Scorpio Tankers (NYSE:STNG) Posts Earnings Results, Beats Estimates 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 business had revenue of $312.86 million for the quarter, compared to the consensus estimate of $286.81 million. During the same period last year, the business earned $1.03 EPS. The firm’s revenue 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

NYSE STNG traded up $1.98 during trading on Thursday, hitting $84.54. The company’s stock had a trading volume of 377,474 shares, compared to its average volume of 1,185,098. The company has a quick ratio of 9.23, a current ratio of 9.33 and a debt-to-equity ratio of 0.19. The firm has a 50 day moving average price of $75.31 and a 200 day moving average price of $64.93. The firm has a market cap of $4.26 billion, a P/E ratio of 8.32 and a beta of -0.24. Scorpio Tankers has a 52 week low of $37.96 and a 52 week high of $87.39.

Scorpio Tankers Announces Dividend

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Global Retirement Partners LLC increased its position in Scorpio Tankers by 1,645.2% in the 4th quarter. Global Retirement Partners LLC now owns 541 shares of the shipping company’s stock worth $27,000 after buying an additional 510 shares during the period. Zions Bancorporation National Association UT bought a new position in Scorpio Tankers in the 4th quarter worth approximately $29,000. Smartleaf Asset Management LLC increased its position in Scorpio Tankers by 154.3% in the 4th quarter. Smartleaf Asset Management LLC now owns 646 shares of the shipping company’s stock worth $33,000 after buying an additional 392 shares during the period. Quantbot Technologies LP bought a new position in Scorpio Tankers in the 3rd quarter worth approximately $36,000. Finally, Larson Financial Group LLC increased its position in Scorpio Tankers by 122.8% in the 3rd quarter. Larson Financial Group LLC now owns 851 shares of the shipping company’s stock worth $48,000 after buying an additional 469 shares during the period. 54.64% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on STNG. Evercore set a $96.00 price objective on Scorpio Tankers in a research note on Tuesday. Bank of America raised Scorpio Tankers from an “underperform” rating to a “buy” rating and raised their price objective for the company from $76.00 to $100.00 in a research note on Thursday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $83.00 price objective on shares of Scorpio Tankers in a research note on Friday, February 13th. Wall Street Zen raised Scorpio Tankers from a “hold” rating to a “buy” rating in a research note on Saturday, April 11th. Finally, BTIG Research raised their price objective on Scorpio Tankers from $85.00 to $100.00 and gave the company a “buy” rating in a research note on Tuesday. Six research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $93.17.

Scorpio Tankers Company Profile

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.