Scorpio Tankers Inc. (NYSE: STNG) (“Scorpio Tankers” or the “Company”) today reported its results for the three months ended March 31, 2025. 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 March 31, 2025 and 2024
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.
For the three months ended March 31, 2024, the Company had net income of $214.2 million, or $4.29 basic and $4.11 diluted earnings per share.
For the three months ended March 31, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $206.6 million, or $4.14 basic and $3.97 diluted earnings per share, which excludes from net income (i) a $3.7 million, or $0.07 per basic and diluted share, loss on the extinguishment of debt and write-offs of deferred financing fees, and (ii) an $11.3 million, or $0.23 per basic and $0.22 per diluted share, gain on the sale of a vessel.
Declaration of Dividend
On April 30, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of June 16, 2025 to all shareholders of record as of May 30, 2025 (the record date). As of April 30, 2025, there were 51,016,290 common shares of the Company outstanding.
Summary of First Quarter 2025 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 2025 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 Revenue | Expected Revenue Days (1) | % of Days | Average Daily TCE Revenue | Expected Revenue Days (1) | % of Days | ||||||
| LR2 | $ | 34,000 | 2,480 | 49 | % | $ | 31,500 | 880 | 100 | % | |
| MR | $ | 21,000 | 3,570 | 41 | % | $ | 22,500 | 540 | 100 | % | |
| Handymax | $ | 23,000 | 1,179 | 33 | % | $ | 23,500 | 77 | 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 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 first quarter of 2025:
| Average Daily TCE Revenue | |||||
| Vessel class | Pool / Spot | Time Charters | |||
| LR2 | $ | 30,137 | $ | 31,059 | |
| MR | $ | 20,529 | $ | 23,011 | |
| Handymax | $ | 18,240 | N/A | ||
- In April 2025, the Company entered into a time charter-out agreement on a Handymax product tanker (STI Battersea) for a term of two years at an average rate of $24,000 per day.
- Since January 1, 2025, the charterers of three LR2s currently on long-term time charter-out agreements (STI Gratitude, STI Gladiator, and STI Guide) exercised the options to extend the terms of their charters, each for an additional year at $31,000 per day, commencing in May, July, and July 2025, respectively.
- In April 2025, the Company made a prepayment of $50.0 million under its 2023 $225.0 Million Revolving Credit Facility (formerly, the “2023 $225.0 Million Credit Facility”), which had been amended to become a revolving credit facility during 2024. This payment represents the 11 remaining quarterly installment payments due under this facility, with the exception of the balloon payment due at maturity. Under the amended terms, the Company has the ability to re-borrow the prepayment at amounts reducing by $4.5 million per quarter starting July 2025. After this repayment, there is $102.6 million outstanding and $50.0 million available to draw on this facility.
- In March 2025, the Company redeemed the outstanding balance of $70.6 million of its Unsecured Senior Notes Due 2025, which were scheduled to mature on June 30, 2025.
- In February 2025, the Company executed a revolving credit facility of up to $500.0 million with a group of financial institutions (the “2025 $500.0 Million Revolving Credit Facility”). The 2025 $500.0 Million Revolving Credit Facility is a 100% revolving loan, which has a final maturity of seven years from the signing date and gives the Company the flexibility to draw down or repay the loan during the loan tenor. The 2025 $500.0 Million Revolving Credit Facility bears interest at SOFR plus a margin of 1.85% per annum for any drawn amounts and a commitment fee of 0.74% per annum applies for any undrawn amounts. The 2025 $500.0 Million Revolving Credit Facility is collateralized by 26 product tankers and will amortize/reduce in quarterly installments (starting after the second anniversary of the signing date), with a balloon payment due at maturity.
- In January 2025, the Company successfully placed $200.0 million of new senior unsecured bonds in the Nordic bond market (the “Unsecured Senior Notes Due 2030”). The Unsecured Senior Notes Due 2030 are due to mature in January 2030 and bear interest at a fixed coupon rate of 7.50% per annum, payable semi-annually in arrears.
- Since January 1, 2025, the Company purchased an additional 4,295,218 common shares in DHT Holdings Inc. (“DHT”) at an average price of $10.67 per share. The Company also sold 700,000 common shares of DHT at an average price of $11.85 per share. The Company owns approximately 7.2% of the outstanding common shares of DHT as of the date of this press release.
Securities Repurchase Program
As of April 30, 2025, there is $173.4 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. These 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, 2025, the Company’s basic weighted average number of shares outstanding was 46,172,628. For the three months ended March 31, 2025, the Company’s diluted weighted average number of shares outstanding was 47,729,905, which included the potentially dilutive impact of restricted shares issued under the Company’s equity incentive plan.