Scorpio Tankers Inc. reported its results for the three months ended March 31, 2026. The Company also announced that its board of directors has declared a quarterly cash dividend on its common shares of $0.45 per share and authorized the replenishment of the 2023 Securities Repurchase Program to $500.0 million.
Results for the three months ended March 31, 2026 and 2025
For the three months ended March 31, 2026, the Company had net income of $216.3 million, or $4.58 basic and $4.32 diluted earnings per share.
For the three months ended March 31, 2026, the Company had adjusted net income (see Non-IFRS Measures section below) of $150.9 million, or $3.20 basic and $3.02 diluted earnings per share, which excludes from net income (i) a $65.9 million, or $1.40 per basic and $1.32 per diluted share, gain on sales of vessels and (ii) a $0.5 million, or $0.01 per basic and diluted share, write-off of deferred financing fees.
For the three months ended March 31, 2025, the Company had net income of $58.2 million, or $1.26 basic and $1.22 diluted earnings per share.
For the three months ended March 31, 2025, the Company had adjusted net income (see Non-IFRS Measures section below) of $49.0 million, or $1.06 basic and $1.03 diluted earnings per share, which excludes from net income (i) a $9.4 million, or $0.20 per basic and per diluted share, fair value gain on financial assets measured at fair value, and (ii) a $0.3 million, or $0.01 per basic and diluted share, loss on the extinguishment of debt and write-offs of deferred financing fees.
Declaration of Dividend
On May 4, 2026, the Board of Directors declared a quarterly cash dividend of $0.45 per common share, with a payment date of June 15, 2026 to all shareholders of record as of May 29, 2026 (the record date). As of May 4, 2026, there were 50,417,981 common shares of the Company issued and outstanding.
Summary of First Quarter 2026 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 second quarter of 2026 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 | Bareboat Charter Out of the Pool | |||||||||||||
| Average Daily TCE Revenue | Expected Revenue Days(1) | % of Days | Average Daily TCE Revenue | Expected Revenue Days(1) | Average Daily Revenue | Expected Revenue Days(1) | % of Days | ||||||||
| LR2 | $ | 96,000 | 1,708 | 41 | % | $ | 30,300 | 1,088 | $ | — | — | 100 | % | ||
| MR | $ | 66,000 | 2,974 | 53 | % | $ | 26,500 | 324 | $ | 12,986 | 90 | 100 | % | ||
| Handymax | $ | 61,000 | 1,170 | 47 | % | $ | 23,000 | 90 | $ | — | — | 100 | % | ||
(1) Expected Revenue Days are the total number of calendar days in the quarter for each vessel, less the total number of estimated off-hire days during the period associated with 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 Expected Revenue days. The Company uses Expected 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 first quarter of 2026:
| Average Daily TCE Revenue | ||||||
| Vessel class | Pool / Spot | Time Charters | Daily Bareboat Charter Rate | |||
| LR2 | $ | 50,830 | $ | 30,775 | $ | — |
| MR | $ | 33,633 | $ | 26,742 | $ | 12,986 |
| Handymax | $ | 35,740 | $ | 22,901 | $ | — |
- In April 2026, the Company received a commitment from Bank of America for a credit facility of up to $50.0 million. The credit facility will be used to refinance two 2015 built LR2 product tankers, STI Rose and STI Alexis. The credit facility will have a final maturity of seven years from the drawdown date of each vessel and bears interest at SOFR plus a margin of 1.20% per annum. The remaining terms and conditions of this credit facility, including financial covenants, are similar to those set forth in the Company’s existing credit facilities. The credit facility is subject to customary conditions precedent and is expected to close within the second quarter of 2026.
- In April 2026, the Company issued $375.0 million aggregate principal amount of convertible senior notes due 2031 bearing interest at a coupon rate of 1.75% and maturing on April 15, 2031, unless earlier converted, repurchased, or redeemed (the “Convertible Notes”, as described further below). This amount includes the full exercise of the initial purchasers’ option to purchase an additional $50.0 million in aggregate principle amount of the Convertible Notes in connection with the Offering. The Company concurrently repurchased 1,344,809 shares of the Company’s common stock at $74.36 per share as part of the transaction.
- In April 2026, the Company entered into agreements to sell three 2014 built LR2 product tankers, STI Park, STI Sloane, and STI Madison, for $195 million in aggregate. The sales of these vessels are expected to close within the second quarter of 2026.There is no debt outstanding with respect to STI Park and STI Sloane and there is $10.7 million of debt outstanding on the 2023 $225.0 Million Revolving Credit Facility with respect to STI Madison.
- In March 2026, the Company entered into agreements to sell eight vessels including a 2015 built LR2 product tanker, STI Solidarity, for $60.0 million, four 2015 built MR product tankers, STI Seneca, STI Osceola, STI Brooklyn, and STI Black Hawk, for $140.0 million in aggregate, and three 2014 built MR product tankers, STI Aqua, STI Regina, and STI Opera, for $105.0 million in aggregate.The sales of STI Solidarity and STI Seneca closed in April 2026, and the remaining sales are expected to close during the second quarter of 2026.
- During the first quarter of 2026, the Company closed the sales of four vessels consisting of one 2019 built scrubber-fitted LR2 product tanker, STI Lavender, for $61.2 million, two 2016 built scrubber-fitted LR2 product tankers, STI Goal and STI Gallantry, for $52.3 million per vessel, and one 2015 built scrubber-fitted LR2 product tanker, STI Kingsway, for $57.5 million.
- In February 2026, the Company declared options to purchase two scrubber-fitted LR2 newbuilding product tankers that are to be constructed at Dalian Shipbuilding Industry Co., Ltd. in China for $68.5 million per vessel. Deliveries are expected in the third and fourth quarters of 2029.
- In March 2026, the Company commenced time charter-out agreements on two LR2 product tankers, STI Lombard for five years at a rate of $33,000 per day and STI Rambla for eight years at a rate of $30,500 per day.
Securities Repurchase Program
In April 2026, the Company repurchased 1,344,809 shares of its common stock, concurrently with the closing of the Convertible Notes in privately negotiated transactions at $74.36 per share.
As of May 1, 2026, there was $73.4 million available under the Company’s 2023 Securities Repurchase Program.
On May 4, 2026, the Board of Directors replenished and increased the 2023 Securities Repurchase Program to purchase up to an aggregate of $500.0 million of the Company’s securities, which currently include its common stock, Unsecured Senior Notes Due 2030, and Convertible Notes due 2031. This resets the program that was previously replenished on July 29, 2024.
As of May 5, 2026, there is $500.0 million available under the Company’s 2023 Securities Repurchase Program.
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. Potentially dilutive shares are excluded from the computation of earnings per share to the extent they are anti-dilutive.
For the three months ended March 31, 2026, the Company’s basic weighted average number of shares outstanding was 47,192,867. For the three months ended March 31, 2026, the Company’s diluted weighted average number of shares outstanding was 50,025,865, which included the potentially dilutive impact of restricted shares issued under the Company’s equity incentive plan.
Given the issuance of the Convertible Notes in April 2026 (as described below), diluted earnings per share will be calculated under the if-converted method in subsequent quarters.