.16  
 Adjustments:       
 Gain on sales of vessels  (69,306)  (1.45)  (1.38) 
 Gain on sale of vessel within joint venture  (2,821)  (0.06)  (0.06) 
 Fair value loss on financial assets measured at fair value through profit or loss  1,091   0.02   0.02  
 Adjusted net income $87,669  $1.83 (1)$1.75 (1)
  
 (1) Summation difference due to rounding
  


   For the three months ended September 30, 2023
     Per share Per share
In thousands of U.S. dollars except per share data Amount  basic  diluted
 Net income $100,368  $2.01  $1.93 
 Adjustments:      
 Write-offs of deferred financing fees and debt extinguishment costs  5,999  $0.12  $0.12 
 Gain on sales of vessels  (7,127)  (0.14)  (0.14)
 Adjusted net income $99,240  $1.99  $1.91 
  


   For the nine months ended September 30, 2024 
     Per share Per share 
In thousands of U.S. dollars except per share data Amount basic diluted 
 Net income $600,217  $12.18  $11.62  
 Adjustments:       
 Write-offs of deferred financing fees and debt extinguishment costs  8,072   0.16   0.16  
 Gain on sales of vessels  (123,961)  (2.52)  (2.40) 
 Gain on sale of vessel within joint venture  (2,821)  (0.06)  (0.05) 
 Fair value loss on financial assets measured at fair value through profit or loss  1,091   0.02   0.02  
 Adjusted net income $482,598  $9.79 (1)$9.34 (1)
  
 (1) Summation difference due to rounding
  


   For the nine months ended September 30, 2023 
     Per share Per share 
In thousands of U.S. dollars except per share data Amount basic diluted 
 Net income $426,008  $8.00  $7.68  
 Adjustments:       
 Write-offs of deferred financing fees and debt extinguishment costs  9,253   0.17   0.17  
 Gain on sales of vessels  (7,127) $(0.13) $(0.13) 
 Adjusted net income $428,134  $8.04  $7.72  
  

Reconciliation of Net Income to Adjusted EBITDA

   For the three months ended September 30, For the nine months ended September 30,
In thousands of U.S. dollars  2024   2023   2024   2023 
 Net Income $158,705  $100,368  $600,217  $426,008 
 Financial expenses  20,883   49,698   91,204   136,950 
 Financial income  (2,859)  (6,071)  (12,977)  (14,615)
 Depreciation - owned or lease financed vessels  45,512   47,016   140,099   129,704 
 Depreciation - right of use assets     4,136      22,139 
 Equity settled share based compensation expense  16,923   12,264   46,062   28,838 
 Gain on sales of vessels  (69,306)  (7,127)  (123,961)  (7,127)
 Gain on sale of vessel within joint venture  (2,821)     (2,821)   
 Dividend income and fair value loss on financial assets measured at fair value through profit or loss, net  (957)     (957)   
 Adjusted EBITDA $166,080  $200,284  $736,866  $721,897 
  

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

What was Scorpio Tankers (STNG) net income for Q3 2024?

Scorpio Tankers reported net income of $158.7 million ($3.31 basic EPS) for Q3 2024.

What dividend did STNG declare for Q3 2024?

Scorpio Tankers declared a quarterly cash dividend of $0.40 per share, payable on December 13, 2024.

How much was STNG's TCE revenue in Q3 2024 compared to Q3 2023?

TCE revenue decreased to $258.2 million in Q3 2024 from $289.2 million in Q3 2023.

What was STNG's cash position as of October 25, 2024?

The company had $220.5 million in unrestricted cash and $288.2 million available under credit facilities.

Scorpio Tankers Inc.

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