Scorpio Tankers Inc. Announces Purchase of Call Options by the President of the Company

Rhea-AI Summary

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.

Positive

• President's $1.5 million investment in call options shows confidence in the company's future
• Large-scale option purchase of 234,300 shares indicates bullish outlook

Negative

• None.

Insights

Financial Analyst

The purchase of call options by Scorpio Tankers' President, Robert Bugbee, is a significant insider move that warrants attention. Investing $1.5 million in call options with a $67.50 strike price expiring in January 2025 signals strong confidence in the company's future performance. This action aligns the executive's interests more closely with shareholders, potentially indicating positive expectations for the stock price.

The options cover 234,300 shares, representing a substantial stake. If the stock price exceeds $67.50 by expiration, Bugbee stands to profit, incentivizing him to drive company performance. However, investors should note that options are risky; if the stock doesn't reach the strike price, the investment could be lost.

This move may be interpreted as a bullish signal for STNG, possibly reflecting insider optimism about the tanker market or company-specific factors. Nonetheless, retail investors should conduct their own due diligence and consider broader market conditions before making investment decisions based on this insider activity.

MONACO, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced that the President of the Company, Robert Bugbee, has purchased call options on an aggregate of 234,300 common shares (or 2,343 call option contracts) of the Company for total consideration of $1.5 million. The call option contracts have a strike price of $67.50 and an expiration of January 2025.

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 epidemic 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 in Israel and Gaza, 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 call options did Scorpio Tankers' (STNG) President purchase?

Scorpio Tankers' President, Robert Bugbee, purchased call options on 234,300 common shares, equivalent to 2,343 call option contracts.

What is the strike price and expiration date for the STNG call options purchased?

The call options have a strike price of $67.50 and an expiration date in January 2025.

How much did Scorpio Tankers' (STNG) President invest in the call options?

Robert Bugbee invested a total of $1.5 million in the call options on Scorpio Tankers' common shares.

When did Scorpio Tankers (STNG) announce the purchase of call options by its President?

Scorpio Tankers announced the purchase of call options by its President on September 26, 2024.