Scorpio Tankers Inc. Announces Updates on its Securities Repurchase Program and Second Quarter 2024 Daily TCE Revenues
Scorpio Tankers (NYSE: STNG) announced updates regarding its securities repurchase program and Q2 2024 daily TCE revenues. The company repurchased 641,654 common shares at an average of $78.26 per share, leaving $199.8 million available under the 2023 Securities Repurchase Program as of June 14, 2024.
For Q2 2024, Scorpio Tankers provided estimates of average daily TCE revenues and revenue days for its vessels. Key metrics include:
- LR2 vessels: $55,000 TCE revenue per day over 2,575 revenue days (81% of days).
- MR vessels: $37,000 TCE revenue per day over 4,380 revenue days (88% of days).
- Handymax vessels: $28,000 TCE revenue per day over 1,225 revenue days (80% of days).
This data helps investors assess the company's performance and revenue potential irrespective of changes in charter types.
- Repurchase of 641,654 common shares at $78.26 per share, indicating confidence in stock value.
- Remaining $199.8 million available for further repurchases, providing flexibility and potential stock price support.
- High TCE revenue for LR2 vessels at $55,000 per day.
- Strong TCE revenue for MR vessels at $37,000 per day.
- Consistent Handymax TCE revenue at $28,000 per day.
- The reported TCE revenues and revenue days might not reflect actual future earnings.
- Potential risks of idle days or off-hire days affecting revenue.
- Repurchase program could signal growth opportunities for reinvestment in business expansion.
Insights
Scorpio Tankers' recent repurchase of 641,654 common shares at an average price of
Regarding the Second Quarter 2024 TCE Revenues, the data provided gives insight into the company's operational performance. The TCE revenue per vessel class, particularly the LR2 at
Overall, the company's ability to achieve high TCE rates and the significant funds remaining for share repurchases indicate a positive outlook for the stock. Investors should monitor the company's ongoing repurchase activities and TCE revenue trends as indicators of future profitability and shareholder value.
The disclosed TCE revenues offer a snapshot of Scorpio Tankers' market positioning and competitiveness. The higher TCE rates for LR2 vessels imply strong demand for this class, potentially driven by market dynamics such as fuel transportation needs and regional trade flows. The 88% and 80% revenue days for MR and Handymax classes respectively suggest high occupancy and efficient fleet utilization, which is essential for maintaining profitability in the shipping sector.
In the broader market context, these figures reflect well on Scorpio Tankers' ability to navigate the volatile shipping industry. Sustained high TCE revenues can indicate favorable chartering strategies and fleet management. It's also worth noting the strategic importance of balancing pool and spot market engagements with time charters, as this mix can mitigate risks associated with market fluctuations.
For retail investors, understanding the implications of high TCE rates is crucial. It signifies the company's effective response to market demands and its potential for stable revenue generation. However, investors should remain cautious of external factors such as geopolitical tensions, regulatory changes and macroeconomic conditions that could impact future TCE rates and overall performance.
MONACO, June 17, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced updates on its securities repurchase program and second quarter of 2024 daily TCE revenues.
Securities Repurchase Program
The Company recently repurchased 641,654 of its common shares in the open market at an average price of
Second Quarter of 2024 Daily Time Charter Equivalent (“TCE”) Revenues
Below is a summary of the estimated average daily Time Charter Equivalent (“TCE”) revenue 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 second quarter of 2024 as of the date hereof:
| Pool and Spot Market | Time Charters Out of the Pool | ||||||||||||
| Average Daily | Expected | % of | Average Daily | Expected | % of | ||||||||
| Vessel Class | TCE Revenue (1) | Revenue Days (2) | Days | TCE Revenue (1) | Revenue Days (2) | Days | |||||||
| LR2 | $ | 55,000 | 2,575 | 81 | % | $ | 30,750 | 900 | 100 | % | |||
| MR | $ | 37,000 | 4,380 | 88 | % | $ | 21,750 | 450 | 100 | % | |||
| Handymax | $ | 28,000 | 1,225 | 80 | % | n/a | n/a | n/a | |||||
(1) 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 charters, time charters, and pool charters), and it provides useful information to investors and management.
(2) 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 but is not employed, are included in revenue days. We use revenue days to show changes in net vessel revenues between periods.
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 108 product tankers (39 LR2 tankers, 55 MR tankers and 14 Handymax tankers) with an average age of 8.3 years. The Company has entered into agreements to sell six 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
What is the average repurchase price of Scorpio Tankers' shares in 2024?
How much funding remains in Scorpio Tankers' 2023 Securities Repurchase Program?
What is the estimated average daily TCE revenue for Scorpio Tankers' LR2 vessels in Q2 2024?
How many revenue days are expected for MR vessels in Q2 2024?
What percentage of days are Scorpio Tankers' Handymax vessels expected to be revenue-generating in Q2 2024?
