Scorpio Tankers (NYSE:STNG) Issues Earnings Results, Beats Expectations By $0.29 EPS

Scorpio Tankers (NYSE:STNG) issued its quarterly earnings data on Tuesday. The shipping company reported $3.02 earnings per share for the quarter, beating analysts’ consensus estimates of $2.73 by $0.29, Zacks reports. Scorpio Tankers had a return on equity of 12.02% and a net margin of 48.44%.The company had revenue of $312.86 million for the quarter, compared to the consensus estimate of $286.81 million. During the same quarter last year, the company earned $1.03 earnings per share. The firm’s revenue for the quarter was up 46.2% compared to the same quarter last year.

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

• Scorpio reported a strong quarter with $214 million of adjusted EBITDA, declared a $0.45 quarterly dividend and a refreshed $500 million buyback authorization, while repurchasing shares earlier this year.
• The balance sheet is materially stronger—pro forma liquidity of roughly $2.5 billion (cash plus revolvers), a reduction of net debt by about $3.8 billion since 2021, and lower cost funding including a 1.75% convertible and a 120bp 7?year bank facility.
• Market fundamentals are supportive: product tanker rates are at unprecedented levels (avg. clean tanker earnings > $70,000/day), global inventory draws exceed ~80 million barrels, and an aging/slow?orderbook fleet should constrain supply and boost ton?mile demand.
• Geopolitical uncertainty around the Strait of Hormuz and volatile short?term trade routings create downside risk if transits normalize sooner than expected or demand patterns change, and the company maintains newbuilding commitments of roughly $641 million (mostly due 2027–2029).

Scorpio Tankers Stock Performance

STNG stock traded up $1.56 during trading on Thursday, hitting $84.12. 388,091 shares of the company traded hands, compared to its average volume of 1,185,268. The stock’s 50-day simple moving average is $75.31 and its 200 day simple moving average is $64.93. The company has a debt-to-equity ratio of 0.19, a current ratio of 9.33 and a quick ratio of 9.23. The company has a market cap of $4.24 billion, a PE ratio of 8.26 and a beta of -0.24. Scorpio Tankers has a 1 year low of $37.96 and a 1 year high of $87.39.

Scorpio Tankers Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, May 29th. Scorpio Tankers’s dividend payout ratio (DPR) is currently 25.46%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of STNG. Global Retirement Partners LLC raised its position in Scorpio Tankers by 1,645.2% during the fourth quarter. Global Retirement Partners LLC now owns 541 shares of the shipping company’s stock valued at $27,000 after acquiring an additional 510 shares in the last quarter. Zions Bancorporation National Association UT purchased a new position in Scorpio Tankers during the fourth quarter valued at approximately $29,000. Smartleaf Asset Management LLC raised its position in Scorpio Tankers by 154.3% during the fourth quarter. Smartleaf Asset Management LLC now owns 646 shares of the shipping company’s stock valued at $33,000 after acquiring an additional 392 shares in the last quarter. Quantbot Technologies LP purchased a new position in Scorpio Tankers during the third quarter valued at approximately $36,000. Finally, Larson Financial Group LLC raised its position in Scorpio Tankers by 122.8% during the third quarter. Larson Financial Group LLC now owns 851 shares of the shipping company’s stock valued at $48,000 after acquiring an additional 469 shares in the last quarter. 54.64% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on STNG shares. Evercore set a $96.00 price objective on Scorpio Tankers in a research note on Tuesday. Zacks Research upgraded Scorpio Tankers from a “strong sell” rating to a “hold” rating in a research note on Friday, February 13th. Jefferies Financial Group started coverage on Scorpio Tankers in a research note on Friday, April 24th. They issued a “buy” rating and a $90.00 price objective for the company. Moffett Nathanson upgraded Scorpio Tankers to a “neutral” rating in a research note on Monday, January 12th. Finally, Bank of America upgraded Scorpio Tankers from an “underperform” rating to a “buy” rating and raised their price objective for the stock from $76.00 to $100.00 in a research note on Thursday. Six equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $93.17.

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.