Scorpio Tankers Inc. announced today an update on its third quarter of 2026 average daily Time Charter Equivalent rates and that it has entered into agreements to time charter-out three product tankers.
Third Quarter 2026 TCE Rate Update
Below is a summary of the average daily 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 third quarter of 2026 as of the date hereof:
| Pool and Spot Market | Time Charters Out of the Pool | Bareboat Charter Out of the Pool | |||||||||||||
| Average Daily TCE Revenue (1) | Expected Revenue Days (2) | % of Days | Average Daily TCE Revenue (1) | Expected Revenue Days (2) | Average Daily Revenue | Expected Revenue Days (2) | % of Days | ||||||||
| LR2 | $ | 64,900 | 1,249 | 85 | % | $ | 30,800 | 902 | $ | — | — | 100 | % | ||
| MR | $ | 30,000 | 3,058 | 79 | % | $ | 28,000 | 95 | $ | 12,986 | 91 | 100 | % | ||
| Handymax | $ | 25,500 | 1,183 | 70 | % | $ | 23,000 | 91 | $ | — | — | 100 | % | ||
| (1) | Freight rates are commonly measured in the shipping industry in terms of time charter equivalent per day (or TCE per day), which is calculated by subtracting voyage expenses, including bunkers and port charges, from vessel revenue and dividing the net amount (time charter equivalent revenues) by the number of revenue days in the period. |
| (2) | 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. |
The above rates and coverage percentages are subject to change as the pool results, which include, but are not limited to, estimated results of voyages currently in progress, are finalized.
Time Charter-Out Agreements
The Company has recently entered into agreements to time charter-out two LR2 product tankers, STI Gladiator and STI Jermyn, and one MR product tanker, STI Pontiac. The agreements for STI Gladiator and STI Jermyn are each for a term of three years at rates of $40,188 per day and $42,500 per day, respectively. These time charters are expected to commence in September 2026. The agreement for STI Pontiac is for a term of three years at a rate of $23,900 per day. This time charter is expected to commence in the fourth quarter of 2026.
Third Quarter 2026 Diluted Shares Outstanding
The Company estimates that its fully diluted weighted average shares outstanding for the three months ended September 30, 2026 to be between 54.5 to 55.5 million shares.
Following the issuance of the Company’s 1.75% Convertible Senior Notes due 2031 (the “Convertible Notes”) in April and May 2026, the diluted weighted average number of shares for the three months and nine months ended September 30, 2026 includes the potentially dilutive effect of the Convertible Notes and restricted shares issued under the Company’s equity incentive plan.
The dilutive impact of the Convertible Notes is determined using the if-converted method, which assumes that the Convertible Notes were converted into common shares at the beginning of the period (or, at the date of issuance, if issued during the period). Under the if-converted method, net income is adjusted to add back the interest expense and other non-cash amortization expense associated with the Convertible Notes, while the weighted average number of shares outstanding is increased by the potential number of shares issuable upon conversion.
The estimated diluted shares outstanding provided herein is preliminary and subject to change as the calculation is partially dependent upon the average price of the Company’s common stock during the period. Conversion will not be assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive.