Scorpio Tankers (NYSE:STNG) Releases Quarterly Earnings Results, Misses Estimates By $0.46 EPS

Scorpio Tankers (NYSE:STNG) announced its quarterly earnings results on Thursday. The shipping company reported $4.68 EPS for the quarter, missing analysts’ consensus estimates of $5.14 by ($0.46), Zacks reports. Scorpio Tankers had a net margin of 48.44% and a return on equity of 11.72%. The company’s quarterly revenue was up 77.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.41 earnings per share.

Here are the key takeaways from Scorpio Tankers’ conference call:

• Record quarterly performance: Scorpio Tankers generated $300.5 million of adjusted EBITDA and $243.7 million of adjusted net income, while product tanker rates remained above $30,000 per day despite seasonal volume declines.
• Balance sheet and funding strengthened: Cash reached more than $1.9 billion, while low-cost convertible financing replaced higher-cost debt. Net debt has declined by $4.2 billion since 2021 to a net cash position of approximately $1.3 billion, and cash breakeven is below $11,000 per day.
• Shareholder returns continued: The company repurchased approximately $155 million of stock and declared a $0.45 quarterly dividend, returning more than $175 million to shareholders during the quarter.
• Management sees supportive long-term tanker fundamentals: Refinery capacity is increasingly located far from consumers, inventories have been drawn down, and rerouting and geopolitical disruptions are increasing ton-mile demand. An aging and sanctioned fleet, along with LR2 vessels trading in the crude market, is expected to keep effective product-tanker supply growth below the headline order book.
• Market conditions remain volatile and strategically flexible: Freight rates have moderated from early-year records, and the company does not expect geopolitical uncertainty to be predictable. Scorpio is moving some LR2s between clean and crude trades based on relative earnings and has approximately $978 million of remaining newbuilding and joint-venture commitments.

Scorpio Tankers Stock Performance

Scorpio Tankers stock traded down $1.76 during mid-day trading on Thursday, reaching $76.77. 407,588 shares of the company’s stock were exchanged, compared to its average volume of 1,064,198. The business’s fifty day simple moving average is $77.03 and its 200 day simple moving average is $73.87. The company has a quick ratio of 13.87, a current ratio of 13.98 and a debt-to-equity ratio of 0.16. Scorpio Tankers has a one year low of $43.78 and a one year high of $87.39. The firm has a market capitalization of $3.87 billion, a PE ratio of 7.54 and a beta of -0.24.

Scorpio Tankers Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, May 29th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, May 29th. This represents a $1.80 annualized dividend and a dividend yield of 2.3%. Scorpio Tankers’s dividend payout ratio (DPR) is currently 17.70%.

Institutional Investors Weigh In On Scorpio Tankers

Several large investors have recently modified their holdings of the stock. XTX Topco Ltd raised its stake in shares of Scorpio Tankers by 391.3% in the fourth quarter. XTX Topco Ltd now owns 37,100 shares of the shipping company’s stock valued at $1,886,000 after buying an additional 29,548 shares during the period. Voloridge Investment Management LLC purchased a new stake in Scorpio Tankers in the 4th quarter worth about $4,864,000. Twinbeech Capital LP purchased a new stake in Scorpio Tankers in the 4th quarter worth about $351,000. Quadrature Capital Ltd bought a new stake in Scorpio Tankers in the 4th quarter valued at about $243,000. Finally, Oxford Asset Management LLP bought a new stake in Scorpio Tankers in the 4th quarter valued at about $290,000. Hedge funds and other institutional investors own 54.64% of the company’s stock.

Analyst Ratings Changes

STNG has been the topic of several research analyst reports. Bank of America downgraded shares of Scorpio Tankers from a “buy” rating to an “underperform” rating and dropped their target price for the stock from $100.00 to $78.00 in a report on Tuesday, June 30th. Zacks Research raised shares of Scorpio Tankers from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 14th. Jefferies Financial Group started coverage on shares of Scorpio Tankers in a research report on Friday, April 24th. They issued a “buy” rating and a $90.00 price objective on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Scorpio Tankers in a research note on Thursday, June 18th. Finally, BTIG Research increased their target price on Scorpio Tankers from $85.00 to $100.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Scorpio Tankers has a consensus rating of “Moderate Buy” and a consensus price target of $88.14.

About Scorpio Tankers

Scorpio Tankers Inc (NYSE: STNG) is an independent provider of marine transportation services, specializing in the carriage of refined petroleum products. The company’s core operations focus on moving clean petroleum cargoes—such as gasoline, diesel, jet fuel and naphtha—on a global scale. By catering to both spot and time charter markets, Scorpio Tankers enables energy companies, refiners and traders to manage their supply chains with flexibility and reliability.

The company’s fleet is composed of modern, eco-designed product tankers, including medium range (MR) and long range (LR) vessels.